More than 500 jobs gone as Whyalla Steelworks closes blast furnace
Hundreds of workers will lose their jobs due to a decision to permanently shut down the blast furnace at South Australia’s Whyalla steelworks.
Workers at the Whyalla steelworks are set to face job losses as the blast furnace is permanently shut down. Administrators met with employees this morning to inform them of the decision. Premier Peter Malinauskas, currently in Whyalla, is expected to address the media within hours. The blast furnace, which has been offline since April, was used to transform iron-ore into liquid pig iron, which was then processed into steel.
Despite workers' efforts, the furnace could not be restarted. Administrators KordaMentha, along with state and federal governments, are working to finalize the sale of the business, which went into administration 19 months ago. The blast furnace's shutdown is a result of the administrators' attempts to stabilize the business and prevent further job losses.
South Australian Premier Malinauskas assured workers that they were not facing redundancy, as the administrators are committed to finding new job opportunities for them, including potential offers from BHP. Two bidders, Jindal Steel and M Resources, are vying for the steelworks, while BlueScope Steel maintains its right of last offer.
Malinauskas stated that a sale is still likely within the next three-and-a-half months, and the transaction is expected to be finalized by the end of the year, providing a significant financial boost to Whyalla for a new long-term future.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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