South Australian government commits $10-million support package to affected workers
Up to 500 employees and 100 labour hire workers will lose their jobs following the shutdown of the blast furnace at Whyalla in South Australia.
KordaMentha, the appointed administrator, said it was no longer sustainable to recover the blast furnace, following "extensive" attempts to restore operations over the past five months.
"We have taken the decision to close the blast furnace in the interests of safety and the long-term future of OneSteel Manufacturing," KordaMentha said in a statement on Monday.
Sebastian Hams, joint administrator, said the decision to close the blast furnace was "difficult... but necessary" as the company transitions to modern steelmaking technologies.
"This decision will regrettably have a major impact on OneSteel Manufacturing's workforce," Hams said.
"Our immediate priority is to support affected employees and contractors, provide clarity regarding available options, and engage openly and transparently with employees, unions, and other stakeholders throughout the consultation process. Safety remains our highest priority and will continue to guide every aspect of the transition."
The blast furnace was commissioned in 1965 and relined in 1972, 1981, and 2004. Hams said the blast furnace was "always intended to be replaced."
"The efforts of all at Whyalla to keep the blast furnace operating over many years, and then through the current attempted recovery process, should be commended," Hams added.
'Inevitable' closure
South Australian Premier Peter Malinauskas said the closure of the furnace was difficult, but "inevitable."
"The blast furnace at Whyalla is 60 years old and for many years has not had the investment it deserves through recent decades," Malinausakas said in a statement.
"It is only due to the Herculean efforts of the workers in Whyalla that it has survived this long."
The premier said the state government is focused on supporting impacted employees at Whyalla, and announced that it will be extending a $10-million support package to assist the workers, their families, and the broader community.
The state government has also mobilised a dedicated workforce transition response and established a transition centre to help workers move into new employment and build new skills.
"Our interventions in Whyalla will ensure workers affected by OneSteel's announcement will see their entitlements paid in full," Malinauskas said.
"Our economy is growing quickly with high demand for skilled labour and our joint $10-million support package will assist workers make the transition to new roles."
Meanwhile, the Australian Industry Group said the closure is a stark reminder to the government and regulators to "stop making it increasingly difficult for Australian businesses to invest, grow, and compete."
"Australia needs critical industrial capability to be able to stand on its own feet and not need to resort to subsidies or handouts at times when it needs new investment or to work through inevitable soft spots in the economic cycle," said AI Group chief executive Innes Willox.
