Advanced Search

Share Coverage



Category: States and Territories / Government and Politics / Steel

'No magic solution' to Arrium's woes

Tuesday, 12 Apr 2016 06:26:57

South Australia's Premier will meet with potential investors interested in Whyalla's steelworks. (ABC News: Nick Harmsen)

There is "no magic solution" to save Arrium's troubled Whyalla steelworks, an economist has said, as international buyers show an interest in the company.

Flinders University professor John Spoehr said he would not be surprised if a Chinese company was investigating taking over Arrium.

The company has debts of more than $4 billion and was placed into voluntary administration last week, putting more than 8,000 jobs at risk nationwide.

Professor Spoehr said it would be ironic but very welcome if Chinese investors came to the company's rescue.

"Unfortunately there is no magic solution," he said.

"It's really the slow down in China and the drop in commodity prices and the iron ore price that's revealed some underlying weaknesses in the Australian industry and exposed some of the difficulties that we are seeing unfolded now in Whyalla both with the steelworks and the mine.

"You imagine that there would be a bit of interest internationally from companies. It is just a question of what part of the Arrium empire they are interested in."

He said the company's mining and steelworks operations were underperforming but its Moly-Cop business was profitable.

"So it maybe the international investors are interested in that part of the operation.

"We will see various different possibilities unfold over the next few weeks and months as various different global players either look to genuinely invest or they are interested in asset stripping, which is really the last thing we want to see occur in relation to Arrium's future."

South Australian Premier Jay Weatherill yesterday revealed several international investors had expressed interest in Arrium's steelworks and some were looking at upgrading the plant.

He plans to meet a potential investor this week.

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend