Advanced Search

Share Coverage



Category: Steel / Business, Economics and Finance / States and Territories / Government and Politics

Steelmaker Arrium to be put on the market

Monday, 23 May 2016 15:10:18

The steelworks in Whyalla will be offered for sale. (ABC News: Dean Faulkner)

Troubled steelmaker Arrium will be put on the market in late July, the firm's administrators have said.

KordaMentha took over administration of the company, which owns Whyalla's steelworks in South Australia, as it struggled with about $4.3 billion in debt.

In a statement the administrator said it was turning its attention to "future recapitalisation/sale of the Arrium Group", which comprises of a number of businesses including the steelworks, port and mining operators at Whyalla, its Moly-Cop business, and its One Steel manufacturing and distribution arm.

The administrators said they had put proposals to the state and federal governments that amount to more than $100 million in investment in the Whyalla site over four years.

The State Government has said it is willing to put taxpayer money into the plant, but the Federal Government has not committed to direct investment.

Premier Jay Weatherill today said the Government was analysing a co-invest proposal.

KordaMentha partner Mark Mentha said they had suggested a number of different investments that could be made to the Whyalla operations.

"The mill has been under invested in for some period of time," he said.

"The capex [capital expenditure] and maintenance on the plant has probably been about 40 per cent of depreciation so it's been in decline for a long period of time. I think most people understand that."

A study from Flinders University has found any closure of the Whyalla steelworks would lead to more than 5,000 job losses across South Australia and cost the state's economy as much as $770 million.

More to come.

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