Whyalla steelworks seeks refinancing amid financial struggles

In response to mounting pressures to settle substantial debts, the owners of Whyalla Steelworks, led by GFG Alliance’s chairman Sanjeev Gupta, are actively pursuing new financing solutions to sustain operations.

This development follows intense scrutiny from South Australia’s Premier, Peter Malinauskas, who recently visited Whyalla to engage with creditors and reinforce the urgency of financial accountability from GFG.

Gupta, acknowledging the critical state of the steelworks, expressed his unwavering commitment to Whyalla, stating on Tuesday, “GFG has invested vast sums of money to keep Whyalla going, and it will remain our highest priority.” Despite the challenges, including a disruptive four-month production halt, Gupta reported a 30 per cent reduction in losses since the resumption of operations at the plant.

The push for refinancing comes at a pivotal moment as the company aims to reconcile overdue payments, notably a reported $15 million owed to SA Water. The situation has sparked a broader debate about fiscal responsibility and the implications for taxpayers, with Opposition Leader Vincent Tarzia criticising the potential burden on the public.

Premier Malinauskas emphasised the critical nature of the steelworks to the nation’s economic sovereignty, hinting at the government’s preparedness with contingency plans to safeguard taxpayers’ interests. “The time is now for GFG and Mr. Gupta to pay their bills and demonstrate their capacity to invest in the steelworks,” Malinauskas stated.

Picture: credit GFG Alliance