Australia Cutting 500 Jobs at Largest Steelworks Whyalla

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Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Australia has pulled the plug on restarting the blast furnace at the troubled Whyalla Steelworks and announced that half of the plant's workers will be made redundant.

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Roughy 500 jobs are to go at one of Australia's only primary steelworks as the government confirmed that it will not fund the restarting of the 60-year old blast furnace at the troubled Whyalla Steelworks on the southern coast. An additional 100 contract workers will also be let go while mining, port and other activities will continue at the site. Whyalla was responsible for producing 75% of the country's structural steel in 2024 and is the only Australian producer of long steel products. It was placed into administration last year and since then the government has spent billions of dollars keeping it operational. Numerous bidders are seeking to take over the plant and there are plans to replace the existing coal-fired blast furnace with a lower-carbon electric arc furnace (EAF) and associated infrastructure. According to Industrial Info Resources data, there are eight projects worth US$1.15 billion, currently on hold, for the modernisation of the facility. 

Furnace Restart "Unsuccessful"

The government appointed administrator, KordaMentha, reported that efforts to restart the blast furnace over recent months had been unsuccessful. "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," said joint administrator Sebastian Hams. "This is a difficult decision, but it is a necessary one as the company transitions to modern steelmaking technologies. The blast furnace and the current basic oxygen furnace were always intended to be replaced. This decision will regrettably have a major impact on OneSteel Manufacturing's workforce."

South Australia's Premier Peter Malinauskas added: "This is a difficult day, but one which is inevitable. The blast furnace at Whyalla is 60 years-old and for many years has not had the investment it deserves through recent decades. It is only due to the Herculean efforts of the workers in Whyalla that it has survived this long. The future for Whyalla rests in new equipment, new capital, which is what we are achieving through the sale process. The State and Federal Governments are working hard to secure this through our AUD$1.9 billion sovereign steel package, to find the right new owner with the capacity to deliver new steelmaking facilities to underpin Whyalla's long-term future. Our interventions in Whyalla will ensure workers affected by OneSteel's announcement will see their entitlements paid in full."

The Downfall of Whyalla

Whyalla Steelworks was owned by global metals giant GFG Alliance, the steel empire run by Indian-born U.K. billionaire Sanjeev Gupta. GFG Alliance has been embroiled in financial and legal troubles since 2021, when its main lender Greensill Capital collapsed. The steelworks suffered a number of outages in 2024 and 2025 that led to debts of US$828 million before it was placed into administration. The plant will now have to rely on stockpiles and externally sourced semi-finished steel products to keep manufacturing. 

Potential Buyers

Administrator Kordamentha will now be attempting to sell a steelworks without an operational blast furnace. A number of potential buyers have emerged in the past year, including M Resources, Jindal Steel and BlueScope Steel. Last August, Industrial Info Resources reported that BlueScope had formed a consortium with international heavyweights, including Japan's Nippon Steel Corporation, India's JSW Steel and South Korea's POSCO Holdings Incorporated with a view to producing lower emissions iron in Australia for both domestic and export markets. However, the final bidders still in the running are understood to be M Resources and Jindal Steel. 

Key Takeaways

• Australia has pulled the plug on restarting the blast furnace at the troubled Whyalla Steelworks.
• 500 jobs will be lost with an additional 100 contractor positions removed.
• Potential buyers for the plant include M Resources and Jindal Steel.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).