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South Australia Takes Over Gupta's Whyalla Steelworks in Administration
South Australia has put Sanjeev Gupta's Whyalla Steelworks into administration because of its worsening financial state, Premier Peter Malinauskas said on Wednesday. The move leaves Gupta's GFG Alliance no longer in charge of the steel works.
The operating company of the Whyalla steelworks owed the state government and other creditors tens of millions of dollars, Malinauskas said. GFG Alliance, which has been reorganizing its global steel, aluminium, and energy operations since its major financier Greensill Capital went into liquidation in 2021, did not have an immediate response. The group had recently asserted it was completing a binding legal contract to pay off debts to Greensill creditors.
GFG acquired the Whyalla steelworks from Arrium, which collapsed in 2016 with AUD 2.8 billion ($1.78 billion) of debt. Another GFG subsidiary, Liberty Steel East Europe, was put into administration last year.
Malinauskas said the expansion could pave the way for low-carbon steelmaking ambitions for South Australia. "We own one of the world's greatest quality magnetite resources that's extremely economic and is not being maximized", he said. The Whyalla location, within proximity to fertile magnetite resources and a harbor, offers an excellent opportunity for decarbonised steelmaking, he said.
The state's takeover is a major change in the control of the steelworks and may determine the future of the region's economic and industrial life.
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