GFG Alliance Whyalla steelworks falling into administration

The huge Whyalla steelworks in South Australia is barrelling towards administration.

The South Australian government held an emergency meeting on the stricken steel plant, owned by GFG Alliance, on Wednesday morning, passing legislation in the Upper and Lower houses to give it the power to act on the debts it is owed by the firm.

The company, led by British steel magnate Sanjeev Gupta, owes creditors tens of millions of dollars, from the SA government to local subcontractors.

The steelworks has suffered losses for months and the government had grown increasingly sceptical GFG Alliance would meet its debt obligations.

The steelworks is core economic engine for Whyalla, a town of 22,000 people on South Australia’s Eyre Peninsula, and the state more broadly.

Mr Gupta purchased the plant in 2017 for $700m, promising to reinvest in the ageing works and transform it into a “green steel” plant.

Whyalla is Australia’s only fully integrated steelmaking enterprise, producing slabs, billets, hot rolled structural steel and rail products.

Premier Peter Malinauskas is due to front the media shortly.

More to come.