Manufacturing News

Arrium administrator meets with steel taskforce

Assistance measures for the loss-making Arrium Whyalla steelworks could be finalised in the coming weeks, Arrium’s administrator has said.

The ABC reported last night that Mark Mentha of administrators KordaMentha met the SA government’s steel taskforce yesterday.

“We’d like to think the recommendations, the issues we’ve put to the taskforce, will be considered [swiftly] and we’d like to hear back from them shortly,” he told the ABC.

The plant, which supports around 3,000 jobs, would need to be upgraded to supply steel for upcoming projects such as offshore patrol vessels and the upcoming fleet of submarines. The Whyalla site currently makes mostly rod and bar products.

Work supplying the Adelaide-Tarcoola rail upgrade was recently fast-tracked by the federal government.

Any further federal assistance has apparently been put on hold by the federal election. KordaMentha has meanwhile been in discussions with industry minister Christopher Pyne and independent SA senator Nick Xenophon.

Elsewhere, The Australian Financial Review reports that Mentha  has said knowing the full financial year’s figures for Arrium would be important for prospective buyers.

There would be a “number of months ahead” in the restructuring of the company, with a second creditors meeting scheduled to be held by February 28 next year. Its group of companies owes approximately $4 billion.

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