Manufacturing News

Arrium to make first steel for Tarcoola rail project today

The first batch of steel to be used to upgrade the fast-tracked Adelaide-Tarcoola rail line upgrade will be produced at Arrium’s Whyalla steelworks today.

The Australian Financial Review reports that the first lot of product for the contract, upgrading 600 kilometres of rail, will come out of the plant at 3:30 pm.

“It’s a good contract, it’s good for margins and it’s got good productivity,” administrator Mark Mentha of administrators KordaMentha told The AFR yesterday.

The contract was announced in March by the federal government, the month before Arrium went into voluntary administration owing $4 billion. It will produce around 72,000 tonnes of product for the upgrade over two-and-a-half years.

KordaMentha has proceeded with a two-track sale, splitting the profitable Moly-Cop mining consumables business from a group of steel and iron ore companies now known as Arrium Australia.

The Whyalla steelworks, which produces mostly rod and bar products, has been cited as the least desirable asset among the business, and its future is not clear.

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