According to a report today, losses at Arrium’s Whyalla steelworks have been reduced to an estimated $11 million for next financial year, though doubts remain that it will attract a buyer.
The Australian reports that a sales document compiled by Morgan Stanley – which was appointed in late-July to handle the sale of Arrium minus Moly-Cop – says the Whyalla steelworks’ situation had improved from an operating loss of $43 million in February.
The steelworks are part of the Arrium Australia company the Morgan Stanley is attempting to sell. Alongside this, reports The Australian, is the iron ore mining division, and the OneSteel Manufacturing, Distribution & Recycling business (which has seen the most interest from potential buyers among the three parts).
The profitable Moly-Cop grinding media business is being sold separately, with this handled by Deutsche Bank.
There has apparently been no resolution to negotiations between administrators KordaMentha and the Australian Workers Union over salary reductions at Whyalla.
Arrium went into administration in April, owing a reported $2 billion.