Manufacturing News

Greg Hunt and delegation meet Korea’s Posco regarding Arrium bid

A delegation including federal industry minister Greg Hunt, SA treasurer Tom Koutsantonis and unions has travelled to South Korea to meet with Posco, which has made a bid for collapsed iron ore and steel business Arrium.

Though administrator KordaMentha has said a number of bidders to come forward, the ABC notes that Posco – Korea’s biggest steelmaker – is the only one to publicly express their interest.

Hunt didn’t rule out further assistance, following a $49 million federal grant to Arrium, but said he “simply won’t speculate” on the topic of further assistance. He said he was happy to meet with any other bidders.

“We would be very happy to support any bidder because at the end of the day our process, our concern is to assist the workers of Arrium to make sure they have a long-term future,” Hunt told the ABC.

“[To support] a buyer that is going to invest, a buyer that is going to commit and a buyer that ultimately is going to give those workers, those families, the magnificent community of Whyalla a deep long-term future.”

The sale of the Arrium group’s assets (minus grinding media business Moly-Cop) is being advised by Morgan Stanley.

Arrium went into voluntary administration in April, owing $4 billion.

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