Arrium’s administrator is hoping to maximize the struggling company’s participation in upcoming shipbuilding projects, as first creditors meeting was held yesterday.
Mark Mentha of administrators KordaMentha said it would be desirable for Arrium to successfully tender for as much work as possible in the upcoming offshore patrol vessel and frigate projects.
“What we need to look at is the specification of what steel is required and whether we have the capability to produce that steel,” the ABC reports him as saying.
“If we don’t have that capability, then what investment do we need to make to be able to deliver that capability because it’s a contract we’d love to win.”
Earlier this week prime minister Malcolm Turnbull announced that 12 OPVs would be built, beginning in 2018 in Adelaide. There are three designers short-listed for the build.
There is also the possibility that the winning consortium – out of French, Japanese and German bidders – for the Future Submarines fleet could be announced in the coming weeks.
The Australian Workers Union and others are pushing for the federal government to co-invest in upgrading Arrium’s Whyalla steelworks so that it can supply the naval projects,
The administration of the iron ore and steel business is being called the most complicated in Australian history. There are 94 entities under administration and about 10,000 suppliers involved,The Australian Financial Review notes.
Arrium owes around $4 billion.