Strong international interest as sale process opens for Whyalla Steelworks

The sale process for the Whyalla Steelworks and associated mining operations has formally opened, after strong early interest from global steelmakers and consortia looking to expand into low-emission steel production.

The independent process, led by administrator KordaMentha and sale advisors 333 Capital, marks a significant step towards securing a long-term, sustainable future for steelmaking in Whyalla, after the State Government intervened to put the steelworks into administration in February.

A great deal of work and initial capital has been expended rectifying an extended period of underinvestment by GFG, with KordaMentha ensuring the plant is fully compliant and represents a clear investible proposition for potential purchasers.

Selected prospective buyers have now been granted access to a secure data room — enabling initial due diligence and allowing parties to prepare non-binding indicative offers as part of a phased approach to the sale.

The Australian and South Australian Governments have jointly committed $1.9 billion in funding to support a transformation of the operations into a commercially viable, low-emissions, 'pit to port' iron and steel facility – part of an historic broader $2.4 billion assistance and transformation package underpinning long-term jobs and economic resilience for Whyalla and the Upper Spencer Gulf.

A range of prospective buyers have already expressed interest in acquiring and transforming the integrated operations.

KordaMentha continues to stabilise and enhance operations, with an additional 75 new employees now added across core areas of the steelworks, including blast furnace operations, steelmaking and finishing.

Recruitment is ongoing for furthern new roles, including in mobile maintenance and diesel mechanics.

In addition to the five apprentices already onboarded this year, recruitment has commenced for 27 new apprentices across various disciplines to begin work with OneSteel Manufacturing from 2026.

As part of the $100 million assistance package announced by the Albanese and Malinauskas Governments, 61 South Australian businesses that were owed money by GFG – many of them in Whyalla -- have now received more than $15 million through the Business Creditor Assistance Scheme to support their continued operation.

Small businesses in Whyalla have also received much-needed support, with $570,000 in grants awarded to 57 businesses that had experienced a reduction in revenue due to the decline in activity at the steelworks.

Whyalla-based Avid Engineering is one of several businesses already seeing the benefits of this support.

In early 2025, Avid was down to just five staff, with its owner drawing on personal savings to keep the business afloat. Since receiving a government grant, Avid has expanded to employ 27 full-time staff and 13 casual workers - including former employees of Ferretti International.

Quotes

Attributable to Minister for Industry and Innovation and Minister for Science Tim Ayres:

“Australia’s steel industry is critical to the Australian economy and the community of Whyalla.

“The Albanese Labor Government is backing Australia’s manufacturing sector, Australian supply chains and the thousands of good Aussie jobs that rely on this steelmaking facility.

“Through the Future Made in Australia agenda, the Australian Government wants to ensure steelmaking capacity remains here onshore. There is real opportunity to manufacture iron and steel using Australia’s abundant ore and renewable energy to set up this industry and the Whyalla steelworks for the decades to come.

“Today’s opening of the sales process represents a critical step in securing the sustainable long-term future of the Whyalla steelworks – for Australia’s sovereign capability and for good jobs in the Whyalla community.”

Attributable to the Premier of South Australia Peter Malinauskas:

“Whyalla has long been at the heart of South Australia’s industrial strength – and now it has the potential to deliver sovereign steelmaking for the long term.

“Only a few months ago, GFG was laying off workers and dozens of small businesses were doing the same, because they weren’t being paid.

“Now, thanks to our decisive action to place GFG in administration, and the $2.4 billion Sovereign Steel package being delivered in partnership with the Albanese Labor Government, the steelworks is putting on staff, and suppliers and contractors are in a much better position for the future.

“There is still a long way to go to secure a new buyer for the steelworks, however the start of the formal sale process with the establishing of a data-room for prospective buyers is a major milestone in this important process.”

Attributable to Minister for Energy and Mining Tom Koutsantonis:

“The heartbeat is returning to the heart of Whyalla.

“The creation of new jobs at the steelworks is a genuine sign of this vital operation finding a new lease of life – and that sends a clear and strong signal to the market as the sale process is now formally underway.

“Make no mistake, there is a long road ahead, but it is a road that Whyalla now travels with greater confidence.