The Albanese and Malinauskas Governments have unveiled a $2.4 billion package to secure the future of the Whyalla Steelworks, safeguard jobs, and strengthen Australia’s sovereign steelmaking capabilities.
Announced on-site in Whyalla by Prime Minister Anthony Albanese, South Australian Premier Peter Malinauskas, and Minister for Industry and Science Ed Husic, the funding package is set to provide immediate financial support, stabilise operations, and invest in long-term infrastructure for the steelworks.
The Whyalla Steelworks, employing 1,100 workers and supporting over 2,000 indirectly, is one of only two steelworks in Australia.
It produces 75 per cent of the nation’s structural steel and remains the sole domestic producer of long steel products.
According to the government, ensuring its sustainability is vital for national infrastructure projects and future advancements in green steel manufacturing.
“My Government is building Australia’s future. And to do that, we need Whyalla steel,” Albanese said. “Whyalla steel has forged some of our country’s biggest projects—rail lines, airports, and stadiums. That’s why today, in partnership with the Malinauskas Government, we are delivering more than $2 billion to ensure the future of the steelworks and support local jobs.”
The funding package consists of three key components: immediate support, operational stabilisation, and long-term investment.
Immediate support includes $100 million for creditor assistance, infrastructure upgrades, and a Jobs Matching and Skills Hub.
Additionally, $384 million will be co-invested by state and federal governments to maintain operations during administration, ensuring that workers and contractors continue to be paid.
The bulk of the package—$1.9 billion—will be allocated to upgrading and expanding the steelworks under new ownership.
The Commonwealth has also committed up to $500 million from its newly established Green Iron Investment Fund to assist with the transition to greener steel production, unlocking private investment and ensuring a more sustainable future for the site.
A joint taskforce will be established to provide expertise and engage with stakeholders, including workers, the City of Whyalla, administrators, and creditors.
Premier Malinauskas emphasised the strategic importance of the steelworks and dismissed any notion of a government bailout for previous owner GFG Alliance.
“Locally-made steel is vital to South Australia and Australia’s future, and this unprecedented investment recognises the importance of the Whyalla Steelworks,” he said.
“Now that the steelworks is no longer under the control of GFG, the State Government can partner with the Federal Government and make the long-term investments necessary to secure the future of Whyalla and Australian steelmaking.”
To prioritise the steelworks, the South Australian Government will reallocate funding from its Hydrogen Jobs Plan and contribute $50 million from the Whyalla Steelworks Operational Efficiency Improvements Fund.
Additionally, KordaMentha has been appointed as the administrator following the government’s intervention to stabilise the operation.
Minister Husic underscored the significance of domestic steel production for Australia’s industrial future. “Making more things here means making more steel in Whyalla,” he said. “Steel-making has provided spine to Australian industry for a century, and it’s here to stay.”
