20 February 2025
The Australian Government and South Australian Government have announced a multi-billion dollar package to support Whyalla Steelworks, support local jobs and encourage more investment into Australian made iron and steel.
The Whyalla steelworks employs 1,100 workers and supports more than 2,000 indirectly.
Whyalla is critical to sovereign Australian steel. It’s one of only two Australian steelworks, produces 75% of Australian structural steel and is the only domestic producer of steel long products.
Steel from Whyalla helps Australia build and maintain its infrastructure – including railways, bridges, schools, hospitals, high-rise towers, transmission infrastructure and defence assets.
The Whyalla Steelworks is also critical for future ambitions for green steel manufacturing, which will be increasingly lucrative as the world seeks to decarbonise.
The funding will be delivered in three distinct parts: immediate on the ground support, stabilising the steelworks and investing in the steelworks’ future.
Immediate, on the ground support – $100 million
- Creditor Assistance payments ($50 million)
- Infrastructure upgrades ($32.6 million)
- Jobs Matching and Skills Hub ($6 million)
Stabilising the steelworks – $384 million
- The State and Australian Governments are co-investing $384 million to fund the Whyalla Steelworks’ operations during administration. This funding will ensure workers and contractors will have ongoing work at the steelworks and will continue to be paid.
Investing in the steelworks’ future – $1.9 billion
- The State and Australian Governments will work with a new owner to invest in the upgrades and new infrastructure which will be vital to ensuring the Steelworks has a sustainable, long-term future.
This comes as the Australian Government today announced a new Green Iron fund to boost green iron manufacturing and supply chains by supporting early mover green iron projects and unlocking private investment at scale.
A joint taskforce will also be set up to provide advice and expertise in the transition to a sustainable future.
The taskforce will engage with workers, the City of Whyalla, administrators and creditors to support a path forward.
The Australian Government has earmarked up to $500 million of the Green Iron Investment Fund to support the longer term transformation of the steelworks. It will also make available substantial additional financing to partner with a future owner and operator to upgrade the facility and ensure a green steel future for Whyalla and South Australia.
The South Australian Government’s share will come from funding set aside for the Hydrogen Jobs Plan, which will now be deferred to prioritise securing the steelworks, as well as $50 million from the Whyalla Steelworks Operational Efficiency Improvements Fund.
Yesterday, the South Australian Government took action to secure the long-term future of the Whyalla Steelworks and placed the steelworks in administration.
The State has appointed KordaMentha as administrator.
To find out more about the support for Whyalla-based businesses and workers visit Department of State Development website
