The steel-producing city of Whyalla has endured its fair share of emotional ups and downs recently, but one feeling that has emerged strongly in the last 48 hours is relief.
The announcement that the local steelworks would be placed into administration, coupled with a $2.4 billion financial support package from both the federal and South Australian governments, has reassured many in a region that has faced significant challenges in recent years.
“They’ve given us a lot of hope, which we haven’t had in a while,” said Chrys Press, who operates an industrial dry cleaning business in Whyalla.
“Almost every part of the town depends on the steelworks because it’s the largest employer here. If that job source vanished, the ripple effects would be huge.”
Press himself knows the struggle all too well, estimating he’s owed about $50,000 from the plant.
“This time, I really hope that when they find a new owner, it’s a well-funded, experienced company that knows how to run a steel operation,” he said.
He vividly recalls the steelworks’ last time in administration eight years ago — a period that has made some residents in Whyalla cautious about getting their hopes up too soon.
When billionaire Sanjeev Gupta took over the site in 2017, there was great optimism, but with unpaid creditors and unfulfilled promises for upgrades, people’s feelings soured.
“I wouldn’t want us to repeat the same mistakes,” said Whyalla resident Chris Fewster, who worked at the steelworks for two decades. “We need sustainable changes for the long-term benefit of this community.”
Reports from News Corp indicate that Gupta, who lost control of the steelworks when the government placed it into administration, is headed to Adelaide. However, GFG has not commented on his movements.
During a forum organized by The Advertiser newspaper on Friday, Prime Minister Anthony Albanese and Premier Peter Malinauskas discussed the support package for Whyalla, which envisions a new owner for the steelworks if one can be found.
“It’s important not just for South Australia’s future, but for the whole nation,” said Albanese, highlighting the national significance of the plant. “Imagine if we were talking about a facility that produces 75% of Australia’s structural steel shutting down. Australia can’t afford to be at the mercy of external supply chains, especially in times of crisis.”
Opposition Leader Peter Dutton, who was also in Adelaide, was asked whether his party would match the funding commitment from the state and federal governments.
“We’ll provide the same level of support for packages aimed at helping the steel industry and South Australia,” Dutton responded, but he opposed nationalizing the plant and refused to commit funds for green hydrogen projects, including a postponed $600 million hydrogen plant planned for Whyalla.
“I’m with the premier in supporting workers and keeping the steelworks running, but we need to be realistic. It will require gas, and a significant amount of it,” he said.
The announcement of the financial support package last Thursday triggered a moment of “stunned” silence, followed by applause, among the workforce of local business owners.
Jim Watson, who runs Metric Consulting Engineers, a firm that has worked with the steelworks, said the reaction from his team reflected the pressure many local businesses had faced due to a slowdown in work over the past year.
“Last year, things started to slow down, but we didn’t understand why. Major projects were shelved, and work from GFG just dried up,” Watson told ABC Radio Adelaide. “The uncertainty was really hard to describe.”
But the announcement changed everything, and the mood of the community shifted almost overnight.
“It’s hard to fully explain how massive this is,” Watson said. “There was absolute silence in a room of about 40 or 50 contractors. They were stunned by the level of support, but eventually, the room erupted in applause and cheers.”
For Chris Birch, who owns a local crane hire business, the months of uncertainty had strained both professional and personal relationships.
“We were close to laying people off. We have nearly 70 staff in Whyalla,” he said on ABC Radio.
“No steelworks, no town” has become a widely accepted sentiment in Whyalla, where the steel industry is integral to the survival of the community.
“I had to stop giving credit to a local company I’ve worked with for 12 years. It put personal relationships at risk,” Birch added. “Many of us were on the verge of going broke, quitting, or leaving town.”
However, Birch was quick to praise the $2.4 billion support package.
“This is great news for the city,” he said. “The government has come through, removed the previous management, and now we can focus on making the plant safer and ensuring it has a long-term future for everyone in Whyalla.”