Hundreds of Jobs Lost as Whyalla Steelworks Blast Furnace Closure Confirmed
Hundreds of workers at the Whyalla Steelworks have had their jobs axed this week after the facility's administrators confirmed the permanent closure of its ageing blast furnace - the heart of the city's steelmaking operations.
Steelworks administrator KordaMentha announced on Monday that further attempts to restart the more than 60-year-old furnace would be abandoned after repeated failures.
The decision will see the workforce across the Steelworks, port and associated mine reduced from 1,700 to about 1,200 - with more than 100 contractors also expected to be affected.
Speaking with FlowFM's Jessica Dempster on the Country Viewpoint, Federal Member for Grey Tom Venning described the job losses as a major blow for Whyalla's workers and families.
“This is a pretty sad day for the community members and families in Whyalla,” Mr Venning said.
“These are not just people on a spreadsheet. These are people that have spent years building their skills, supporting their families and contributing to the Whyalla community. And this is going to have massive ramifications for that community.”
Mr Venning said the blast furnace accounts for about half of the Steelworks' workforce and had been effectively out of operation since April.
He said Whyalla's remaining rolling mills can continue operating, but will now rely on imported billets and blooms to keep production going - an arrangement he has branded as “inefficient”.
The Federal Member described the situation as “a damning indictment” of how the Steelworks had been managed over the past few years, saying there had been a long history of underinvestment and financial problems.
In a statement posted to social media, Premier Peter Malinauskas said the ageing blast furnace had not received the investment it deserved through recent decades.
"It has always been a question of when, not if this particular blast furnace would close," Mr Malinauskaus said.
“In fact, it is only due to the Herculean efforts of the workers in Whyalla that it has survived this long."
Mr Malinauskas said despite the furnace closure, mining, port and other operations would continue in Whyalla while the Steelworks sale process progresses.
“Today’s announcement does not mean the end of the line for Whyalla," he said.
The Premier also said the State and Federal Governments remained committed to new steelmaking in Whyalla through their $1.9 billion sovereign steelmaking package.
“Our objective has not changed - for Australia to make steel in Whyalla,” he said.
Opposition Leader Ashton Hurn also responded to the news in a statement posted to social media, saying the closure had created significant uncertainty for affected workers.
“My first thoughts are with the hundreds of impacted workers who have given so much to the Steelworks and community over the years,” Ms Hurn said.
“Behind every job loss is a family, a mortgage, a livelihood that has been thrown into uncertainty.”
Ms Hurn said the Steelworks remained critical to Whyalla and Australia's manufacturing capability.
“The Steelworks is the beating heart of Whyalla and critical to Australia's sovereign manufacturing capability and economic security."
“Whyalla cannot be left in limbo and we'll continue to ask questions of the Government around the sale process and when we can expect some certainty."
The Australian Industry Group has also commented on the closure, saying it will have a significant impact on Australia's industrial capability and the local and South Australian economies.
Chief Executive Innes Willox said steelmaking was “an essential national capability”, but needed to evolve as new technology and processes put pressure on international competitiveness.
Mr Willox said governments and the eventual buyer needed to be transparent about the transition, while retaining the existing workforce and its skills base was essential.
Moving forward, the South Australian State and Federal Governments are providing a $10 million support package for affected workers, including employment assistance, training and reskilling, career advice, financial information and wellbeing support.
The sale process of the Steelworks as a whole is continuing, with the governments expecting to announce a new owner later this year.
To hear Member for Grey Tom Venning's full chat with Jess discussing the future of the Whyalla Steelworks, check out Episode 229 (2026) of the Country Viewpoint - which can found under the podcast tab on FlowFM's website at flowfm.com.au.
Comments