Whyalla is Australia’s only big manufacturer of steel for rail, but is bracing for a potential groundhog day

Original Report: www.abc.net.au(full story)

Whyalla is facing potential repeat challenges akin to its past struggles with the steel industry. The town is the only significant manufacturer of steel for rail in Australia. After experiencing turmoil when former owner Arrium went into administration, the steelworks were saved by British industrialist Sanjeev Gupta and GFG Alliance. However, recent cutbacks due to a global slump in steel prices have raised concerns about the plant’s future, with job losses already occurring. Whyalla’s Mayor cited a shift in community sentiment, reflecting uncertainty about the steelworks’ sustainability. The steelworks are crucial for Australia’s sovereign manufacturing capacity, with both state and federal representatives emphasizing its importance. The plant has a contract with the Australian Rail Track Corporation to supply steel for significant rail projects. There are calls for potential government investment to ensure the steelworks’ long-term viability, though officials maintain that GFG has not indicated a shutdown. State officials are working to ensure local steel procurement remains stable to support the industry. The community, represented by local residents like Buster Todd, is demanding strong support for Whyalla, emphasizing its resilience in the face of ongoing challenges.