{"id":135240,"date":"2024-10-01T12:08:31","date_gmt":"2024-10-01T02:08:31","guid":{"rendered":"https:\/\/www.vibewire.com.au\/?p=135240"},"modified":"2024-10-01T12:08:31","modified_gmt":"2024-10-01T02:08:31","slug":"whyalla-is-australias-only-big-manufacturer-of-steel-for-rail-but-bracing-for-a-potential-groundhog-day","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=135240","title":{"rendered":"Whyalla is Australia&#8217;s only big manufacturer of steel for rail, but bracing for a potential groundhog day"},"content":{"rendered":"\n<p>The oft-repeated platitude about those who forget the past being &#8220;condemned to repeat it&#8221; does not do justice to Whyalla.<\/p>\n\n\n\n<p>In the South Australian regional city, which supplies steel for the nation&#8217;s rail and construction industries, locals are currently reliving history that many remember only too clearly.<\/p>\n\n\n\n<p>Eight years ago, Whyalla and its steelworks were plunged into a period of prolonged uncertainty,&nbsp;<a href=\"https:\/\/www.abc.net.au\/news\/2016-04-10\/arrium-management-to-blame-for-financial-woes-former-head-says\/7313952\">after owner Arrium accumulated debts in the billions<\/a>.<\/p>\n\n\n\n<p>&#8220;I was with Arrium when it went into administration,&#8221; said Buster Todd, a Whyalla resident of 56 years.<\/p>\n\n\n\n<p>&#8220;It was certainly a better place to work when it was in administration than it is now.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"104368478\"><img loading=\"lazy\" decoding=\"async\" width=\"862\" height=\"575\" src=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/e33a91762fd59ec5e61aabddced25578.jpeg\" alt=\"\" class=\"wp-image-135249\" srcset=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/e33a91762fd59ec5e61aabddced25578.jpeg 862w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/e33a91762fd59ec5e61aabddced25578-300x200.jpeg 300w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/e33a91762fd59ec5e61aabddced25578-768x512.jpeg 768w\" sizes=\"auto, (max-width: 862px) 100vw, 862px\" \/><figcaption class=\"wp-element-caption\">Buster Todd expects to be made redundant from his full time job this week.&nbsp;&nbsp;(ABC News: Justin Hewitson)<\/figcaption><\/figure>\n\n\n\n<p>In 2016, the&nbsp;<a href=\"https:\/\/www.abc.net.au\/news\/2012-07-03\/emerson-defends-whyalla-wipeout\/4106946\">&#8220;Whyalla wipeout&#8221; that former trade minister Craig Emerson had dismissed as a scare campaign<\/a>&nbsp;suddenly seemed not only possible but imminent.<\/p>\n\n\n\n<p>Over the next 18 months, the town&#8217;s plight alternated between limbo and turmoil, before a deal to &#8220;save&#8221; the plant was struck with&nbsp;<a href=\"https:\/\/www.abc.net.au\/news\/2017-07-09\/sanjeev-gupta-new-owner-of-sa-whyalla-steelworks\/8691072\">British industrialist Sanjeev Gupta, owner of the GFG Alliance Liberty Steel Group<\/a>.<\/p>\n\n\n\n<p>In recent weeks and months, however, fresh signs have emerged of a looming groundhog day \u2014&nbsp;<a href=\"https:\/\/www.abc.net.au\/news\/2024-09-10\/safety-concerns-raised-at-whyalla-steelworks\/104329310\">earlier this month, GFG said it was cutting costs, including on maintenance work<\/a>, as it contended with a global slump in steel prices.<\/p>\n\n\n\n<p>&#8220;When Arrium was likely to be going through administration, the feeling then within the community was that, well, it&#8217;s not going to close down, somebody will come along,&#8221; Whyalla Mayor Phill Stone said.<\/p>\n\n\n\n<p>&#8220;It is vastly different now, the feeling within Whyalla.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"104368426\"><img loading=\"lazy\" decoding=\"async\" width=\"862\" height=\"575\" src=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/eb18a8ac463c86c6e4f4ce4796740247.jpeg\" alt=\"\" class=\"wp-image-135248\" srcset=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/eb18a8ac463c86c6e4f4ce4796740247.jpeg 862w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/eb18a8ac463c86c6e4f4ce4796740247-300x200.jpeg 300w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/eb18a8ac463c86c6e4f4ce4796740247-768x512.jpeg 768w\" sizes=\"auto, (max-width: 862px) 100vw, 862px\" \/><figcaption class=\"wp-element-caption\">Whyalla&#8217;s steelworks was offline earlier this year from problems with its blast furnace.&nbsp;(ABC News: Justin Hewitson)<\/figcaption><\/figure>\n\n\n\n<p>The situation is already&nbsp;<a href=\"https:\/\/www.abc.net.au\/news\/2024-08-15\/almost-50-jobs-axed-at-whyalla-steelworks\/104229182\">claiming casualties with 48 jobs axed at the steelworks in August with GFG blaming a prolonged downturn in the steel market<\/a>&nbsp;conditions globally.<\/p>\n\n\n\n<p>Sources have told ABC News that&nbsp;<a href=\"https:\/\/www.abc.net.au\/news\/2024-08-15\/gfg-alliance-owes-whyalla-steelworks-contractors\/104226218\">contractors who supply services to Whyalla&#8217;s steelworks are owed tens of thousands of dollars by GFG<\/a>, while the plant&#8217;s blast furnace remains offline.<\/p>\n\n\n\n<p>On Thursday, the company confirmed that limestone was &#8220;restricting internal slag movement&#8221; in the furnace, and that the company was taking &#8220;remedial measures to deal with unwanted material which may have crept in&#8221;.<\/p>\n\n\n\n<p>Mr Todd, who works for a local engineering company, said that he and 18 colleagues would also lose their full-time jobs because of reduced demand from the steelworks.<\/p>\n\n\n\n<p>&#8220;This is why I&#8217;m not scared to speak, but next Friday, I am made redundant. I no longer have a job,&#8221; he said earlier this week.<\/p>\n\n\n\n<p>&#8220;I&#8217;ll get some casual work, potentially seven days in a six-week period. That&#8217;s not enough.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">&#8216;Important strategic city for the country&#8217;<\/h2>\n\n\n\n<p>The story of Whyalla has been told and retold, and is often framed as a tale of a town and its steel plant. That is not an inaccurate picture, but nor is it a complete one.<\/p>\n\n\n\n<p>While jobs are on the line, and the city&#8217;s future is at stake, saving the steelworks isn&#8217;t just about protecting a regional population \u2014 what happens in Whyalla could have broader implications for the nation.<\/p>\n\n\n\n<p>&#8220;Whyalla is a very important strategic city, not just for this state but for the country,&#8221; South Australia&#8217;s Infrastructure Minister Tom Koutsantonis said on Tuesday.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"104368458\"><img loading=\"lazy\" decoding=\"async\" width=\"862\" height=\"575\" src=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/24edd5beff77aaa021f55f8331db60d4.jpeg\" alt=\"\" class=\"wp-image-135247\" srcset=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/24edd5beff77aaa021f55f8331db60d4.jpeg 862w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/24edd5beff77aaa021f55f8331db60d4-300x200.jpeg 300w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/24edd5beff77aaa021f55f8331db60d4-768x512.jpeg 768w\" sizes=\"auto, (max-width: 862px) 100vw, 862px\" \/><figcaption class=\"wp-element-caption\">The Whyalla Steelworks are important for Australian produced railways, according to its owner GFG Alliance.&nbsp;(Australian Rail Track Corporation)<\/figcaption><\/figure>\n\n\n\n<p>The Whyalla steelworks is, according to GFG, the nation&#8217;s only Australian-based manufacturer of rail, and the country&#8217;s two major political parties are in unison when it comes to the plant&#8217;s importance.<\/p>\n\n\n\n<p>State Labor MP Eddie Hughes has previously described the plant as an&nbsp;<a href=\"https:\/\/www.abc.net.au\/news\/2021-05-15\/gfg-fraud-probe-raises-questions-over-whyalla-steelworks-future\/100142034\">&#8220;integral part&#8221; of Australia&#8217;s &#8220;sovereign manufacturing capacity&#8221;<\/a>, while federal Liberal MP Rowan Ramsey said it was the nation&#8217;s only &#8220;manufacturer of the structural steel for bridges, industrial complexes, docks and high quality rail&#8221;.<\/p>\n\n\n\n<p>In March 2022, GFG announced it had entered a deal with the Australian Rail Track Corporation (ARTC) to deliver 147,000 tonnes of steel over three to five years, including to&nbsp;<a href=\"https:\/\/www.abc.net.au\/news\/2023-09-27\/inland-rail-work-slow-queensland-warning-may-not-reach-toowoomba\/102905554\">Inland Rail, a project to create an inland fast freight corridor from Melbourne to Brisbane<\/a>.<\/p>\n\n\n\n<p>&#8220;The contract will see more than 2,400km of rail manufactured in Whyalla for the Inland Rail track \u2026 and other ARTC projects,&#8221; the company said at the time.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"104368452\"><img loading=\"lazy\" decoding=\"async\" width=\"862\" height=\"575\" src=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/dc932fa7f906e4b11f57f4d1e75a126f.jpeg\" alt=\"\" class=\"wp-image-135246\" srcset=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/dc932fa7f906e4b11f57f4d1e75a126f.jpeg 862w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/dc932fa7f906e4b11f57f4d1e75a126f-300x200.jpeg 300w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/dc932fa7f906e4b11f57f4d1e75a126f-768x512.jpeg 768w\" sizes=\"auto, (max-width: 862px) 100vw, 862px\" \/><figcaption class=\"wp-element-caption\">Steel from the Whyalla Steelworks is being used for the Inland Rail project.&nbsp;(Supplied: Australian Rail Track Corporation)<\/figcaption><\/figure>\n\n\n\n<p>The ABC asked ARTC how much of that steel had so far been delivered, but the company declined to provide a figure.<\/p>\n\n\n\n<p>Instead, it said it continued to receive steel products from Whyalla &#8220;under our commercial contract&#8221;, but added that it was engaging with the company &#8220;about industry challenges&#8221;.<\/p>\n\n\n\n<p>&#8220;Orders for steel are placed on an as needed basis and have continued throughout 2024&nbsp;to furnish various rail projects including Inland Rail,&#8221; a spokesperson said.<\/p>\n\n\n\n<p>&#8220;ARTC monitors the financial, operational and safety performance of all key suppliers including Whyalla Steelworks to ensure we maintain a safe and reliable rail asset and timely delivery of major infrastructure projects.<\/p>\n\n\n\n<p>&#8220;ARTC has been engaging with&nbsp;Liberty Primary Steel about industry challenges; we enjoy a longstanding relationship with them, and we are a proud supporter of Australian industry and regional communities.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Resilient town &#8216;cannot fail&#8217;<\/h2>\n\n\n\n<p>Both the federal and state governments have been asked whether they would consider investing in the steelworks to shore up its long-term sustainability.<\/p>\n\n\n\n<p>Federal Industry Minister Ed Husic said it was &#8220;premature&#8221; to be &#8220;talking that way from a federal level&#8221;.&nbsp;<\/p>\n\n\n\n<p>&#8220;The best thing to do is, as I&#8217;ve said, for the operators, for GFG, to be open about what&#8217;s going on and to let us know,&#8221; he told ABC Radio Adelaide on Wednesday.<\/p>\n\n\n\n<p>&#8220;The firm has not said that it is shutting down and I think it&#8217;s important again, while there might be issues with some creditors, it&#8217;s not the case across the board.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"104368436\"><img loading=\"lazy\" decoding=\"async\" width=\"862\" height=\"575\" src=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/c5fbcf45d6e57724babc0ce30ef75d97.jpeg\" alt=\"\" class=\"wp-image-135245\" srcset=\"https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/c5fbcf45d6e57724babc0ce30ef75d97.jpeg 862w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/c5fbcf45d6e57724babc0ce30ef75d97-300x200.jpeg 300w, https:\/\/www.vibewire.com.au\/wp-content\/uploads\/2024\/10\/c5fbcf45d6e57724babc0ce30ef75d97-768x512.jpeg 768w\" sizes=\"auto, (max-width: 862px) 100vw, 862px\" \/><figcaption class=\"wp-element-caption\">Minister Tom Koutsantonis says Whyalla &#8220;cannot fail&#8221;.&nbsp;&nbsp;(ABC News: Nick Harmsen)<\/figcaption><\/figure>\n\n\n\n<p>Mr Koutsantonis said the state government was not interested in &#8220;partnering&#8221; with the steelworks&#8217; current owner, but was staunchly committed to supporting the business in other ways, including through the multi-billion-dollar North-South Corridor road project.<\/p>\n\n\n\n<p>&#8220;The government&#8217;s placing an order of 130,000 tonnes of steel from GFG for the North-South Corridor. We&#8217;re in negotiations with them now about that,&#8221; he said.<\/p>\n\n\n\n<p>&#8220;We want to make sure we can use our procurement to make sure the steelworks has got a long-term future.<\/p>\n\n\n\n<p>&#8220;Whyalla cannot fail. It cannot fail.&#8221;<\/p>\n\n\n\n<p>Speaking at a community forum on Sunday, Mr Todd said he was &#8220;not interested in all the political stuff&#8221; \u2014 what mattered to him, he said, was &#8220;Whyalla and the people here&#8221;.<\/p>\n\n\n\n<p>&#8220;We&#8217;ve been through a lot,&#8221; he said.<\/p>\n\n\n\n<p>&#8220;We&#8217;re a very resilient town.&#8221;<\/p>\n\n\n\n<p>ABC News<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The oft-repeated platitude about those who forget the past being &#8220;condemned to repeat it&#8221; does not do justice to Whyalla.<\/p>\n","protected":false},"author":20,"featured_media":135244,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[327,47,11807,11498,1],"tags":[265,13656,7527,13655],"class_list":["post-135240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artc","category-rail-news","category-rail-tracks","category-track-civil-construction","category-uncategorized","tag-adelaide","tag-gfg-alliance-liberty-steel-group","tag-south-australia","tag-whyalla"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/135240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=135240"}],"version-history":[{"count":2,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/135240\/revisions"}],"predecessor-version":[{"id":135250,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/135240\/revisions\/135250"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/media\/135244"}],"wp:attachment":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=135240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=135240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=135240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}