Monday 10th December 2018
Liberty Primary Steel – part of Sanjeev Gupta’s GFG Alliance – today announced significant steps towards the transformation of the Alliance’s iconic Whyalla operations, signing contracts worth more than A$600m, representing a significant portion of the overall transformation cost.
In a major move forward, two contracts have been signed today for the design of equipment and construction with contracting partners:
Mr Gupta said these components would play a key role in securing Whyalla’s long-term future.
“This transformation will vastly improve the operational, financial and environmental performance of the operations, paving the way for Whyalla to become an enticing, global hub for innovative industry,” Mr Gupta said
“Today’s announcement signifies a major milestone in the Whyalla Transformation Program that will establish our operations as a viable and sustainable facility, producing 1.8 million tonnes of high-quality, high-end steel per year.”
“This now firmly cements GFG’s commitment to Whyalla’s development, and the start of a brighter and more prosperous journey that this city truly deserves.”
Mr Gupta said these particular components – which will now be designed, constructed and commissioned over the next three years – would increase production; reduce costs; and introduce a new product range, opening up new markets and customers.
He said these investments would be financed through a combination of funding sources – including GFG’s own resources and vendor finance – and will likely require support from the South Australian and Federal Governments.
“It’s fantastic that both Federal and State governments and opposition are here with us today to celebrate this momentous occasion – this great industrial endeavour has universal and bipartisan support,” Mr Gupta said.
“Naturally all stakeholders will need to be confident that the transformation will underpin the long-term, sustainable future of the operations. This is the very objective of the program, so I am confident it will win widespread support.”
Mr Gupta said GFG Alliance had already invested almost A$40 million in feasibility studies, and was well progressed in other areas of the transformation, including new Steelmaking equipment and on-site power generation.
City of Whyalla Mayor, Clare McLaughlin, said this was yet another fantastic announcement for the community.
“Most importantly for Whyalla, this project will create thousands of additional construction jobs and several hundred ongoing, with GFG committing to prioritising local skills,” Ms McLaughlin said.
“We will also see world-class skills from across the globe coming to Whyalla, so it will be fantastic exposure for our great city.”
“We are continuing to work with GFG on a number of community developments to ensure the city can grow and transform in unison with their operations.”