Map: Whyalla 5600
Taxpayer support for embattled steelmaker Arrium would be pulled if the sale of the company was to the detriment of Whyalla, the home of its steelworks, South Australian Treasurer Tom Koutsantonis has warned. Key points:
Arrium went into administration with debts of about $4.3 billion
Its Moly-Cop business in New South Wales is highly profitable
Administrator has sought state and federal government support
Arrium will go on the market in July after going into administration with debts of about $4.3 billion.
Administrator KordaMentha has asked for hundreds of millions of dollars in state and federal support to make the Whyalla steelworks attractive for the sale.
The Arrium Group comprises of a number of businesses including the steelworks, port and mining operators at Whyalla, its Moly-Cop business at Newcastle in New South Wales, and its One Steel manufacturing and distribution arm.
Mr Koutsantonis said "many" potential buyers had been identified and he wanted to see Arrium sold as a whole unit, rather than carved up with the profitable parts sold to pay the banks.
"If this is just about breaking up Whyalla and shutting it down so the rest of the distribution business can be healthy, we're out," Mr Koutsantonis said.
"Taxpayers' money is contingent on the long-term viability of Whyalla. If that's off the table, then so is our money.
"[It] should be sold as a whole.
"We don't want to break those links between Whyalla and the rest of the country.
"I am very hopeful that the administrator is not doing what the Australian banks want him to do which is to separate Moly-Cop from the rest of the Arrium operations."
Arrium's Moly-Cop business, which produces forged steel balls and grinding rods for fine grinding of mineral ores and other particulate materials, is highly profitable.
Administrator Mark Mentha has insisted there will be no preferential treatment for any creditors, including the banks.
Earlier this week, Premier Jay Weatherill said the SA Government was analysing a co-investment proposal.
Source. Pls follow the link http://www.abc.net.au/news/2016-05-...ld-be-sold-'whole',-koutsantonis-says/7442780
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Photo: The South Australian Government is considering a co-investment proposal to upgrade the Whyalla steelworks. (ABC News: Nick Harmsen)
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