Steelworks 'to break even' in 2016/17

Steelworks 'to break even' in 2016/17

8 minutes ago
Link: http://www.themercury.com.au/news/b...7/news-story/51060f5d717e487e91e8c5195c18afa8

Arrium's Whyalla steelworks is set to break even in the coming financial year while the group's mining business will make a slight profit, KordaMentha administrators say.

Mark Mentha has found $300 million in savings across Arrium for the 2016-17 financial year, mainly in reduced supply contracts and savings introduced by previous management.
"Arrium is a far more efficient company today than it was yesterday," he told Adelaide's 5AA radio on Thursday.
"With the plant and capex initiatives that we're looking at, this money will move the dial in making this business far more viable long term and therefore makes it a realistic long-term proposition for a buyer."

This comes after state and federal Labor pledged a combined $150 million to support a new owner of the steelworks.
Opposition Leader Bill Shorten, who will visit Whyalla on Thursday, says Labor refuses to let the steelmaker fail.

"If these jobs went, 3500 families would suffer enormously - that's completely unacceptable to me," he said.
Arrium was placed in administration in April after failed negotiations with its lenders amid a sustained low in commodity prices.

Looking Good