State welcomes the preferred contender

SALE: Treasurer Tom Koutsantonis has welcomed the selection of a preferred bidder by KordaMentha which has been administering Arrium in recent times.

SALE: Treasurer Tom Koutsantonis has welcomed the selection of a preferred bidder by KordaMentha which has been administering Arrium in recent times.

The State Government has welcomed the administrator’s decision to choose the South Korean consortium led by Newlake Alliance as its preferred bidder for Arrium.

Treasurer Tom Koutsantonis congratulated the consortium.

“The investment proposal put forward by the Newlake consortium aims to make Whyalla the first city outside of South Korea to adopt the innovative FINEX process for steelmaking developed by Posco, one of the world’s major steelmakers,” he said.

“Having seen first-hand the impressive technology and scale of the Posco business, it is exciting to be working with a company of such high regard with a proven track record that can truly transform the Whyalla operations.

“Although there is still some way to go in this process, I hope this news is of some relief to the workforce and the wider community which has been extremely patient and stoic through the uncertainty.

“I want to thank Liberty House/SIMEC and the Gupta family for their strong interest in South Australia and their vision for Whyalla.

“It has been a pleasure working with Sanjeev Gupta and his team in past months and we wish him all the best in his future endeavours.

“We look forward to working with the South Korean consortium, the administrators, unions, workers and federal Minister Arthur Sinodinos on securing a sale that includes all the Arrium assets and provides a new and prosperous future for Whyalla.”

Member for Giles Eddie Hughes said he was confident that the state and federal governments could work together to produce a final assistance package for Arrium.

“The development of the FINEX technology in Australia will be a great thing for the structural steel industry,” he said. 

The state government now plans to begin detailed negotiations with the administrator, federal government, workers, unions and the consortium to support the sale.

Traders in Whyalla will soon forge ahead after the economic downturn of the past 14 months.

Smartphone
Tablet - Narrow
Tablet - Wide
Desktop