The Whyalla steelworks has received a $275 million funding package from Federal and South Australian Governments to support operations during its transition to new ownership.
The funding allows voluntary administrator KordaMentha to maintain safe operations, pay wages and suppliers and carry out essential upgrades, ensuring the long-term viability of one of South Australia’s most critical manufacturing assets.
The Whyalla steelworks is a cornerstone of Australia’s sovereign steelmaking capability and regional employment.
The injection follows the formal opening of the steelworks’ sale process on June 24, a key step towards securing a sustainable, modern future for the site.
“(This) funding announcement will give certainty to the thousands of people in Whyalla and surrounding communities connected with the steelworks,” South Australian Minister for Industry and Innovation and Minister for Science Tim Ayres said.
“Impressive progress has been made at the Whyalla steelworks over recent months, and I recognise the dedicated workforce for engaging with the challenge and hard work of turning it around.
“The Government’s significant intervention has stabilised the steelworks while keeping workers in jobs and keeping this critical Australian steelmaking asset running while the most suitable owner is found.”
South Australian Premier Peter Malinauskas said this is another vote of confidence in delivering long-term sovereign steelmaking capability for our country.
“The steelworks has been stabilised, jobs are secure and the sales process is proceeding well,” he said. “Australian customers are now returning to buy South Australian-made structural steel. None of this would have happened without our intervention.”
The South Australian Government also allocated $650 million in its 2025–26 State Budget as part of a $2.4 billion steel industry support package.
This includes funding to stabilise operations, modernise the steelworks, and provide an emergency response buffer – all designed to protect local jobs and secure Whyalla’s future as a national steel hub.
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