The Albanese and Malinauskas governments have unveiled a multi-billion-dollar package to secure the future of the Whyalla Steelworks, protect local jobs, and position South Australia as a key player in green steel manufacturing.
Announcing the package on-site in Whyalla, Prime Minister Anthony Albanese underscored the importance of the steelworks to the nation’s infrastructure and economy.
“My Government is building Australia’s future. And to do that, we need Whyalla steel,” Albanese said.
“Whyalla steel has forged some of our country’s biggest projects – rail lines, airports and stadiums. That’s why, in partnership with the Malinauskas Government, we are delivering more than $2 billion to secure the future of the steelworks and support local jobs.”
Employing 1,100 workers directly and supporting over 2,000 more, Whyalla is one of only two operational steelworks in Australia. It produces 75% of the country’s structural steel and remains the sole domestic producer of long steel products, essential for infrastructure projects, including railways, bridges, hospitals, and defence assets.
The funding package, exceeding $2 billion, will be delivered in three key stages:
- Immediate support: $100 million for creditor assistance, infrastructure upgrades, and job matching services.
- Stabilisation: $384 million in co-investment by the federal and state governments to maintain operations during administration and ensure workers and contractors remain employed.
- Future investment: $1.9 billion to upgrade and modernise the steelworks, ensuring its long-term viability under a new owner.
Premier Peter Malinauskas, reaffirming the government’s commitment to Australian-made steel, said the funding recognises Whyalla’s strategic importance.
“Locally-made steel is vital to South Australia and Australia’s future, and this unprecedented investment recognises the importance of the Whyalla Steelworks,” he said.
“We are stepping up to provide immediate assistance for workers and businesses, stabilising the steelworks and setting it up for long-term prosperity.”
To further support the industry’s transition to greener production, the Albanese Government also announced the establishment of a Green Iron Investment Fund, with up to $500 million earmarked to support Whyalla’s shift towards decarbonised steel production.
A joint taskforce will be formed to engage with workers, the City of Whyalla, administrators, and creditors, ensuring a clear path forward. The South Australian Government will also redirect funding from the Hydrogen Jobs Plan and contribute $50 million from the Whyalla Steelworks Operational Efficiency Improvements Fund to aid the transition.
Minister for Industry and Science Ed Husic emphasised the long-term vision for Australian steel manufacturing.
“Making more things here means making more steel in Whyalla,” he said.
“Steel-making has provided spine to Australian industry for a century, and it’s here to stay. We want a strong future for Australian steel making, and Whyalla will help deliver that.”
The announcement follows the South Australian Government’s decision to place Whyalla Steelworks into administration, appointing KordaMentha to oversee its restructuring. With government backing and a focus on green innovation, Whyalla is set to continue playing a central role in Australia’s steel industry for generations to come.
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