Despite the 30 per cent global efficiency target announced this month, GFG reaffirmed its commitment to upgrading the ageing Whyalla steelworks it bought in 2017. The Australian Workers Union said “GFG has made it clear that under this plan, production facilities in Whyalla, Laverton and Rooty Hill will be complementary and not in competition with one another for production and market share. While the AWU will watch this matter closely, it is exciting to see new investment in Australian steel manufacturing for the first time in many decades. he AWU will work closely with GFG Alliance to identify where savings can be made without reducing positions.”

FG Alliance on June 10th announced its updated Whyalla GREENSTEEL Transformation Plan in a major milestone for the business, as it seeks to secure the long-term future of its South Australian based steelworks. It revealed further plans for a sophisticated Electric Arc Furnace and a Direct Reduced Iron facility to produce low-emission GREENSTEEL from GFG’s abundant South Australian magnetite resource and domestic steel scrap. The new DRI plant will be fed by Natural Gas, in time transitioning to green hydrogen produced from GFG’s own renewable energy projects including Cultana. Combined, these new facilities will produce advanced steel long products for the Australian construction, critical infrastructure and mining industries for generations to come.

While there is an exciting future ahead, Whyalla’s legacy primary steel making facilities remain financially challenged. To this end, leveraging GFG’s international operations, an expert team has been assembled with a three-month mandate to identify and implement major cost reductions and efficiency improvements. GFG’s recently-announced global CEO for primary steelmaking and integrated mining, Mr Paramjit Kahlon, will take direct responsibility for the review, working closely with GFG’s Executive Chairman, Sanjeev Gupta, in leading this critical activity. Stakeholders will be invited to participate and provide valuable insights and recommendations.