The Australian and South Australian Governments have pledged $275 million to support Whyalla Steelworks through its sale process, highlighting its importance to national manufacturing.
The funding will enable Administrator KordaMentha to keep operations running safely, maintain payment of wages and suppliers, and carry out essential works needed to position the steelworks as a viable long-term asset.
This investment follows the formal opening of the sale process on 24 June 2025, the government said in a news release.
Minister for Industry and Innovation and Minister for Science Tim Ayres said the funding would provide vital stability for the workforce and the broader Whyalla community.
“[The] funding announcement will give certainty to the thousands of people in Whyalla and surrounding communities connected with the steelworks,” Ayres said.
“The Governments’ 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.”
Ayres also acknowledged the workforce’s contribution during the transition period. “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,” he said.
The Whyalla Steelworks has long been recognised as a cornerstone of Australia’s sovereign manufacturing capability, and both governments say they are committed to ensuring its future.
The funding will allow time for Administrator KordaMentha and sales advisor 333 Capital to continue negotiations to find a suitable long-term owner.
The governments have reiterated that there is no preferred bidder and have expressed openness to all credible proposals.
South Australian Premier Peter Malinauskas said the funding demonstrated continued confidence in Whyalla’s economic future and Australia’s steelmaking capacity.
“This is another vote of confidence in delivering a long-term sovereign steelmaking capability for our country,” Malinauskas said.
“We took decisive action to place the steelworks in administration, and together with the Commonwealth, have worked in partnership to put Whyalla in the best possible position to realise its economic potential with a modern manufacturing capability.”
Malinauskas said the intervention had already had a measurable impact on manufacturing in the region.
“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 Whyalla Steelworks entered voluntary administration in February 2025.
