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Mr Sanjiv Gupta Asks for Government Help at Whyalla

Steel News - Published on Fri, 23 Aug 2019

Image Source: ABC
British billionaire Sanjeev Gupta, who bought the former Arrium steelworks in Whyalla out of administration has approached the federal government for financial assistance. News of the request comes during a difficult week for the industry, after fellow steel maker BlueScope described Australia's high energy costs as "a tragedy" for local manufacturing and announced a AUD 1 billion expansion in the United States. Mr Gupta's GFG Alliance made an informal approach to a joint Commonweath/South Australian taskforce about the possibility of a public debt guarantee after the re-election of the Morrison government in May.

While there had been a lukewarm reception from the federal government to date, GFG Alliance was continuing to work on a number of proposals for assistance, the sources said.

Sources familiar with the GFG Alliance discussions said accounting and advisory firm PwC had been engaged by the joint task force set up in 2015 to co ordinate government action to support the Whyalla operations to assist in evaluating proposals relating to the steelworks.

Mr Gupta purchased the Whyalla steelworks and other assets from Arrium in 2017 after the manufacturing giant collapsed into administration owing AUD 2.8 billion and leaving 7000 jobs at risk.

Source :

Posted By : Sanju Moirangthem on Fri, 23 Aug 2019
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