Arrium Limited is an international diversified mining and materials
company with three business segments: Arrium Mining Consumables, Arrium Mining
and Arrium Steel.
Arrium Steel includes both the Steel and Recycling businesses. The steel
business is Australia's only manufacturer of steel long products with
steelmaking capacity of approximately 2.5 million tonnes per annum. It is also
Australia's leading steel distributor and reinforcing steel supplier. The
Recycling business has operations focused on the southern and eastern coasts of
Australia, as well as non-ferrous operations in Asia.
The Department of Industry, Innovation and Science (the department) provided
the following overview of Arrium:
Arrium Ltd is an Australian public company with its head
office in Sydney, New South Wales. Its Australian steel operations include both
the Steel and Recycling businesses. Its steel manufacturing businesses,
OneSteel Whyalla Steelworks and OneSteel Rod Bar Wire, specialise in steel long
(hot-rolled structural sections, tubes and pipes, bars, rail and sleeper)
products with production capacity of approximately 2.5 million tonnes per
It reported steel and steel recycling operations' sales
revenues of about $4 billion in the 2015 financial year. Its Australian
steel operations employed around 5,500 persons in 2015, with about 1,100
employees at its Whyalla steelworks in South Australia.
Broadly, this chapter will focus on the following matters:
challenges facing Arrium, cost reduction measures undertaken and
government commitments made to date;
developments during the period since Arrium was placed into
voluntary administration; and
contribution of the Whyalla steelworks to the community and the
potential impact should the steelworks close.
Challenges facing Arrium
As outlined in chapter 1, the Australian steel industry is facing a
number of challenges, in particular the oversupply in the global market placing
downward pressure on prices.
In its submission to the inquiry, Arrium outlined how these challenges
are affecting the industry:
Many of the challenges Australian steelmakers are facing can
be attributed to the current status of the global steel market. In the simplest
terms, there is too much capacity and facilities are being run far below
economic levels. This situation is pushing prices and margins to ten-year lows.
This oversupply is not being met with the expected market
response – that is, a reduction in supply. It is estimated that approximately
300 to 400 mtpa [metric tonnes per annum] needs to be removed from the market
to return it to its optimal utilisation rate of 85 per cent (the current rate
is approximately 70 per cent).
The Chinese Iron and Steel Association has estimated it will
take at least ten years for this overcapacity to correct.
Evidence to the inquiry noted there are a number of factors impacting on
Arrium's current financial position. Whilst acknowledging that they were not involved
in Arrium's management decisions, witnesses expressed concern about the
expansion of operations into other parts of South Australia and the impact this
may have had on the organisation's financial position. Mr Scott Martin, Branch
Organiser, Australian Workers' Union told the committee:
[T]he reason the company is in the position they are in has
nothing to do with the carbon tax being in place or being taken out of place.
It is to do with what they did up at Southern Iron—establishing a mine up there
that basically had to collapse as soon as they got the thing up and running.
They spent $600 million of capital expenditure that they had to go to the
market to get. They built that mine and the rail lines, expanded the port and
put ore sheds in out here. Within five minutes of doing that it was gone. That
is what has put the company in this position; it has nothing to do with the
On this issue, Mr Stephen Young, Managing Director, E&A Ltd provided
evidence to the committee:
I am obviously not involved in the management of the
business. I sit outside the business and do not have detailed firsthand
information, and I should obviously qualify my response with that observation first
of all. Having said that...the decision that was made in different times by the
Arrium board to expand the company's operations in the Middleback Ranges and
then to acquire the Peculiar Knob iron ore facility has, with the benefit of
hindsight, been a mistake. The debt that was incurred in making those
acquisitions is currently not repayable, or would not appear to be repayable,
and my understanding is that those operations have been running on a
cash–flow–negative basis, and they are struggling currently to get them to
It is always easy to be wise with the benefit of hindsight.
In my life I have most probably made more mistakes than Arrium, so I am always
somewhat reluctant about criticising businesspeople who try and make good
decisions at the time. They obviously thought that the decision to expand iron
ore would protect the steel making business.
Cost reduction measures
The committee received evidence detailing the cost reduction measures
that Arrium has taken in recent years in response to the competitive pressures
in the global industry.
Arrium explained the cost reduction program it has undertaken since
Arrium has worked to maintain competitive pricing, even
though this is marked against products that are likely dumped. To achieve this,
since 2009 we have reduced our total delivered cost of steel per tonne by 24
per cent after inflation, as well as improving productivity and reducing
margins wherever possible.
Overall, Arrium achieved an annualised cost base reduction of
$40m in 2014-15. Over the last five years, Arrium's steel business has been
radically restructuring to improve efficiency, and has done so while producing
a greater amount of steel than we produced five years ago.
... Further, Arrium has identified a cost reduction and
efficiency target of $100m for our Whyalla operations for the 2016 financial
year. To date, approximately $100m of this has been identified, and
unfortunately has included approximately 200 job losses, with an additional 50
losses likely from contractors. The continued deterioration of the market,
however, has now increased the required target to $160m.
Despite these significant efforts, Arrium cannot continue
with the status quo... In short, Australia's domestic industry – like steel
industries around the world – is under significant pressure due to a global
situation that has been created largely by non-market forces and is accordingly
beyond our control.
Mr David Gabb, AWU delegate and steelworker also detailed the
commitments agreed to by Arrium employees:
We [Arrium employees] made a sacrifice to save $100 million,
and that target, apparently, has been achieved. We have done that. But then
they came back and said, 'No, we need another $60 million.' That $100 million,
by the way, we got from restructuring wage cuts, shift changes, overtime bans
and other cost-saving measures, so we all hurt to get that. That was only six
months ago that they came out with that, and we did it. We got it. And myself,
I suffered a great financial loss through these changes and, because we now
have less people, I do the work of two people compared to what I used to do. As
I am getting older, in an ideal world life should be getting easier, not
Questions about the future of the steelworks at Whyalla were raised by
Arrium in February 2016 after the announcement of a $43 million operating loss
for the facility due to low steel prices, with planning underway to put the
steelworks into care and maintenance by the middle of the year unless
In late February 2016, a recapitalisation plan for Arrium was announced.
At a public hearing in April 2016, representatives from Arrium told the committee
that they were exploring a range of options to support operations at Whyalla:
What we have said is that we think that, to achieve an
outcome to make that facility, at a minimum, cash break-even, which is what we
need to do, it will require all of our stakeholders to be involved. Government
is one of those stakeholders. Our employees are another. Our contractors and
partners that we work with in those operations are another.
...What I can say is that, in the present circumstances, there
is nothing that the company is not considering in terms of finding a way
On a related matter, the committee received evidence on 5 April 216 from
the Australian Manufacturing Workers' Union (AMWU) about the activities
undertaken by employees to support the steelworks and improve the situation:
What have the employees done to assist to secure the
viability of the steel industry? Over the past 12 months the direct employees
have contributed both economically and practically to ensure the ongoing
sustainability of the steelworks and mines. This has been achieved in many
ways. They have injected ideas on cost savings and productivity improvements, moved
to multiskilled roles to allow for reduction of numbers of their fellow workers
and still maintained production outputs. At present, there is a variation being
voted on to reduce their take-home pay, base pay and allowances by 10 per cent
and forgo a three per cent pay increase under their current enterprise
agreement, a total of 13 per cent. On top of this, the restructuring in late
2015, which reduced employees' pay by up to 15 per cent, reduced costs to
company in the way of roster changes, shift penalties and the like.
The committee notes further cost reduction activities undertaken since
the public hearing in April 2016. Media reports in September 2016 noted that Arrium
employees accepted a 10 per cent pay cut recommended by KordaMentha.
This proposal had previously been rejected by workers in August 2016. The pay
deal was reported to act as a cost-saving measure of approximately $17 million
in labour costs.
Arrium placed into voluntary administration
Arrium was placed into voluntary administration on 7 April 2016. On
12 April 2016, KordaMentha were appointed as voluntary administrators of
Arrium Ltd and its 93 subsidiaries.
On 5 October 2016, KordaMentha advised publicly that the sale process
for Arrium was continuing: non-binding indicative offers were due in October
2016 and shortlisted bidders are expected to submit final bidding offers during
Commitments to support Arrium
The South Australian Government as well as the Australian Government and
Opposition have made commitments to support Arrium.
On 9 June 2016, the South Australian Government committed $50 million to
support a new owner of the Whyalla steelworkers. When making the announcement,
South Australian Premier Jay Weatherill noted that 'the funding will be placed
in a facility that can only be accessed by a new owner if it is used to support
the operations at Whyalla'.
On the same day, KordaMentha issued a media release welcoming South
Australia's investment in Arrium:
KordaMentha Restructuring today welcomed the SA Government’s
$50 million contribution to help secure the future of Arrium's OneWhyalla
Administrator Mark Mentha said the decision will go a long
way towards assisting the town’s steelworks and mining operations. It's a great
response to what has been an unbelievably strong display of unity by all
stakeholders in the Arrium businesses that include government, business, local people,
suppliers and employees he said.
Mr Mentha said he looks forward to working with South
Australia to gain a further $100 million for future investment.
On 16 June 2016, the Opposition Leader Bill Shorten announced that a
Labor Government would work with the South Australian Government to establish a
joint Steel Reserve to support Arrium. Federal Labor would provide $100 million
as part of the Steel Reserve—$50 million in co-investment grants and $50
million in financing or loan guarantees through the Export Finance and
Insurance Corporation. The $100 million commitment from the Opposition
Leader is in addition to the $50 million commitment from the South
On 19 June 2016, the Coalition-led federal government announced that it
would provide Arrium with a $49.2 million loan in order to upgrade its
machinery and protect jobs at the steelworks.
On 22 July 2016, the Prime Minister confirmed that the Export Finance and
Insurance Corporation will provide a loan under the National Interest Account
of $49.2 million for new machinery at the Iron Knob and Iron Baron mines.
On 21 September 2016, the Opposition Leader reiterated his commitment to
support Arrium and called on the Government to match Labor's commitment. 
On 3 November 2016, the Hon. Greg Hunt MP, Minister for Industry,
Innovation and Science reported the Australian Government's willingness to make
support available under the Clean Energy Finance Corporation and the Export
Finance Insurance Corporation. This commitment has also been outlined in a
Letter of Support available to all potential buyers.
Arrium's steelworks at Whyalla
As already highlighted, Arrium operates a major steelworks in Whyalla,
South Australia. The city of Whyalla is located 396km northwest of Adelaide, is
the largest in the Upper Spencer Gulf region, and is located on the western
shores of Spencer Gulf. Whyalla has a population of 22,754 people and is the
main manufacturing, mining and retail shopping centre in the region.
Submitters highlighted that the economic footprint of the steel industry
in Australia is not evenly distributed, with the regional economy of Whyalla
heavily reliant on the ongoing operations of Arrium.
Arrium's contribution to Whyalla
A number of submitters and witnesses told the committee that the steel
industry is central to the community of Whyalla.
Arrium made the following comments in relation to its Whyalla
[The Whyalla steelworks] employs 25 per cent of the town's
workforce and makes up 35 per cent of its economy. The presence of the
Steelworks also provides indirect benefits: other sectors, such as education,
health, hospitality and tourism rely on the population base the Steelworks
provides. This base also ensures access to a level of services from governments
(including schools and healthcare) that generally do not exist in nearby,
Furthermore, the committee heard:
At the 2011 census, the ABS reported that the industry sector
employed more than 29 per cent of Whyalla's workforce of just over 9,100
people. This compared significantly to the 11.8 per cent employed in the sector
for the South Australian workforce and to the 10.8 per cent for the nation's
As well as directly employing a number of people in Whyalla, the
committee heard evidence about other organisations who rely on business from Arrium.
For example, Mr Nicholas Bindi, Chief Executive Officer, ICE Engineering and
Construction (a specialist electrical and instrumentation installation company)
told the committee that approximately 25 per cent of its business comes from
Possible closure of the steelworks
There has been ongoing concern that the challenges facing Arrium may
result in the closure of the Whyalla steelworks. Arrium commented in its
submission on the impact such a closure would have on the community:
The impact of a closure on a region such as Whyalla will be
significant. It is highly unlikely steelmaking jobs would be replaced with a
similar number of high-value jobs in an equivalent industry. This would result
in higher levels of unemployment and a significant population drop, leading to
poorer socio-economic outcomes that would properly need to be addressed by
Cr Tom Antonio, Acting Mayor, City of Whyalla, explained that the
Whyalla community is 'endeavouring to diversify and grow into other sectors of
the economy, such as tourism, aged and disability care and tertiary education'.
When outlining the proactive efforts of Whyalla City Council to initiate
change and encourage the growth of a range of sectors, Cr Antonio argued that
the diversification of the economy should occur in conjunction with support
from the federal and state governments to support the local steel industry:
One thing I must say is that we need to be proactive. I find
we seem to be reactive, and, when you are reactive, you do not succeed. No
business that only reacts is successful. One thing this council will do is be
proactive, and all I ask is for the federal and state governments to work with
this council to be proactive, to make sure that the longevity of the city is
far greater than the next 20 to 30 years. That is all I can really say.
When responding to a question about the possible 'closure' of Whyalla as
a community should Arrium close, Cr Antonio told the committee:
That is not an option. I understand what you are saying, but
I am not going to accept that. There might be a status quo, but I think that is
where the federal government and state government have to work cohesively with
Arrium and its banks to make sure that that does not happen. I will not accept
The committee notes that this is not the first time that Whyalla has
faced the prospect of losing a significant employer in the community. The
Whyalla Shipyards closed down in 1978, at the same time as a worldwide downturn
in the steel industry. The committee was advised that approximately 4,000 jobs
were lost during that period and the Whyalla population subsequently decreased
from 34,000 to approximately 19,000.
The committee heard evidence that if Arrium was to close, the effects
would be widespread. Representatives from 63 businesses, many Illawarra based
and others from all over Australia, told the committee:
Arrium failing would affect us severely. Even though we are
in a different part of the country and even though Mr Leussink's company [Leussink
Engineering] only does a little bit of work for them, it would affect us
massively. Immediately, BlueScope would be viewed by everyone—their own
employees, their own management, the community and every politician in the
country—exactly like the car industry was. They would say, 'Well, the other one
failed, so this one will fail as well.' Everyone would give up on BlueScope and
they would have a massive challenge on their hands. So it is really important
for us in the Illawarra area that Arrium survives, for that one reason.
Community impact should Arrium
cease to operate
Evidence to the inquiry outlined the impact on the community should
Arrium cease to operate in Whyalla. Submitters and witnesses highlighted
impacts in a range of areas: direct and indirect job losses, devaluing of the
housing market, negative social consequences (such as drug and alcohol issues),
an increase in mental health issues and a greater reliance on welfare and
Data from the department shows that the employment counts for steel
production in South Australia stayed at or above the 2006 levels from 2007 to
2012. However, employment in the sector recorded their lowest level in 2015.
Table 2 Steel employment in South Australia
Department of Industry, Innovation and Science (citation:
Economic and Analytical Services, Department of Industry, Innovation and
Science; ABS, Labour Force, Australia, Detailed, Quarterly, Nov 2015, cat.no.
Research conducted by the Australian Industrial Transformation
Institute, Flinders University of South Australia analysed the impact of the
closure of the steelworks as well as the South Australian mine owned by Arrium.
As shown in Table 3, the impact in terms of job losses could be quite
The modelling by Flinders University was undertaken as follows:
A base case where all of the people who lose their job leave the
Whyalla region, and 50 per cent leave the state. It is assumed that those who
remain in the region/state will reduce their consumption expenditure by 50 per
cent (many will be in retirement and living off superannuation savings, or
A conservative case where 50 per cent leave the region and 25 per
cent leave the state.
A high case–where all leave the region, but also so do 100 per
cent more as individual businesses face a critical mass issue. Further 50 per
cent of those who leave the region also leave the state in search of
Table 3 Summary of Impacts on Whyalla Region and State due
to Arrium Closure
Regional Product ($ m)
Incomes ($ m)
Regional Product ($ m)
Incomes ($ m)
Mr Nicholas Bindi, Chief Executive Officer of ICE Engineering and
Construction Pty Ltd explained the impact of job losses for an organisation
that supplies material to the steelworks:
Should the steel industry close, our local branch would cease
to exist here in Whyalla. Thirty-five employees and their families, some
150-plus people dependent on ICE Engineering providing them with employment and
an income, will be out of work. ICE will not be in a position to further train
and develop the youth of Whyalla into quality tradespeople, as the current
skilled workforce of our business will be forced to leave the town to look for
work. I feel that the skilled employees in nearly all Whyalla businesses
currently dependent on Arrium will do the same, leaving a town mostly with
unskilled people dependent on the government for an income.
Looking more broadly at the effect on the Whyalla community, the
I do say that Whyalla is in a different category, because of
its geographic location and its lack of other employment alternatives, from
even the city of Elizabeth, which, clearly, with the automotive industry
closing, also faces very significant challenges. But the people of Whyalla have
no genuine alternative other than to be part of the social welfare safety net,
which is a huge problem in the long term.
Beyond Whyalla, there will be knock-on effects. There will
certainly be a very significant loss of confidence in the broader South
Australian community, and it could not come at a worse time. Certainly, my
submission calls upon the federal government, state government and local government
to really focus on Whyalla. Whyalla is potentially going to go through a crisis
that would be, in my words, as bad as we have seen since the Great Depression.
You only need to look at history to see what the real cost is of one-third or
more of the community being unemployed long term.
Witnesses highlighted that the isolation of Whyalla means that there are
limited options if people were to no longer be employed at the steelworks:
The point that I particularly want to make is that these
individuals who lose employment will not be able to secure employment
elsewhere: they are four hours from the city of Adelaide, and obviously that is
not an effective commute; fly-in fly-out opportunities are currently not
available to skilled tradesmen; and, more importantly, they will be—my
words—trapped in their own homes. They will not be able to sell their homes.
There are already 1,000 homes for sale in Whyalla, and if another 3,000 people
were to lose their employment, there will be thousands of homes for sale. Their
homes will be without commercial value and many of these individuals will not
be able to support their mortgages; we will be left with a social crisis, in my
view, which basically we have not seen in Australia since the Great Depression.
The committee was advised that the effects of a closure would be further
exacerbated because of other closures across the region:
Would there be opportunities to find work in their
residential region? The simple answer to that is no. At present in the region we
have a pending closure of the Alinta power station in Port Augusta. We have had
one of the major engineering companies that serviced the steelworks, Link
Engineering, go into voluntary administration just under a month ago; they have
since closed their doors. We have seen all other service contractors in the
region go through restructuring to assist Arrium and OneSteel reduce their
costs, with a total loss in excess of 600 jobs in the last 18 months. The
AMWU's view is that there would be limited, if any, new opportunities for
Mr Peter Chesworth, Head of Division, Department of Industry, Innovation
and Science also noted that the isolation of Whyalla presents challenges for
the region that may not necessarily be experienced elsewhere:
So, for BlueScope, the issues there seem to have dissipated,
and I guess the department itself does try to draw a line between the two
because, whilst the Illawarra is a distinct region, there are a significant
number of people who live in the Illawarra and who work in Sydney, so the
regional impacts would not perhaps have been as great if the crisis in the
Illawarra had come to a head, whereas in Whyalla the isolation works against it
in relation to those regional issues.
On the issue of the challenges affecting the housing market in Whyalla, Cr
I will give some of the stats I have acquired for you here
today. The predicted job losses could be up to 6,000 total jobs in Whyalla. In
2013-14 we had 9,234 [total jobs in Whyalla]. That is coming from regional
employment data. The total tax loss and welfare costs will be to the tune of
$230 million for decades. Gross state product loss will be $1.5 billion. The
Whyalla property market has already devalued from $2.73 billion down to what I
believe is currently $1.5 billion. I believe that will continue to decline if
we do not act, and act quickly. The ability for employees to own homes and to
relocate to other regions with be significantly constrained. Mining services,
freight and heavy industry contracting business will withdraw from the region,
and this will negatively impact on the viability of the current and future
projects across the state.
Mr Scott Martin, Branch Organiser, Australian Workers' Union (AWU)
provided further examples of the impact on the housing market in Whyalla:
The housing properties have dived 20 per cent in recent
times. There are over 600 properties on the market in Whyalla at the moment.
Some of them have been up for sale for a number of years and cannot sell
because nobody wants to buy into a town that does not have a future, and that
is a fact. Rentals have dropped, so people cannot rent their houses now. There
are places out there that have been vacant for a long, long time that cannot
get rented and there are places that are on the market that cannot get sold.
And there are people who have just invested in housing, young families, who had
jobs at the steelworks or the mine and who are now contemplating selling it or
giving it back to the bank. We have heard stories of banks reclaiming housing
and we have had houses out the back in a half-built state that have not been
completed because of people losing their jobs and the downturn in the industry. 
Mr Martin also explained the broader social consequences for the Whyalla
community should the steelworks close:
My main concerns are unemployment, the housing market, crime
and drug and alcohol use. An isolated town in a region like this needs a major
industry attached to it to keep the place surviving, as well as all the
contractors. We support and work with all the contractors too, and you are
talking about half a dozen major firms in this town that would also pull the
pin if anything happened to the steelworks.
Mr David Gabb, AWU delegate and local steelworker told the committee that
the challenges experienced by Arrium were already being widely felt across the
Just one other thing: with my association with Rotary, we
help out different groups. We have seen the demand from these groups in the
community increase quite significantly, simply because of all of this. That is
from all parts—from the YMCA right through to the hospital. They are all
On the issue of mental health issues in the community Cr Antonio explained:
You have just got [to] understand the stress on not only the
people who are behind me but also the community in total. People who have lost
their jobs. People have got their children in apprenticeships, and there is
uncertainty: what are they going to do when they are second or third year
apprentices if they cannot finish those jobs? The mental health and the stress
it is putting on the community is enormous, and you only have to go to the
hospital and go to the department for mental health and you will see that...I can
assure you it is putting enormous pressure on the mental health of this
Predicted welfare costs should the
Witnesses argued that should the Whyalla steelworks close, there would
be an increase in the welfare assistance required in the community. Councillor Antonio
estimated the cost of the additional assistance as follows:
If Arrium goes down the road that we believe they are going
down, over 3,000 jobs will be lost in Whyalla. This will result in a
social security and support services bill of over $3 million per month. If the
entire city fails due to lack of employment, the loss to the state will be in
the billions of dollars.
Whilst noting that assistance to the community would be required, other
witnesses did not specify or estimate a particular figure. One witness stated:
Closure, or placing the plant into care and maintenance,
would impact the workers of Whyalla severely. It would have dire psychosocial
consequences and economic costs not only to their families but to all workers
in the community. It would also impact the state and national governments by
way of income tax losses and the cost of welfare services.
Mr Dion Dorward, Chief Executive Officer, Regional Development Australia
Whyalla and Eyre Peninsula Inc. noted that the quantum of the government
assistance package required to help restructure the economy 'would ultimately depend
on the eventual fallout' and 'should be based on comparable packages that have
been awarded elsewhere in Australia and around the state'.
Mr Dorward went on to say:
I would hope that
consideration would be given to being proactive in putting money towards
diversification of this economy prior to a full crisis around any closures.
The committee notes with grave concern the continuing crisis in
Australia's steel industry, and in particular uncertainty about the future of
Arrium. In light of the impending sale and recapitalisation of Arrium's
operations, governments must work together with unions and supply chain
companies to ensure that the industry remains viable.
Arrium is Australia's only manufacturer of long steel products and the
leading steel distributor and reinforcing steel supplier. If domestic
production of long steel products were to cease, Australia's construction and
infrastructure sectors, which employ more than a million people, would become
vulnerable to import delays and to fluctuations in global prices and transport
costs. The end of production by Arrium would have repercussions throughout the
Furthermore, the prosperity of Whyalla and its region relies on Arrium
continuing to trade. The steelworks is the town's major employer, and Arrium's
workforce generates much of the demand for other local businesses and for
government provision of healthcare, education and other community services. The
importance of the steelworks for Whyalla and the surrounding region cannot be
Even though the outcome of the sale and recapitalisation process is not
yet determined, it is already clear that a range of measures will be required
to secure the future of the steelworks and to maintain Australia's steelmaking
The committee notes the funding commitments that have already been made
by the Australian Government and the South Australian Government. As a first
step, this funding will need to be made available to assist with the sale
The committee further notes that additional government support for
Arrium may be required, depending on the nature of the final bidding offers.
This may include funding in the form of co-investment grants, access to
finance, and measures to ensure long-term energy security and stability.
Beyond the immediate issues pertaining to the sale and future of Arrium
and the steelworks in Whyalla, the committee is also investigating the broader
Australian steel industry and supply chain.
In this context, and in view of the evidence already collected as part
of this inquiry, further industry-wide reforms will be required to secure the
future of this vital industry and maintain Australia's steel making
It is the committee's view that additional reform options should be
included in its deliberations and final report. These are likely to include
recommendations for policy and legislative reform in the areas of anti-dumping
and countervailing measures, government procurement, and standards.
The committee notes commitments made by the Australian and South
Australian Governments to secure the sale of Arrium and recommends that this
funding be deployed as a matter of urgency to assist with the sale process, in
accordance with advice from the company administrators.
The committee notes that further government support may be required to
secure the sale of Arrium, depending on the nature of the final offers, and
recommends that governments work with bidders and the administrators to ensure
that additional support is provided, as appropriate, to secure the sale of the
company and the future of the Whyalla steelworks.
The committee recommends that additional policy and legislative reforms,
particularly in the areas of anti-dumping and countervailing measures,
government procurement, and standards, should be addressed in detail as part of
the committee's deliberations and final report.
Senator Chris Ketter
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