Tue. Aug 9th, 2022

Profits from Whyalla Steelworks in South Australia have helped repay GFG Alliance creditors and secure a financing deal to restructure the debt of Sanjeev Gupta’s international empire.

Sir. Gupta’s global business was plunged into uncertainty following the collapse of major lender Greensill earlier this year.

GFG said the execution of its Australian operations, which include Whyalla steelworks and a coal mine in Tahmoor, New South Wales, has enabled the company to make a “significant prepayment” to Greensill Bank and Credit Suisse Asset Management.

“I would like to thank all our stakeholders – the government, shop stewards, customers, suppliers and of course our staff and the local community – for the support they have shown to the GFG Alliance as we managed through the challenges Greensill created,” Gupta said in a declaration.

The company said that “record-breaking performance” of its Australian activities and “favorable market conditions” helped to stabilize international operations.

The companies in Whyalla and Tahmoor experienced that the company increased its revenues from 1.96 billion. Dollars in 2020 to 2.52 billion. Dollars in 2021, figures published by the company show.

“Continued strength in the steel and coking coal markets has helped offset the recent correction in iron ore prices,” the GFG Alliance said in a statement.

South Australian Prime Minister Steven Marshall said the announcement was a “great testimony” to the workers in Whyalla.

“This is absolutely fantastic news for anyone who has worked at the Whyalla Steelworks and done an excellent job,” Marshall said.

“A massive increase in revenue, a massive increase in profitability, and that’s a big testimony to the people of Whyalla.”

A portrait photo of a woman in mayoral robes.
Whyalla Mayor Clare McLaughlin said the announcement should put an end to negative speculation about Whyalla steelworks.(Whyalla City Council)

Whyalla Mayor Clare McLaughlin said that even though the funding agreement was envisaged, it was still peace of mind for the locals.

“It’s an honor for the operations here in Whyalla, but also in Tahmoor.

“We have shown here in Australia that we can do business well and operate an efficient ship, so to speak, and get a really good result.”

Whyalla Steelworks and the Tahmoor coal mine – which the GFG Alliance said had just received federal government approval for an expansion – currently employ 1,200 workers.

“The approval follows a conditional approval from the NSW authorities in April for a 10-year extension of mining life at Tahmoor and allows for the mining of an additional 33 million tonnes of high quality metallurgical coal used for steelmaking and manufacturing,” the statement read.

.

Leave a Reply

Your email address will not be published.