More than 600 employees and contractors may be laid off in Whyalla due to blast furnace closure
At the metallurgical plant in Whyalla, Australia, a decision has been made to permanently close the blast furnace. About 500 employees of the enterprise and more than 100 contractors who worked on its premises are expected to lose their jobs.
Workers at the Whyalla steelworks were informed about the layoffs on the morning of September 14. According to ABC News Australia, the blast furnace has not been operating since April. Despite workers' attempts, it was not possible to restore its operation.
Blast furnace operations
The coal-fired furnace was used to smelt liquid pig iron from iron ore, which was then processed into steel. The decision to permanently close it was made amid the process of selling the enterprise.
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Sale of the plant
KordaMentha administrators, together with the governments of South Australia and Australia, are working to complete the sale of the business, which entered external administration 19 months ago. Jindal Steel and M Resources remain among the contenders to acquire the plant, while BlueScope Steel retains the right to make the final offer.
South Australian Premier Peter Malinauskas, who is in Whyalla, was expected to provide additional details of the decision, including possible job offers from other employers, among them BHP. The day before, he stated that the sale of the plant was planned to be completed by the end of the year.
