Australia may permanently shut down blast furnace in Whyalla
A decision on the future of an aging blast furnace at the steelworks in Whyalla, Australia, may be made in the near future. Its possible permanent shutdown could lead to the loss of hundreds of jobs. According to ABC News, the furnace has not been operating since April, and a decision on its future is expected soon.
Risk of job losses
KordaMentha administrators, together with the South Australian government, may inform blast furnace workers that attempts to restart it will be discontinued. This could potentially affect hundreds of steelworks employees, as well as contractors and workers in related sectors.
South Australian Premier Peter Malinauskas said that the furnace is in an extremely unstable condition, which is only worsening. According to him, it was clear that its operating life was limited.
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Sale of the steelworks continues
The steelworks has been under the management of administrators for 19 months. At the same time, the current situation is not expected to affect the process of its sale.
India's Jindal Steel and Australia's M Resources remain in the race to acquire the steelworks, while BlueScope Steel retains the right to make the final bid. The South Australian government plans to complete the sale by the end of the year. State authorities, trade unions and KordaMentha are preparing for a scenario in which the blast furnace may be permanently shut down before the plant transitions to direct reduced iron production and an electric arc furnace.
