Building a bright future in Upper Spencer Gulf

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By Belinda Willis

When British industrialist Sanjeev Gupta signed a deal to turn around the fortunes of Whyalla and its struggling steelworks, he not only saved thousands of jobs but also injected an extraordinary boost of confidence into the region.

His widespread investment has Whyalla Mayor Lyn Breuer brimming with optimism for the state’s Upper Spencer Gulf and Business SA’s chief executive Nigel McBride relishing a wider lift in the economy.

Mr Gupta’s GFG Alliance bought the town’s ailing steelworks from Arrium when it was in administration with some 6000 jobs under threat.

“We were in a really, really bad patch and it seemed like we were in a situation we weren’t going to get out of, when Mr Gupta came along and GFG it was such a blessed relief,” Mrs Breuer says.

Now she says the plans just keep getting better with announcements that the GFG Liberty OneSteel plant will double production and create a greener business model with more recycled steel and a focus on clean energy.

Whyalla Mayor Lyn Breuer speaks at a handover ceremony on the day GFG Alliance took over the steelworks. Photo by Jon Ortlieb.

Mr Gupta wants to build solar farms along with the country’s largest lithium ion battery and to eventually also develop new housing in Whyalla.

Contracts are being signed to upgrade the plant and Mrs Breuer says investigations are underway to expand the Whyalla port while GFG Alliance is taking on a majority stake in ZEN Energy to realise its national energy ambitions.

“People understand in the next 12 months we’ll see a real turn around in our town, we are looking toward to a more positive future than we ever have before,” Mrs Breuer says.

This key investment comes amid remarkable growth, particularly in renewable energy, in the region.

There are some 13 new investment projects underway, among them the Bungala solar power plant near Port Augusta being under construction, while the much-lauded concentrated solar thermal plant owned by Sundrop Farms is already running a hydroponic greenhouse to grow tomatoes.

Mayors from Port Augusta, Whyalla and Port Pirie met on Friday last week to discuss how their councils can help ensure there will be enough skilled workers to fill the expected rapid rise in job openings.

Mrs Breuer says Mr Gupta has certainly piqued the interest of other global investors.

An aerial view of the Whyalla steelworks. Photo by Jon Ortlieb.

Whyalla council officers were invited to China for meetings with two more companies keen on investing.

While in January, Becker Helicopters announced it was moving some 70 staff and its training operation from Queensland to the Upper Spencer Gulf city.

The state’s Industry and Skills Minister David Pisoni also reports a renewed optimism in the region more than 300km from Adelaide after visiting in June and July to talk with industry and small business people.

“The significant, and very much welcome, investment by Gupta Family Group in Whyalla is already having huge flow-on effects within the local community and beyond,” Mr Pisoni said.

“Employers and business have been given renewed confidence, the region is also attracting recognition and new investment from around the globe.”

The GFG Alliance itself is a global group of energy, mining, metals, engineering and financial services businesses, headquartered in London, with additional hubs in Dubai, Hong Kong, Singapore and Sydney and a presence in around 30 countries worldwide.

Photo courtesy of Liberty OneSteel.

Business SA chief executive Nigel McBride says the state has attracted vital intelligent capital, capital that is leading to “global know how” around lowering material costs, greater energy efficiency and new products.

“GFG is bringing a global supply chain to Whyalla so we are part of something much bigger ….. and it’s not just people working directly in the steelworks that benefit, it’s also small businesses who service it and their employees.”

He believes the investment has given a huge boost to business confidence in regional SA at a time when the state’s job figures are rising.

Even the Federal Government is sending in cash, announcing funding of $19.4m for eight projects in the region during April that it hoped would create more than 500 new jobs.

The Upper Spencer Gulf was the only SA region, and one of only 10 nationally, to get pilot funding under the national $222m regional jobs and investment package.

The 1200 tonne crane German-made Liebherr all terrain crane will be used to build and maintain wind towers.

Max Cranes in Whyalla won $4.7m funding toward a $12m telescopic mobile crane – the largest of its kind in the southern hemisphere – used to build and maintain wind towers.

While Whyalla’s Ice Engineering and Construction was awarded half the $10m cost of creating a hub for three existing Whyalla-based heavy engineering and manufacturing companies.

“It’s an extraordinary investment strategy in a range of complementary industries and resources that will be truly transformational in regional SA and across our state,” Mr McBride adds.

Header photo is courtesy of Liberty OneSteel.

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