Federal Member for Grey Rowan Ramsey said he is very excited a preferred bidder has been selected for the Arrium group of companies.
“This announcement brings us another step closer to a successful sale of Arrium and the Whyalla assets. It certainty provides a reason for Whyalla residents, workers and business owners to be optimismistic,” he said.
“The decision by the creditors and administrators Korda Mentha to select the Korean consortium Newlake Alliance Management as the preferred bidder offers a very bright future for Whyalla with an investment in a new steel plant in excess of $1bn. That level of renewal would bring a construction boom to Whyalla and greatly improve the jobs market.
“NewLake also has access to Posco’s Finex steel technology which produces lots of extra gas and so it is planned the new plant will include a sizeable base-load generator which will have some capacity to not only meet the needs of the plant, but also contribute the very valuable base load generation to our struggling electricity grid.”
Mr Ramsey said the final sale is subject to approval by the Committee of Creditors and the Foreign Investment Review Board.
“I can’t speak for the creditors, but given that they have selected this bid one would think that would be forthcoming. Similarly, can not see any reason why there should be any problem with FIRB approval,” he said.
“Newlake is seeking some support from the State and Federal Governments.
“However both governments are working closely together on this deal and I am confident agreement will be reached in the next few weeks.”
Mr Ramsey said after more than a year in administration and the harrowing uncertainty for workers, families, creditors and businesses in Whyalla, the successful sale is close at hand.
“The sale process has taken 9 months and it has been tough for the entire region,” he said. “Knowing that there will be an outcome in the near future is just what this community needs.”
Media Contact; Leonie Lloyd-Smith Port Pirie Office.
June 16, 2017