Profit from the Whyalla Steelworks in South Australia has helped repay GFG Alliance collectors and safe a funding settlement to restructure the debt of Sanjeev Gupta’s worldwide empire.
- Profit from the Whyalla Steelworks and GFG Alliance’s coal mine in NSW has helped to repay debt
- In a press release, GFG mentioned the Australian operations had “record-breaking performances”
- Whyalla Mayor mentioned the announcement exhibits “we can do business well” in Australia
Mr Gupta’s world operations had been plunged into uncertainty after the collapse of main lender, Greensill, earlier this 12 months.
GFG mentioned the efficiency of its Australian operations, which incorporates the Whyalla Steelworks and a coking coal mine at Tahmoor in New South Wales, has enabled the corporate to make a “substantial upfront payment” to Greensill Bank and Credit Suisse Asset Management.
“I’d like to thank all our stakeholders – government, union representatives, customers, suppliers and of course our employees and the local community — for the support they’ve shown GFG Alliance as we managed our way through the challenges created by the Greensill collapse,” Mr Gupta mentioned in a press release.
The firm mentioned “record-breaking performances” of its Australian operations and “favourable market conditions” helped present the worldwide operations with stability.
The operations in Whyalla and Tahmoor noticed the enterprise develop revenues from $1.96 billion in FY 2020 to $2.52b in FY 2021, figures launched by the corporate confirmed.
“Continued strength in the steel and coking coal markets has helped to offset the recent correction in iron ore prices,” GFG Alliance mentioned in a press release.
South Australian Premier Steven Marshall mentioned the announcement was a “great testament” to the employees at Whyalla.
“This is absolutely fantastic news for everybody that’s been working at the steelworks at Whyalla and done an outstanding job,” Mr Marshall mentioned.
“A massive surge in revenue, a massive surge in profitability and that is a great testament to the people of Whyalla.”
Whyalla Mayor Clare McLaughlin mentioned though the financing deal had been foreshadowed, it was nonetheless peace of thoughts for locals.
“It’s a credit to the operations here in Whyalla, but also in Tahmoor as well.
“We’ve proven right here in Australia that we will do enterprise properly and run an environment friendly ship, so to talk, and get a very good outcome.”
The Whyalla steelworks and Tahmoor coal mine — which GFG Alliance said just received Federal Government approval for an expansion — currently employs 1,200 workers.
“The approval follows conditional approval granted by NSW authorities in April for a 10-year extension of the mine life at Tahmoor and can enable for the mining of an additional 33 million tonnes of high-quality metallurgical coal utilized in steelmaking and manufacturing,” the assertion learn.