CANBERRA, Feb. 19 (Xinhua) -- One of Australia's largest steelworks has been forced into administration by the state government of South Australia (SA) after amassing millions of dollars in debts.
Peter Malinauskas, the premier of SA, on Wednesday morning rushed legislation through the state parliament giving the government the power to place the operators of the steelworks in Whyalla into administration.
The facility in Whyalla -- 230 kilometers northwest of Adelaide -- has been owned by the global Gupta Family Group (GFG) Alliance since 2017 but has been in crisis after failing to repay tens of millions of dollars in debts to creditors and the government.
Malinauskas said the decision to place OneSteel Manufacturing, a subsidiary of the GFG Alliance, into administration would allow the steelworks to be stabilized and a new owner to be found.
"This is the right course of action to secure steelmaking in this country," he told reporters at a press conference.
"It is unacceptable for such an important critical piece of economic infrastructure for the nation to be in a situation where its ongoing operations are so severely compromised."
He said that the government had given GFG "every opportunity" to bring creditors back to terms but that the multinational had failed to do so.
British billionaire Sanjeev Gupta, chief executive and chair of the GFG Alliance, said in a statement on Friday that the company would sell shares in a coal mine on Australia's east coast to repay creditors.
However, Malinauskas said on Wednesday that the government received advice that the financial position of the owner of the steelworks was likely to continue deteriorating.
He said that the move would end months of uncertainty for workers at the facility, which produces approximately 1.2 million tonnes of raw steel each year.
Melbourne-based firm KordaMentha has been appointed as the administrator of OneSteel Manufacturing.
Malinauskas said he would travel to Whyalla on Wednesday afternoon and announce "one of the most comprehensive industry support packages that this nation has ever seen" on Thursday. ■
