Media Releases

Ramsey welcomes sale of Arrium to GFG Alliance

 

Ramsey welcomes sale of Arrium to GFG Alliance

 

Federal Member for Grey Rowan Ramsey says the long awaited sale of Arrium to London based GFG Alliance, including the Whyalla steel works is fantastic news for Whyalla and the Australian steel industry.

 

“This is different news to what we had just two weeks ago when we thought we had a sale to the Korean consortium, demonstrating how complex this sale process is. Despite that, it has flushed out the best offer and we now have certainty for Whyalla,” Mr Ramsey said.

 

“The company is sold subject only to approval by the Arrium Committee of Creditors, the Foreign Investment Review Board, due to meet soon, and to reaching an agreement on support from both the State and Federal Government. I anticipate that these will all be negotiated during the next few weeks. There is an absolute determination from all parties to deliver the goods."

 

“Liberty House (GFG Alliance) has a terrific record of turning around unprofitable steel plants and also brings significant mining experience to the table. Sanjeev Gupta and his team have worked hard to secure Arrium, and they are very enthusiastic about investing in this part of the world", Mr Ramsey said. "The sale of Arrium and securing the long-term future of the Whyalla business, have been a pre-occupation of mine for well over twelve months. I first met Mr Gupta face to face back in November last year and have worked at every turn to make sure all the doors to  all the right people were open to him along the way."

 

“I am confident that after 15 months of uncertainty, the town of Whyalla can be assured we will fully close out the deal and residents and the community can begin to get back to normal,” Mr Ramsey said.

 

Right through the process I have had significant support from Prime Minister Malcolm Turnbull and Ministers Greg Hunt, Arthur Sinondinos and Treasurer Scott Morrison. The Commonwealth has already invested $120m in The Whyalla Arrium business, in itself a significant reason we have achieved a successful sale. The administrator Mark Mentha has worked tirelessly for this outcome and Federally we continue to work as one with the State Government to deliver the final deal. In effect we are all on a unity ticket,” Mr Ramsey said.

 

 

Media Contact:     Justine Pelle 08 8645 4255        5 July 2017

 

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