Sanjeev Gupta, the executive chairman of GFG Alliance, expressed confidence that the Whyalla steelworks' troubled blast furnace will soon resume full operations. After visiting the plant recently, Gupta shared insights with the ABC about a recovery plan that aims to fix the coal-fired furnace, which has been offline for almost six months this year. He refrained from providing a specific timeline but indicated that the furnace would be operational again "in days or weeks, not months."
Gupta acknowledged the difficulties associated with restarting a blast furnace, describing the process as tedious and often frustrating. "This plant has been running for 60 years," he noted, reflecting on the history and operational challenges the facility has faced. Despite the setbacks, he emphasized that the company is actively addressing these issues and that the furnace is set to return to operations soon.
The Whyalla plant faced significant disruptions from mid-March to early July, during which time production halted entirely due to a malfunction in the blast furnace. Hundreds of workers experienced pay cuts ranging from 20% to 30% during this period. A subsequent issue arose last month when "unwanted material" was discovered inside the furnace, leading to another shutdown. Despite these challenges, Gupta asserted that GFG's overall business in Australia remains profitable, even amidst difficulties in other parts of the company's operations.
Gupta also commented on the broader context of the steel industry, particularly the struggles faced by his operations in Europe, where several mills have shut down. He attributed these challenges to geopolitical issues, including the impact of the ongoing war in Ukraine, describing Europe as facing a "perfect storm" of industry difficulties. Nonetheless, he emphasized that these European troubles do not impact GFG's Australian operations.
In light of recent criticisms regarding his personal spending, Gupta defended his purchase of a $12.5 million apartment in Sydney. He insisted that his commitment to the Whyalla steelworks remains strong and unaltered by personal financial decisions. GFG Alliance has announced plans to cut costs, including reductions in maintenance work at the plant, as it grapples with a prolonged slump in global steel prices.
Amidst concerns from the South Australian government about the company's financial stability, Gupta reassured stakeholders that the workforce at Whyalla would increase once the blast furnace is operational again. He explained that the current workforce issues stem not from lack of payment, but rather from insufficient work caused by the furnace's downtime. "If we can get the blast furnace back up and running at full capacity, that will generate employment for the town," he asserted.
Despite admitting to losses exceeding $1.3 billion since acquiring the Whyalla steelworks in 2017, Gupta remains committed to investing over $1 billion into decarbonizing operations to produce green steel. He highlighted the region's potential to lead in green iron and steel production, pointing out that the key obstacle is securing reliable energy sources, particularly hydrogen.
Gupta's vision for the future includes not just revitalizing the Whyalla plant but also contributing to a global shift towards sustainable steel production. He expressed hope that the South Australian government would support infrastructure investments necessary for transitioning to hydrogen energy, emphasizing the importance of both short-term and long-term solutions for the industry.
