GFG Alliance spokesperson confirms that the changes in the workforce at the Whyalla steelworks will not hinder the steel making operations or the company's forthcoming shift towards green iron and steel production. The decision to cut jobs is directly linked to the prolonged downturn experienced in the global steel market, leading to the elimination of almost 50 positions at the steelworks owned by GFG Alliance.
This restructuring comes after the ABC brought to light that GFG Alliance owed large sums of money to multiple contractors in Whyalla, further highlighting the financial challenges faced by the company. The steel plant, which was bought by British businessman Sanjeev Gupta's company after going into administration in 2016, initially promised expansion plans and a transition to green iron and steel production, which the company continues to uphold amidst the recent job cuts.
While GFG Alliance emphasizes that the efficiency steps taken to reduce fixed costs and personnel adjustments will not affect steel making, concerns are raised by local union representatives and government officials about the impact on the community and steelworks employees. The company's commitment to the Whyalla steelworks, consistent communication with government officials, and plans for green iron and steel transition remain at the forefront despite the challenges posed by the slump in global steel market demand and prices.