none

NO "MIRACLE SOLUTION" FOR ARRIUM

12-04-2016
by 
in 

Economists have said that there is no magic solution for Arrium's troubled Whyalla steelworks, as international buyers have shown no interest in the company.

Professor John Spoehr from Flinders University has expressed that he would not be surprised if a Chinese company was looking at taking over.

As Arrium has debts of more than $4 billion and was placed into voluntary administration last week, putting more than 8,000 jobs at risk nationwide.

He has said it would be ironic but very welcome if Chinese investors came to the company's rescue.

"Unfortunately there is no magic solution," he said.

"It's really the slow down in China and the drop in commodity prices and the iron ore price that's revealed some underlying weaknesses in the Australian industry and exposed some of the difficulties that we are seeing unfolded now in Whyalla both with the steelworks and the mine.

"You imagine that there would be a bit of interest internationally from companies. It is just a question of what part of the Arrium empire they are interested in." he said.

He continued to say that company's mining and steelworks operations were underperforming but its Moly-Cop business was profitable.

"So it maybe the international investors are interested in that part of the operation.

"We will see various different possibilities unfold over the next few weeks and months as various different global players either look to genuinely invest or they are interested in asset stripping, which is really the last thing we want to see occur in relation to Arrium's future." He said.

South Australian Premier Jay Weatherill revealed several international investors had expressed interest in Arrium's steelworks and some were looking at upgrading the plant.

 

Original Source: ABC 

Related news & editorials

  1. Scott Philbrook, ANZ Managing Director, RS Components
    24.02.2021
    24.02.2021
    by      In , In , In
    Covid-19 seriously disrupted supply chains throughout industry worldwide. Scott Philbrook, Managing Director RS Components Australia, explains today’s necessity for supply chain resilience and continuity.
    The Institute of Supply Management reported that in March, at the start of the pandemic, 75%... Read More
  2. The Australian Industry Group Australian Performance of Manufacturing Index increased by 3.2 points to 55.3 over the summer holiday period December 2020 and January 2021.
    03.02.2021
    03.02.2021
    by      In , In
    The Australian Industry Group Australian Performance of Manufacturing Index increased by 3.2 points to 55.3 over the summer holiday period December 2020 and January 2021.
    Manufacturing businesses reported stronger and more broad-based recovery over the normally quiet holiday season.
    “In December... Read More
  3. A leading global freight forwarder has surveyed its customers to understand the key issues supply chain experts anticipate this year.
    27.01.2021
    27.01.2021
    by      In , In
    Australian manufacturers are being warned to expect further delays from China as 2021 ramps up.
    A leading global freight forwarder has surveyed its customers to understand the key issues supply chain experts anticipate this year.
    Three quarters of respondents to the C.H. Robinson survey said they... Read More
  4. 18.11.2020
    18.11.2020
    by      In
    For all the challenges COVID-19 has delivered, it has also highlighted the agility and innovative nature of Australia’s manufacturers. This report by Industry Update, based on a St.George special report – The 2020 Revolution – examines the impact on the sector.
    As the coronavirus pandemic has upset... Read More
Products
Suppliers