Whyalla Steelworks cuts 500 jobs following furnace closure

• Whyalla Steelworks owner OneSteel Manufacturing will cut approximately 500 jobs following the permanent closure of its blast furnace.
• The decision reduces the local workforce from 1,700 to 1,200 employees ahead of a planned asset sale.
• Governments have committed $10.2 million in support as administrator KordaMentha seeks to secure a new buyer by Christmas.

OneSteel Manufacturing will reduce its Whyalla steelworks workforce from 1,700 to 1,200 following the permanent shutdown of an unrepairable blast furnace.

The infrastructure failure removes 75% of Australia's structural steelmaking capacity ahead of an expected sale of the operations.

The workforce reduction will involve voluntary and forced redundancies, supported by an $10.2 million state and federal government transition package.

The administrator stated that negotiations remain on track to select a buyer from two final bidders before Christmas.

KordaMentha was appointed as a voluntary administrator to the steelworks operator in February 2025.

Indian steel producer Jindal Steel and Brisbane-based M Resources are currently competing to acquire the manufacturing site.