Gupta’s unpaid bills mount up despite Whyalla steel restart
Five suppliers to Sanjeev Gupta’s Whyalla steelworks and nearby mines have lodged fresh notices of defaults for a combined $650,000.Simon Evans - AFR
Jan 16, 2025
Five industrial companies supplying products including abrasives, hoses and metal screens to Sanjeev Gupta’s Whyalla steelworks operations have lodged fresh notices of unpaid bills totalling a combined $650,000.
According to CreditorWatch, which monitors credit scores and defaults, Mr Gupta’s Australian subsidiary One Steel Manufacturing has been hit with new notices this month from tailings and waste management group ATC Williams for $58,000, and metal screens supplier Advanced Engineering Group for $43,000.
Abrasives supplier Cumi Australia has lodged default notices totalling $100,000 over the past three months, while Pacific Hoseflex and National Pump & Energy have also lodged notices. The sums owned across the five companies total more than $650,000.
Sanjeev Gupta’s Whyalla steelworks. The ageing plant’s blast furnace was back in operation on January 6 but some mid-tier suppliers are still waiting to be paid. Ben Searcy
But there is some positive news, with the blast furnace at the Whyalla steelworks coming back online on January 6, meaning the company is making steel again after four months of being idle when impurities were discovered in the plant. It was the second lengthy disruption in 12 months, after a crack in the blast furnace resulted in an almost four-month stoppage before steel-making resumed briefly in early July.
Mining contractor Golding, which is owned by ASX-listed group NRW Holdings, is shedding about 250 workers from the Whyalla region at the end of this month as a contract with GFG winds down. Golding had about 600 workers at three iron ore mines in the Middleback Ranges when a $600 million, three-year contract was announced in early 2022, running until this month. GFG said on Thursday it was part of the transition to magnetite ore mining.
The unpaid invoices to mid-tier suppliers show the financial pressure on Mr Gupta’s global operations is not letting up. His GFG Alliance is under siege on separate fronts in Europe, the UK and Australia.
Whyalla mayor Phill Stone said on Thursday that while the Golding job losses were a negative for the town, they needed to be put into context. “It is something that has been in train for about 12 months,” Mr Stone said.
He said about 30 per cent of those Golding workers were based in Whyalla, with the remainder either fly-in, fly-out, or driving to the Whyalla region from nearby towns. Rail freight operator Aurizon has resumed rail haulage services for Mr Gupta in the Whyalla region after suspending them in October for non-payment of bills.
Whyalla region MP Eddie Hughes said on Thursday the cumulative effects of a string of job losses at the steelworks and nearby mines was troubling. He estimated it had reached 500-plus workers in the past year.
GFG announced in October it had set up a new “Back to Black” taskforce to get the plant back up and running and back into profit. It was losing an estimated $1 million a day when it was offline.
Mr Gupta was viewed as a saviour when he acquired the Whyalla steelworks and the associated iron ore mines in 2017 after former parent Arrium collapsed. But promises about a $500 million electric arc furnace have gone unfulfilled.
Bundles of steel tubes at a trading market in the outskirts of Shanghai. A glut of Chinese steel has meant more exports.
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Sanjeev Gupta is the British industrialist behind GFG Alliance, which owns a string of steelmaking assets.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at
simon.evans@afr.com