KordaMentha, the administrator of Whyalla steelworks, has expanded the facility's workforce by 63 employees, addressing understaffing issues and fortifying efforts to stabilize the business for a potential sale by year-end. The expansion comes as part of KordaMentha's strategy to navigate the challenges posed by the site's disrepair, leveraging the ingenuity of its workforce, who have been likened to the resourceful character "MacGyver" from the popular TV series. The company has met with locals and creditors to update them on the administration process, amid ongoing efforts to secure a future for the steelworks.
Workforce Expansion and Ingenious Solutions
Given the history of Whyalla steelworks, KordaMentha has been under pressure to ensure all steps are taken to mitigate the staffing shortages. We recently brought on 63 new employees to help shore up our enforcement operations. Eighteen will be employed at the mine, while the other 45 will staff the steelworks.
"We have signed off on 63 new employees coming into the business — 18 in the mine and 45 in the steelworks, and seven of those employees have already started." – Sebastian Hams
Throughout the entire process, the workforce’s skills and ingenuity to troubleshoot innovative solutions in the face of daunting circumstances has been a proud highlight mentioned constantly by KordaMentha.
"We talk about a lot of our employees being almost MacGyver-like insofar as they're using their own skills and their own assets in some circumstances to create solutions to keep the business safe." – Sebastian Hams
Financial Backing and Creditor Payments
The federal government's financial backing has been instrumental in supporting KordaMentha's efforts. The company set aside $219 million over two years for administrative costs and payments to nearly 1,000 creditors. This funding has taken them a long way towards stabilizing operations.
"The financial support from the federal government has been invaluable." – Sebastian Hams
KordaMentha has paid 34 creditors under a rescue package orchestrated by federal and state authorities, allocating $50 million specifically for local creditors.
Path to Sale and Future Prospects
KordaMentha is in the throes of seeking a sale of Whyalla steelworks before Christmas. They’ve gotten expressions of interest from as many as a dozen of the parties. This shift is an essential step in the overall plan to set the site on a more sustainable path for the future.
"We're hoping to have a sale of this business in this calendar year but there's a lot of moving parts we need to settle in order to achieve that goal." – Sebastian Hams
The administrator is working diligently to stabilize operations and address various challenges.
