Whyalla Steelworks Layoffs: 600 Jobs Cut As Administrators Permanently Shut Down Blast Furnace
Administrators KordaMentha have confirmed the permanent shutdown of the Whyalla steelworks blast furnace due to safety risks and failed restart attempts, impacting 600 jobs. While sale talks continue toward a year-end finalisation, traditional steelmaking will cease until modern assets are built. Scroll below to know more about the job cuts.
Hundreds of workers at South Australia's Whyalla steelworks are facing job losses after administrators confirmed the permanent shutdown of the facility's troubled blast furnace. The decision marks a major structural contraction for the regional industrial hub as external managers grapple with long-standing operational hurdles.
Permanent Furnace Closure and Job Cuts
Administrators from KordaMentha informed workers of the restructuring decision, confirming that traditional steelmaking operations will cease until new assets can be constructed using modern technologies. Approximately 500 direct employees and 100 labour-hire contractors are expected to be impacted by the downsizing, reports The Guardian. Oracle Layoffs Email: Know What The Sudden '6 AM' Termination Notice Says.
After the Blast Furnace Closure, There Will Be About 1200 Employees
I’m in Whyalla tonight talking to workers following an important announcement about the future of the Whyalla Steelworks.
The administrator, KordaMentha, has announced that efforts to restart the Whyalla Steelworks blast furnace over recent months have been unsuccessful.
It has… pic.twitter.com/v2Iyt0Qnuy
— Peter Malinauskas (@PMalinauskasMP) September 14, 2026
The coal-fired blast furnace, which converts iron ore into liquid pig iron, has remained offline since April. Administrators stated that repeated attempts to restart the equipment failed, and safety concerns ultimately rendered further recovery efforts unfeasible following injuries sustained by personnel during previous restart attempts. "It is no longer appropriate to place our people at risk in pursuit of a recovery that is no longer feasible," administrators noted in a letter to staff, confirming the permanent halt, reports BigGoFinance.
Ongoing Sale Process and Restructuring
The steelworks has been under external administration since early 2025, when the South Australian government intervened to stabilise the business following financial crises under previous management. Despite the furnace closure, state officials maintain that the broader sale process remains on track to be finalised by the end of the year. KO_OP Layoffs: Goodbye Volcano High Developer Cuts 13 Jobs Amid Industry Funding Drought.
Prospective buyers, including Indian steel giant Jindal Steel International and Australian-owned M Resources, remain in contention, alongside BlueScope Steel, which holds a right of last offer. South Australian Premier Peter Malinauskas travelled to Whyalla alongside local ministers to address the workforce, with authorities deploying support packages encompassing financial counselling, training, and redeployment assistance.
(The above story first appeared on LatestLY on Sep 14, 2026 10:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
