The ASI has welcomed the acceptance of the British-based GFG Alliance offer for the Arrium businesses that should go a long way to shoring up a sustainable Australian steel industry.
ASI Chief Executive, Tony Dixon said the development bodes well for the local Australian supply chain, particularly its ability to meet the nation’s infrastructure needs into the future.
“The commitment by the winning consortium to invest in the Arrium businesses will bolster certainty that will be good for the business itself and the greater steel supply chain,” he said.
“With the existing business holding a strong portfolio of fundamental assets, it provides a solid foundation for the consortium’s plans to bolster the business.
“The move also gives well-deserved certainty to employees at the company who have stayed the course to keep the company trading through its difficulties over the past year.”
He was also upbeat about the spirit of bipartanship and cooperation across all stakeholders in what has been a complicated process to deliver this outcome.
“The level of support conveyed by Federal and State Government has gone a long way in maintaining a conducive environment for attracting the strongest possible bids,” he said.
“We particularly appreciate the support given by Australian Minister for Industry, Innovation and Science, Senator Arthur Sinodinos and South Australian Treasurer, Tom Koutsantonis MP in that regard.”
He said that support across both chambers and party lines has prevented this being derailed by politics and the ongoing interest and support of Shadow Industry Minister Senator Kim Carr and South Australian Senator Nick Xenophon is also appreciated.
“This, along with the pragmatic nature of the input by Daniel Walton at the Australian Workers Union is an example of all major stakeholders aligning to deliver a good outcome,” he said.
He added that benefits for the broader supply chain should flow from the sale process progressing by injecting greater confidence for downstream steel businesses to invest in more advanced capability.
“Not only that, as infrastructure developments typically feed into larger systems, it is even more important that supply be consistent with accepted Australian code of practice and associated standards,” Mr Dixon said.
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