The new owners of Arrium's Whyalla steelworks have confirmed plans to retain the existing workforce and grow the business, ensuring its long-term future, South Australian Premier Jay Weatherill says.
The premier met with officials from the British-based GFG Alliance on Thursday including Michael Morley who will serve as Arrium's new chief executive.
Mr Weatherill said those discussions were positive and were more good news for the 1500 workers and the people of Whyalla.
"Their ambition is to grow the business in Whyalla. To employ more people, to invest and create a long-term future for the steelworks," the premier said.
"Their intention is to work with all of the existing staff to make sure that they're part of a new future,"
The British billionaire who heads up GFG Alliance has offered a similar message but says success will lie in finding new markets for Arrium's products and will require significant investment to upgrade the plant.
"With those investments, we feel the business will be profitable and sustainable," Sanjeev Gupta told ABC radio.
Mr Gupta's company has signed a binding agreement to buy the troubled steel producer in a deal expected to be completed by August.
The deal is still subject to approval next week by the Arrium Committee of Creditors and the Foreign Investment Review Board (FIRB), but both are considered little more than formalities.
Mr Gupta said his group would look to use the steel produced by Arrium in Whyalla in its own global businesses, opening up new opportunities for the plant.
"The problem with Whyalla is not that it has a bad steelworks, it hasn't got a market," he said.
"It's selling under capacity because there isn't enough of a market in Australia. It needs to export.
The Australian Steel Institute said GFG's plans bode well for the entire steel industry supply chain and its ability to meet the nation's infrastructure needs.
"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," institute chief executive Tony Dixon said.
"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."
Mr Gupta is expected to visit Australia next week while Mr Weatherill will head to Whyalla to mark what he's described as one of the most significant moments in the town's history.
