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Gupta plans big SA steel plant expansion

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July 17, 2017

British billionaire Sanjeev Gupta will visit Whyalla's Arrium steelworks on Monday.

Sanjeev Gupta, the British billionaire who is finalising a deal to buy troubled steelmaker Arrium, is due to visit the company's Whyalla steelworks in South Australia to speak with workers and management.

Mr Gupta heads up the GFG Alliance which has signed a binding agreement to buy the steelmaker with the deal expected to be completed by August.

Mr Gupta will tour the steelworks on Monday after an earlier visit during the sale process.

The businessman has said he wants to expand the Whyalla operations and invest in renewable energy, such as pumped hydro, in South Australia.

Shortly after his group was successful Mr Gupta said the key to its future viability lay in finding new markets.

"We feel there is a clear opportunity to turn it around. It does require significant investments which we will undertake," he told ABC radio.

"With those investments, we feel the business will be profitable and sustainable."

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.

He also dismissed concerns about energy costs and energy reliability in South Australia, indicating a small investment in a co-generation plant already in operation would provide more than enough power.

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