Friday, 22 April 2016
The Minister acknowledged Arrium’s key role in Victoria as the major supplier of Australian Standard compliant reinforcing and structural products to construction and infrastructure projects. Ms D'Ambrosio told workers and managers there would be "a lot of projects" in the State Budget to maximise the use of local steel.
She said the State Government would pressure other States to follow Victoria's lead in ensuring maximum use of domestic steel. Ms D’Ambrosio said the State Government had contacted all suppliers to government projects to advise them that it was “business as usual” at Arrium and there was no vulnerability to supplies.
KordaMentha’s, Mark Korda indicated that the Laverton facility is one of the many good businesses in the Arrium group, and that the business continues to manufacture and supply steel products throughout Victoria and other States.
Arrium employs more than 1,000 people and several hundred contractors at more than 30 sites across Melbourne and regional Victoria, and produces approximately 500,000 tonnes of steel a year, which is one quarter of the company’s national output.
KordaMentha Restructuring was appointed Voluntary Administrators of Arrium on 12 April.
Mark Korda said today the Administrators had received enormous support and encouragement from employees, banks, the Federal Government, the South Australian Government, unions and major customers and suppliers.
“We are pleased that the Victorian Minister has sent a strong signal of support by attending today and seeing the ongoing operations for herself. Victoria has strong policies supporting local steel and we look forward to any other assistance the Victorian Government can provide,” Mr Korda said.
“It is now up to us as Administrators to harness that support and convert it to a plan for a sustainable future for this important company.”

Mr Korda said most attention in the past two weeks had been on Arrium’s Whyalla operations in South Australia, but the company made a critical impact on Victoria’s economy and employment because it supplied steel products to several important industries.

Arrium operates an Electric Arc Furnace (EAF) and rolling mill in Laverton, producing reinforcing and merchant bar. It also has a wire mill in Geelong. The company also runs steel product distribution businesses at 20 sites around the State and seven scrap recycling sites.

The Victorian Government has strong procurement policies that require the consideration of local suppliers for contracts over $1 m in regional Victoria and over $3m in Melbourne or statewide projects. Victoria has also mandated the use of Australian steel on the significant rail crossing removal project.

Media inquiries: Michael Smith – (03) 9440 9387 or 0411 055 306