Thread: The Whyalla steel works must be saved, at any cost

See what we are failing to recognise is chinas willing to pay for its companies losses, to repost :
The giant state producer Sinosteel - with $16bn of debts - was rescued from bankruptcy in October. The reforms failed their first big test. UBS estimates that the 100 biggest steel producers in China lost $11bn in the first ten months of last year. The state plugged the hole.
And:
While Washington has slapped penalties of 267pc on Chinese cold-rolled steel, the EU peashooter has so far managed just 13pc.
http://www.telegraph.co.uk/business/...ur-with-china/


Now what's our tariff?
Ohh that's right "free trade" rofl.
Why Australian factories are on their knees


Now if chinas prepared to lose 1.1 billion a month to buy a sector, what will we pay when they own it?
Steel is unlike fishing in one major way, to start up takes years and billions of dollars, how long would it take to buy a trawler, crew it and expand existing wharves to unload a larger catch?
Today the chinese are willing to lose 200 euro or usd a ton to own a market and keep their people employed.


Heres a prophetic piece from 2006.
COVER STORY: Top manufacturer slams free trade 'fantasy'

Why Australian factories are on their knees


Heres a prophetic piece from 2006.
COVER STORY: Top manufacturer slams free trade 'fantasy'[/QUOTE]

Two articles every Australian should read. That should put to bed the fantasy of high workers wages ruining industry , forever. What people must realise, is Chinese are the best hard nosed businessmen in the World, and never give a sucker a break. And we are suckers, for sure.

I wonder how many people would buy Arrium Bonds if they were issued next week to keep it going

Originally Posted by AndyG

I wonder how many people would buy Arrium Bonds if they were issued next week to keep it going

Perhaps the Chinese will snap them up.

I wonder how many people questioned what was going to happen when china was buying our resources by the ship load. A as country we were welcoming it with open arms , well looks like it wasn't so smart after all.


I wonder if the mining companies that helped supply china with the resources to be able to make that much steel would line up to buy those Arrium bonds.


Just a question , I am sure frantic will know the answer - How long has the Whyalla plant been in operation ?


Cheers Ean

1901 mining
1941 smelting

1940's?

So the arguement of it taking years to set up and billions of dollars if it has been operational since 1940s is interesting . I am sure it's needed major upgrades since then which of course has to be factored in.

So China has been dumping steel on the world market at lower than production cost in Australia for the last few years , and that has brought the company to its knees, mainly because for the last few years every man and his dog has bought cheap imported steel.

Capital investment was in the 1940,s with several upgrades needed since then, so i think it could most likely be a case of a board / management that was asleep at the wheel.

I certainly think the core problem needs addressing - what tariffs need to be imposed before the open cheque book occurs , but don't think a new set of board members for Arrium would hurt either it seems.

Cheers Ean