A British billionaire industrialist has come to the rescue of thousands of Australian steel industry jobs with a deal to buy the troubled Arrium operations, including the Whyalla steelworks.
Sanjeev Gupta's London-based group GFG Alliance has signed a binding agreement to buy Arrium for an undisclosed sum, with the deal expected to be finalised by August.
It will secure about 1500 Arrium jobs in Whyalla as well as thousands more in other states and about 1500 in the wider Whyalla community.
It ends 15 months of uncertainty after Arrium was placed in administration with mounting debts.
"This is a great day for Whyalla, a great day for South Australia and a great day for the national steelmaking capability of this country," South Australian Premier Jay Weatherill said on Wednesday.
"This is about building our nation, about building our national infrastructure. We cannot be beholden to other countries for our steel industry."
Mr Gupta said the purchase of Arrium fitted perfectly with his company's vision to create an integrated and sustainable industrial business that encompassed mining, metal recycling, primary metal production, engineering and distribution.
"The acquisition will secure the jobs of over 5500 Australian workers," he said.
"Looking forward, we will continue to explore opportunities to further grow our presence in Australia."
The purchase was secured after negotiations stalled with preferred bidder, South Korean consortium Newlake.
Administrator Mark Mentha said GFG Alliance submitted a modified offer on Tuesday night which was viewed to be superior.
The deal is still subject to approval next week by the Arrium Committee of Creditors and the Foreign Investment Review Board (FIRB).
Federal Treasurer Scott Morrison said those steps should proceed "speedily", and the deal would bring certainty to the workers in Whyalla and the broader community.
"It would have been a very anxious period of time for those workers, for those families and those communities, and we're very pleased with that outcome," he said.
Mr Mentha said the successful sale was a credit to all stakeholders who worked hard to give the group the best possible chance of a future.
"This includes the employees, unions, management, local suppliers, the townspeople of Whyalla and three levels of government," he said.
"They have stuck solid through a torrid period. Employees took a wage cut, management took a haircut, suppliers agreed to new terms and governments chipped in with funds and loan guarantees."
The Australian Workers' Union said Mr Gupta's group had an outstanding international reputation as a good corporate citizen.
"The Australian steel industry has a bright future, and the GFG Alliance has the track record to realise it," AWU national secretary Daniel Walton said.
