A new study from Flinders University has put the cost of Arrium Whyalla factory closing at 40 per cent of all jobs in the city being lost, and a bigger overall impact on South Australia’s economy than what’s predicted from Holden’s closure next year.
AAP reports that the analysis from the university’s Industrial Transformation Institute found that the state would be impacted by $750 million and lose 5,000 jobs overall. Within Whyalla (where the steelworks employs around 3,000) every three jobs lost at the site would see another lost elsewhere in the economy.
Professor John Spoehr from the Institute said the consequences for Whyalla would be devastating, and beyond saving the factory a diversification plan would also be necessary.
“This is about more than metal,” Spoehr said in a statement.
“Whatever scenario you look at, the outlook is extremely serious.