OneSteel will receive an AUD 64 million advance of federal assistance. The company has been promised AUD 300 million over four years as part of money to help the steel industry deal with the introduction of a carbon tax.

The Federal Government said that the advance is important for the continued viability of OneSteel's Whyalla blast furnace. OneSteel will use the funds to support its waste reduction and recycling efforts. There will also be new training for some of its workforce.

Industry and innovation minister Mr Greg Combet concedes OneSteel is facing challenges from a high Australian dollar, weak domestic demand for steel and problems on international steel markets. He added that "We will continue to work closely with the Australian steel industry to ensure that it is a flexible and innovative part of our manufacturing landscape."

Whyalla Mayor Mr Jim Pollock said that the investment by OneSteel in skills training will help shore up its workforce.

Mr Pollock says the Federal Government's assistance package for steel manufacturer OneSteel is a shot in the arm for the Spencer Gulf city. The announcement has put a lot of confidence back into the community.

He added that "For quite some time, OneSteel have been in the hot spot if you like and there's been nervousness in the community from the retail people, the employees and the city in general. This advance payment will certainly relieve some of that tension that has been here."

Mr Pollock says money spent on training provides confidence for the city's steel workers. He added that "Targeted skills training for employees think that's a very, very important area where some of this money can go because skilled training and skilled employees are going to be hard to come by once all of these other projects come up, so I think skills training for employees is an excellent way forward."

(Sourced from www.abc.net.au)