The British billionaire wants to strip out 30 per cent in costs and there will be redundancies, but the Whyalla plant in SA is being spared.

Mr Gupta earlier this week revealed he had revamped his plans for the Whyalla steelworks in a $1 billion-plus overhaul which would involve shutting down the existing ageing blast furnace built in 1965, and replacing it with an electric arc furnace and modern steel facility by 2024.
The other priority projects for extra investment over the next three to five years are a direct reduced iron facility and two electric arc furnaces at the Liberty Steel operations in Romania, and a revamp of a steel plant at Liberty’s operations in Ostrava in the Czech Republic.
He said the drop in demand for products had been between 20 to 40 per cent and that impact was likely to continue for a further 12 to 18 months.
The company has already embarked on a review of corporate overheads and will be cutting the amount of office space it requires, reducing corporate travel and using ”digital tools” to save money.
He said headcount reductions would be part of the cost-cutting. “With regret, this will mean we cannot avoid a reduction in roles in certain locations,” he said.
Mr Gupta added said there would be some redeployment opportunities.
“The COVID-19 pandemic has impacted every one of the 35,000 people who work across our businesses,” he said.
While our primary focus will be on operational improvements and overhead optimisation, where we are forced to make reductions in roles, we will consult closely with employees, and will do everything possible to mitigate the impact,” he said.
Earlier this week, Mr Gupta said a special international team had been set up to cut costs at the Whyalla steelworks, to try and stem losses in the short-term.
“It’s been bleeding money, and that’s got to stop,” Mr Gupta said on June 10.
He wants the existing Whyalla plant to run as leanly as possible for the next three years while the new plant is built to replace it, in the first of GFG’s “green steel” transformations of outdated steel-making facilities.
The three-month review at Whyalla is headed by GFG Alliance’s new chief executive for global primary steel making and integrated mining, Paramjit Kahlon. Mr Kahlon is a former executive of the world’s largest steel maker, ArcelorMittal.