One Steel at risk of Whyalla closure

Company News

Ahead of One Steel Limited’s (ASX:OST) annual general meeting today, chief executive Geoff Plummer’s told media the company is at risk of closing its flagship Whyalla steel making plant.

Plummer told Fairfax Media he’s got one year to turn the company’s Australian operations around before facing that risk though, and although returning its blast furnace to a position of generating cash is a possibility it’s still under review.

He says the last thing the board wants to do is raise equity, after it refinanced its debt in April and May.

One Steel Limited (ASX:OST) posted an 11 per cent fall in its net profit for the 2011 financial year, coming in at $237.5 million.