Flinders University professor John Spoehr said he would not be surprised if a Chinese company was investigating taking over Arrium.

“Unfortunately there is no magic solution,” he said.

“It’s really the slow down in China and the drop in commodity prices and the iron ore price that’s revealed some underlying weaknesses in the Australian industry and exposed some of the difficulties that we are seeing unfolded now in Whyalla both with the steelworks and the mine.

“You imagine that there would be a bit of interest internationally from companies. It is just a question of what part of the Arrium empire they are interested in.”