Bluescope has been appointed as a steelmaking advisor to KordaMentha, the administrators of the Whyalla steelworks business in South Australia.
Known as Australia’s largest steel manufacturer, BlueScope will provide technical and operational support in an advisory capacity to the administrators as they try to secure ongoing operations at the Whyalla steelworks.
“BlueScope has a long-standing history with the Whyalla steelworks, and we know its people and assets well,” BlueScope managing director and chief executive officer Mark Vassella said.
“We recognise the ongoing importance of Whyalla to the Australian economy and sovereign capability. This is a difficult time for the steel industry in the Asia Pacific region, but we are in a position to help.
“Accordingly, we will provide a team of experts from Port Kembla Steelworks to assist the administrators work through their process.”
BlueScope has not provided investment or corporate support to the administration process, nor has it decided to participate in any potential sale at this stage.
However, Vassella said BlueScope becoming an advisor to Whyalla steelworks’ administrators may help inform potential participation.
BlueScope’s appointment comes as the $2.4 billion support package from the SA and Federal Governments is progressing to plan, with funds flowing to the local Whyalla community.
The support package was announced in late February to support local jobs and stimulate growth in SA’s steel sector following the Whyalla steelworks’ owner, OneSteel Manufacturing, being placed under administration amid various operational challenges at the site.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
