BlueScope leads global push for Whyalla steelworks

BlueScope Steel will head an international consortium to explore the acquisition and future development of the Whyalla steelworks in South Australia.

Under a newly signed collaboration agreement, BlueScope will join forces with Nippon Steel Corporation, JSW Steel Limited and POSCO – a group collectively worth around $115 billion in market capitalisation and boasting a combined steelmaking capacity of approximately 130 million tonnes.

The consortium has lodged a non-binding, indicative expression of interest for Whyalla that outlines possible options for the assets.

Should it progress to the next stage, the group will conduct joint due diligence and engage with the South Australian and Federal Governments regarding the $1.9 billion in combined funding support earmarked to secure a sustainable future for the site.

BlueScope said it would draw on its detailed knowledge of the Australian steel industry and Whyalla assets, as the partners examine potential options, opportunity and capital requirements.

According to the companies, Whyalla has been identified as a prime location for producing lower-emissions iron for both domestic and export markets, potentially playing an important role in the decarbonisation of the global steelmaking industry.

The sale process, overseen by administrator KordaMentha and sale advisors 333 Capital, has already attracted interest from major global steelmakers and low-emission steel producers.

SA Premier Peter Malinauskas said Whyalla is now positioned to deliver sovereign steelmaking for the long term.

“The steelworks is putting on staff, and suppliers and contractors are in a much better position for the future,” he said.

The broader $2.4 billion assistance package is expected to support long-term employment and economic resilience across Whyalla and the Upper Spencer Gulf.

The steelworks recently added 75 new workers across key operations and is currently recruiting for further roles in maintenance and mechanical services.