BlueScope leading Whyalla steelworks consortium
BlueScope (ASX: BSL) will lead an international consortium with global steelmakers to participate in the sale process of Whyalla Steelworks in South Australia.
Under a collaboration agreement, BlueScope will work with Japan’s Nippon Steel Corporation, India’s JSW Steel and South Korea’s POSCO. Collectively the companies boast a steelmaking capacity of more than 130mt and have a $115b value in market capitalisation.
BlueScope will leverage its extensive knowledge of the Australian steel industry as the consortium reviews potential options, opportunities and capital requirements.
The consortium has identified Whyalla as a prospective location for future production of green iron in Australia, for both domestic and export markets, with the potential to be a key player in the decarbonisation of the global steelmaking industry.
A non-binding and indicative expression of interest that outlines possible options for the Whyalla assets has already been submitted by the consortium.
Should it progress to the next phase of sale, the consortium will jointly conduct joint due diligence and engage with the South Australian and Federal Governments regarding the $1.9b in funding support committed to secure a sustainable future for the site.
South Australia Premier Peter Malinauskas says more than 15 national and international parties had passed the final expression-of-interest phase in a positive sign for the steelmaker’s transition to new ownership.
“The [South Australian] Government’s objective has been to transition the ownership of the steelworks to a new credible owner who can invest in Whyalla’s future,” he said.
“This strong interest is a positive sign for the future of the Whyalla Steelworks and for the future of sovereign steelmaking capability in Australia.”
Earlier this year, the steelworks received $2.4b in combined funding from the South Australian and Federal Governments to maintain the sites operations.
The steelworks recently added 75 workers across key operations at Whyalla and is currently recruiting for more roles in maintenance and mechanical services.