Australian Government Grants AUD 55 million for BlueScope CAPEX

Australian Government will support a Port Kembla steel plant modernization project by BlueScope with AUD 55.4 million funding to add BlueScope’s share of AUD 217 million. Australian Minister for Industry, Energy & Emissions Reduction Mr Angus Taylor said “It's focused on an upgrade to the plate mill, as well as steel and tube manufacturing to, in combination, create this advanced steel manufacturing precinct, in collaboration with the University of Wollongong, Bisalloy, and others. And it's focused on creating a grade of steel that can be used, or grades of steel that can be used in armoured vehicles and patrol boats but also wind turbines and large scale solar installations. So, you know, these are critical manufacturing requirements for Australia. We've become much more conscious in the last couple of years of having control over our own destiny, having manufacturing in Australia, where we really need it. Defence, of course, is one of those areas where we've got to have access to the highest quality steel to be able to produce the capability we need. And so this is a fantastic addition to Australia's manufacturing capability, but it's also a fantastic investment for the Illawarra region.”Mr Taylor added “Over a thousand jobs, both at Port Kembla and associated businesses and service providers who will be involved in this collaboration. It's a vote of confidence in the Australian steel industry. The Australian steel industry has gone through some very tough times, Melinda. I don't have to tell anyone in the Illawarra that. But it's in good shape now and we're seeing a real resurgence of manufacturing right across the country, and steel is one of those areas where we see enormous opportunity.”The money is coming from Australia’s AUD 1.3 billion manufacturing fund announced by Prime Minister Mr Scott Morrison in 2020 that aimed to reposition the country away from its reliance on Asia for critical goods. BlueScope will modernize its current mill, and construct a new plate-rolling facility that includes enhanced plate processing and heavy roll forming facilities. A pipe mill capable of producing circular, square and rectangular hollow steel sections, which could be used in the fabrication of wind turbine towers, will be included in the facility.

Australian Government Grants AUD 55 million for BlueScope CAPEX

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