BlueScope, a prominent Australian steel manufacturer, is spearheading a consortium aimed at acquiring the financially troubled Whyalla Steelworks in South Australia. This consortium includes significant players from Japan, India, and Korea, representing a collective market capitalisation of $115 billion. BlueScope has partnered with Nippon Steel Corporation, JSW Steel Limited, and POSCO to conduct the acquisition process, which has already involved submitting a non-binding expression of interest.
The consortium sees potential in Whyalla as a key site for producing lower-emission iron for both domestic and export markets, contributing to the global steel industry’s decarbonisation efforts. Should the consortium move forward, they plan to conduct further due diligence and will engage with both the South Australian and Federal governments on support for maintaining a sustainable steel industry in the region.
Despite the optimism, South Australian Energy and Mining Minister, Tom Koutsantonis, cautioned against celebrating prematurely, noting that the completion of the sale may not occur until late 2026. He expressed confidence that progress was being made and that the consortium was meeting important milestones.
International interest in Whyalla Steelworks has been notable, with over 15 local and overseas entities progressing past the initial expression of interest stage. Selected companies were granted access to the steelworks’ financial data in June to facilitate tender submissions. This interest follows the plant’s administration in February, after the state government intervened due to lack of confidence in its former owner, Sanjeev Gupta’s GFG Alliance, to meet its financial obligations.
A $2.4 billion financial package was announced by Prime Minister Anthony Albanese and Premier Peter Malinauskas aimed at salvaging the plant, which includes an immediate $100 million for operational support and $50 million allocated for creditor payments. The sale process is currently managed by administrators KordaMentha.