BlueScope leads $115bn international consortium eyeing Whyalla Steelworks

BlueScope has formed a massive international consortium with Japanese, Indian and Korean steelmakers to explore acquiring the troubled Whyalla Steelworks, the company announced on Wednesday.

The consortium includes Nippon Steel Corporation, JSW Steel and POSCO, collectively representing $115 billion in market capitalisation and total steelmaking capacity of approximately 130 million tonnes. BlueScope will leverage its knowledge of Australian steel operations as the group assesses the South Australian facility.

The consortium has identified Whyalla as a potential location for future lower-emissions iron production, targeting both domestic and export markets. The group believes the site could play a role in decarbonising the global steelmaking industry.

BlueScope said the consortium has submitted a non-binding expression of interest outlining possible options for the assets. If invited to the next phase, members will conduct joint due diligence and engage with South Australian and federal governments regarding announced funding support for maintaining regional steel production.

However, any acquisition decision remains subject to due diligence and return on investment requirements. The collaboration agreement does not obligate consortium members to make an offer for the steelworks.

The move represents a potential lifeline for Whyalla's steel operations, which have faced uncertainty amid challenging market conditions and the need for significant capital investment in lower-emissions technology.

Picture: Blast Furnace, Arrium Onesteel, Whyalla (credit UCL Engineering, CC BY-SA 2.0)

Further reading

First phase of Whyalla steelworks sale passes

Federal, SA governments tip in an extra $275 million for Whyalla steelworks as sales process continues

BlueScope secures right-of-last refusal for Whyalla Steelworks

Sale process for collapsed Whyalla steelworks gets underway

Whyalla steelworks was ‘relying on luck for safety’ before administration