BlueScope has announced it will lead a consortium including Nippon Steel, JSW Steel, and Posco to participate in the sale process for Australia’s Whyalla Steelworks.
The group, with a combined steelmaking capacity of 130 mln tons, has signed a collaboration agreement to explore acquisition and development opportunities for the site. BlueScope will leverage its deep knowledge of the Australian steel industry and the Whyalla facility in assessing potential investment and operational plans.
Whyalla Steelworks, a 1.2 mln tons per year long steel plant, was placed into administration in February after its owner, GFG Alliance, defaulted on tens of millions of dollars in debts. The Australian government formally launched the sale process in June.
The consortium has submitted a non-binding expression of interest and, if shortlisted, will jointly conduct due diligence and engage with state and federal governments regarding financial support to sustain local steelmaking.
A final acquisition decision will depend on the outcome of due diligence and each member’s return-on-investment criteria. The current agreement does not obligate the consortium to proceed with an offer, BlueScope said in a statement.
