BlueScope has announced it will lead an international consortium of steelmakers in the sale process for the Whyalla Steelworks.
The consortium includes Japan’s Nippon Steel Corporation, India’s JSW Steel Limited and South Korea’s POSCO, collectively representing a market capitalisation of A$115 billion and a total steelmaking capacity of approximately 130 million tonnes.
BlueScope, leveraging its deep knowledge of the Australian steel industry and the Whyalla assets, will guide the consortium in assessing investment opportunities and capital requirements.
“The State Government’s objective has been to transition the ownership of the steelworks to a new credible owner who can invest in Whyalla’s future,” South Australian Premier Peter Malinauskas 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. Most importantly, this is good news for Whyalla, for our state and for the thousands of people who rely upon the steelworks.”
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Should the consortium progress to the next stage, it will undertake joint due diligence and work with both the South Australian and Federal Governments regarding financial support for the region’s steel industry. However, there is no obligation under the agreement for any member to proceed with an acquisition.
The sale process, managed by 333 Capital, has seen more than 15 national and international parties advance past the final expression of interest stage, with the advisor now seeking indicative bids.
While multiple credible bidders remain, there is currently no preferred party.
Government backing continues to play a critical role, with $275 million in support announced last month to maintain operations, pay wages and suppliers, and carry out essential works to ensure the steelworks remains a viable long-term asset.