A view of the interior of a part of the BlueScope steelworks, Port Kembla, Australia February 9, 2024.
The consortium has submitted a non-binding expression of interest but has not yet presented a formal offer. BlueScope stated: “The consortium has identified Whyalla as a prospective location for future production of lower emissions iron in Australia for both domestic and export markets, with the potential to play an important role in the decarbonisation of the global steelmaking industry.” The initiative aligns with growing global interest in sustainable steel production, leveraging South Australia’s access to iron ore and renewable energy resources like wind and solar.
Whyalla Steelworks faced financial difficulties, entering administration in February 2025 after its operating company, part of Sanjeev Gupta’s GFG Alliance, collapsed under significant debt. To protect local employment and maintain critical industrial infrastructure, the Australian and South Australian governments provided a A$1.9 billion support package. The facility, which produces about 75% of Australia’s structural steel and employs over 3,000 workers, is a vital part of the regional economy.
South Australian Premier Peter Malinauskas noted: “More than 15 national and international parties had passed the final expression-of-interest phase in a positive sign for the steelmaker’s transition to new ownership.” The sale process, managed by administrators KordaMentha and advisors 333 Capital, has attracted attention from multiple global companies, with no preferred bidder selected yet. The consortium, led by BlueScope, plans to conduct thorough due diligence to assess investment returns and explore development options for the site.
The Whyalla Steelworks, with an annual production capacity of 1.2 million tons, relies on nearby iron ore mines, making it an attractive prospect for the consortium. BlueScope, drawing on its experience with Australian steel operations, including its Port Kembla facility, emphasized that any acquisition decision depends on meeting the group’s investment criteria. The focus on low-emissions production reflects broader industry trends toward sustainability, positioning Whyalla as a potential leader in green steel manufacturing.
