BlueScope rallies the troops for Whyalla Steelworks bid

Steelmaker BlueScope is leading a consortium to potentially purchase the Whyalla Steelworks, but it’s one of 15 parties with an eye on the prized Eyre Peninsula asset.

Aug 04, 2025, updated Aug 04, 2025
Photo: David Simmons
Photo: David Simmons

BlueScope announced this morning that it would lead an international consortium with Japanese, Indian and Korean steelmakers to participate in the Whyalla Steelworks sale process.

At the same time, the state government said more than 15 national and international parties had passed the final expression of interest phase for the steelmaking asset.

The expressions of interest phase closed on Friday, but just a “select number of parties” will be invited to continue to phase two of the process once bids are assessed.

The Steelworks are currently being operated by KordaMentha administrators, with the assistance of BlueScope.

Administrators took control of the steelmaking factory earlier this year after the state government passed special-purpose legislation because of the mounting debts of OneSteel’s owners GFG Alliance.

BlueScope – which has a global presence in steelmaking – is working with Nippon Steel Corporation, JSW Steel Limited and POSCO on its bid.

Collectively, the consortium represents a market capitalisation of $115 billion and total steelmaking capacity of approximately 130 million tonnes.

“BlueScope will leverage its detailed knowledge of the Australian steel industry and Whyalla assets as the consortium assesses potential options, opportunity and capital requirements,” BlueScope said.

“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.”

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The ASX-listed company said the consortium submitted a non-binding and indicative expression of interest that outlines possible options for the Whyalla assets.

BlueScope said if the consortium is invited to the next phase of the sale process it would conduct due diligence and engage with the state and federal governments “regarding the announced funding support to maintain a sustainable steel industry in the region”.

“Any decision to make an offer to acquire and develop operations at Whyalla would be subject to due diligence and the consortium members’ return on investment hurdles.

“There is no obligation under the agreement for any of the consortium members to make an offer to acquire the Whyalla Steelworks.”

Meanwhile, the state government said there was “interest from credible parties from around the world” for the asset.

Sales advisor 333 Capital will now move to solicit indicative bids from shortlisted parties, but there is no preferred bidder yet.

“This strong interest is a positive sign for the future of the Whyalla Steelworks and for the future of sovereign steelmaking capability in Australia,” Premier Peter Malinauskas said.

“Most importantly, this is good news for Whyalla, for our state and for the thousands of people who rely upon the steelworks.”

The state and federal governments in July committed a further $275 million to allow the continued operation of the Steelworks, on top of $2.4 billion already committed.

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