BlueScope sending team from Port Kembla to help KordaMentha rebuild Whyalla Steelworks

Australian steelmaker BlueScope is sending a crack team in to help the Whyalla administrators get things back to full production.

BlueScope is sending a team of experts from its Port Kembla steelworks to advise administrators KordaMentha as they work on getting the Whyalla Steelworks and mines back to full production.

The Australian-owned steel manufacturer was flagged for the advisory job when the state government pushed GFG Alliance’s OneSteel Manufacturing into administration, and now has been officially appointed by KordaMentha.

BlueScope CEO Mark Vassella. Picture: Hollie Adams/The Australian

Under the agreement, BlueScope will provide in-kind technical and operational support in an advisory capacity but will notgive any capital or further corporate support.

In a statement to the ASX, BlueScope said it has not made a decision to participate in any sale process or purchase of any steelworks assets at this stage.

However, managing director and chief executive officer Mark Vassella recognised the Whyalla steelworks’ importance to the Australian economy and sovereign capability, saying BlueScope has a long standing history with the Whyalla steelworks, “and we know its people and assets well”.

“This is a difficult time for the steel industry in the Asia- Pacific region, but we are in a position to help. Accordingly, we will provide a team of experts from Port Kembla Steelworks (in NSW) to assist the administrators work through their process,” he said.

“Our position as an adviser will also help inform our potential participation in any future sale process, noting any decision would be subject to BlueScope’s rigorous capital assessment process and return on investment hurdles.”

SA Premier Peter Malinauskas welcomed the news, saying BlueScope was “well placed to provide the critical expertise and advice needed to operate the Whyalla steelworks and prepare it for sale”.

Originally published as BlueScope sending team from Port Kembla to help KordaMentha rebuild Whyalla Steelworks