BlueScope boss Mark Vassella walks as Whyalla deal in the balance
BlueScope CEO Mark Vassella is departing as the company looks to take over the troubled Whyalla steel mill with the help of government funding to the tune of $2.4bn.
BlueScope chief executive Mark Vassella is bowing out, with the company locked in negations about taking ownership of the Whyalla steel mill via a $2.4bn government bailout.
Mr Vassella has been on the loudest voices advocating for lower gas prices and warning of a collapse in Australian manufacturing.
He will remain at the helm of BlueScope until the end of January and then hand over the reins to Tania Archibald.
Ms Archibald is a long-time BlueScope executive and currently CEO of BlueScope’s Australian steel products business.
Both Mr Vassella and Ms Archibald were due in Canberra on Wednesday as part of a Manufacturing Australia delegation, and had scheduled meetings with political leaders.
Mr Vassella said his time had come after eight years in the top job – a period marked by BlueScope increasing its footprint in the US and battling rights costs, tariffs and competition from steelmakers in China.
“This is the right time to hand over, and the board has appointed an outstanding successor,” he said.
“Tania and I have worked together for many years, and I know that she has the skill, judgment and capability to lead BlueScope. It has been a privilege to lead BlueScope and work with such a brilliant team. I’m proud of what we’ve achieved, and confident the Company is well positioned for continued success.”
Ms Archibald was previously BlueScope’s chief financial officer, and has also held roles in strategy and business development.
BlueScope is currently leading a heavyweight international consortium in a bid to acquire the Whyalla steelworks in South Australia.
The ASX-listed steelmaker joined forces with Nippon Steel Corporation, JSW Steel and POSCO in pursuit of Whyalla operations, previously owned by British industrialist Sanjeev Gupta’s GFG Alliance before the business collapsed into administration.
The Australian revealed on Sunday that coal entrepreneur Matt Latimore and his private company M Resources has joined the race for the loss-making steel works.
BlueScope, which owns and operates the Port Kembla steelworks in NSW, has said it will leverage its domestic experience and familiarity with Whyalla as it leads its bid consortium through due diligence.
Both BlueScope and M Resources are keen to develop Whyalla as a hub for low-emissions iron production, and targeting large export markets.
The plans appear likely to involve substantial Federal and South Australian government support.
KordaMentha has pushed the closing date for a round of bids on Whyalla to the end of November. The administrators said earlier this year that modernising the steel mill and developing nearby iron ore mines could cost a new owner up to $8bn.
Mr Vassella has been pushing the Albanese government to take strong action to counter high energy prices hurting manufacturing in Australia, arguing for a $10-a-gigajoule price cap on gas and new reservation rules to guarantee affordable supply.
His plan to safeguard manufacturing unveiled last month included compelling Australia Pacific LNG – part-owned by Origin Energy – and Shell’s Queensland Curtis LNG to sell excess gas into the domestic market.
The plan was blasted by companies backed by billionaire Kerry Stokes, who accused Australia’s manufacturing sector of pushing for “overly simplistic” solutions to fix the east coast gas crisis.
Other critics have accused Mr Vassella of using the gas pricing issue to divert attention from problems such the underperformance of the steel-coating business in the US, where energy price are much lower than in Australia.
BlueScope’s net profit after tax fell to $83.8m in the 12 months to June 30, down from $806m in 2023-24 after a $439m writedown on the US coatings business.
The company paid $670m for the business, previously named Coil Coatings, in 2022.
BlueScope chair Jane McAloon said he had “navigated the group through unprecedented challenges”.
“By every measure, he has been an outstanding CEO, and we thank him sincerely and wish him well in his retirement. He will be greatly missed,” she said.
“We are delighted to appoint Tania to be the fourth CEO since BlueScope listed on the ASX 23 years ago. Tania is a highly capable executive who has demonstrated outstanding leadership over the course of her 30-year career at BlueScope.”
Ms Archibald will received fixed pay of $1.85m a year plus a short-term incentive plan, whereas she can earn up to an additional $1.25m.
BlueScope shares were down 2.5 per cent to $21.27 in a slightly lower market on Wednesday morning.
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