Bluescope Steel leads global consortium in bid for Whyalla Steelworks
Investing.com-- Australia’s Bluescope Steel Ltd (ASX:BSL) said on Monday it assembled a consortium of major global steelmakers to bid for the beleaguered Whyalla Steelworks in South Australia.
The group comprises Japan’s Nippon Steel Corp (TYO:5401), India’s JSW Steel (NSE:JSTL), and South Korea’s POSCO Holdings (KS:005490) (NYSE:PKX), and is led by Bluescope. The offer comes just a month after the South Australian government opened a formal sale process for Whyalla Steel.
The group sees the plant as a potential hub for low-emmissions iron production in domestic and export markets.
The consortium has lodged a non-binding expression of interest, but has not submitted a formal bid, Bluescope said in a statement.
Whyalla Steelworks was placed under administration in February after its operating company, GFG Alliance, collapsed due to high debt levels. The steel plant received a A$1.9 billion ($$1.2 billion) package from the Australian and South Australian governments to protect local jobs and safeguard key industrial infrastructure.
Whyalla produces roughly 75% of all structural steel in Australia, and employs over 3,000 workers.
