BlueScope Steel has secured a $55.4 million federal government grant to upgrade its steelmaking capabilities, including the capacity to build components for wind turbines — a first for New South Wales.
The grant will contribute to setting up a $217 million advanced steel manufacturing precinct at the Port Kembla Steelworks.
The precinct is forecast to employ hundreds of people in steel manufacturing once operational, as well as more than 1,000 indirect jobs.
"[It is] a fantastic opportunity for the region to benefit from further investment in the steelworks but also investment in capability that currently doesn't exist in New South Wales," BlueScope Steel chief executive Mark Vassella said.
In 2020, BlueScope pledged $20 million towards building energy infrastructure supply chains and reducing NSW's reliance on importing equipment and resources.
The new precinct proposal includes an overhaul of the existing plate mill, which was built in the 1960s, as well as the development of a pipe mill capable of manufacturing the steel commonly used in renewable technology components like turbines.
"This is about improving the quality of the plate we will produce that will allow us to use it in applications like defence and wind towers," Mr Vassella said.
Nation's manufacturing 'destiny'
The funding is part of the federal government's $1.5 billion manufacturing fund announced by Prime Minister Scott Morrison in September 2020.
With defence shaping up as a key election issue, Energy Minister Angus Taylor visited BlueScope for the announcement, where he said the funding was important for Australia's sovereign manufacturing capability.
"That is what this announcement today is all about, a $55 million contribution to a $217 million project focused on making sure that we are able to produce the products that are needed so we have control over our own destiny in Australia," Mr Taylor said.
"As well as making sure we have the steel we need for the renewables build that is going on around the country."
