BlueScope has confirmed its appointment as a steelmaking advisor to the administrators of the Whyalla Steelworks group, offering technical and operational support as the administration process unfolds.
The agreement will see BlueScope provide in-kind assistance in an advisory capacity, with a team of experts from Port Kembla Steelworks set to support the administrators.
However, the company clarified in a news release that it is not committing capital or other corporate support to the process.
BlueScope has yet to decide whether to participate in a potential sale of the steelworks or purchase any assets.
The company stated that any decision regarding future involvement would be subject to due diligence and its return on investment criteria.
BlueScope’s Managing Director and Chief Executive Officer, Mark Vassella, highlighted the company’s familiarity with the Whyalla Steelworks and its recognition of the site’s significance to the Australian economy and sovereign capability.
“BlueScope has a longstanding history with the Whyalla Steelworks, and we know its people and assets well,” Vassella said. “We recognise the ongoing importance of Whyalla to the Australian economy and sovereign capability.”
Acknowledging the challenges currently faced by the steel industry in the Asia-Pacific region, Vassella noted that BlueScope is in a position to assist.
“Accordingly, we will provide a team of experts from Port Kembla Steelworks to assist the administrators work through their process,” he stated.
Vassella also emphasised that BlueScope’s advisory role would help inform any potential participation in a future sale process.
“Our position as an advisor 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,” he added.
The administration of the Whyalla Steelworks is being managed by KordaMentha, which remains the primary contact for inquiries regarding the process.
