BlueScope's Port Kembla facility upgrade given the green light

BlueScope has been granted planning approval by the New South Wales Government for its major refurbishment to its Plate Mill at Port Kembla. 

The $300 million upgrade will help strengthen production at the 60-year-old plate mill while also stimulating the State’s economy and providing a boost to local jobs. This project is estimated to provide $650 million in direct economic stimulus to the State. 

“The modernisation of the plate mill is an important step in bolstering Australia’s sovereign manufacturing capability, supporting critical industries like renewable energy, defence and major infrastructure. 

“This project is a testament to BlueScope’s vision to be a vibrant, modern and sustainable manufacturer in Australia,” Australian Steel Products Chief Executive Tania Archibald said. 

As highlighted in the project’s Environmental Impact Statement, key elements of the upgrade will include: 

• Installation of a new walking beam furnace for the Plate Mill 
• Installation of a new plate mill processing equipment and infrastructure, including cutters, turnover table, transfer system, cranes and a rail extension (referred to as Fourth Route Processing) 
• Upgrades to the existing electrical infrastructure, including a 11kV sub-system, switch rooms, distribution boards and transformers 
• Installation of a new refractory lined structure in the slab yard building, adjacent to the proposed furnace entry 
• Construction of associated infrastructure, including hardstands, construction compounds and laydown areas 
• Modification of existing structures to enable the integration of new equipment 

The project will also include measures to help reduce environmental impacts from the facility’s operations – such as reduction of fuel consumption. 

“Port Kembla Steelworks is an important part of Wollongong with a history of steelmaking of nearly 100 years. This major project represents the most comprehensive upgrade of the plate mill since it was built in 1963. 

“Much of the original plant is still in use today including the original reheat furnace, and 6 decades later, this upgrade is needed to modernise operations and increase efficiency. 

“The new furnace represents the best available technology which will keep steel plate production local and continue to provide enormous economic benefit to the Illawarra for the future. 

“Combined with the reline of the number 6 furnace and the approved jetty upgrades these investments signal a strong future for steelmaking in the Illawarra,” Minister for Planning and Public Spaces and Member for Wollongong Paul Scully said. 

Major works on the refurbishment of BlueScope’s Plate Mill at Port Kembla will commence in July 2024 and will take up to three years to complete. 

Once up and running, the upgraded facility will have an increased production capacity from 430,000 tonnes to 600,000 tonnes annually. 

Moreover, the multi-million-dollar project is expected to create about 95 full-time construction jobs at peak construction periods and an additional 18 operational jobs. 

This State Significant Development approval will enable BlueScope to support the growing renewable energy sector in the Illawarra region by producing more high-quality steel plates, which will help new South Wales to reach its target of Net Zero by 2050. 

The State Government has also announced the establishment of a ‘whole of government’ Working Group to show its support for the plate mill refurbishment and the broader industrial land transformation project. 

The Working Group – to be chaired by the Minister for Planning and Public Spaces and Member for Wollongong – will coordinate government decision making in the largest industrial land reactivation proposal in the world. This project is anticipated to provide employment land for up to 30,000 people. 

“I look forward to this upgrade getting underway and these new highly skilled job opportunities being offered to the local community. 

“I am also looking forward to chairing the new ‘whole of government’ Working Group acting as a one stop shop for the coordination of departmental and agency decision making on the world’s largest land reactivations – the equivalent of transforming land use in Sydney CBD from Circular Quay to Central Station. 

“This confirms the strategic importance that the NSW Government places on this land transformation – not only for the Illawarra region but the whole of NSW,” Minister Scully said. 

Source: NSW Government – Media Releases; NSW Government – Planning Portal; Australian Manufacturing; BlueScope