Australia’s leading steel manufacturer, BlueScope, is part of an international group considering a potential takeover of the troubled Whyalla steelworks, which was previously controlled by British industrialist Sanjeev Gupta earlier this year.
The consortium, comprising BlueScope, Japan’s Nippon Steel, India’s JSW Steel, and South Korea’s POSCO, has shown interest in acquiring and expanding operations at the South Australian steelworks, as mentioned in a statement by BlueScope to its shareholders.
Any decision by the consortium to acquire and develop Whyalla would be contingent upon due diligence and the return on investment standards of its members.
POSCO had previously led an unsuccessful bid to take over Whyalla in 2017, being outbid by Gupta. BlueScope, which operates the Port Kembla steelworks near Sydney, has clarified that there is no obligation for them to convert the consortium’s interest into a formal bid.
Whyalla is one of only two major integrated steel production facilities in Australia and is the only local manufacturer of rail. The project is politically sensitive due to its status as a major employer in a regional city and for producing a product with no other domestic manufacturing source.
Earlier in 2025, the steelworks received a $2.4 billion bailout package from the state and federal governments to save it and the jobs it provides, following the South Australian government’s decision to remove control from Gupta’s GFG Alliance due to financial difficulties.
GFG had initially committed to decarbonizing the plant, which involved using hydrogen produced from renewable energy to manufacture sought-after green steel, but the promised investment failed to materialize. Administrators were appointed in February and it was revealed that the steelworks had accumulated over $1.3 billion in debt, including unpaid employee entitlements.
A spokesperson for GFG attributed the operation’s challenges to both internal and external factors at the time.
South Australian Premier Peter Malinauskas announced that over 15 national and international parties have progressed to the final expression-of-interest phase. The sales advisor is now seeking indicative bids from the shortlisted parties, with no preferred bidder at this stage.
“The state government’s goal has been to find a new credible owner who can invest in Whyalla’s future,” Malinauskas stated, expressing that the strong interest in the steelworks is a positive indicator for its future and for Australia’s sovereign steelmaking capability.
Source: https://www.theguardian.com/business/2025/aug/04/whyalla-steelworks-global-consortium-bluescope-steel-weighs-takeover
