Australia's BlueScope leads global steel giants in push for Gupta’s Whyalla plant
FILE PHOTO: A view of the interior of a part of the BlueScope steelworks, Port Kembla, Australia February 9, 2024. REUTERS/Lewis Jackson/File Photo
Australia's BlueScope Steel said on Monday it has assembled a heavyweight consortium of global steelmakers to bid for Sanjeev Gupta's troubled Whyalla Steelworks, over a month after the local government formally opened a sale process.
The group — comprising Japan’s Nippon Steel, India’s JSW Steel, and South Korea’s POSCO — brings a combined market value of A$115 billion ($74.4 billion), and is eyeing the South Australian plant as a future hub for low-emissions iron production for domestic and export markets.
The consortium has lodged a non-binding expression of interest but has yet to submit a formal bid.
Whyalla Steelworks was placed in administration in February, after its operating company collapsed under tens of millions in debt. The Australian and South Australian governments stepped in with a joint A$1.9 billion rescue package to safeguard local jobs and preserve a key piece of industrial infrastructure.
Australia formally opened the sale process in June, citing strong global interest from companies seeking a foothold in the emerging green steel economy.
Gupta's family conglomerate, GFG Alliance, was not immediately reachable for a Reuters request for comment.
($1 = 1.5466 Australian dollars)
