Another $55 Million for Australian Steel
The Australian federal government is providing a $55.4 million grant to Australian steel producer BlueScope Steel, as part of its $217 million AUD Port Kembla Steelworks update project.
These funds assist with production of steel components for renewable energy projects such as wind turbines, as well as national defence equipment including patrol boats and armoured vehicles, typically made with formed steel plates. It is expected to contribute to the creation of up to 200 jobs at the steelworks, and around 1000 more in related industries.
The grant presents a fantastic and enduring opportunity for steel processing in Australia, as federal and state governments increasingly turn away from overseas steel imports to focus on boosting local production. Cheap imports from overseas, particularly those from China, once posed a threat to steel parts produced on home turf, but since Chinese authorities cut exports to Australia by 50% last year, more opportunities have arisen for local steel processors to supply Australia’s largest projects.
One of the major advantages of Australian steel over imported steel is its manufacturing quality, making it ideal for Australian conditions. As Australian conditions vary widely across our huge continent, Australian standards have to accommodate for every possibility and are among the best in the world. Chemical composition, mechanical properties, and even environmental directives are more tightly regulated for Australian steel than international imports, leading to a superior product. 1000 tonnes of Australian steel creates 60 jobs and $2 million of tax revenue that goes back into schools, roads, and Medicare.