BlueScope Steel to Upgrade Blast Furnace at Port Kembla Steelworks

SEATTLE (Scrap Monster): The Board of Directors of BlueScope Steel has approved the reline and upgrade of blast furnace No.6 at the Port Kembla Steelworks. The $1.15 billion project would be the most expensive infrastructure development project in the history of the company.

The steelmaker noted that the reline of the No.6 blast furnace will replace its current blast furnace. The project’s cost was initially estimated at around $700 million-$1 billion, which has now been revised to $1.15 billion. The blast furnace will be ready to blow in and start producing iron in late-2026. The new blast furnace would have a campaign life of 20 years, said Mark Vassella, Managing Director and CEO, BlueScope Steel.

The company reported strong financial results for FY2023, delivering net profit after tax (NPAT) of $1.01 billion and an EBIT of $1.6 billion. Also, underlying NPAT stood at $1.10 billion. The strong financial performance is a testimony of the resilient business model, especially in the midst of volatile macroeconomic and industry cycles.

The Board also approved a fully franked final dividend of 25 cents per share. It must be noted that the company delivered $518 million through dividend payments and market buybacks.

The company expects EBIT in 1H FY2024 to range between $700 million and $770 million, subject to market conditions.