SEOUL, August 05 (AJP) - South Korean steel firm POSCO has joined an international consortium to pursue the acquisition of the Whyalla steelworks in South Australia, as part of a broader strategy to secure low-carbon raw materials and bolster its green transition.
The consortium, which includes Australia’s BlueScope Steel, Japan’s Nippon Steel, and India’s JSW Group, has submitted a non-binding expression of interest to the South Australian government.
If successful, the acquisition would mark a rare convergence of Asia-Pacific steelmakers collaborating on a major industrial project, amid growing global pressure to cut emissions from heavy industries.
BlueScope confirmed the group’s intent, saying it views Whyalla as a promising hub for producing and exporting low-carbon steel.
If selected to advance in the bidding process, the consortium plans to conduct joint due diligence and enter talks with both state and federal authorities about potential financial assistance.
Located on the southern coast of Australia, the Whyalla facility began operations in 1941 and has the capacity to produce 1.2 million metric tons of structural steel annually. In recent years, the plant has struggled with operational setbacks, eventually prompting a state-led search for new ownership.
For POSCO, the Whyalla site offers a strategic opportunity.
The facility is linked to a magnetite mine — an essential input for making direct reduced iron (DRI) and hot briquetted iron (HBI), which are both critical to reducing emissions in steel production. South Australia’s ample renewable energy resources further enhance the site’s appeal as a potential center for low-carbon steelmaking.
POSCO officials said the move aligns with POSCO’s broader ambition to achieve carbon neutrality by 2050. The company has ramped up investment in green steel technologies and is actively seeking overseas assets that can help diversify and decarbonize its raw material supply chain.
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