AusBN – Bluescope Steel has announced that it will continue steelmaking operations at Port Kembla in Illawarra, New South Wales, after a campaign was launched to cut production costs.
Keeping the steelworks open will save as many as 5,000 local jobs.
The rescue was made possible thanks to employees, unions and the state government making commitments to help bring down production costs while the steel market is weak.
These commitments include $60 million in deferred payroll tax payments from the New South Wales government until 2020, after which they’ll have to be paid in full over the following 10 years.
Bluescope CEO Paul O’Malley thanked the government and the other parties involved in the campaign for saving the steelworks from closure.
He said: “Above all, I acknowledge the real unsung heroes who have secured a future for the steekworks – the Port Kembla management teams who developed the game-changing plan, which we are implementing today.
“Every single worker in the Illawarra should be extremely proud of their combined effort.”