$100m cash injection to save BlueScope jobs

The Federal Government has moved to prevent any further job losses at BlueScope Steel yesterday announcing a $100m cash advancement for Australia’s largest steel maker.

The $100m cash advance will come from the government’s $300m five-year Steel Transformation Plan (STP), the steel industry’s carbon-tax adjustment fund which is part of the government’s carbon tax package

The government made the announcement following confirmation from BlueScope that it will ditch its export business, which will result in 1000 jobs being cut.

BlueScope confirmed yesterday that 800 jobs will go from its Port Kembla steelworks in NSW and another 200 from its steel mill at Hastings, Victoria.

The steel manufacturing giant has since affirmed its commitment to manufacturing steel in Australia and remaining a key employer in New South Wales’ steel producing Illawarra region.

The Government has also attempted to lessen the impact of job losses in Illawarra and Mornington Peninsula regions by announcing that a $30m fund will be set up to encourage new manufacturing ventures in those region.

Australia’s steel industry has been under immense pressures from the continued strength of the Australian dollar, which has increased the price of exports, as well as continued weak domestic demand and higher prices on raw material prices.

BlueScope reported a $1.05bn net loss for the year to June 30.