OneSteel Gets Government Support

30 Jan 12

The Gillard Labor Government has agreed to provide OneSteel with a competitiveness assistance advance of $64 million, under the $300 million Steel Transformation Plan (STP).

This is the second advance payment to the steel manufacturing industry, following the Government’s announcement of a $100 million payment to BlueScope Steel on 20 December 2011.

Under the agreement, OneSteel will use the funds to maximise productivity and improve its environmental performance by investing in waste reduction, reuse and recycling; vital repair and maintenance; and targeted skills training for employees.

The Minister for Industry and Innovation, Greg Combet, said the advance on OneSteel’s future entitlements recognised the significant challenges facing the steel sector including a high Australian dollar, weak domestic demand and excess supply in international steel markets.

“The assistance provided to the Australian steel manufacturers will help OneSteel and BlueScope to adapt and modify their business models to ensure their long term sustainability in a low carbon economy,” Mr Combet said.

“The Gillard Labor Government views a competitive steel industry as an integral part of the Australian economy.

“We will continue to work closely with the Australian steel industry to ensure that it is a flexible and innovative part of our manufacturing landscape.

“This advance, as well as other industry support including the Steel Industry Innovation Council, will assist companies like OneSteel and BlueScope to meet the challenges they face.”

For more information on the STP go to: www.innovation.gov.au.