OneSteel has become the second Australian steelmaker to receive an advance from the federal government's $300 million fund for the industry, with federal Minister for Industry and Innovation Greg Combet announcing a $64 million competitive assistance advance today.
The steelmaker will use the funds to maximise productivity and improve its environmental performance by investing in waste reduction, re-use and recycling, repair and maintenance and skills training.
The government announced a $100 million payment to BlueScope Steel in December.
Minister for Industry and Innovation said the advances recognised the significant challenges currently facing the Australian steel sector, including the high Australian dollar, weak domestic demand and excess international supply.
“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 in a statement.
“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.”