Image via BlueScope
A major transformation is set to reshape the Illawarra after the NSW government approved BlueScope’s plan to rezone 2 million square metres of non-operational land at its Port Kembla steelworks. According to The Australian Financial Review, the steelmaker will convert an area comparable in size to the Sydney CBD, from Circular Quay to Central Station, into a future-focused industrial precinct supporting advanced manufacturing, clean energy, technology, education and logistics.
The $10 billion redevelopment marks the first major step in BlueScope’s long-term strategy to unlock value from its extensive 12-million-square-metre landholding. While the company will retain ownership of the land, the rezoning enables staged development over the next two to three decades, integrating new industries alongside the steelworks’ ongoing operations.
A Boost for Jobs, Skills and Economic Growth
Government modelling suggests the project could increase BlueScope’s annual economic contribution from $2.6 billion to $3.26 billion, while creating up to 20,000 jobs over 25 years. The precinct is also expected to enhance public transport access for the region, which sits around 90 minutes south of Sydney.
BlueScope head of property development Michael Yiend said the overwhelming support, more than 200 submissions in favour and only four against, highlighted rare alignment across industry, government and the community. The Minns government fast-tracked approval within seven months, reflecting the project’s strategic importance to regional and state growth.
Enhancing Education and Preserving Heritage
The transformation also comes with a strong educational component. Partnerships with TAFE NSW, the University of Wollongong and local council will deliver new training facilities to help address national skills shortages. Several heritage buildings will be preserved to maintain the site’s historical fabric, which dates back nearly 100 years of steelmaking in the region.
NSW Planning Minister Paul Scully described the rezoning as one of the largest land revitalisations in the world and the most significant shift in the Illawarra’s industrial landscape in a century. The region, already NSW’s third-largest economy outside greater Sydney, is projected to grow by 36%, adding around 400,000 residents, by 2041.
BlueScope’s Broader Strategic Position
The approval comes as BlueScope navigates a challenging financial year, reporting an $83.8 million profit after a major write-down of a US business. The company is also seen as a leading contender to acquire the insolvent Whyalla steelworks in South Australia, an early test for incoming CEO Tania Archibald.
Despite the large-scale redevelopment, BlueScope says its steelmaking operations, and its 10,000 jobs, will continue uninterrupted. Existing transport links and infrastructure will help support the future precinct while maintaining industrial continuity.
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