BlueScope site ‘the size of Sydney CBD’ put up for $10b industry hub

BlueScope will still own the land, which covers an area the equivalent size of Circular Quay to Central Station, but the rezoning will allow high-value industries that work alongside the steelworks to develop the area, in what the ASX-listed giant says is one of the largest industrial land revitalisation projects in the world.

The development of the port, which is 90 minutes from Sydney’s CBD, could generate $3.26 billion annually, create 20,000 jobs and double the Illawarra’s $20.6 billion contribution to the NSW economy if it is developed to its full potential, according to BlueScope’s Port Kembla land transformation report.

The development will have an educational aspect as BlueScope is partnering with TAFE NSW, the University of Wollongong and the council.

Several historical buildings will be preserved, the operations of the port and steelworks will be uninterrupted and more transport will be created to support the development, according to the government proposal now on public exhibition for community consultation.

It’s the first chunk of BlueScope’s non-operational land to be put forward for commercial development under its plan to create a long-term recurring income through making full use of its 12-million-square-metre land.

Other BlueScope sites being reviewed for similar development include Western Port in Victoria and Glenbrook in New Zealand. The manufacturer is also seeking a valuation of its land in the Wollongong suburb of West Dapto for residential and industrial use, which is expected to boost its value in the first half of FY26.

BlueScope’s net profit tumbled to $83.8 million for the 2025 financial year, compared with $806 million a year ago, after it took a $439 million write-down of a US business.

“The public exhibition represents a significant milestone in the Port Kembla land transformation project – an opportunity to unlock 200 hectares of previously heavy industrial operational land and deliver enduring benefits to the Illawarra region and beyond,” BlueScope head of property development Michael Yiend said.

“This transformation will complement existing and future steelmaking operations while attracting emerging industries to the site, creating a multi-decade pipeline of investment, economic growth, and new local career opportunities.”

The state government is fast-tracking the proposal and setting up a cabinet-endorsed working group led by Planning Minister Paul Scully.

“This site has the potential to make the most significant difference to the Illawarra’s industrial landscape since steelmaking commenced nearly 100 years ago and the biggest change to our local economy since the University of Wollongong became an independent institution 50 years ago,” the Wollongong MP said.

“This site is about the same size as Monaco and has the potential to transform the local economy and create 30,000 jobs.”

Scully says BlueScope generates about 1 per cent of NSW’s gross state product from its Port Kembla site.

“This will support thousands of new jobs in fast-growing industries like advanced manufacturing, education, tech, and renewable energy that will sustain our region for generations,” he says.

The Illawarra region is the state’s third-largest economy outside greater Sydney and contributed $20.6 billion (2.8 per cent) to the NSW gross state product in FY23.

Wollongong’s house values rose significantly during the pandemic years as flexible work-from-home options allowed families to move to the coastal region, while staying within a commutable distance to Sydney. Wollongong’s median home value is just over $1 million, and it has risen by 42.1 per cent in the past five years, according to Domain.

The NSW metropolitan coastal regions of Illawarra-Shoalhaven, Central Coast and greater Newcastle are expected to grow by 400,000 people by 2041. Illawarra-Shoalhaven is expected to have the highest growth of 36 per cent, according to NSW government planning.

The Illawarra region, where the proposed development is located, is expected to have a younger population than other regional areas as young adults and young families take up education, employment and more affordable housing opportunities in the area.

The proposed area would be rezoned to employment lands, which the NSW government classifies as an area for industrial or similar purposes that are essential for the functioning of cities and increasing housing supply.

This development is double the amount of employment land in greater Sydney and would nearly quadruple the combined amount the Central Coast, Illawarra-Shoalhaven and Hunter regions currently have.