BlueScope’s ‘Sydney CBD-sized’ $10b industry hub plans approved

The ASX-listed giant will still own the land, but the rezoning will allow high-value industries that work alongside the steelworks to use the area in stages over the next 20 to 30 years.

The major land revitalisation could boost the steelmaker’s national economic contribution from $2.6 billion to $3.26 billion annually, according to BlueScope’s Port Kembla land transformation report.

Just south of Wollongong, the proposed hub covers an area equivalent to the Sydney CBD from Circular Quay to Central Station. The Minns government set up a cabinet working group, approving the proposal within seven months of receiving the application.

The project promises to create 20,000 new jobs over 25 years and improve public transport for the area, which is about 90 minutes from Sydney’s CBD.

“The rezoning of Port Kembla’s non-operational land is a game-changer for the Illawarra, unlocking new possibilities for investment and development,” BlueScope head of property development Michael Yiend said.

“We were overwhelmed to have received over 200 supportive submissions for the project while on public exhibition, with only four opposing. It is rare to have this level of alignment and support across industry, government, business and the community,” he said.

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.

BlueScope is viewed as the frontrunner to pick up South Australia’s insolvent Whyalla steelworks, a test for incoming BlueScope chief executive Tania Archibald.

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

BlueScope promises the ongoing operations at the steelworks, which employs 10,000 people, will be uninterrupted, with existing infrastructure and transport connections at the site to be used to support the development. Several historical buildings will be preserved.

The development will have an educational aspect as BlueScope is partnering with TAFE NSW, the University of Wollongong and the council to provide training facilities amid a national skills shortage.

“This is both one of the world’s largest land transformations and the biggest change to Illawarra’s industrial landscape since steelmaking commenced nearly 100 years ago,” NSW Planning Minister Paul Scully said.

“The finalisation of the rezoning enables the precinct to become a hub of innovation, bringing up to 20,000 new jobs, new industries and opportunities to Wollongong, shaping our economy for the coming decades,” the Wollongong MP said.

“This project will deliver major opportunities for not only Wollongong but the entire state, and it’s clear the community recognise the importance as their strong community support has helped it move through the planning system in just seven months.”

About 1 per cent of NSW’s gross product is generated by Bluescope. The Illawarra region is the state’s third-largest economy outside of greater Sydney, generating $20.6 billion (2.8 per cent) in FY23.

Wollongong’s median house prices rose 44.2 per cent to $1,060,000 after COVID-19 work-from-home requirements pushed workers out of Sydney – but its growth has slowed to 4.4 per cent annually, according to Domain.