From the Industry

Domestic steel production

The Albanese Government’s determination to position Australia in the forefront of modern manufacturing nations includes support for domestic steel production.

Australia's steel industry is adaptive and a vital part of the manufacturing landscape in our country. It is also vital for our transition to a net-zero and decarbonised economy. All modern economies depend on steel. And while steel might be seen by some as belonging to the old economy, it is in fact at the centre of our energy transformation. Steel is the main material used in delivering crucial sources of renewable energy – solar, tidal, geothermal and wind – and it plays a key role in supporting and enabling infrastructure. In October, I addressed the Australian Steel Institute Convention in Sydney. As the son of a metalworker I was happy to express my support for the steel industry. We went to the election with a very firm view that the events of previous years through the pandemic changed people's thinking about what we could rely upon when we needed it, at the times we needed it most. That caused a reset in the thinking around industry policy, around the way that we gear up and the way that governments engage with the private sector to deliver on those things. The Australian steel industry has dealt with the challenges of the last two years and emerged in good shape for the future. As an industry, it is vital and adaptive. It has diversified supply chains, including smaller, family-owned businesses through to large national, and multinational companies. It feeds into construction, manufacturing, mining, defence, and a wide range of high-value uses and in doing so supports over 110,000 jobs and contributes to nearly $13bn to the nation's economy. It's encouraging to see the steel sector remain so robust in the face of the global headwinds over the last few years but the Government's certainly not taking it for granted. We've placed manufacturing as a central priority in our policy agenda; for Australia to be known as a manufacturer of high-value products, including steel. Central to these efforts will be our plan is our $15bn National Reconstruction Fund (NRF). The NRF is a co-investment platform that will build on national strengths by targeting investment in seven priority areas. It will help transform and strengthen industries, create jobs and support long term growth for the economy. Connected to this, our Buy Australian Plan will open Government contracts to strengthen industry capability, growing small and medium-sized enterprises. Steel will be a part of that. And steel will be central to our National Rail Manufacturing Plan which is backing local manufacturers to make more trains in Australia. My colleague Assistant Minister Tim Ayres will take the reins for our rail manufacturing agenda. The Government is also supporting the collaboration between the University of Wollongong and other partners to redevelop an Advanced Steel Manufacturing Precinct around Port Kembla. But the steel sector, like most sectors of the economy, faces problems attracting skilled labour. As was emphasised at the Jobs and Skills Summit in September, the development of technology and tech skills are the keys to building an economy that is globally competitive. The Government has taken a range of measures across portfolios to support skills development, including creating 465,000 fee-free TAFE places and supporting more apprentices, trainees and cadets. Through our Powering Australia plan we will also support the energy needs of the manufacturing sector by getting the energy to where it’s needed through an overdue upgrade to our outdated energy grid. Rewiring the grid will provide further opportunities for the steel industry. Under this plan, $3bn will be allocated through the National Reconstruction Fund to invest in initiatives including green metals such as steel, alumina and aluminium. Steel producers in Australia have made commitments to net zero by 2050. To hit these ambitious goals, companies will make capital investments, including in low-emissions steel technologies, where it is financially and technologically viable to do so. The industry will benefit from research from the Heavy Industry Low Carbon Transition Cooperative Research Centre. This research is focused on integrating clean energy sources such as hydrogen, ammonia and solar into high heat, high-emissions manufacturing processes for products like steel. The future of the steel sector will be strong by working together. Our focus is on speeding up the energy transition, hitting our emissions targets which will provide a huge opportunity for industry. Our policy levers should help develop industry-specific plans to boost local production capacity for that energy transition. Steel, locally made steel, can become the backbone of offshore wind infrastructure. Our emphasis on creating jobs, boosting skills, bringing industry expertise back on shore and supercharging national productivity is good news for all of us. I am eager to continue working with you across the steel sector as we build a future made right here in Australia. industry.gov.au