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Rising energy prices threaten Aussie steel manufacturers

Australia’s largest steelmaker, BlueScope, has been hit with a $17 million increase in its energy costs over this half-year.

BlueScope CEO, Mark Vassella, tells Ross Greenwood the company’s energy costs have doubled over the last couple of years and increasing power prices could drive businesses overseas.

“Energy costs are still an issue for us.

“We do need to solve the energy cost problem in Australia to make sure manufacturing jobs and manufacturing businesses can remain in the country.

“We have a steel mill in North America and our North American energy costs are about a third of what we pay in Australia.”

Mr Vassella says he believes Australia is moving in the right direction with renewable energy but more needs to be done during the transition period.

“We believe in the renewable story.

“The technology and the transition we need to manage through or we’ll drive jobs and businesses offshore.”

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