Mr Macfarlane has called a meeting for September 7, which will include state government representatives, the region's federal MPs, BlueScope Steel workers and staff, unions, Wollongong City Council, the business community and the University of Wollongong.

The roundtable will discuss a "long-term economic strategy for the region".

"The Australian government understands the concerns of the Illawarra and wider community about the future of steel production at Port Kembla and its impact on jobs, and recognises that the steel industry is an important contributor to both the Illawarra and the national economy," Mr Macfarlane said.

"While BlueScope Steel has outlined the serious challenges it is facing to maintain international competitiveness, these are challenges that all Australian businesses must face when trading in international markets."

Mr Macfarlane said the government was working to "set the right economic environment to maximise competitiveness for Australian industry".

Ensuring businesses aren't burdened with excessive red and green tape or regulation will be discussed.

Mr Macfarlane said Australian businesses were developing new opportunities in "sophisticated, high-value-add industries that feed into global supply chains".

"The Australian steel industry has a strong future following this new direction, by enhancing international competitiveness and building new connections with research and science," he said.

"BlueScope Steel has said that the removal of the carbon tax and the Australian government's ongoing program to cut red and green tape, as well as the government's exemption from the RET for emissions intensive trade exposed industries, have all helped increase its competitiveness.

"The government is committed to fostering an environment where Australian businesses have an opportunity to bid for work on Australian projects and major government procurement contracts. The government supports an open market economy as the best way to generate investment and employment."

Mr Macfarlane said the federal government would work "with all stakeholders in the Illawarra on a constructive approach to discuss BlueScope's future and a strategy for long-term economic development and jobs growth in the region".