BlueScope’s Mark Vassella testified before the Senate’s inquiry into the Australian steel industry when it visited Wollongong this month.

Greens senator Lee Rhiannon asked Mr Vassella about the blast furnace, which is the heart of steelmaking at BlueScope, and whether switching it off had now been taken off the table.

“Unfortunately I do not think that will ever be taken off the table,” Mr Vassella said.

“If, for example, the Australian domestic market was to reduce significantly because of imports – unfortunately that scenario can never be taken off the table.”

Mr Vassella said, despite the cost savings, Port Kembla was still not in the black.

“The cost-saving initiatives that we put in place are working effectively,” he said.

“We are still not back to a point where the steelmaking business is generating positive cash – that is a challenge for a company – but we are working very hard to try and get it to that stage.”

Mr Vassella was also asked about the possibility of ending steelmaking but retaining the profitable Colorbond business at Springhill and importing the required steel.

“We think there is a very important link between our steelmaking and our high value-added products,” Mr Vassella said.

“It allows us to control the quality, the consistency and the supply chain of those products.

“It allows us to continue to develop them. We actually see our steelmaking business as a total business.” 

Meanwhile, BlueScope’s General Manager Manufacturing, John Nowlan was pleased with Bill Shorten’s six-point plan for steel on Thursday.

“Whilst we consider the detail of the plan, we welcome the announcement,” Mr Nowlan said.

“BlueScope supports good industry policy that addresses key issues like standards, anti-dumping and the economic benefit of local content.

“In particular, we support policy that either reduces the costs of making steel and costs of business in Australia, or enables more quality domestic steel to be sold in Australia.”