Illawarra's manufacturing cluster welcomes news that BlueScope is still focused on maintaining steelmaking at Port Kembla.
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Illawarra Innovative Industry Network (i3net) executive officer Tony Green said it was important for organisations in the region to work together to ensure BlueScope did not impose Plan B.
"And that includes organisations like i3net, unions and local businesses," he said.
Mr Green said BlueScope's Plan B would not only be disruptive for the region but for many of i3net's members.
He said i3net calls on all parties to consider all options as BlueScope worked towards a long-term sustainable option to ensure its competitiveness.
Such options include a mandate on the use of Australian-made steel on all government projects, and consideration of a clause in government procurement policy that acknowledges the contribution by local manufacturers into the state and national economy.
"This is not just about BlueScope - this also includes South32 who yesterday announced their own plans to cut costs significantly to ensure its survival," Mr Green said.
"This region's transition is nowhere near complete and it's extremely important we keep these historical industry sectors alive for as long as possible."