BlueScope's billion-dollar profit could be very good news for the Port Kembla steelworks.
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It makes the relining of the No.6 blast furnace - crucial to continue steelmaking - more likely and there's also the possibility of extensions to the Springhill plant where Colorbond is made.
On Monday, CEO Mark Vassella announced a record $1.19 billion profit - the company's biggest since its spin-off from BHP in 2002.
"This is an impressive result," Mr Vassella said.
"All operating segments performed exceptionally well - driven by strong demand and steel spreads."
The Australian Steel Products division - largely made up of the Port Kembla steelworks - brought in pre-tax earnings of $674 million.
That was up 121 per cent on the previous financial year.
With steel framing and coated product sales surging in Australia recently, Mr Vassella said the company was looking to spend around $250 million on a new metal coating line - which could end up at Springhill.
"That's certainly one of the options," Mr Vassella said.
"We are currently doing the pre-feasibility work on a new metal coating line and Springhill is one option. It's early in the analysis so we'll do the technical assessment and then work out where the best place to put it is from the market perspective."
The profit could also help ensure the future of the steelworks - the relining of the No.6 blast furnace has always depended on it making financial sense.
With profits up - and tipped to stay that way for at least the next six months - it increases the chances of the company spending the $700-$800 million on a reline.
"BlueScope is exploring options for the future configuration of the Port Kembla steelworks once the No.5 blast furnace comes to the end of its current operating campaign which is expected to occur sometime between 2026 and 2030," he said.
"initial focus is on the option to reline the currently mothballed No.6 furnace, being the most technically feasible and economically viable option."
Technologies that could lower greenhouse gas emissions will be "integral" to the reline, Mr Vassella said.
The pre-feasibility studies are already under way and the "feasibility" stage is next.
"That will happen later this year and the final approval for the project will occur sometime in the early 2022 calendar year," he said.
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