BlueScope's NZ site visit spotlights EAF project, emissions reduction

BlueScope's NZ site visit on November 27, 2025, showcased the company's strategic initiatives, including a substantial investment in an Electric Arc Furnace (EAF) project. The EAF project, with an expected total cost of ~NZ$300M and NZ$140M co-funded by the NZ Government, is anticipated to commence production in April 2026. This project is set to reduce NZ Steel's Scope 1 and 2 greenhouse gas emissions by up to one million tonnes, or ~55%, and enhance profitability in low-cycle conditions. The company estimates this EAF model would have improved FY2025 EBIT by ~$80M if operational.

The company also highlighted its broader earnings growth opportunity, targeting an annual EBIT uplift of ~$500 million by 2030 from growth initiatives and investments, in addition to a $200M+ uplift from cost and productivity initiatives. Furthermore, BlueScope is positioning its 1,250-hectare property portfolio for strategic value realization, including a near-term opportunity at West Dapto. An improvement in spread levels could offer an additional ~$400M to ~$900M upside.

In sustainability, BlueScope reported a 14% reduction in steelmaking emissions intensity since FY2018 and aims for further reductions, expecting to achieve below 1.3tCO2-e per tonne by 2030. This reflects a >20% reduction from the FY2018 baseline, driven by the NZ EAF project and North Star debottlenecking. The company continues to make solid progress toward its 2030 targets and 2050 net-zero goal.