An enforced shutdown of its Port Kembla steelworks could cost BlueScope hundreds of million of dollars - and may signal the end of steelmaking in the Illawarra.
The steelmaker's New Zealand operations have been put on hold due to that country's one-month lockdown on March 25.
The company's operations were not deemed to be an "essential service" and were unable to continue working during the lockdown.
The steelmaker is lobbying the Australian and NSW governments to gain that status here in case of a local lockdown.
While the New Zealand shutdown will cost the company, it is nothing like the damage that would ensue from shutting down the Port Kembla steelworks.
We are not like a restaurant where you may be able to shut down and come back in a month or so.
- BlueScope's Dave Bell
"It is very difficult for us to shut down, but to then restart, even more difficult," said BlueScope's General Manager of Manufacturing Dave Bell.
"We are not like a restaurant where you may be able to shut down and come back in a month or so.
"A safe shutdown of the blast furnace would take a minimum of eight weeks, and we would probably have many more people on site planning and executing the shut than we have currently operating the plant.
"Any subsequent restart may cost somewhere in the order of $700 million."
That is, if the blast furnace can be restarted at all.
A sudden shutdown of the furnace, which would be required in a lockdown, would almost certainly permanently damage it.
The blast furnace is not designed to be switched off for long periods; a lockdown would lead to hot metal inside solidifying and damaging the furnace.
To mitigate against any COVID-19 infections, BlueScope is checking temperatures of employees as they arrive for work.
To assist in this, the steelmaker has closed several entrances to the steelworks to ensure all staff have to go past one of the checkpoints.
BlueScope CEO Mark Vassella said, aside from New Zealand and Malaysia, most other countries have viewed steelmaking as an essential service.
"In line with advice from medical experts, we have implemented comprehensive hygiene measures at all operating sites, removal of all non-essential personnel, strict distancing protocols and regular health checks," Mr Vassella said.
Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
