Australian steelmaker BlueScope Steel has announced that steelmaking will continue at its Port Kembla steelworks thanks to labor cost savings of A$60 million per year.
The company stated that maintaining operations was possible also thanks to the New South Wales government deferring the A$60 million of payroll taxes for the next three years.
BlueScope Steel also upgraded its earnings outlook and now expects approximately 40 percent growth in its underlying EBIT in the first half of the financial year 2015-16 compared to the second half of the previous financial year. This is about A$50 million greater than its previous outlook.