A vast section of BlueScope’s Port Kembla steelworks, comparable in size to Sydney’s CBD, is set for transformation after the NSW government approved the rezoning of 2 million square metres of non-operational industrial land. The proposal paves the way for a $10 billion employment hub spanning advanced manufacturing, clean energy, technology, education and logistics.

Located around 90 minutes south of Sydney, the precinct will sit alongside BlueScope’s existing steelmaking operations, marking one of the largest industrial land revitalisation projects globally. While BlueScope will retain ownership of the land, the rezoning allows staged development over the next two to three decades.

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Key Points

• Rezoning approved for 2 million square metres of non-operational land at Port Kembla.
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• $10 billion redevelopment planned over 20–30 years.
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• Potential to create up to 20,000 jobs and generate $3.26bn annually.
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• Focus on advanced manufacturing, renewables, technology, education and logistics.
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• Partnerships with TAFE NSW, University of Wollongong and local council.
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• Steelmaking and port operations to continue uninterrupted.
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• Community consultation closed with strong support.

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Project Significance

For the NSW government, the Port Kembla redevelopment is a cornerstone regional growth project. The Illawarra is already the state’s third-largest economy outside greater Sydney, contributing $20.6 billion annually, and is forecast to grow by 36% by 2041.

The project aims to shift the region beyond traditional heavy industry towards higher-value, future-focused employment, while leveraging existing transport, utilities and port infrastructure. Government modelling suggests it could double the site’s long-term economic impact and materially lift workforce participation in the region.

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Further Details: Jobs, Skills and Long-Term Strategy

Education and skills development are central to the proposal. BlueScope is partnering with TAFE NSW and the University of Wollongong to deliver training pathways aligned to advanced manufacturing and clean energy sectors, addressing long-term skills shortages.

Heritage buildings within the steelworks will be preserved, maintaining the site’s industrial legacy while accommodating new development. Transport upgrades are also planned to support workforce growth and regional connectivity.

The Port Kembla project represents the first major step in BlueScope’s strategy to unlock value from its 12-million-square-metre land portfolio. Other sites under review include Western Port in Victoria and Glenbrook in New Zealand, with further rezoning opportunities expected.

If delivered at scale, Port Kembla could become a national test case for how legacy industrial assets are repurposed to support modern, diversified economies — without displacing the industries that built them.