The Steel Transformation Plan (STP) is a $300 million program operating over six payment years from 2011‑12 that aims to encourage investment, innovation and competitiveness in the Australian steel manufacturing industry in order to assist the industry to transform into an efficient and economically sustainable industry in a low carbon economy.
The STP contains two elements, the first is a $300 million entitlement (self-assessment) scheme (the Plan) that will operate over the five payment years from 2012-13. The second is the competitiveness assistance advance payments up to the value of $164 million in 2011-12. Entitlements under the Plan will be reduced by the value of any advance payments made.
The Steel Transformation Plan 2012, the legislative instrument that contains the administrative details of the Steel Transformation Plan, came into operation on 1 May 2012.
Who is it for?
The Plan will support manufacturers of integrated iron and steel and manufacturers of carbon steel from cold ferrous feed that satisfy the eligibility requirements outlined in the Steel Transformation Plan Act 2011.
Competitiveness Assistance Advance
On 21 December 2011, the Government announced that it would provide BlueScope Steel with a competitiveness assistance advance of $100 million under the STP Payment of the competitiveness assistance advance to BlueScope Steel was made on 18 January 2012 .
Under the agreement, BlueScope will use the advance to build competitiveness by investing in research and development; undertaking a number of environmental improvement projects; maintaining equipment to ensure optimum performance, and operations restructure.
On 30 January 2012, the Government announced that it would provide OneSteel with a competitiveness assistance advance of $64 million under the STP. Payment of the competitiveness assistance advance to OneSteel was made on 6 February 2012.
Under the agreement, OneSteel will use the funds to maximise productivity and reduce and improve its environmental performance by investing in waste reduction, reuse and recycling; vital repair and maintenance; and targeted skills training for employees.
Want to know more?
You can learn more about the Steel Transformation Plan by contacting the AusIndustry hotline on 13 28 46 or email hotline@ausIndustry.gov.au.