The Federal Government has announced it will provide a $64 million advance to the OneSteel Limited under the Steel Transformation Plan (STP).

 

Under the STP, OneSteel was eligible to apply for an advance of up to $64 million to undertake activities that enhance the competitiveness and economic sustainability of the company’s Australian steel manufacturing business. Payment of the advance is expected within 30 working days and will be recorded as income in the company’s financial statements for the 2012 financial year.

 

OneSteel’s Managing Director and CEO, Mr Geoff Plummer said: “We are pleased with the Government’s interest in steel manufacturing in Australia and welcome this advance. In particular, I would like to thank both the Minister for Industry and Innovation, Mr Combet and the Minister for Manufacturing, Mr Carr for the time they have invested in the industry including the design and implementation of the STP and the advance.”

 

The Steel Transformation Plan 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 will provide for competitiveness assistance advance payments (advances) 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.

 

More information is here.