Productivity Commission investigation into fabricated structural steel

Question

1. The Productivity Commission initiated a safeguard investigation into imports of fabricated structural steel on 23 January 2026, following an application by the Australian Steel Institute, after a reported surge in low-priced imported fabricated steelwork. Domestic fabricators have reported losing work to imported fabricated steel, particularly utility-scale wind towers and heavy infrastructure components. a. Has the Department received any feedback, complaints, representations or other contact from Australian fabricated steel manufacturers regarding the surge in imported fabricated structural steel and its effect on domestic manufacturing? If so, how many, and over what period? b. What action, if any, has the Department taken in response to those representations, including any referral to the Minister? c. Has the Department made its own assessment of the scale of the import surge in fabricated structural steel and its effect on domestic fabrication capacity, employment and investment? 2. The Productivity Commission's safeguard inquiry is due to provide an interim report by September 2026 and a final report to Government in November 2026. The applicant has sought urgent provisional safeguard measures, citing serious injury to the domestic industry. a. Has the Department, or the Minister, made a submission to, or provided data or other input to, the Productivity Commission's fabricated structural steel safeguard inquiry? b. Given the industry is seeking urgent relief, does the Government intend to consider provisional safeguard measures ahead of the final report due in November 2026? c. What is the Department's assessment of the impact on domestic fabrication capability of waiting until the inquiry concludes before any measure is imposed? 3. A significant share of the affected work is utility-scale wind tower fabrication. Domestic fabricators report that imported tower sections have completely replaced Australian manufacturing on Australian wind energy projects. a. Do Commonwealth-supported renewable energy projects, including those under the Capacity Investment Scheme, carry any Australian content or Australian Industry Participation requirements for fabricated steel components such as wind towers? b. Has the Department assessed what proportion of the steel fabrication for Australia's wind energy build-out is being sourced domestically as opposed to imported? c. How does the Department reconcile the Future Made in Australia and green metals agendas with Australian renewable energy projects sourcing imported fabricated wind towers in preference to Australian-made alternatives? 4. Domestic fabricators have warned that sustained import competition is eroding Australia's capability to manufacture the large tubular steel structures required for the energy transition, with reductions in skilled workforce, deferred capital investment, and impacts concentrated in regional manufacturing communities. a. Has the Department assessed the impact on sovereign manufacturing capability of the loss of domestic heavy steel fabrication capacity? b. Is the Department aware of representations that domestic fabricators have reduced their skilled workforce, deferred investment, or are at risk of exiting heavy fabrication markets because of import competition? c. What support, if any, is the Department providing or coordinating to retain domestic heavy fabrication capability and the associated regional workforce while the safeguard inquiry runs its course?

Answer

See attached response.

Documents

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• BI-039_Liddle_Productivity Commission investigation into fabricated structural steel_DISR.pdf (opens in a new tab)