Massive Land Transformation Set to Reshape Wollongong’s Economy
A major industrial land transformation project in Wollongong is being described as one of the largest of its kind globally, with the potential to significantly reshape the region’s economic future. Covering an area comparable in size to Sydney’s CBD, the project is a central feature of Invest Wollongong’s 2026 prospectus aimed at attracting investors.
The initiative gained momentum after the approval in December 2025 of BlueScope’s proposal to rezone 200 hectares of unused land near the Port Kembla Steelworks. This rezoning marks a major shift from traditional heavy industrial use to a more diverse, multi-industry development model.
Overview
| Category | Details |
|---|---|
| Project Location | Port Kembla, Wollongong |
| Land Size | 200 hectares (CBD-sized transformation) |
| Lead Organization | BlueScope |
| Zoning Type | Special Purpose zoning |
| Job Potential | Up to 20,000 new jobs |
| Current Workforce | 10,000+ in steelworks |
| Key Industries | Tech, clean energy, tourism, education, defence |
| Investment Value | Over $2 billion approved projects |
| Population Growth | +130,000 residents by 2041 |
| Timeline | Development starting from 2026 |
From Steel Hub to Multi-Industry Precinct
For decades, the land surrounding Port Kembla was restricted to heavy industrial activities tied to steel production. However, the new Special Purpose zoning allows for a broader range of uses, including education facilities, technology hubs, creative industries, recreational spaces, and commercial infrastructure.
This shift represents a significant evolution in Wollongong’s identity—from a city historically defined by mining and steelmaking to one embracing innovation and diversification.
Boosting Jobs and Economic Growth
The transformation is expected to deliver substantial economic benefits. Planning documents suggest the new precinct could generate up to 20,000 jobs, in addition to the more than 10,000 jobs already supported by BlueScope’s steelworks operations.
This job growth is particularly important as the region prepares for population expansion. Projections indicate that Wollongong’s population could grow by 130,000 people by 2041, increasing demand for employment and economic opportunities.
Industries expected to benefit include advanced manufacturing, defence procurement, clean energy, technology, tourism, education, and even the screen industry.
Innovation and Investment Opportunities
One of the key highlights of the project is its ability to attract innovative businesses. For example, Sicona Battery Technologies, a startup linked to the University of Wollongong, is planning to establish a demonstration plant for advanced battery materials manufacturing in the region.
BlueScope has already approved more than $2 billion worth of manufacturing projects, signaling strong confidence in the area’s future as a hub for industrial innovation and technological advancement.
Community Support and Strategic Planning
The transformation has received strong backing from the local community. During the public consultation process, 90 per cent of submissions supported the redevelopment, citing benefits such as job creation, increased investment, and improved transport infrastructure.
The project’s design focuses on making use of existing infrastructure while gradually opening land for development in stages. Importantly, current steelmaking and port operations will continue without disruption, ensuring stability while new industries are introduced.
A New Chapter for Wollongong
Wollongong has already begun diversifying its economy in recent years, particularly with the growth of the University of Wollongong and related industries. This new land transformation takes that evolution to the next level.
Local leaders believe the combination of economic opportunity and lifestyle appeal will attract businesses and residents alike. Wollongong City Council sees the project as a key step in positioning the city as a modern, forward-looking economic centre.
Looking Ahead
With development expected to begin from 2026, the Port Kembla transformation is set to become a cornerstone of Wollongong’s future growth. By combining industrial heritage with modern innovation, the project aims to create a balanced and sustainable economy.
As investment continues to flow and new industries take root, Wollongong is positioning itself as a city on the rise—ready to compete on a global stage while maintaining its strong community foundation.