Southeast Asia could play a major role in BlueScope Steel Ltd.’s strategy amid an economic slowdown in China, company executives said during an Aug. 17 earnings call.

BlueScope sees “capital-efficient” opportunities in the Association of Southeast Asian Nations, as the steelmaker aims to capitalize on the region’s growing economy while China’s economy remains sluggish, according to CFO David Fallu.

The Australia-listed steelmaker supplies coated and painted steel products to the construction, manufacturing, and home appliance industries in Southeast Asia.

“The opportunity here is significant, not only from the strong positions our brands have in the market and the demographic tailwinds in the region, but also from the significant latency we have in the region to capture this growth, making it a very capitalefficient opportunity,” Fallu said.

The company’s ASEAN strategy includes capital-light growth projects focused on value-added products and solutions across the region, Fallu said.

BlueScope said its Southeast Asian business recorded a record full-year 2026 (July-June) EBIT of A$157 million, with higher volumes and strong cost performance largely offsetting lower prices. This helped drive an 857% year-over-year increase in the company’s net profit to A$802 million.

“I think the real gem of this year’s performance has actually been our Southeast Asian business after we get questions around the value of that business,” said Tania Archibald, BlueScope’s CEO and managing director.

“And I think the efforts that we’ve been putting into that business over the decades are now finally starting to shine through,” Archibald said. “I think it’s got a big role to play in the portfolio going forward.”