Port Kembla steelworks boss Noel Cornish yesterday heaped praise on his workforce after BlueScope Steel announced a solid $596 million net profit for the 2007-08 financial year.

For the second consecutive year, the plant posted records in slab, plate and hot rolled coil and hot strip mill.

Key acquisitions and strong global demand also helped boost the steel giant's bottom line result as final preparations are made for a major upgrade of its Illawarra plant.

The $596 million net profit was 13 per cent, or $90 million, down on last year.

However, the bottom line result was impacted by a one-off charge of $225 million for its China and Vietnam coating facilities.

Excluding the charge, underlying operating earnings rose 27 per cent to $816 million, from $643 million, which was better than expected.

Mr Cornish, the Australian and New Zealand Steel Manufacturing Businesses chief executive, said Illawarra employees should be proud of their performance.

"We have performed strongly across all production areas," he said.

"A special thank you to those employees who have been actively involved in keeping our ageing number 5 blast furnace ticking along. It has been a tremendous effort and I am sure they will be relieved when we start the $370 million reline early next year," Mr Cornish said.

Some 1000 trade jobs will be created when work starts on the reline in March.

The 105-day project will overlap with a 35-day $134 million sinter plant upgrade that will create 220 construction jobs. It will increase the plant's output by 20 per cent to 6.6 million tonnes a year.

Illawarra companies have been chosen for more than $65 million worth of the reline work.

BlueScope managing director Paul O'Malley said the result was driven by the company's strong performance in key export markets where higher global steel prices offset rising raw material costs.

Slab production at the steelworks last year was 5.28 million tonnes, the second highest on record.