BlueScope

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BlueScope Steel Limited
FormerlyBHP Steel
TypePublic
Traded as
ASX: BSL
IndustrySteel
PredecessorBHP Steel
Founded2002
HeadquartersMelbourne, Victoria, Australia
Number of locations
Australia (main headquarters),
New Zealand,
Pacific Islands,
North America,
and Asia
Key people
John Bevan (Chairman)
Mark Vasella (CEO)
ProductsSteel
RevenueAU$ 9.202 billion (FY 2016)[1]
Number of employees
16,000
WebsiteBlueScope.com

BlueScope Steel Limited is an Australian flat product steel producer with resources coming in from New Zealand, Pacific Islands, North America, and Asia.

History[]

It was demerged from BHP Billiton on 22 July 2002 as BHP Steel[2] and renamed BlueScope Steel on 17 November 2003.[3]

Early in 2004, BlueScope merged with the American firm Butler Manufacturing.[4] During that time, BlueScope's Managing director and Chief executive officer was Kirby Adams.[5] Such a merger was considered a strategic move for both companies as they were similar in character and non-overlapping in the markets they operated in, such that acquisition of Butler, based in Kansas City, Missouri, would provide BlueScope with access to United States and Chinese markets.[6] Butler was founded in 1901, operated in sixteen countries and focused on non-residential building and building component construction.[4] At the time of the merger, Butler had a dozen production facilities across the United States, China and Mexico.[7]

In 2007, the company acquired four companies consisting of most of the United States holdings of the Argentinian firm Ternium, those being Steelscape, ASC Profiles, Varco Pruden Buildings; and Metl-Span, which was acquired by NCI Building Systems[8][9] in 2012. The four companies had been held by the Mexican Grupo IMSA prior to their purchase by Ternium.[9] Steelscape originated in 1996 as BHP Coated Steel and was originally owned by BlueScope.[9]

In March 2012 a new coated steel manufacturing plant was inaugurated in Jamshedpur, Jharkhand State, India.[10]

In February 2014, Bluescope Steel purchased Orrcon Steel from Hills Corporation.[11] Its products included RHS, SHS and CHS structural tubular steel, hot-rolled structural steel and fencing, roofing and building accessories.

Because of lower energy prices in the U.S. than in Australia, BlueScope in 2019 decided to expand its investment in America by $1 billion.[12]

Operations[]

The corporate headquarters are located at 120 Collins Street, Melbourne, Victoria.

The company has 16,000 personnel. Its largest operating plant, an integrated steelworks, is located at Port Kembla near Wollongong in the Illawarra, New South Wales. In October 2011, No.6 Blast furnace, one of two at Port Kembla, was shut down, reducing the plant's production capacity by 50% after the company decided to exit the export market.

Major products include steel slab, hot rolled coil, steel plate, automotive steel, galvanised steel, corrugated galvanised iron, "Zincalume" brand (55% aluminium, 43.5% zinc, 1.5% silicon) coated steel, and "Colorbond" brand pre-painted steel. Tinplate production ceased in March 2007.

In 2002, the founding Managing Director and CEO was Kirby Adams. Paul O'Malley (then CFO) replaced Mr Adams in October 2007. In January 2018, Mr O’Malley retired. The head of BlueScope's Australian business division, Mr Mark Vassella, was appointed BlueScope Managing Director and Chief Executive Officer to replace him.

Orrcon Steel supplies steel, tube and pipe to steel fabricators, furniture and trailer body manufacturers, housing and construction companies and pipeline and infrastructure engineering firms.

It has distribution centres in Melbourne, Sydney, Brisbane, Perth and Adelaide.

Controversy[]

On August 2019, the Australian Competition & Consumer Commission launched a civil case against Bluescope and a former executive for engaging in cartel conduct, alleging that they tried to induce competitors to enter contracts to fix prices for flat steel products between 2013-14. Bluescope denied the allegations, stating "we do not believe that BlueScope, or any current or former employees, have engaged in cartel conduct".[13] On December 2020, the former executive was sentenced to eight months imprisonment and fined $10,000 after pleading guilty to obstructing the investigation, inciting two employees to give false information.[14]

On 6 May 2020, a 59-year-old man was killed at Bluescope's Port Kembla facility after becoming trapped between a car and a crane, resulting in the site being temporarily shut.[15]

On 14 May 2020, Bluescope was the subject of a cyberattack that forced its production systems to be temporarily halted company-wide after ransomware was discovered in one of its systems.[16]

In July 2020, Bluescope Steel was fined $30,000 by the New South Wales Environment Protection Authority for failing to comply with dioxin air emission limits on six occasions between March and April 2020. In response, Bluescope completed air emissions modelling and engaged an independent consultant to undertake a health assessment of the elevated emissions.[17]

Major manufacturing facilities[]

  • Port Kembla near Wollongong in the Illawarra, New South Wales.
  • Western Port in Hastings near Melbourne, Victoria.
  • New Zealand Steel, Glenbrook near Waiuku, New Zealand.
  • Orrcon Brisbane Mill, Salisbury, Brisbane, Queensland.
  • Orrcon Precision Tubing Mill, Adelaide, South Australia.

Finished products are transported around Australia by rail freight operator Pacific National. In February 2007 PN secured Australia's largest ever rail freight contract ($1 billion) with BlueScope Steel and OneSteel, to carry approximately 3 million tonnes of steel product each year for 7 years.[18]

Sponsorship[]

  • BlueScope Steel Youth Orchestra
  • Southern Stars, Wollongong

See also[]

  • List of steel producers
  • New Zealand Steel

References[]

  1. ^ "Annual Report 2016". BlueScope.
  2. ^ "BHP Billiton group demerger 2002". Australian Tax Office. 20 July 2005. Archived from the original on 6 March 2016. Retrieved 11 June 2019.
  3. ^ "BlueScope Steel Ltd. | hobbyDB". www.hobbydb.com. Retrieved 1 September 2020.
  4. ^ Jump up to: a b Morales, Melinda (30 April 2004). "Butler steel plant acquired by Australia-based company". Visalia Times-Delta. 145 (261). Visalia, California: Gannett. p. C1. Retrieved 16 January 2020 – via Newspapers.com.
  5. ^ Staff (17 February 2004). "Metal building maker may be bought". Business. Visalia Times-Delta. 145 (200). Visalia, California: Gannett. p. 8A. Retrieved 16 January 2020 – via Newspapers.com.
  6. ^ Brown, Sandi Lynn (20 February 2004). "Butler on block for $204M". Lebanon Daily News. Lebanon, Pennsylvania: Garden State Newspapers. p. 3A. Retrieved 16 January 2020 – via Newspapers.com.
  7. ^ "Pending plant sale adds to Galesburg's economic jitters". Jobs & Money. The Dispatch and The Rock Island Argus. 126 (203). Moline, Illinois: Moline Dispatch Publishing. Associated Press. 19 February 2004. p. C7. Retrieved 16 January 2020 – via Newspapers.com.
  8. ^ "2012 Annual Report" (PDF). Annual Reports & Proxies. NCI Building Systems. 21 December 2012. p. 3. Retrieved 16 January 2020.
  9. ^ Jump up to: a b c Olson, Erik (20 December 2007). "Australian firm buys Steelscape". The Daily News. 85 (262). Longview, Washington: Lee Enterprises. pp. A1, A4. Retrieved 16 January 2020 – via Newspapers.com. Part 2 of the article appears at https://newspapers.com/clip/42441447/australian_firm_buys_steelscape_part_2/ .
  10. ^ "Tata BlueScope Steel inaugurates state-of-the-art Coated Steel Manufacturing facility at Jamshedpur" (Press release). Tata BlueScope Steel. 6 March 2012. Archived from the original on 8 May 2012. Retrieved 14 September 2012.
  11. ^ "History | Orrcon Steel". www.orrconsteel.com.au. Retrieved 1 September 2020.
  12. ^ "BlueScope invests $1 billion in the US amid concerns of Australian energy prices". 19 August 2019. Archived from the original on 13 December 2019.
  13. ^ "ACCC alleges BlueScope in cartel conduct". Australian Financial Review. 29 August 2019. Retrieved 29 May 2021.
  14. ^ Commission, Australian Competition and Consumer (15 December 2020). "Ex BlueScope GM Jason Ellis convicted and sentenced for obstructing ACCC cartel investigation". Australian Competition and Consumer Commission. Retrieved 29 May 2021.
  15. ^ "'Shocked the whole site': Man dies in Port Kembla steelworks accident". www.abc.net.au. 6 May 2020. Retrieved 29 May 2021.
  16. ^ "Cyber attack halts production systems in Australia's largest steelworks". www.abc.net.au. 15 May 2020. Retrieved 29 May 2021.
  17. ^ EPA, NSW. "EPA fines BlueScope Steel for exceeding air quality limit". NSW Environment Protection Authority. Retrieved 29 May 2021.
  18. ^ "PN wins steel deal". World Cargo News. February 2007. Archived from the original on 20 February 2012. Retrieved 24 April 2009.

External links[]


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