Feb 5 2008
BlueScope Steel Limited today announced that its subsidiary, BlueScope Steel North America Corporation, has completed the acquisition of IMSA Steel Corp from Ternium S.A. for approximately US$730 million.
BlueScope Steel Managing Director and CEO, Mr Paul O'Malley, said: "The acquisition of this high quality US business marks a significant milestone in the implementation of BlueScope Steel's North American strategy.
"We are delighted to welcome more than 2500 employees into our global company and we are now moving swiftly to integrate ASC Profiles, Metl-Span, Steelscape and VP Buildings into BlueScope Steel North America.
"The expanded company now has an outstanding geographic footprint and market offer. We will service customers throughout North America with coated steel products, customised pre-engineered buildings, steel building components and insulated foam panels.
President BlueScope Steel North America, Corporate Strategy and Innovation, Mr Brian Kruger, said: "We are very pleased to welcome ASC Profiles, Metl-Span, Steelscape and VP Buildings to BlueScope Steel. With the inclusion of VP Buildings, we now have an expanded presence in the customised pre-engineered buildings market with an unprecedented distribution network of builders.
"Metl-Span and ASC Profiles provide entry into the building panels and components market with two well-known brands. We expect the demand for insulated panels across North America to grow significantly over the next several years reflecting the increased pressure on energy consumption and the anticipated changes in US energy regulations. Metl-Span, the market leader in the supply of insulated foam panels in North America, positions us well to seize this opportunity.
"Steelscape provides us with well recognised metallic coated and painted steel products as well as the opportunity of increasing the pull-through of hot rolled coil from BlueScope Steel's Port Kembla Steelworks in Australia."
Mr Kruger added, "The addition of the four businesses significantly boosts our presence in North America and the combined businesses will represent approximately 25 percent of BlueScope Steel's total revenue. Our strategic intent is to broaden our scope and geographic reach and to expand our developing downstream multi-brand, multi-channel strategy."
According to Mr Kruger, plans for realising the value creation opportunities are progressing well. Within three years, BlueScope Steel expects to realise synergies of approximately US$40 million per year from:
- Increased product sales through the expanded distribution networks.
- Manufacturing improvements.
- Procurement savings due to economies of scale with an expanded footprint.
- Logistics savings with more effective utilisation of carriers and shipping lines.
- Increased pull-through of BlueScope Steel hot rolled coil products from Port Kembla Steelworks, to downstream distribution channels including Steelscape on the US west coast.