Graham Kraehe, Chairman of BlueScope Steel, stated that the company’s board has agreed for a key restructuring of its Australian operations in order to enhance its profit and growth.
According to the restructuring plan, No.6 Blast Furnace at Port Kembla will be shut down, resulting in the reduction in production of 2.6 mtpa. The shut down will be implemented in such a way that allows the restart of the furnace when the situation demands. No. 1 slab caster, No. 3 BOS steelmaking furnace and No. 4 coke making battery will be closed, while the PKSW cold rolling and hot strip mills, paint as well as metal coating lines will be operated continually. The restructure will also include the Western Port hot strip mill closure and a metal coating line (MCL 5)’s mothballing.
The restructure that includes the Western Port Hot Strip Mill closing and shutting down of the No.6 Blast Furnace located at Port Kembla will streamline the company’s steel production in Australia based on the domestic demand in the country and will allow the company to exit the export business in Australia, Kraehe added.
Kraehe further said that the restructure will generate a more feasible and stable Australian steel business and enable the company to concentrate on domestic markets as well as global growth opportunities.
Paul O’Malley, who serves as Managing Director and Chief Executive Officer at BlueScope Steel, commented that the restructure will strengthen the company’s footprint in the building construction market, especially in pre-engineered buildings. With its COLORBOND and ZINCALUME steel products, the company has a competitive edge in coated steel, he said. The company in partnership with Nippon Steel will develop future-generation coated products for its customers.