BlueScope

Last updated

BlueScope
FormerlyBHP Steel
ASX:  BSL
Industry Steel
Founded15 July 2002
Founder BHP
Headquarters
Level 24, 181 William Street, Melbourne
,
Australia
Area served
Asia
Australia
New Zealand
North America
Key people
Jane McAloon (Chair)
Mark Vassella (CEO)
ProductsSteel
Revenue$12.9 billion (2021)
$1.7 billion (2021)
Number of employees
14,300 (2021)
Subsidiaries New Zealand Steel
Orrcon Steel
Website www.bluescope.com

BlueScope Steel Limited is an Australian flat product steel producer that was spun-off from BHP Billiton in 2002.

Contents

History

BlueScope was formed when BHP Billiton spun-off its steel assets on 15 July 2002 as BHP Steel. [1] It was renamed BlueScope on 17 November 2003. [2]

Early in 2004, BlueScope merged with the American firm Butler Manufacturing. [3] 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. [4] Butler was founded in 1901, operated in sixteen countries and focused on non-residential building and building component construction. [3] At the time of the merger, Butler had a dozen production facilities across the United States, China and Mexico. [5]

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 [6] [7] in 2012. The four companies had been held by the Mexican Grupo IMSA prior to their purchase by Ternium. [7] Steelscape originated in 1996 as BHP Coated Steel and was originally owned by BlueScope. [7]

In March 2012 a new coated steel manufacturing plant was inaugurated in Jamshedpur, India. [8]

In February 2014, BlueScope purchased Orrcon Steel from Hills. [9] [10] 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 United States than in Australia, BlueScope in 2019 decided to expand its investment in America by $1 billion. [11]

Operations

Port Kembla steelworks 13 Industry of Australia - Steelworks of BlueScope Steel Limited company in Port Kembla, Australia.jpg
Port Kembla steelworks

The corporate headquarters are located at Level 24, 181 William Street, Melbourne.

The company has 16,000 personnel. Its largest operating plant, an integrated steelworks, is located at Port Kembla, 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.

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.

Carbon footprint

BlueScope reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 30 June 2020 at 10,280 Kt (-120 /-1.2% y-o-y). [12]

BlueScope's annual Total CO2e emissions (Direct + Indirect) (in kilotonnes)
Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020
9,380 [13] 10,100 [14] 10,670 [15] 10,750 [16] 10,400 [17] 10,280 [12]

Controversy

In August 2019, the Australian Competition & Consumer Commission launched a civil case against BlueScope and its former general manager of sales and marketing Jason Ellis for engaging in cartel conduct, alleging that they tried to induce competitors to enter contracts to fix prices for flat steel products between 2013 and 2014. BlueScope denied the allegations, stating "we do not believe that BlueScope, or any current or former employees, have engaged in cartel conduct". [18] In December 2020, Ellis was sentenced to eight months imprisonment and fined $10,000 after pleading guilty to obstructing the investigation, inciting two employees to give false information. [19] In December 2022 the Australian Federal Court found that BlueScope and Ellis had attempted to induce eight steel distributors in Australia and an overseas manufacturer to enter agreements to fix and/or raise the level of pricing for flat steel products. BlueScope was ordered to pay a $57.5 million penalty, the highest penalty ever imposed for cartel conduct in Australia. [20]

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. [21]

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. [22]

In July 2020, BlueScope 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. [23]

Major manufacturing facilities

Finished products are transported around Australia by rail freight operator Pacific National. In February 2007 Pacific National secured Australia's largest ever rail freight contract ($1 billion) with BlueScope Steel and OneSteel, to carry approximately three million tonnes of steel product each year for seven years. [24] The contract was renewed for a further seven years from January 2015. [25] In January 2022, Qube Holdings and SCT Logistics will take over from Pacific National. [26]

Related Research Articles

<span class="mw-page-title-main">BHP</span> Australian multinational mining and petroleum company

BHP, officially named BHP Group Limited and formerly known as BHP Billiton, is an Australian multinational mining and metals public company headquartered in Melbourne, Australia.

<span class="mw-page-title-main">Whyalla</span> City in South Australia

Whyalla is a city in South Australia. It was founded as "Hummocks Hill", and was known by that name until 1916. It is the fourth most populous city in the Australian state of South Australia after Adelaide, Mount Gambier and Gawler and along with Port Pirie and Port Augusta is one of the three towns to make up the Iron Triangle. As of June 2018, Whyalla had an urban population of 21,742, having declined at an average annual rate of -0.75% year-over-year over the preceding five years. It is a seaport located on the east coast of the Eyre Peninsula and is known as the "Steel City" due to its integrated steelworks and shipbuilding heritage. The port of Whyalla has been exporting iron ore since 1903.

<span class="mw-page-title-main">Port Kembla, New South Wales</span> Suburb of Wollongong, New South Wales, Australia

Port Kembla is a suburb of Wollongong 10 km south of the CBD and part of the Illawarra region of New South Wales. The suburb comprises a seaport, industrial complex, a small harbour foreshore nature reserve, and a small commercial sector. It is situated on the tip of Red Point: its first European sighting was by Captain James Cook in 1770. The name "Kembla" is an Aboriginal word meaning "plenty [of] wild fowl".

Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group.

<span class="mw-page-title-main">SSAB</span> Global steel company

SSAB AB, earlier Svenskt Stål AB is a Swedish company, formed in 1978, that specialises in producing steel. The largest shareholders are LKAB and the Government of Finland.

<span class="mw-page-title-main">POSCO</span> South Korean steel-making company

POSCO is a South Korean steel manufacturer headquartered in Pohang, South Korea. It had an output of 42,000,000 metric tons of crude steel in 2015, making it the world's sixth-largest steelmaker by this measure. In 2010, it was the world's largest steel manufacturing company by market value. Also, in 2012, it was named as the world's 146th-largest corporation by the Fortune Global 500.

Anglo American plc is a British multinational mining company with headquarters in London, England. It is the world's largest producer of platinum, with around 40% of world output, as well as being a major producer of diamonds, copper, nickel, iron ore, polyhalite and steelmaking coal. The company has operations in Africa, Asia, Australia, Europe, North America and South America.

<span class="mw-page-title-main">Iron Knob</span> Iron ore mine in South Australia

Iron Knob is a town in the Australian state of South Australia on the Eyre Peninsula immediately south of the Eyre Highway. At the 2006 census, Iron Knob and the surrounding area had a population of 199. The town obtained its name from its proximity to large deposits of iron ore, most notably Iron Monarch which outcropped prominently from the relatively flat, surrounding landscape.

<span class="mw-page-title-main">Novolipetsk Steel</span> Steel company

Novolipetsk Steel, or NLMK, is one of the four largest steel companies in Russia. NLMK's share of domestic crude steel production is about 21%. It primarily produces flat steel products, semi-finished steel products and electrical steels. NLMK also produces specialty coated steels, plus high-ductility and micro-alloyed steels. It is the 21st-largest steel maker in the world. The larger NLMK group owns a number of other steel and mining industries, mostly in Russia.

Hyundai Steel Co., Ltd, or HSC is a steel making company headquartered in Incheon and Seoul, South Korea, and a member of the Hyundai Motor Group. It manufactures a wide variety of products ranging from H-beams, rail and reinforcing bars, to hot coil, cold-rolled steel, and stainless cold-rolled sheet.

<span class="mw-page-title-main">Cringila railway station</span> Railway station in New South Wales, Australia

Cringila railway station is located in Cringila, Australia, on the South Coast railway line's Port Kembla branch. The station serves NSW TrainLink trains travelling south to Port Kembla and north to Wollongong and Sydney.

Lysaght was founded in 1880 by John Lysaght as a subsidiary to the company John Lysaght and Co. The company pioneered modern steel coating technologies (galvanization). Its coated steel building products were sold under the 'ORB' brand and contributed to Australian architectural style.

<span class="mw-page-title-main">Whyalla Steelworks</span>

The Whyalla Steelworks is a fully integrated steelworks and the only manufacturer of rail in Australia. Iron ore is mined in the Middleback Range to feed the steelworks, resulting in the distribution of finished steel products of over 90 different grades. It occupies a 1,000 ha site on the shore of False Bay, Spencer Gulf and is the largest employer in Whyalla, South Australia.

The D9 class were a class of diesel locomotives built by English Electric, Rocklea for Australian Iron & Steel's, Port Kembla steelworks between 1956 and 1960.

The D16 class are a class of diesel locomotives built by English Electric, Rocklea for Australian Iron & Steel's, Port Kembla steelworks between 1959 and 1964.

The D35 class are a class of diesel locomotives built by English Electric, Rocklea for Australian Iron & Steel's, Port Kembla steelworks between 1971 and 1975.

The Jobs for Women campaign was a public campaign waged during the 1980s to win the right for women to work at the Port Kembla steelworks in Wollongong, Australia. The campaign won a historic court case under the Anti-Discrimination Act and set a precedent for the employment of women in non-traditional areas of work and the interpretation of direct and indirect discrimination.

<span class="mw-page-title-main">Charles Hoskins</span> Australian industrialist

Charles Henry Hoskins (1851-1926) was an Australian industrialist, who was significant in the development of the iron and steel industry in Australia.

Australian Iron & Steel was an Australian iron and steel manufacturer.

<span class="mw-page-title-main">Cecil Hoskins</span> Australian Industrialist

Sir Cecil Harold Hoskins (1889–1971) was an Australian industrialist associated with the iron and steel industry. He is notable mainly for the establishment of the steel industry at Port Kembla, the company Australian Iron & Steel, and its subsequent merger with BHP in 1935. He was also on the board of the Australian Mutual Provident Society for many years and was its chairman from 1947 to 1962. He is less well known for his involvement in centre-right political organisations and the scouting movement, and his interest in landscape gardens.

References

  1. BHP Steel Limited makes its debut on ASX BHP 15 July 2002
  2. BHP Steel Limited (BSL) Confirms Intention to Change its Name BHP Steel 27 June 2003
  3. 1 2 Morales, Melinda (30 April 2004). "Butler steel plant acquired by Australia-based company". Visalia Times-Delta. Vol. 145, no. 261. Visalia, California: Gannett. p. C1. Retrieved 16 January 2020 via Newspapers.com.
  4. 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.
  5. "Pending plant sale adds to Galesburg's economic jitters". Jobs & Money. The Dispatch and The Rock Island Argus. Vol. 126, no. 203. Moline, Illinois: Moline Dispatch Publishing. Associated Press. 19 February 2004. p. C7. Retrieved 16 January 2020 via Newspapers.com.
  6. "2012 Annual Report" (PDF). Annual Reports & Proxies. NCI Building Systems. 21 December 2012. p. 3. Retrieved 16 January 2020.
  7. 1 2 3 Olson, Erik (20 December 2007). "Australian firm buys Steelscape". The Daily News . Vol. 85, no. 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/ .
  8. "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.
  9. https://www.asx.com.au/asxpdf/20140228/pdf/42n32d8clc01ch.pdf Completion of Fieldings and Orrcon Steel Sales] Hills 28 February 2014
  10. "History". www.Orrcon Steel . Retrieved 1 September 2020.
  11. "BlueScope invests $1 billion in the US amid concerns of Australian energy prices". 19 August 2019. Archived from the original on 13 December 2019.
  12. 1 2 "BlueScope's Sustainability Report for 2020Q2" (PDF). Archived from the original (PDF) on 6 June 2021. Alt URL
  13. "BlueScope's Sustainability Report for 2019Q2" (PDF). Archived from the original (PDF) on 1 October 2021. Alt URL
  14. "BlueScope's Sustainability Report for 2020Q2" (PDF). Archived from the original (PDF) on 6 June 2021. Alt URL
  15. "BlueScope's Sustainability Report for 2020Q2" (PDF). Archived from the original (PDF) on 6 June 2021. Alt URL
  16. "BlueScope's Sustainability Report for 2020Q2" (PDF). Archived from the original (PDF) on 6 June 2021. Alt URL
  17. "BlueScope's Sustainability Report for 2020Q2" (PDF). Archived from the original (PDF) on 6 June 2021. Alt URL
  18. "ACCC alleges BlueScope in cartel conduct". Australian Financial Review . 29 August 2019. Retrieved 29 May 2021.
  19. "Ex BlueScope GM Jason Ellis convicted and sentenced for obstructing ACCC cartel investigation". Australian Competition & Consumer Commission . 15 December 2020. Retrieved 29 May 2021.
  20. "Ex BlueScope GM Jason Ellis convicted and sentenced for obstructing ACCC cartel investigation". Australian Competition & Consumer Commission . 29 August 2023. Retrieved 17 July 2024.
  21. "'Shocked the whole site': Man dies in Port Kembla steelworks accident". www.abc.net.au. 6 May 2020. Retrieved 29 May 2021.
  22. "Cyber attack halts production systems in Australia's largest steelworks". www.abc.net.au. 15 May 2020. Retrieved 29 May 2021.
  23. "EPA fines BlueScope Steel for exceeding air quality limit". New South Wales Environment Protection Authority . Retrieved 29 May 2021.
  24. "PN wins steel deal". World Cargo News. February 2007. Archived from the original on 20 February 2012. Retrieved 24 April 2009.
  25. Asciano secures steel deal Australian Transport News 20 July 2012
  26. SCT confirmed for Bluescope steel east-west contract, Qube wins north-south work Railway Digest June 2020 page 6