BlueScope

BlueScope

Formerly	BHP Steel
Traded as	ASX: BSL
Industry	Steel
Founded	15 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)
Products	Steel
Revenue	$12.9 billion (2021)
Net income	$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.

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

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 2015	Jun 2016	Jun 2017	Jun 2018	Jun 2019	Jun 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

• Port Kembla, New South Wales
• Western Port in Hastings, Victoria
• New Zealand Steel, Glenbrook
• Orrcon Brisbane Mill, Salisbury, Queensland
• Orrcon Precision Tubing Mill, Adelaide, South Australia

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]

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. 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. 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. "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

External links

• Company website