Thursday 30 October 2008
BlueScope steels itself for challenges and upgrades
BLUESCOPE Steel has released a market update looking at the global status of its steel operations and its future actions for the second half of the 2009 financial year.
According to the company, it experienced a good start to the financial year because of strong global steel demand and prices, although this was moderated by increases in iron ore, coal and scrap prices.
However, it warns the current economic conditions means it will face a challenging second half. It will be cutting costs, and optimising its manufacturing assets.
It also plans to upgrade its sinter plant and reline the Blast Furnace No 5 at Port Kembla Steelworks. These projects will reduce production, but are expected to deliver cost and volume benefits when finished.
The steelmaker remained confident on the long-term prospects of steel growth, citing the ongoing urbanisation and industrialisation in China.
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