BlueScope

{{Short description|Australian steel producer}}

{{Use dmy dates|date=November 2019}}

{{More citations needed|date=September 2012}}

{{Infobox company

| name =

| type =

| traded_as = {{ASX|BSL}}

| logo = BlueScope_Logo.svg

| former_name = BHP Steel

| industry = Steel

| foundation = 15 July 2002

| founder = BHP

| defunct =

| location_city = Level 24, 181 William Street, Melbourne

| location_country = Australia

| location = Melbourne, Victoria

| locations =

| area_served = Asia
Australia
New Zealand
North America

| key_people = Jane McAloon (Chair)
Mark Vassella (CEO)

| products = Steel

| revenue = $12.9 billion

| revenue_year = 2021

| operating_income = 1.34 Billion

| income_year = 2024

| net_income = $806 million

| net_income_year = 2024

| num_employees = 16,500

| num_employees_year = 2024

| divisions =

| subsid = New Zealand Steel
Orrcon Steel

| homepage = [https://www.bluescope.com/ www.bluescope.com]

| footnotes = https://www.bluescope.com/content/dam/bluescope/corporate/bluescope-com/investor/documents/2024_BlueScope_FY_Results_Investor_Presentation.pdf

}}

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.[https://www.asx.com.au/asx/v2/statistics/displayAnnouncement.do?display=text&issuerId=4873&announcementId=494977&documentDate=2002-07-15&documentNumber=192354 BHP Steel Limited makes its debut on ASX] BHP 15 July 2002 It was renamed BlueScope on 17 November 2003.[https://www.asx.com.au/asxpdf/20030627/pdf/00367529.pdf BHP Steel Limited (BSL) Confirms Intention to Change its Name] BHP Steel 27 June 2003

Early in 2004, BlueScope merged with the American firm Butler Manufacturing.{{Cite news|url=https://newspapers.com/clip/42438600/butler_steel_plan_acquired_by_australia/|title=Butler steel plant acquired by Australia-based company|last=Morales|first=Melinda|date=April 30, 2004|work=Visalia Times-Delta|access-date=16 Jan 2020|publisher=Gannett|issue=261|location=Visalia, California|volume=145|page=C1|via=Newspapers.com}} 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.{{Cite news|url=https://newspapers.com/clip/42438076/butler_on_block_for_204million/|title=Butler on block for $204M|last=Brown|first=Sandi Lynn|date=February 20, 2004|work=Lebanon Daily News|access-date=16 Jan 2020|publisher=Garden State Newspapers|location=Lebanon, Pennsylvania|page=3A|via=Newspapers.com}} Butler was founded in 1901, operated in sixteen countries and focused on non-residential building and building component construction. At the time of the merger, Butler had a dozen production facilities across the United States, China and Mexico.{{Cite news|url=https://newspapers.com/clip/42439727/pending_plant_sale_adds_to_galesburg/|title=Pending plant sale adds to Galesburg's economic jitters|date=19 February 2004|work=The Dispatch and The Rock Island Argus|access-date=16 Jan 2020|publisher=Moline Dispatch Publishing|agency=Associated Press|issue=203|department=Jobs & Money|location=Moline, Illinois|volume=126|page=C7|via=Newspapers.com}}

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{{Cite web|date=21 December 2012|title=2012 Annual Report|url=https://www.cornerstonebuildingbrands.com/pdf/annual%20reports/2000s/2017AR-WEB.pdf|access-date=16 Jan 2020|website=Annual Reports & Proxies|publisher=NCI Building Systems|page=3}}{{Cite news|last=Olson|first=Erik|date=20 December 2007|title=Australian firm buys Steelscape|volume=85|pages=A1, A4|work=The Daily News|publisher=Lee Enterprises|issue=262|location=Longview, Washington|url=https://newspapers.com/clip/42441417/australian_firm_buys_steelscape_part_1/|access-date=16 Jan 2020|via=Newspapers.com}} Part 2 of the article appears at https://newspapers.com/clip/42441447/australian_firm_buys_steelscape_part_2/ . in 2012. The four companies had been held by the Mexican Grupo IMSA prior to their purchase by Ternium. Steelscape originated in 1996 as BHP Coated Steel and was originally owned by BlueScope.

In March 2012 a new coated steel manufacturing plant was inaugurated in Jamshedpur, India.{{cite press release|title=Tata BlueScope Steel inaugurates state-of-the-art Coated Steel Manufacturing facility at Jamshedpur|publisher=Tata BlueScope Steel|date=6 March 2012|url=http://www.tatabluescopesteel.com/news/listnews.aspx?idnews=13|access-date=14 September 2012|url-status=dead|archive-url=https://web.archive.org/web/20120508053500/http://www.tatabluescopesteel.com/news/listnews.aspx?idnews=13|archive-date=8 May 2012}}

In February 2014, BlueScope purchased Orrcon Steel from Hills.https://www.asx.com.au/asxpdf/20140228/pdf/42n32d8clc01ch.pdf Completion of Fieldings and Orrcon Steel Sales] Hills 28 February 2014{{Cite web|title=History|url=https://www.orrconsteel.com.au/about-us/history|access-date=2020-09-01|website=www.Orrcon Steel}} 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.{{Cite web|url=https://www.2gb.com/bluescope-invests-1-billion-in-the-us-amid-concerns-of-australian-energy-prices/|archive-url = https://web.archive.org/web/20191213033641/https://www.2gb.com/bluescope-invests-1-billion-in-the-us-amid-concerns-of-australian-energy-prices/|archive-date = 13 December 2019|title = BlueScope invests $1 billion in the US amid concerns of Australian energy prices|date = 19 August 2019}}

Operations

File:13 Industry of Australia - Steelworks of BlueScope Steel Limited company in Port Kembla, Australia.jpg 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).{{Cite web |title=BlueScope's Sustainability Report for 2020Q2 |archive-url=https://web.archive.org/web/20210606190638/https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf |url=https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf|archive-date=June 6, 2021 }} [https://analytics.exerica.com/App/Name/BlueScope/Total%20CO2e%20Emissions%20-%20Location-Based%20Scope%201%20%2b%20Scope%202/2020Q2/12 Alt URL]

class="wikitable"

|+ BlueScope's annual Total CO2e emissions (Direct + Indirect) (in kilotonnes)

Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020
9,380{{Cite web |title=BlueScope's Sustainability Report for 2019Q2 |archive-url=https://web.archive.org/web/20211001095631/https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2672/sustainability-report-2019-final.pdf |url=https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2672/sustainability-report-2019-final.pdf|archive-date=October 1, 2021 }} [https://analytics.exerica.com/App/Name/BlueScope/Total%20CO2e%20Emissions%20-%20Location-Based%20Scope%201%20%2b%20Scope%202/2015Q2/12 Alt URL]10,100{{Cite web |title=BlueScope's Sustainability Report for 2020Q2 |archive-url=https://web.archive.org/web/20210606190638/https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf |url=https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf|archive-date=June 6, 2021 }} [https://analytics.exerica.com/App/Name/BlueScope/Total%20CO2e%20Emissions%20-%20Location-Based%20Scope%201%20%2b%20Scope%202/2016Q2/12 Alt URL]10,670{{Cite web |title=BlueScope's Sustainability Report for 2020Q2 |archive-url=https://web.archive.org/web/20210606190638/https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf |url=https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf|archive-date=June 6, 2021 }} [https://analytics.exerica.com/App/Name/BlueScope/Total%20CO2e%20Emissions%20-%20Location-Based%20Scope%201%20%2b%20Scope%202/2017Q2/12 Alt URL]10,750{{Cite web |title=BlueScope's Sustainability Report for 2020Q2 |archive-url=https://web.archive.org/web/20210606190638/https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf |url=https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf|archive-date=June 6, 2021 }} [https://analytics.exerica.com/App/Name/BlueScope/Total%20CO2e%20Emissions%20-%20Location-Based%20Scope%201%20%2b%20Scope%202/2018Q2/12 Alt URL]10,400{{Cite web |title=BlueScope's Sustainability Report for 2020Q2 |archive-url=https://web.archive.org/web/20210606190638/https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf |url=https://s3-ap-southeast-2.amazonaws.com/bluescope-corporate-umbraco-media/media/2915/bsl-2020-sustainability-report.pdf|archive-date=June 6, 2021 }} [https://analytics.exerica.com/App/Name/BlueScope/Total%20CO2e%20Emissions%20-%20Location-Based%20Scope%201%20%2b%20Scope%202/2019Q2/12 Alt URL]10,280

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".{{Cite web|date=2019-08-29|title=ACCC alleges BlueScope in cartel conduct|url=https://www.afr.com/companies/manufacturing/accc-alleges-bluescope-in-cartel-conduct-20190830-p52mbc|access-date=2021-05-29|website=Australian Financial Review|language=en}} 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.{{Cite web|date=2020-12-15|title=Ex BlueScope GM Jason Ellis convicted and sentenced for obstructing ACCC cartel investigation|url=https://www.accc.gov.au/media-release/ex-bluescope-gm-jason-ellis-convicted-and-sentenced-for-obstructing-accc-cartel-investigation|access-date=2021-05-29|website=Australian Competition & Consumer Commission|language=en}} 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.{{Cite web|date=2023-08-29|title=Ex BlueScope GM Jason Ellis convicted and sentenced for obstructing ACCC cartel investigation|url=https://www.accc.gov.au/media-release/record-575-million-penalty-for-bluescope%E2%80%99s-attempted-price-fixing|access-date=2024-07-17|website=Australian Competition & Consumer Commission|language=en}}

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 on a wharf, resulting in the wharf being temporarily shut.{{Cite web|date=2020-05-06|title='Shocked the whole site': Man dies in Port Kembla steelworks accident|url=https://www.abc.net.au/news/2020-05-06/man-killed-port-kembla-steelworks-bluescope-confirms/12221240|access-date=2021-05-29|website=www.abc.net.au|language=en-AU}}

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.{{Cite web|date=2020-05-15|title=Cyber attack halts production systems in Australia's largest steelworks|url=https://www.abc.net.au/news/2020-05-15/bluescope-steel-cyber-attack-shut-down-kembla-ransomware/12251316|access-date=2021-05-29|website=www.abc.net.au|language=en-AU}}

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.{{Cite web|title=EPA fines BlueScope Steel for exceeding air quality limit|url=https://www.epa.nsw.gov.au/news/media-releases/2020/epamedia200727-epa-fines-bluescope-steel-for-exceeding-air-quality-limit|access-date=2021-05-29|website=New South Wales Environment Protection Authority|language=en}}

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.{{cite web |title=PN wins steel deal |date=February 2007 |work=World Cargo News |url=http://www.worldcargonews.com/htm/n20070324.849053.htm |access-date=24 April 2009 |archive-url=https://web.archive.org/web/20120220031702/http://www.worldcargonews.com/htm/n20070324.849053.htm |archive-date=2012-02-20 |url-status=dead }} The contract was renewed for a further seven years from January 2015.[https://web.archive.org/web/20210313075319/https://www.fullyloaded.com.au/logistics-news/1207/asciano-secures-steel-deal Asciano secures steel deal] Australian Transport News 20 July 2012 In January 2022, Qube Holdings and SCT Logistics will take over from Pacific National.SCT confirmed for Bluescope steel east-west contract, Qube wins north-south work Railway Digest June 2020 page 6

References

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