www-Global Commodities.com » MANUFACTURED GOODS

BLUESCOPE STEEL TO REMAIN IN BUSINESS BUT AT THE EXPENSE OF 1,000 JOBS

Editor — Mon, 22 Aug 2011 13:54:59 +0000

BLUESCOPE DECIDES NOT TO CLOSE UP SHOP BUT AT THE EXPENSE OF 1,000 WORKERS JOBS

BlueScope Steel considered shutting down its entire manufacturing operations before opting for today’s rationalisation plan that will axe more than 1000 jobs.

The nations biggest steelmaker confirmed it would abandon its export business, in a move that will require its blast furnace capacity at Port Kembla to be halved, and a Hot Strip Mill at Western Port to be shut down.

Bluescope shares extended their recent losses today, losing 4.5 cents, or 5.7 per cent, to 74.5 cents. The stock has lost 67 per cent of its value this year compared with a 14 per cent fall for the ASX200 share index.

Bluescope chief exective Paul O’Malley said the changes would cost 800 of the 3100 jobs at Port Kembla, and 200 of the 1000 jobs at Western Port, with most of those workers to be gone by October.

But the job losses won’t end there with Mr O’Malley saying that significant numbers of contractors would also lose work.

”Contractors will be affected, and we can only make estimates on that … but in total it may be in the order of about 400 contractors who certainly won’t be working at the steelworks,” he said.

Mr O’Malley said the axed workers had an ”iron clad” guarantee of being paid out their entitlements, and would be treated with ”respect” throughout the process.

The changes come after a lengthy review which Mr O’Malley said considered all options, including a complete shutdown of all manufacturing, or a joint venture with foreign companies.

He said Bluescope had settled on this plan – which effectively reduces the company back to a domestic producer – because it would make the company viable in the current difficult economic circumstances, and very profitable if conditions improved.

”Moving to a complete shut is absolutely the wrong decision for the company, the shareholders and Australia, which is why we are going on the path we are going on,” he said.

The company reported an underlying loss of $118 million for the year to June, which ballooned to $1.054 billion once asset writedowns are included.

The poor result was caused by the high Australian dollar, a global glut in steel production, poor demand for construction in Australia and extremely high costs for steelmaking ingredients like iron ore and coal.

The company said it was also on the look out for acquisition opportunities in the iron ore sector - following rival OneSteel’s move today to increase its iron ore exporting business from six million tonnes per year to nearly 10 million tonnes per year.

The company stressed the changes had nothing to do with the Federal Government’s planned carbon tax, and Prime Minister Julia Gillard indicated Bluescope would be allowed to receive some of its planned support funding earlier than originally planned.

The Victorian and NSW Governments, in concert with the Federal Government, were also moving yesterday to mobilise support packages in the Western Port and Illawarra regions

Sourced & published by Henry Sapiecha

Henry Sapiecha

SANDALWOOD DEAL APPROVED BY GOVERNMENT

Editor — Thu, 29 Jul 2010 08:30:54 +0000

FIRB approves US deal for TFS

The West Australian June 7, 2010, 8:50 am

Danella Bevis / Danella Bevis ©

WA sandalwood grower TFS Corporation says the Foreign Investment Review Board has approved an investment management agreement between it and a US-based institutional investor.

Under the agreement, which TFS announced on May 26, TFS will manage a 180-hectare Indian sandalwood plantation to be planted this year.

Investment by the US-based institution over the life of the plantation, excluding performance bonuses to TFS, is anticipated to be around $20 million.

The investment could grow by another $100 million if an option is exercised to plant an extra 180 hectares per annum for the next five years to 2015.

The agreement is subject to and conditional upon the settlement of a related land acquisition agreement with TFS.

The land acquisition agreement was conditional upon the investor obtaining FIRB approval.

Under the deal, TFS is paid an upfront payment for the purchase of the land and establishment of the plantation, annual payments for plantation management, and a performance bonus upon a hurdle rate of return being achieved by the investor.

Sourced & published by Henry Sapiecha

THIS EVER SHRINKING WORLD MAKES IT EASIER TO ACCESS GOODS WORLDWIDE

Editor — Fri, 26 Feb 2010 10:01:43 +0000

A WORLD HUNGRY FOR TRADE

The commodity market activity throughout the world has to keep moving between countries to ensure that all have a share of the global wealth and resources.

There are some who are not ‘pulling their weight whilst others are producing abundantly. These things are like that for different reasons.

Here we will bring them and others, together at a common market place where all can exchange goods and or services or sell for cash to the highest bidder or ready buyer.

MORE TO COME SO WATCH THIS SPACE

Henry Sapiecha