The article today in The Australian talks of streamling (cuts) that could strengthen (reduce costs) the company to look toward a merger. The only merger possible is One Steel. The ramifications of this are numerous including the life of Lysaght and the brands Colourbond and Zincalume. Iron ore, coking coal prices, a weak domestic market, strong Aussie dollar, and cheap shipping & costs for importers are making life very tough for BlueScope. Along with probably the most over paid and over staffed management in manufacturering companies in Australia - they have finally realised that cutting is the best way to organise a takeover! Before the GFC they were trading at $12.00 and now below the dollar? Asset sales, staff layoffs and blast furnace closure is one way to achieve profit (less loss) than current. Whyalla and Port Kembla will suffer big job losses. This is a concern to Australia. Lets sit back and import our steel sheeting (cheaper) that may be doubtful in quality. Australian Standards will be bypassed and our warranties will be useless.
How does this affect the rollforming industry - with a possible merger with One Steel. Wonder what the ACCC (toothless tiger) will make of this? These are some possible outcomes.
- Lysaght with big losses currently will also be sold off.
- Large Southern rollformer group looking at takeover of Lysaght in conjunction with new emerging powerhouse of the Eastern States. (Is everyone asleep in this industry?)
- Stratco unable to secure "Masters Hardware" (Woolworths Hardware) supply aggreement and NZ firm looking like head contender?
- Stramit to keep close relationship with BlueScope (One Steel) to keep options open - though nothing in the pipeline for them.
- Metroll is just pricing, importing and making the most of the other major rollformers lack of confidence in the market place - keep an eye on them!
- The big layoffs this week have been Lysaght in Queensland (very big) followed closely by Fielders (lastmonth) in South Australia - they are both to concerned about sales drop to worry about competition.
- News next week on MAJOR ROLLFORMER development (keep posted)!
Remember in an old post - "This Tax won't cost any more than a SAUSAGE SANDWICH?"
This was Mr. Conner who said "For around the cost of one sausage sandwich per week, putting a price on pollution will help change the investment and power generation decisions necessary to help put Australia on the path to a lower pollution, clean energy future.''
|A Sausage Sandwich|
Apologies regarding the ADVERTISING - but suddenly this BLOG is earning money where as Telstra kept everything. So far to date earnings are 3 cents. Also prevents shutdown.