Below is the article written 6 months ago (all in black) : In Blue the updates have been added today-
The industry will face the CO2 Tax in 11 (now 5) months or less, what procedures have been examined that will reduce this impact. BlueScope & One Steel have been looked after by the government - lets hope they pass this on to rollformers that can compete in the open market. Container loads of finished purlins are arriving in WA and QLD ports destined for the mining projects. BlueScope & One Steel are being looked after - but zero aid to rollformers. Overseas steel importing and contracts are not going to Australian companies.
- Stratco secretly advancing in the retail, patio and shed industry and look like taking Number 1 spot. Stratco still going strong in these areas and doing well! Have diversified and will survive easily - hands on in the management and tough in business!
- Metroll also quiet in their ways - but selling lots - maybe at reduced price - but maintaining increase in turnover. No change in this either. Will get through this downturn.
- Lysaght - confused still with the BlueScope big loss at end of FY. Many staff dissatisfied with management for the big bonuses and yet laying off staff. Mr. O'Malley bought up a heap of discounted shares of BlueScope (about $50,000) on 10% of his bonus? Not looking good for this group today and plenty of angry shareholders. Lysgaht really struggling and loosing staff that provide the backbone - the bad staff are hanging on to increase their payout & long service leave etc. This company is not looking good. Lysaght EBIT will be bad again.
- Stramit - still going OK - no word on any problems and Fletcher Building Group is doing well. Have always had a good relationships with BlueScope - but this could change quickly. Stramit are doing it tough but the management seem to be able to balance the EBIT quite well - and FBU is still hanging in their. They have a lot of work in the pipeline with the Christchurch earthquakes.
- Fielders are doing well in QLD & NSW after 7 years or so - but SA & WA still going backward. Hills also have the results of the Edwardstown contamination coming up - (not through the EPA) but settlement with PPT (a 13% shareholder of Hills) that bought the contaminated land for Colonial to develop. There's more to this story to come. Lots to this group - Hills are desperate to get rid of Orrcon and Hills - both not travelling well. Qld and NSW Fielders have suffered hugh staff resignations without replacement. Not going to be a pretty EBIT at end of FY. They have cleaned up this site - but more to come in this pollution disaster - remove & replace the soil - but the ground water is still toxic. Only cost them $1 million so far on site and no doubt more with legal and technical environmental experts.
- Still on Hills - Mr G Twartz had nearly $110,000 plus of shares issued to him that was declared late - but now all sorted - what is this - a long service issue of shares?? Certainly not for performance as on September 16th - they will be taken off the ASX 200 list - not good. Well they are off the ASX200 list and just recently are going down in the share value again - sale of Orccon & Fielders may not look positive - banks will keep an eye on this one for sure.
- Also the release of a new roofing profile will be done on the 8th September if all goes well - it may even be highlighted here at The Roofer. There's going to be some noses out of joint in SA & WA. True!!! Well - the new profile is definately making an impact in SA & WA - but the big market is still in NSW and QLD.
- Who's the guru of the roofing industry that visited QLD last week - talks of a large independent Rollforming association? Still ongoing but APEX and Steeline are making big inroads in QLD plus the aid of a SA guru.
- Aluminium roofing to go? By the end of 2025 - the CO2 tax alone will raise the cost by $200 per tonne while China is at $8 per tonne. The Industry will fold in Australia. See the Australian. Aluminium Council report here Australian Aluminium Council warns of carbon tax . Rio selling off lots of it's aluminium production business units prior to CO2 Tax. China to bring in CO2 Tax (maybe) by 2015 at $1.50. Big deal.
- Attack on the ASI by an independent Shed Information Website - ASI???? Shedsafe is still being treated as an industry standard with BlueScope, Fielders and Stramit happily joining up - but the big sales are not happening with these big three. There's no such thing as a free lunch!
- Rollforming machines being made in China and imported by Australian Companies? Why? Because they're cheaper? But as the BCA and ASA requires that the sheets be tested in LHL by a cyclone testing centre - but these testing centres approve the rollforming company - not the machine? Make what you want out of that? The BCA and ASA have still got the most disjointed set of regulations for this industry - the new $1,000 a day man Mr. Peter Beattie wouldn't know corrugated from spanform etc. The rollforming industry is being totally ignored by the government at this time - but as stated in previous articles - this industry is one of the biggest employers of staff in Australia. Rollforming machines are no longer being bought by anyone in Australia apart from auctions! (There is a very few exceptions in WA and QLD)