Tuesday, February 5, 2013

BlueScope says Goodbye Australia.

BlueScope says HELLO Indonesia.

Who could blame them - and as Mr. O'Malley said in August of 2011 after cutting 1,000 jobs from
Bluescope Port Kembla, in the Illawarra region south of Sydney - & therefore exiting steel exporting - plus the closure of its Western Port hot strip mill in southern Victoria.
"Steel is moving from being a developed world produced product, to a developing world produced product," Mr O'Malley said, while saying Australia needed to focus on cost reductions to compete in Asia.
So to enter the Asian market, Mr. O'Malley has correctly decided to virtually close Bluescope Australia and use the funds to open up in the biggest market in the world. Why wouldn't he? It's a public ASX listed company and he has an obligation to shareholders. So lets look at the latest expansion:

BlueScope to add 10 Factories in Indonesia.

Australian-based BlueScope Lysaght Indonesia, which produces an array of steel products, plans to expand its business by building 10 factories in Indonesia between now and 2016.
Willius Suwandana, the president director of the company, said on Friday that the firm recocognized the advantages of expanding its work in the coated-steel business in Indonesia.
He said investment for a factory that should produce about 1,500 tons of coated-steel products would cost around $500,000. This makes the total cost for the plan at around $5 million.
Willius said the company is eyeing Semarang, Makassar, Palembang and Balikpapan as potential sites for new factories.
“These factories will help fill demand from the local market. BlueScope Lysaght’s factory in Cibitung, West Java, will be focused on fulfilling demand from big projects,” Willius said, adding that factories in 10 cities would help cut distribution costs for consumers.
In the Cibitung plant, The company manufactures rollforming, cladding and associated building products.
BlueScope Lysaght will get its supply of raw material from BlueScope Steel Indonesia. Almost 20 percent of BlueScope Steel products are set aside to fill demand for coated-steel in Indonesia.
“BlueScope Steel itself has a production capacity of 265,000 tons per year, so it still needs other imported products,” Willius said.
Lucia Karina, the country vice president for corporate and external affairs at BlueScope Steel Indonesia, said that the BlueScope group aims to boost production of BlueScope Steel, but she did not elaborate on the capacity expansion.
The chairman of BlueScope Steel, Graham Kraehe had previously said the company had invested $250 million for its business in Indonesia.
“We are not hesitant to pour money here because Indonesia is an important market for BlueScope,” said Paul O’Malley, managing director and chief executive of BlueScope Steel.
Both BlueScope Lysaght and BlueScope Steel are part of Australian-based steel company, BlueScope Steel Limited.
The BlueScope group has operations in many countries including in New Zealand, China, Vietnam, Brunei, Singapore, Indonesia, Malaysia, Thailand, India, Sri Lanka, Fiji, Vanuatu, and New Caledonia.
It also has operations in the United States
Read the full article in the Jarkarta Times that published this yesterday.

And in 2011 our fearless AWU boss Paul Howes said:
The job losses showed the "dark side" of the resource boom, said Australian Workers Union secretary Paul Howes, although no union action is planned.
How out of touch is this bloke - and Mr. O'Malley gave him the biggest clue ever. Maybe to busy seeing people at QANTAS. No one in Government seems to care about the state of manufacturing in Australia and the massive job losses. Also haven't seen ads by BlueScope to employ retrenched personnel in Indonesia?

Here's Paul Howes again in 2011 on ABC calling for the Steel Industry to be exempt from CO2 Tax.

If just ONE job is lost.............. Yeh, Yeh, Yeh we believe you Paul.
The main catch cry of Paul is: We are a union. We represent working people. We have a responsibility to the men and women of this country who go to work every day and make products that this country uses. They've done nothing wrong.

I've done nothing wrong.

Where have I heard all this before.

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