SINCE THE COMPANY'S DEMERGER, WE HAVE WORKED OFF A BLUEPRINT AIMED AT GROWTH THROUGH CAPITAL INVESTMENT AND ADDING VALUE TO OUR STEEL. EACH OF THE PAST FIVE YEARS DEMONSTRATES A SPECIFIC PHASE OF OUR PLAN TO REWARD SHAREHOLDERS AS WE GROW.

Blueprint

BUILDING TO A PLAN

TRUECORE® steel is being recognised by the building industry as having significant advantages over traditional framing materials. Frank Pacitto at No.5 Blast Furnace operations at Port Kembla Steelworks.

Left: TRUECORE® steel is being recognised by the building industry as having significant advantages over traditional framing materials. Right: Frank Pacitto at No.5 Blast Furnace operations at Port Kembla Steelworks.

RE-DEFINING THE COMPANY

At the time of demerger, our company was simply a steel manufacturing division of BHP. Our Bond was developed to keep us focused on our promises to customers, employees, shareholders and communities. In 2003, we redefined this business and became BlueScope Steel. We also refined and articulated our strategy. Our aim was to increase the value created from steelmaking, by expanding our downstream operations, capturing greater margins and offsetting traditional steel market volatility.

Re-balancing our portfolio

BlueScope Steel's footprint had grown considerably and our Company could now be defined as truly global, with operations in 17 countries. Our expansionist $2 billion capital investment program positioned us in high value markets in the world's major growth economies. Mid and downstream projects in countries such as Thailand, Vietnam, India, and Australia saw us build and transform our businesses, creating a multinational franchise with greater balance and diversity in geography, products and markets.

Embarking on A growth journey

The US$206 million acquisition of the US-based Butler Manufacturing Company signalled the beginning of our growth phase. Our mid and downstream capital investment projects saw us double metallic coating capacity in Thailand and commence construction of our new metallic coating and painting facility in Suzhou, China, and expansion of our Indonesian coating and painting operations. This was a period of innovation, expanded capability and greater geographic presence, during which our workforce grew to 16,000 people.

Construction to production

As our new operations reached start-up, we moved from construction to production and focused on growing the markets for our premium steel brands. In the Asia-Pacific region, our reputation for quality led to BlueScope Steel products being featured in prestigious projects, including the Tianjin Olympic Stadium and the Shanghai World Financial Centre in China, and the Melbourne Cricket Ground (MCG) in Australia. In North America, markets responded favourably to the reinvigorated Butler and Vistawall businesses.

A world-class steel business

In five years we have built a company with an enviable record for safety, shareholder rewards and international growth. Our operations across Asia are ramping up and will grow with their markets, while our steelmaking businesses in Australia, New Zealand and North America continue to set production and profit records. The successful US$190 million sale of the Vistawall business and the A$600 million (net) acquisition of Smorgon Steel Distribution represent a new level of ambition and capability in asset management and another exciting step in our journey.

Working on the Tapping Floor at New Zealand Steel.