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Since our public listing, BlueScope Steel has invested in 20 major capital projects in eight countries in Asia, North America and Australia. These operations, which are now ramping up, represent a total capital investment of $2 billion. While we invest considerably to improve our traditional steelmaking operations, most of our new capital projects are what we term 'midstream and downstream' businesses. These businesses make products out of steel made by our steelworks in Port Kembla, New Zealand and the United States. Our midstream products include COLORBOND® and ZINCALUME® steels, while downstream products include BUTLER® pre-engineered buildings, THINKTANK® rainwater harvesting systems and SURELINE® power distribution solutions.

There are two main reasons for our investment strategy. The first is that we earn higher margins from the sale of midstream and downstream products. Each step in the conversion of steel slab to painted or coated steel, then to a building product, then to a pre-engineered building, adds significant value to that steel. By investing in new downstream facilities, particularly in high growth regions such as Asia, we are maximising the opportunity to earn downstream revenue.

The second reason is that revenue derived from the sale of value-added steel products is more stable than revenue from 'upstream' steel slab and hot rolled coil, as these are prone to the volatility of world commodities markets. By deriving a greater proportion of total revenue from mid and downstream value-added products, we secure higher margins while reducing the effect of steel price volatility. In summary, our strategy makes BlueScope Steel a more desirable ongoing investment. Our focus and strategy for long-term shareholder rewards makes BlueScope Steel 'a different kind of steel company.'