Bhp Restructure Firing
Illawarra Mercury
Tuesday March 16, 1999
Resources giant BHP Co Ltd yesterday said the restructure of its steel long products business was ahead of budget and schedule.
The steel long products restructure involves closing the Newcastle primary steelmaking operations in September, constructing the billet caster at Whyalla in South Australia, and reorganising the company's rod and bar, wire and reinforcing business.
BHP president of long products Lance Hockridge said plans for the commissioning of a billet caster at Whyalla site in June were on track.
Whyalla was running at 15 per cent reduced capacity but was in the process of ramping back up towards annualised production top end of 1.2million tonnes.
``Slab prices are desperately low but we have done the numbers and we are certainly not producing anything below the cost of production," Mr Hockridge said.
``We are in the process of running back-up, we would prefer to run the furnaces constantly particularly the Whyalla furnace. You really do optimise the production facilities by running it flat out."
BHP announced the 15 per cent cut in rolling mill production at the Whyalla steelworks in January.
BHP's Sydney steel mill which had a total capacity of 500,000 tonnes per year was also in the process of increasing production.
``It will certainly ramp up from the beginning of the new financial year," Mr Hockridge said.
However, he said the company would not push as far as 500,000 tonnes as present market conditions did not warrant capacity of that level.
``We will run somewhere between 350,000 and 450,000 depending on market requirements," he said.
In November last year, the Sydney steel mill and Newcastle steelworks cut steel production back by 1250 tonnes a day.
Mr Hockridge said the long products division would reduce its exports to about 10 per cent after the company's restructure.
© 1999 Illawarra Mercury
