BlueScope
| Company type | Public |
|---|---|
| Industry | Steel manufacturing |
| Predecessor | BHP Billiton steel division |
| Founded | July 15, 2002 |
| Headquarters | Melbourne , Australia |
Area served | Australia, United States, China, India, New Zealand, Mexico |
| Products | Flat steel products, steel slabs, hot rolled coils, steel plates, automotive-grade steel, galvanized steel products, corrugated galvanised iron, Zincalume coated steel, Colorbond pre-painted steel (PPGI), structural tubing and piping |
Number of employees | 16000 |
| Website | www |
BlueScope Steel Limited is an Australian manufacturer specializing in flat steel products, established as a separate entity from BHP Billiton in 2002.
History
BlueScope originated when BHP Billiton divested its steel division on 15 July 2002, initially operating under the name BHP Steel. The company rebranded to BlueScope on 17 November 2003.
In early 2004, BlueScope expanded through a merger with the American company Butler Manufacturing. This strategic alliance granted BlueScope entry into markets in the United States and China. Founded in 1901, Butler Manufacturing operated in sixteen countries, specializing in components for non-residential construction, and maintained twelve manufacturing sites across the US, China, and Mexico.
In 2007, BlueScope acquired four US-based firms previously owned by Argentinian corporation Ternium—Steelscape, ASC Profiles, Varco Pruden Buildings—and Metl-Span (which was later acquired by NCI Building Systems in 2012). Prior to Ternium’s ownership, these companies belonged to Mexican Grupo IMSA. Steelscape began as BHP Coated Steel in 1996 and was originally part of BlueScope.
March 2012 saw BlueScope launch a coated steel production facility located in Jamshedpur, India.
In February 2014, BlueScope completed the acquisition of Orrcon Steel from Hills Limited. Orrcon’s product portfolio featured RHS, SHS, and CHS structural tubular steel, alongside hot-rolled structural steel, fencing materials, roofing products, and various building accessories.
Responding to comparatively lower energy expenses in the United States versus Australia, BlueScope announced a $1 billion expansion investment in its US operations in 2019.
Operations
BlueScope’s corporate headquarters are situated at Level 24, 181 William Street, Melbourne.
The company employs approximately 16,000 staff members. Its largest manufacturing site is an integrated steelworks located at Port Kembla, New South Wales. In October 2011, this facility reduced its output capacity by half following the closure of Blast Furnace No.6 as part of a strategic withdrawal from export markets.
The product lineup includes steel slabs, hot rolled coils, steel plates, automotive-grade steel, galvanized steel products, corrugated galvanised iron, Zincalume coated steel (comprising 55% aluminium, 43.5% zinc, and 1.5% silicon), and Colorbond pre-painted steel (PPGI). Production of tinplate ceased in March 2007.
Orrcon Steel supplies structural tubing and piping to fabricators as well as manufacturers in furniture and trailers sectors, construction companies, and infrastructure engineering firms.
Distribution centers are located across major Australian cities including Melbourne, Sydney, Brisbane, Perth, and Adelaide.
Controversy
In August 2019, the Australian Competition & Consumer Commission initiated civil proceedings against BlueScope and its former sales and marketing general manager Jason Ellis over alleged cartel behavior involving price-fixing of flat steel products during 2013–2014. BlueScope refuted these allegations. Subsequently, in December 2020, Ellis received an eight-month prison sentence along with a $10,000 fine for obstructing the investigation and encouraging false statements. In December 2022, the Australian Federal Court ruled that both BlueScope and Ellis were guilty of attempting to manipulate prices with eight Australian steel distributors and an international manufacturer. BlueScope was penalized $57.5 million—the highest fine imposed for cartel activity in Australia to date.
On 6 May 2020 at the Port Kembla plant, a fatal incident occurred when an employee was caught between a vehicle and a crane. This event led to a temporary suspension of operations at the wharf.
On 14 May 2020, BlueScope experienced a ransomware cyberattack that compelled a temporary halt to production systems across the entire company.
In July 2020, the company was fined $30,000 by the New South Wales Environment Protection Authority for surpassing dioxin emission limits on six separate occasions between March and April that year. In response, BlueScope undertook air emissions modeling and commissioned an independent health impact assessment.
Key manufacturing sites
- Port Kembla, New South Wales
- Western Port, Hastings, Victoria
- New Zealand Steel, Glenbrook
- Orrcon Brisbane Mill, Salisbury, Queensland
- Orrcon Precision Tubing Mill, Adelaide, South Australia
Finished steel products are transported throughout Australia by the rail freight company Pacific National. In February 2007, Pacific National was awarded a $1 billion agreement with BlueScope Steel and OneSteel to haul roughly three million tonnes of steel each year over a seven-year period. This agreement was extended in January 2015 for another seven years. Starting January 2022, the main steel transportation responsibilities will transition from Pacific National to Qube Holdings and SCT Logistics.