BlueScope Steel to End New Zealand Steelmaking Operations

SEATTLE (Scrap Monster): Australia-headquartered BlueScope Steel may close its New Zealand steelmaking operations. At the same time, it remained hopeful about its steelmaking business in Australia and in the U.S. The company reported consolidated net profit of $69.4 million during the fiscal year ended on 30^th June, 2020. This compares with profit of $734 million during the prior fiscal year.

The business update by the company warned that its New Zealand operations, including the primary steelmaking operations at Glenbrook may be closed. The plant, which produces slab and billets, has been under threat of closure for a long time. BlueScope Steel blamed high power prices as one of the major reasons for the EBIT loss of A$5.8 million reported during the fiscal.

ALSO READ:

BlueScope Steel Announces Major Business Update

BlueScope Steel Bolsters Defenses Against Pandemic Impacts

Meantime, the Australian operations reported EBIT of A$305.1 million for the year, which is significantly lower, compared with A$535.4 million a year before. The stimulus measures by the government are likely to generate domestic projects, which in turn will boost the demand for steel products. Also, the North American operations managed to maintain profitability during the fiscal, mainly driven by robust performance from North Star.

BlueScope Steel declined to provide an EBIT outlook for 2021, on account of the ongoing uncertainties related to Covid-19 pandemic.