The much awaited AGM was held last week, where BlueScope Managing Director and CEO, Paul O’Malley, was to deliver an update on the game changing cost savings needed to keep Glenbrook operating.
We have made good progress to date, delivering nearly $30 million cost savings already and should exceed our target of $50 million savings required, says Andrew Garey ,New Zealand Steel General Manager. Paul O’Malley, in his address at the AGM, said “In New Zealand progress made in both our flat product steel business and the iron sands export business, is largely offsetting the impact of weaker steel and iron prices. It is a tough economic environment for the New Zealand business, with low steel and iron ore prices bringing significant headwinds.”
“The New Zealand team is making good progress and they are also to be commended on their achievements, which have enabled the Board to make the decision to keep producing steel in New Zealand,” said Mr O’Malley.
We spoke with General Manager Andrew Garey who said “It is great news from the AGM but we still have work to do. The important point is that we must remain cost competitive.”
Andrew went on to say “At the BlueScope AGM, the Board has acknowledged the contribution of everyone at NZ Steel making progress more quickly than expected on our $50million cost reductions, with confirmation that steelmaking at Glenbrook should continue. This recommendation comes with the condition though that we must remain cost competitive. We are still facing some really difficult times, and we have a number of projects still to deliver.”
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