BlueScope in deal with Nippon Steel
Resource from: The Australian Likes:247
Aug 13,2012
BLUESCOPE Steel has struck a deal with Japan's largest steelmaker that will help it capture overseas markets and wipe out debt.
Nippon Steel will pay the beleaguered BlueScope for a 50 per cent stake in its coated steel products business that will be valued at nearly $US1.4 billion ($A1.33 billion).
The new Nippon Steel BlueScope Coated Products business will supply whitegoods manufacturers for Asia's growing middle class.
BlueScope chief executive Paul O'Malley described the joint venture as a game changer for BlueScope.
"I wouldn't say we're out of the woods but I would say we now have a solid foundation that gives us time to wait for the Australian market to come back," he told reporters.
"We've got to continue to focus on costs and ensure we are as productive as possible."
BlueScope, whose share price jumped by as much as 50 per cent in early trading on Monday, closed up 34.6 per cent, or nine cents, at 35 cents, a three-month high.
BlueScope said it would pocket $US540 million ($A513.82 million) out of the deal, making it essentially debt free and with a current market value of around $870 million.
Nippon is about to become the world's second largest steelmaker through a merger with Sumitomo Metals.
Its support has been welcomed by BlueScope, which has endured a horror 12 months amid dire conditions for the domestic steel market that has battled a high Australian dollar and slowing demand, especially from the construction sector.
BlueScope also on Monday forecast a net loss of about $US1 billion ($A951.52 million) for its 2012 financial year.
The loss relates mainly to impairment charges and the company's restructure.
It has cut nearly 1500 jobs in the past 12 months, shut facilities at Port Kembla in NSW and closed its steel export business.
Mr O'Malley said Nippon Steel brought access to new technology and a broader range of customers in new product areas, including an established customer base of Japanese companies operating among ASEAN nations.
The deal continues to alter a different looking BlueScope that relies less on simple Australian steel making and more on overseas-based sophisticated products such as Nippon Steel's corrosion-resistant SuperDyma coated steel.
Mr O'Malley also on Monday waived any salary increase, bonus or long-term incentives.
He was criticised for receiving them last year when staff were being retrenched.
He said the company's main problem now the restructure was completed was the lack of confidence in the Australian economy and poor construction activity affecting demand for its steel products.
Mr O'Malley previously forecast a return to underlying profitability by the end of the 2011-12 financial year but would not comment on that on Monday.
(The Australian)
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
Previous Kaman Industrial Technologies to Acquire Zeller Corporation
Next Notice Regarding the Conclusion of a Sponsor Agreement with SHICOH CO., LTD.
Next Notice Regarding the Conclusion of a Sponsor Agreement with SHICOH CO., LTD.
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
