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News for Victorian & Tasmanian Customers ISSUE NUMBER 4 WINTER 2006

In this issue, you’ll also read about local engineering WELCOME companies that are meeting this demand, developing and fabricating a range of products designed to help Welcome to the Winter 2006 edition of XLERPLATE® grow in the years ahead. In Touch. In this issue we look at global and And as always … we welcome your feedback! Australian economic conditions, and the current See how you can be in the running to win a fabulous buoyant state of Australia’s mining industry. 32-inch JVC LCD slim-line television simply by taking With economic conditions remaining upbeat throughout part in our Reader Survey. OECD countries, and demand for Australia’s commodities and base metals staying high through 2006-07, we can expect demand for XLERPLATE® steel to remain strong for the coming year. As a general rule, economic growth above three per cent translates into strong demand for Simon Fieldsend steel, in line with 2006-07 forecasts (refer to page 3). State Sales Manager - & Tasmania STEEL SPEEDS EASTLINK BRIDGES Winning team: Ray Marsland, Jeff Fletcher, Ray Potter and Laurie Cavey. Victorian company GVP Fabricators is supplying trough girders for bridges on ASI HOSTS CHARITY ’s huge Eastlink road project. Eastlink will provide 39km of motorway GOLF EVENT and 6km of untolled bypasses connecting The charities Variety and Family Line both benefited Melbourne's eastern and southern from the Australian Steel Institute’s (ASI) 2006 suburbs between Mitcham and Frankston. Victorian Annual Charity Golf Day on May 8. The project will involve the construction During the day, organised by the ASI’s Victorian of a 39km roadway (mostly three-lane), Committee, 110 golfers from throughout 17 interchanges, more than 78 bridges Victoria’s steel industry teed-off at Southern and 1.5km of twin, three-lane tunnels Golf Club in Keysborough. under Mullum Mullum Creek. Participants vied for a “hole-in-one” prize of a new Joint venture partners Thiess and John Ford Territory, donated by Jefferson Ford and valued at $45,000. Unfortunately, no one was lucky on the day. Holland Group expect Eastlink to open before the end of 2008. Trough girders on the Eastlink project. BlueScope Steel’s team, headed by State Sales Manager, Simon Fieldsend, also sponsored a hole GVP Fabricators will also supply the trough erector for Melbourne’s 40-storey East Tower at the and donated some of the day’s prizes. girders for the main road overpasses. Southern Cross development. Nearly 7,000 tonnes The ASI raised $10,000 for both charities. The trough girders, made from 350L15 Grade of structural steel was used for that project, “We always like to support the ASI at these XLERPLATE® steel, are pre-assembled on site including XLERPLATE® steel. worthwhile charity events,” Mr Fieldsend and transported into position. Thiess John Thousands of tonnes of XLERPLATE® steel will be said. “It’s also a great way to spend time with Holland then lifts them into position using a used in the Eastlink project. customers away from work.” 600 tonne crane bought for this project. “We’ve used XLERPLATE® steel since the The steel trough girders will carry the new establishment of GVP Fabricators,” said GVP motorway over the Princes at Heatherton Fabricators General Manager Nick Palamaras. Road, and Cheltenham Road, Dandenong. “When you are tackling major projects, you need to GVP Fabricators recently concluded a highly be able to rely on quality products with the assurance successful contract as steel fabricator and that technical support is available if you need it.”

steelintouch 1 News for Victorian & Tasmanian Customers www.xlerplate.com.au MINING INVESTMENT RIDING THE WAVES Tasmania’s Doric Engineering has beaten By BlueScope Steel Economists Nick Scavarelli Australian and international competition and Max Serrano to supply 2,000 purpose-built shipping Mining investment continues to grow rapidly containers for BHP Billiton’s Ravensthorpe because of the commodity price boom that has seen nickel development. Australia’s terms of trade rise dramatically. Australia The $2 billion Ravensthorpe project involves has benefited from very strong price growth in coal, the development of a mine, treatment plant and iron ore, gas and a range of base metals. associated infrastructure near Ravensthorpe, There is a clear link between mining commodity Western Australian, and the expansion of the prices and investment, and we see mining QNI Yabulu Nickel Refinery near Townsville. investment expanding until about 2007-08. Work on the projects began in April 2004, and The Investment Monitor data produced by Access the first nickel production from the expanded Economics shows a large number of projects will start Yabulu refinery is expected in 2007. in 2007. These include the Gorgon LNG development, Jimmy Trambas, founder and Managing the expansion of BHP Billiton’s Olympic Dam, Director of Devonport-based Doric Woodside’s Pluto LNG project and the expansion Engineering, led the team which designed of ’s Argyle diamond mine and others. and developed a shipping container system to transport up to 220,000 tonnes of a mixed nickel and cobalt hydroxide intermediate product a year.

All containers are to be delivered within a year. All 2,000 containers will be delivered within 12 months. The product will be packaged into the containers at the Ravensthorpe processing through proof of concept procedures and then plant, transported by rail to the Port of Esperance, quickly produce prototypes to demonstrate that then shipped by sea to Townsville for final we could deliver the product and that it would refining at the QNI Yabulu Refinery. Each ship do what we promised.” Strata control products manufactured by BlueScope Steel customer DSI Mining in action. will transport 660 containers. Concept to working prototype took only a few China’s industrial boom and its demand for “Without BlueScope Steel’s help, we probably weeks, with all critical components made from ® resources will continue over the next few years. would not have won this contract,” Mt Trambas 350 Grade XLERCOIL steel. The project will said. “We would not have been able to get involve some 4000 tonnes of XLERCOIL® steel – Beyond 2007-08, however, the commodity cycle the steel in time. ideal for delivering strength, while keeping is expected to start its downward movement. container weight to a minimum. While Chinese growth in demand will remain “We have been formally working on this project strong up until then, substantial capacity additions for 14 months, and for almost two years before Doric Engineering has produced 550 strong, in iron ore, aluminium and coking coal will have that we were providing information and discussing light-weight rail containers – using 350 Grade ® removed most excess demand. concepts with our customers. We had to go XLERCOIL steel for carrying cars.

THE RECIPE AS NEVER BEFORE PLAN YOUR TOUR As many as 80 per cent “While our main grade of hot rolled strip and OF STEELWORKS of the steel grades and slab steel – a low-carbon, aluminium-killed steel Just a reminder . . . tours of our Port Kembla ‘recipes’ available – has changed little in recent years, we are Steelworks are available for all customers. around the world today constantly assessing our range of products Most recently, a group of OneSteel Metaland either didn’t exist 25 according to customer demand,” he said. NSW staff found out more about how BlueScope years ago or are being “Major changes have occurred in steel production Steel products like XLERPLATE® steel and produced in such a way technology over the past few decades, from ingot to XLERCOIL® steel are made. that they are effectively continuous slab casting, then thin slab casting and OneSteel Metaland Regional Market Manager, like new . For its currently strip casting. These dramatic technology Luke Palmer, said the tour offered many benefits part, BlueScope Steel – as a world-leading steel changes resulted in very different steel product – “improved selling techniques, the ability to manufacturer – is at the forefront of developing behaviours even in cases when the steel chemical assist junior staff as a result of new knowledge new alloy designs for steels aimed at addressing composition remained almost unchanged.” gained, and the chance to network with specific customer requirements. Mr Williams said his department received calls BlueScope Steel personnel”. One recent example was the grade of XLERPLATE® on a daily basis from customers wanting to know These tours involve a pre-tour safety and steel used in the Royal Australian Navy’s ANZAC if BlueScope Steel could produce certain grades production video, guided bus trip around the site Class frigates built by Tenix. and alloys to meet specific requirements. and a chance to watch the various processes BlueScope Steel Metallurgical Technology “We make business assessments based on involved in making BlueScope Steel products. Manager Jim Williams (pictured) said steel anticipated demand, plant capability and other To find out more about the Steelworks tours development is constantly changing. factors,” he said. available, please contact your State Sales Manager.

2 steelintouch News for Victorian & Tasmanian Customers SAFETY MESSAGE: APOLLO SUCCEEDS AGAINST TREAD CAREFULLY ON STAIRS GLOBAL COMPETITION Apollo General Engineering has Stairs – around the home and in the workplace – assembled and installed two large can lead to some of our more debilitating accidents. process vessels and associated Almost as many legs and ankles are broken on equipment that now form the centre stairs as in accidents on sports fields. of expanded copper smelting operations at Mount Isa Mines Ltd in . Some stair falls can cause even more serious injuries, including broken backs and necks. Apollo – one of Australia’s leading engineering companies and a long-time A broken leg can lead to you being incapacitated user of XLERPLATE® steel – beat for up to several months – a devastating international competitors to win the situation if you have a manual job. major Mount Isa Mines Ltd contract. So remember, when walking up and down stairs: Shipping the fabricated sections of • Move in single file two furnaces from Apollo’s Melbourne Apollo’s CEO Sam Guccionne. • Always use the hand rail works to Mount Isa was an engineering feat in itself. More than 400 tonnes of XLERPLATE® “It had to be to the AS1548-7-460 RH Grade, in the • Concentrate on the task at hand – and don’t steel went into the vessels, with a team of skilled normalised rolled condition and hot tested.” engage in distracting conversation Apollo welders completing the work at Mount Isa. When the vessel is in service at the smelter it has a • Take your time – and one step at a time Apollo exports 50 per cent of its output and has refractory lining, but the steel must retain its tensile many years’ experience in medium-to-heavy strength over the full operating temperature range. fabrication, assembly and machining. The hot testing was performed at 400 degrees Celsius. “While work started last September when we “BlueScope Steel is a ‘Just In Time’ manufacturer won the contract, we had already been in for this type of product to these dimensions and we discussions with Smorgon Steel and, through them, certainly put them to the test,” Mr Guccione said. with BlueScope Steel on technical and supply “It was an excellent turnaround, five weeks after we criteria,” Apollo’s CEO Sam Guccione said. supplied the specifications. We encourage businesses “We needed the XLERPLATE® steel to be supplied to use us because we are Australian and world class in specific dimensions, with special testing – and that’s why we purchase XLERPLATE® steel from certificates, and to a strict schedule,” he said. BlueScope Steel through Smorgon Steel.”

BlueScope Steel’s John Barrett with Wetherill Park OneSteel Steel Product Manager - Plate, Mark Ayres. THE GLOBAL ECONOMY By BlueScope Steel Economists Nick Scavarelli and Max Serrano The global economic outlook remains NEW TRAINING sound, with business expectations in World Real GDP Growth 4.5 Germany – Europe’s economic engine 4.0 PROGRAM A HIT – at a record high. 3.5 ® XLERPLATE steel distributors have given a new Despite surging oil prices, the OECD 3.0

BlueScope Steel training program the thumbs up. leading indicators point to healthy 2.5 The training program, which was launched in economic growth in the next six 2.0 May, is delivered professionally in an electronic months in all major economies. 1.5 Annual % Change format that includes animations, video, diagrams, This will support solid levels of 1.0 text and graphics. It is designed to provide global steel demand. 0.5 distributors with everything they need to know 0.0 In 2006, the US economy is likely to 95 96 97 98 99 00 01 02 03 04 05 06 07 ® about XLERPLATE steel from its manufacture grow about three per cent, and Europe Cal Yr Data through to technical advice. and Japan are expected to grow above OneSteel Steel & Tube, Wetherill Park staff were two per cent. and the strong Australian dollar will limit growth among the first to take part in two 45-minute Although industrial production growth in China prospects. Both these factors are likely to negatively training sessions, with Product Manager – Plate and has stabilised at a high level, it impact on business competitiveness and sentiment. Mark Ayres describing them as “very helpful”. will continue to maintain pressure on the The level of interest rates in the next six months “It is comprehensive but set-up in a way that demand for commodities and metals, including will depend on the extent that the high oil prices people can easily understand,” he said from Australia. filter through to downstream products, as well of the program, which is divided into seven Overall global economic growth is expected as the extent to which the shortage of skilled modules, including technical information, to remain above the trend level of about labour lifts wages. services, branding, market segmentation, safety, three per cent in 2006. The strong Australian dollar and fierce competition product range and the steel-making process. In Australia, GDP growth is expected to be around from could see manufacturing investement fall Customers who wish to benefit from the new three per cent in 2006-07, due to the anticipated in 2006-07. Agricultural investment is expected to XLERPLATE® steel training program should contact export recovery on the back of stronger mineral remain fairly constant but from a high base, and their BlueScope Steel State Sales Manager. prices. However the recent rise in interest rates mining investment is expected to remain strong.

steelintouch 3 News for Victorian & Tasmanian Customers www.xlerplate.com.au

The XLERPLATE® Team IN THE HOT SEAT PO Box 139 Mordialloc VIC 3195 STAN CLARK

Phone: 03 9586 2282 Name: Stan Clark are BBC drama/comedy though Fax: 03 9586 2441 Job title: National Sales Manager – Distribution & Manufacturing Time I spend in my E-mail: No. of years with BlueScope Steel: 19 years – car each day: [email protected] started at NZ Steel in 1987 20 mins, unless I go to [email protected] No. of years in the steel industry: Steel has always been in my life Hardest habit to break: I tend to time things to the last minute Description of current role: Provide leadership Favourite drink: Has to be Heineken in my sectors, for Industrial Markets Best car on the road/favourite car of all times: Previous position: International Marketing Jaguar XK8 Manager for Packaging Products Most useless possession: The kilt I wore when Previous position duties: Develop strategy and I was seven promote export sales of Tinplate and Blackplate Favourite outdoor recreational activity: Woman I most admire: Difficult one. Apart from Association Football (soccer) and Mountain Biking my mum and wife, it would have to be someone Simon Fieldsend Adam Cheeseman What kick-starts my day: Seeing my three sons State Sales Manager Account Manager like Princess Di off to school Man I most admire: Again apart from my dad, If I had $1m to blow it would be on… a Jag XK8 of XLERPLATE® Customer probably the late ex-NZ PM David Lange course, my parents and world travel with my family Emails received on average per day: Around 40 each year until it runs out Service Group Best invention of the last century: Organ Donor Card Favourite holiday destination ever: Scotland on a Worst television program: Don’t care! Best ones sunny day in Autumn (very rare!) Phone: 1300 135 004 Fax: 1300 135 003 E-mail: [email protected] TRY THIS QUICK QUIZ Q1. Yellow gold contains 10 per cent Q4. How many limbs does a of what element? squid have? Q2. What is the chemical formula Q5. How many compartments

for salt? are there in a cow's stomach?

A5. A4. . A2. A1. Four compartments Four limbs, 10 Pink, NaCl,

Peter Panteli Q3. What colour is yak's milk? Copper, Customer Service Officer For technical enquiries call 1800 800 789 For XLERCOIL® enquiries WIN A 32-inch call 1800 008 247 COLOUR LCD TV! HOW? Log onto www.xlerplate.com.au Click on the Steel In Touch reader survey link. Complete the survey (about five minutes). Then you’re automatically in the draw to WIN! All entries receive our XLERPLATE® steel golf starter kit. Terms & conditions apply. See the website for details. (Permit nos: NSW - TPL 06/06448; ACT - TP 06/02432; SA - T 06/2397)

The Steel in Touch Newsletter has been prepared for information purposes only. BlueScope Steel makes no representation or warranty as to the completeness or accuracy of the information contained in the Newsletter. You must make your own assessment of the information contained in the Newsletter and rely on it wholly at your own risk

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