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SPECIAL FEATURE Fabrication: Industry Perspective News for XLERPLATE® steel customers ISSUE 13 | SUMMER 2008 SPECIAL FEATURE Fabrication: industry perspective SPECIAL FEATURES CASE STUDIES REGULAR FEATURES IN THIS ISSUE Understanding steel plate - part two Abbot Point Coal Terminal Sales team contacts Fabrication - state of the industry perspective United Group Resources delivers for BP Quiz Latest news around the country Well, things have certainly The extremely high demand has now customers. We especially pride ourselves changed since we brought eased and we are back to a position in the expertise we put into products you the last edition of where our delivery performance is at the like XLERPLATE® steel and the technical XLERPLATE® Steel in Touch. high levels our customers are familiar service we deliver to our customers. It just goes to show that there with. As you can see, we have put extra effort is rarely a dull moment in Whilst many of us in the industry will into this bumper edition of Steel in Touch, this industry be feeling the effects of dynamic global which is packed with useful information of ours. economic conditions, it pays to remember and insight. Looking to the future, Only a couple that the economy, like the steel industry the new XLERPLATE® website will be of months ago itself, is cyclical. BlueScope Steel aims to launched early next year and we hope you we were in a be competitive and responsive to changes also find that to be a useful business tool. situation where in market conditions throughout the From all of us at BlueScope, we wish you unprecedented business cycle. a safe and happy festive season. demand for We’re up to the challenge, as I am sure XLERPLATE® you are too. steel was putting pressure on our The tough economic environment really supply capabilities, reminds us of what is at the heart of Bernie Landy notwithstanding BlueScope’s value proposition: our General Manager Industrial Markets we were producing at quality, Australian-made product and BlueScope Steel record levels. the high level of service we offer our [email protected] Worldwide governments respond to financial crisis BlueScope economist Nick Scavarelli scheme totalling up to US$700bn has been EMERGING ECONOMIES provides an overview of the current announced which aims to stabilise the global The emerging world economies are also global financial situation and actions banking system. Another direct action has taking actions to limit the fall out of the global being taken to cushion negative impacts. seen America’s Federal Reserve cut its policy financial crisis. Russia is spending US$220bn interest rate by a further half point to 1%, Governments and central banks around the to shore up its financial system. South Korea on 29 October. world are searching for solutions to the has guaranteed US$100bn of its banks’ debt. global financial crisis, as it is now translating The expectation that the EU economy could The IMF has unveiled a new emergency into significantly slower economic activity maintain growth in times when the US lending programme that will get money to across most regions. Falling equity markets, economy was slowing has proven optimistic, well-run countries quickly and with almost no tighter credit and declining confidence have as the EU economy is now in recession. conditions attached if they are hit by financial left companies and consumers either unable Several Eurozone economies suffered volatility. The new liquidity facility is the or unwilling to spend and invest. As a result, contraction in the third quarter, with culmination of a decade of attempts at the there has been a combined global effort from Germany and Italy entering recession. IMF, after the Asian financial crisis of 1997/98, policy makers to simulate their economies to Governments in this region are taking to come up with a way of protecting emerging prevent a long period of recession. Australia’s measures to minimise the downturn, with markets from financial problems. Federal Government is no exception. the Bank of England recently lowering interest rates by 150 basis points, which China intends to inject US$586bn to avert The US economy is most likely already in was three times greater than most economic a more serious slowdown in its economy. recession, or likely to fall into recession in commentators expected. In addition, on 26 November, the People’s the near future. The question is how long Bank of China (PBC) slashed interest rates and deep the recession will be. The US Further, on 24 November, the UK government to around 5.5 per cent and further lowered authorities have taken drastic measures to introduced a stimulus package which totals banks’ reserve requirements. The governor stabilise their financial markets following the around US$30bn, or one per cent of annual of the PBC has also indicated that the bank collapse of Lehman Brothers and subsequent GDP over the next 12 months. will “actively work” with the International freeze in financial assets. A massive bailout Monetary Fund to develop a plan to stabilise 2 Increased investment in infrastructure projects is one of the Australian Government’s preferred measures to achieve a boost in economic activity IMAGE HERE Nick Scavarelli volatile financial markets. The governor to stabilise the domestic financial system, findings by the end of December this year. expects the Chinese economy to expand the Federal Government has also agreed to The domestic steel industry is likely to between 8% and 9% in 2009. guarantee savings deposits up to A$1m, as experience positive spin-offs from the well as loans used by Australian banks to Government’s desire to speed up the public AUSTRALIAN FISCAL ACTION raise capital on wholesale funding markets. It investment drive, which is designed to assist in In recent weeks, the Australian Government has also followed the US lead and decided to both city and regional areas. and Reserve Bank of Australia have also acted allocate A$8bn to purchase mortgage-backed swiftly to avoid a significant downturn in the securities in a bid to boost liquidity. Article written November 2008 domestic economy. The emergency action The Reserve Bank of Australia has also acted includes lower interest rates and a boost in by slashing its benchmark interest rate by 75 Nick Scavarelli is a senior economist public sector investment. basis points to 5.25 per cent, the third cut since with BlueScope Steel. His economic The Federal Government has announced a September when the cash rate was 7.25 per analysis and advice is utilised by A$10.4bn stimulus package designed to boost cent. In making the cut, the Reserve Bank cited divisions such as BlueScope’s spending and confidence, including changes reduced Chinese growth and lower commodity Industrial Markets. This is the to the first Homeowners Grant, pension prices as key factors. division that produces XLERPLATE® reform and support payments for low and hot rolled plate steel, manufactured middle income families, bringing forward INFRASTRUCTURE AND STEEL to tolerances that conform to infrastructure projects and creating additional As part of the government’s plan to boost Australian Standards and ISO 9001 training places to support employment. It infrastructure projects, it is working closely International Quality Standards. has also indicated it will instigate a massive with the states to speed up the federal audit injection of A$6bn to the automotive industry of the country’s infrastructure requirements. to ensure its long-term survival. In an effort Infrastructure Australia will present its audit FRONT COVER Global Benchmark Interest Rates - % 10 The seven metre high XLERPLATE® US (Federal Reserve) Australia (Reserve Bank of Australia) Steel ‘trees’ which are a feature 8 Europe (European Central Bank) of Dogwood Crossing at Miles, China (People's Bank of China) are a talking point for users of the unique regional centre which 6 serves as a library, art gallery, social history museum and IT centre for 4 Queensland’s Murilla Shire Council. ■ The trees, fabricated by Allied 2 Welding in Toowoomba are an appropriate scene setter for the 0 regional design and craft exhibition Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 the venue is currently hosting. 3 XLERPLATE® steel case study Fabrication of the headstocks for the Abbot Point extension project required ongoing attention to quality control Port extension boosts Queensland’s coal export capability OVERVIEW PCQ has commissioned a major expansion of management, co-ordinating a team of 300 Ports Corporation of Queensland (PCQ) is Abbot Point to ensure that Queensland’s $16 people on site over what will be an 18-month using over 8,000 tonnes of XLERPLATE® steel billion coal export industry can meet future construction period. The team will be building in a major expansion of its Abbot Point Coal demand. Global demand for coal is growing at on the existing jetty to create a new wharf Terminal. XLERPLATE® steel will be used in the a phenomenal rate. Predictions for growth in and a new ship loader. The construction will construction of a new wharf and ship loader, demand for Queensland coal range between amount to a duplication of the existing facility including piling, headstocks and rail track. 5% and 13% per annum through to 2009/10, and is expected to use between 8,000-11,000 ® The extension will enable the port to increase fed by industrial growth in China and India. tonnes of XLERPLATE steel. coal export capacity from 25 to 50 millions With miners contracting to export increasing RPG is responsible for fabrication of the tonnes per year. quantities of coal, PCQ is acting to ensure that piling, which will be used to support the new Abbot Point is able to cater for the demand.
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