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SThe newsletter of TEELBlueScope Steel’s STEEL BY™ Brand Partnership ProgramBY

ISSUE NUMBER 4 SEPTEMBER 2007 www.steelby.com.au

Welcome to the fourth edition The ads, with themes of Building the Future and Saving Water, focus of the STEEL BY newsletter, a on BlueScope Steel’s commitment to a sustainable future. Each is communication designed for filmed through the eyes of a child, and features BlueScope products all members of the STEEL BY™ that will continue to have a positive impact on the way we live in the years to come. You can read more about those commercials in the Brand Partnership Program. accompanying edition of Steel Edge magazine. This edition, our most We’ve also just sponsored the successful 2007 Manufacturers’ comprehensive yet, is in line with Monthly Endeavour Awards, which involved a record number of the STEEL BY™ Brand Partnership entrants and 150 attendees at the Awards breakfast held in August Program’s continued growth, and at ’s Darling Harbour. our desire to continue to add Just as we believe it’s vital for BlueScope Steel to support customers value to your membership of it. through programs like STEEL BY™, we’re convinced it’s also You’ll be pleased to hear the BlueScope Steel brand is going important for the company to back manufacturing generally through from strength to strength. An independent study of the corporate these challenging times of increased global competition. reputation of the top 50 companies in has ranked If you think your business has developed an innovative steel BlueScope Steel 11th – an excellent result given that BlueScope product, don’t hesitate to nominate it for the 2008 Endeavour Awards. Steel has just reached its fifth birthday as a stand-alone company We’ll bring you more details in the months ahead. (since the de-merger from BHP Billiton in 2002). WELCOME The annual study, conducted by AMR Interactive on behalf of the Reputation Institute, asked respondents 21 questions on topics ranging from the company’s products and services to performance and leadership. BlueScope scored highly across all areas, climbing from 17th spot in 2006. We’re now aiming to fall within the top 10 companies in 2008 – an achievable goal given that we’ve just launched a second round of national commercials to Michael Reay further enhance our reputation in the broader Australian community. Corporate Brand Manager, BlueScope Steel Limited MANUFACTURERS UNDER DOLLAR PRESSURE By BlueScope Steel Economists

Many manufacturers, especially However, the non-dwelling building Manufacturing - A Suffering Sector... market is far less likely to be those competing with Chinese Index of Sector Output counterparts, are finding it hard to 160 affected by the current monetary manage with a strong Australian policy environment. More a function 150 of long-term requirements, this dollar. The reality is that our dollar sector is expected to continue is unlikely to weaken until the 140 Construction growing moderately in the next two commodity boom ends – and this 130 years. Non-dwelling building work in is not expected to happen in 2008, the pipeline is at record high levels. and may not even happen in 2009. 120 The outlook for civil construction is 110 Assessing the manufacturing Manufacturing even stronger, and is likely to last for the next few years. This reflects the sector as a whole could be 100 misleading, as circumstances urgent need to improve neglected Source: ABS change substantially from one 90 infrastructure in all states. Mar- Jul- Nov- Mar- Jul- Nov- Mar- Jul- Nov- Mar- Jul- Nov- Mar- Jul- Nov- Mar- sub-segment to another. 02 02 02 03 03 03 04 04 04 05 05 05 06 06 06 07 As well as the $10 billion allocated Those manufacturers servicing for the Murray-Darling river resource-sector companies – such The likelihood of inflation remaining not guarantee that further rises would system, the federal government has as those providing machinery and close to the Reserve Bank of not take place in the next 12 months. announced an extra $3 billion for equipment – are doing better. Others, Australia’s upper limit of three per cent This will likely prevent the housing urgently needed port upgrades, such as vehicle and component was the main reason for our most market from recovering in 2007 or designed to lift these facilities to an manufacturers, have been severely recent interest rate rise. 2008, especially given that housing international competitive standard. affected by the high dollar and a With unemployment at a 30-year affordability is currently at record low Current port bottlenecks are global over-capacity. Future prospects low and consumption expenditure levels. Further interest rate rises will threatening Australia’s commodity do not look bright either. remaining very high, the Bank could make housing even less affordable. exports.

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STEELBY SHED MAKERS’ CAMPAIGN A SUCCESS

The Australian Steel Institute’s (ASI) National Steel Shed Group has launched a poster-led campaign to promote industry compliance for the cold formed steel shed industry.

National Manager – Steel Shed Group Neil Creek said the theme We Stand by Our Sheds was developed for the poster-based campaign so group members could demonstrate proudly their compliance with Australian Standards and consumer laws. “The poster is designed to be displayed by members at their point of sale to reinforce the industry compliance by members to their customers,” Mr Creek said. He believed the campaign had already reached about 50 per cent of shed resellers across Australia. Crisp Bros’ Peter Acheson, whose company has built a solid reputation for tackling environmental projects. The campaign’s impetus was largely spurred by the 2006 Cyclone Larry which played havoc with non- compliant steel sheds. TASMANIAN COMPANY WALKS ON AIR Shed Group enquiries should be directed to [email protected] Tasmanian structural engineering “Our assembly team followed company Crisp Bros is fast our environmental risk building a reputation for tackling assessments, and made challenging projects in no impact on the forest vegetation,” Mr Acheson said. NATIONAL environmentally sensitive areas. Crisp Bros, which specialises COMMITTEE TO The Launceston-based company, in architectural, residential HELP COUNTER which recently received its fifth and commercial fabrication, engineering excellence award, has can undertake up to six STEEL IMPORTS fabricated and erected ’s jobs at any one time at its Tahune Airwalk and the ‘Otway Fly’ SteeI Institute (ASI) 3500-square-metre Kings tourist viewing platform in , has formed a National Committee to Meadows workshop. and is drawing, fabricating and “Commercial projects involving develop strategies to compete with erecting the 500-metre elevated Australia,” Mr Acheson said. beams and columns are our bread and imported fabricated steel in major tree-top walk ‘Illawarra Fly’ on the He said the Tahune Airwalk had also butter,” Mr Acheson said. construction projects. escarpment at Knights Hill above been the most challenging fabrication Current commercial projects include Wollongong in . and construction project Crisp Bros Comprised of ASI directors, this a $1 million Hydro Tasmania call centre, “We enjoy tackling the fabrication had undertaken. committee is boosting advocacy a new Harvey Norman building in and construction challenges that of Australian fabricated steel to “The structure had to be built like a Hobart, and structural steel work for environmentally sensitive projects government, major project proponents high wire, running through the treetops the Avebury Nickel Project, near pose,” Director Peter Acheson said. and relevant industry bodies. of re-growth forests on the Huon Trail,” Zeehan, on the west coast of Tasmania. Crisp Bros won the Australian Mr Acheson said. “We were given a BlueScope Steel is a sustaining Crisp Bros is a member of the STEEL Steel Institute (ASI) – VIC/TAS 2006 design layout, and minimal machinery ASI member, and Bernie Landy BY™ Brand Partnership Program. (BlueScope Steel’s Vice-President Structural Steel Engineering Award access to assemble the structure on “We proudly support BlueScope Steel Strategic Accounts and Marketing, for Avalon Coastal Retreat, an the forest floor. because it’s an Australian company Australia and Industrial architecturally designed luxury “We had to develop drawings to meet producing quality Australian steel,” Markets) is Chairman of the ASI. accommodation house near size and weight restrictions, fabricating Mr Acheson said. “If we don’t support Swansea on Tasmania’s east coast. the 500-metre-long structure in small “Our position is that project Australian steel producers, prices However, the Tahune Airwalk, built structural steel sections – like a proponents should clearly will increase, quality may fall and the on the edge of the Huon River in Meccano set – with the largest section demonstrate upfront commitment industry will suffer.” to providing full, fair and reasonable Tasmania’s southern forest area in 2003, only six metres long.” For more information contact: opportunity at the design and is the company’s most awarded project. The Tahune Airwalk was fabricated engineering stage for Australian- “This project has received awards from tube sections and XLERPLATE® Peter Acheson sourced fabricated steelwork,” from the ASI – VIC/TAS, from the steel plate over two months, and Crisp Bros Don McDonald, Chief Executive Master Builders Association of involved three months’ on-site Ph: (03) 6344 4144 of the ASI said. Tasmania and from Master Builders construction. www.crispbros.com.au

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www.steelby.com.au PACIFIC INDUSTRIAL LOOMS LARGE OVER FABRICATION

Family-owned West Australian hectare lay-down area. PIC’s original Pacific Industrial Company (PIC) has erection shop now acts as the figured prominently in this country’s company’s maintenance and storage fabrication and construction scene facility. The company also runs its own fleet of B-Double semi-trailers since Italian immigrant Erasmo and low-loaders, as well as several Mosole opened for business in 1969. 300-tonne-capacity crawler cranes. Since then, the company has While the company’s workforce varies manufactured and erected some of the depending on the number and type of biggest machines and infrastructure projects on its order books, some 250 elements in Australia. It has filled shop workers and site personnel are orders from every Australian state currently engaged. and throughout South-East Asia – PIC is a familiar name on huge mining most underpinned by steel products Pacific Industrial Company uses projects throughout Australia. The from BlueScope Steel. XLERPLATE® steel for heavy industrial company has supplied and fabricated Australia’s current resources boom, projects. Pictured is George C. Petley. bespoke equipment and facilities for fed by demand from emerging iron ore, coal and diamond mines. economies such as China, is steel products based on BlueScope PIC has been involved in all aspects It has also worked on power- maintaining a positive influence on green feed stock, PIC consumes an of steel fabrication and construction generation, oil and gas, and major PIC’s activities. average of 10,000 to 15,000 tonnes of over the years, covering engineering, government projects – including the steel every year. procurement, fabrication, installation, As the company’s long-standing fabrication of large road and rail commissioning and related fields Business Development Manager The company’s huge erecting shops bridge sections. George C. Petley put it: “When it comes at Naval Base, south of Fremantle, including electrical, instrumentation PIC is a member of BlueScope Steel’s to the projects we become involved in, have fabricated elements as large and civil work. STEEL BY™ Brand Partnership Program. the sky’s the limit. As big as they come, as 65 metres long, 10 metres high “We end up erecting about 40 per cent we’ll do them!” and 14 metres wide. of what we make, and we also erect For more information contact: George C. Petley With a voracious appetite for According to Mr Petley, these could for other organisations working in our BlueScope Steel products such as range in weight from several tonnes field,” Mr Petley said. Pacific Industrial Grade 250 and Grade 350 XLERPLATE® through to several hundred tonnes PIC’s undercover and under-crane Company steel, and other BlueScope Steel apiece, and could be destined for an fabrication space totals about 25,000 Ph: (08) 8410 2566. building products, as well as Bisalloy enormous range of applications. square metres, with an adjacent five www.pacific-industrial.com.au STEEL SALES STRONG FOR SOUTHERN ROOFING Roofs made from COLORBOND® steel picking up and quoting building plans. are being installed on nine out of every “When homeowners are ready, we 10 new homes in Tasmania, according measure the job and can have our to a local roofing company. installation team at work in two to Southern Roofing owner David three days,” Mr Johnson said. Johnson, who has 24 years’ He said it took about one-and-a-half to experience in the roofing industry, said two days to install fascia and gutters, steel roofs have dramatically increased and two to three days to install roofing in popularity in the last decade. on an average-sized home. “When I started Southern Roofing in Southern Roofing also undertakes 1997, 80 per cent of new roofs were challenging roofing projects on modern, tile, with the remainder steel,” Mr architecturally designed homes. Johnson said. “Now, it is the reverse – “We recently completed work on a 90 per cent of new roofs are steel.” waterfront home at Sandy Bay for local Owner of Hobart-based Southern The company, which services homes builder Clayton Worbey,” Mr Johnson Roofing David Johnson. His company within a 150-kilometre radius of said. “The roof was designed to look suppliessupplies andand fixesfixes roofingroofing mademade fromfrom ®® Hobart, installs 16 to 20 roofs a like sails, with two sections of the COLORBOND steelsteel inin allall profiles.profiles. month on new homes. roof curving in opposite directions.” consistent, quality service. date with industry developments, and “Southern Roofing supplies and fixes He said Southern Roofing generated provides us with great marketing BlueScope Steel fascias and gutters business because of its reputation for “Our company is well-respected in the material,” Mr Johnson said. “We use made from COLORBOND® steel and reliability and quality work. The quality local building community. About 80 per STEEL BY™ stickers on all our invoices ZINCALUME® steel, and roofing made of his employees was another key to cent of our business is generated and envelopes.” from COLORBOND® steel in all Southern Roofing’s success, he said. through return customers, with the balance coming via word-of-mouth and For more information profiles,” Mr Johnson said. “We’ve had the same fixers for 10 our Yellow Pages listing.” contact: Southern Roofing’s office and years, and those workers train our David Johnson showroom are situated at Kingston, apprentices,” Mr Johnson said. Southern Roofing is a member of the one of Hobart’s fastest growing areas. “It ensures good work practices STEEL BY™ Brand Partnership Program. Southern Roofing Pty Ltd The company’s service includes are passed on, delivering customers “The program allows us to keep up to Ph: (03) 6229 9910

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STEELBY www.steelby.com.au KIRWAN STEEL TURNS A PROFIT BRIEFS ON TOWNSVILLE TENDERS Quality assurance, quick production Coral Gard’s Kirwan Steel fabricates NSW TANK REBATES turn-around and competitive costings steelwork for commercial projects in The New South Wales Government and installed between July 2007 continue to generate tendering thethe TownsvilleTownsville region.region. and 30 June 2009, the rebate only successes for Townsville fabrication has announced a major rainwater covers systems with capacities of company Kirwan Steel Pty Ltd. tank rebate scheme as part of its 2000 litres or more. $310 million Climate Change Fund. Owned and operated by Bill and While households not connected Coral Gard, the company specialises The sliding-scale rebate – ranging to mains water are eligible for in fabrication work for commercial from a maximum of $1150 for 2000- rebates on the purchase of tanks Most fabrication jobs Kirwan Steel projects, tendering through State 3900 litre tanks, and a maximum only, tanks installed to comply with undertakes range from $30,000 government construction and of $1500 for tanks 7000 litres and the Building Sustainability Index to $300,000. maintenance services such as QBuild. above – covers the tank, connection (BASX) for new homes, major Kirwan Steel works on about 140 to toilets and connection to renovations or for pool installations Kirwan Steel, which has offered jobs a year, using COLORBOND® washing machines. are not eligible. quality assurance for more than steel and LYSAGHT® Zed & Cee 12 years, has fabricated steelwork Available for New South Wales Householders can apply for the Purlins sourced through distributor for the gymnasium at the Townsville householders installing new rebate once the tank is installed Smorgon Metals Distribution. Sports Reserve, one of only six rainwater storage systems bought and plumbed in. International Association of Athletics Coral and Bill have also spent the Federations-certified tracks in past two years building a steel- the Oceania region. framed home at Halifax, about an BOOST FOR EXPORTERS hour’s drive north of Townsville. Other recent projects have included The federal government has allocated “Global Opportunities provides work for Townsville Sports Reserve’s “The two-bedroom, open-plan home $254.1 million to help Australian resources to investigate up to 33 and has a roof made from COLORBOND® entry building, high-rise apartment businesses break into global supply to mount bids for up to 16 of these blocks for developer Honeycombes, steel and matching shed made from chains and bid for work on major projects each year.” and the expansion of Castletown COLORBOND® steel,” Coral Gard said. international projects. Each project would be worth at least Shopping Centre. Kirwan Steel is a member of the $500 million. STEEL BY™ Brand Partnership Prime Minister John Howard and “The Sports Reserve job was Information on major overseas Program, displaying program signage Industry Minister Ian Macfarlane have challenging because we had to opportunities will be available to on the front fence, and using stickers announced the Global Opportunities fabricate roofing framework and prospective Australian bidders. on its invoices. purlins for an oval-shaped roof,” scheme as part of the government’s Australian companies bidding for Coral Gard said. For more information ongoing Industry Statement, which overseas projects will be able to The company has also won several contact: they say focuses on building identify potential Australian partners recent QBuild tenders, working Coral Gard Australian companies’ capacity and, with government support, form on seven school extensions in Kirwan Steel to become global businesses. teams to mount bids. Ph: (07) 4774 6500 the past year. “The Global Opportunities program will The program will also see Invest assist small- and medium-sized Australia working with multinational enterprises to find and secure overseas enterprises already in Australia, contracts,” Mr Macfarlane said. encouraging more investment How to join WORLD STEEL “The program will identify and closer links to Australian opportunities in other countries, firms and research organisations, the program PRODUCTION facilitate trade missions and place Mr Macfarlane said. For more information call Steel Direct RISES Australian industry experts in For more information refer to the on 1800 800 789 and ask for international procurement offices. fact sheet at www.industry.gov.au an information brochure and World crude steel production for registration form. the 67 countries reporting to the International Iron and Steel Institute TAX CONCESSION DRIVES (IISI) was 110.6 million tonnes in June 2007, up 5.7 per cent on the R&D OPPORTUNITIES same month in 2006. Australian businesses are investing “The premium has proven popular, record amounts in research and with more than 900 companies China continued to lead, with development (R&D) since changes benefiting from the concession, and production estimated at 41.5 million to the R&D Tax Concession were R&D expenditure rising to around tonnes, while Germany, France introduced in 2001, according $379 million a year.” and the UK produced a combined to Federal Minister for Trade, The STEEL BY™ Newsletter has been prepared The 175 per cent premium provides for information purposes only. BlueScope Steel makes seven million tonnes. Ian Macfarlane. a tax concession for additional R&D no representation or warranty as to the completeness Japan and South Korea produced or accuracy of the information contained in the expenditure above a three-year Newsletter. You must make your own assessment of a combined 14.4 million tonnes, and An evaluation report released recently the information contained in the Newsletter and rely by the government showed business average to encourage companies on it wholly at your own risk India produced 3.7 million tonnes. to increase research and Russian production rose 5.2 per expenditure on R&D reached a record ™ development investment. The report STEEL BY #4 SEPTEMBER 2007 cent to 6.1 million tonnes. $8.4 billion in 2004-05. also found an extra 1000 small Australia and New Zealand “This represents a $2.5 billion increase organisations investing in R&D. produced a combined 726,000 tonnes since the introduction of the federal in June 2007. government’s 175 per cent premium The evaluation report is available at 9 320075 051266 and tax offset,” Mr Macfarlane said. www.industry.gov.au/RandDtax.

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