Steel InTouch QLD #7:Layout 1 28/11/06 11:18 AM Page 2 steelintouch

News for Customers ISSUE NUMBER 7 SUMMER 2006

Year categories. Read our lead story for more details on WELCOME these innovative XLERPLATE® steel users. This edition also contains stories on recent record ® Welcome to the Summer 2006 edition of XLERPLATE Plate Mill throughput, our Customer Service team’s Steel In Touch. activities, Port Kembla Steelworks maintenance plans To begin we would like to congratulate two for Christmas, and a look at how steel is performing in customers for exciting wins in the recent economy. Manufacturers’ Monthly 2006 Endeavour Awards On behalf of Steel In Touch and the XLERPLATE® steel for Manufacturing Excellence. team, thanks again for your continued support. Newcastle’s Waratah Engineering (NSW) won the Manufacturer of the Year Award for its Waracar shuttlecar, which also secured the Import Replacement Of The Year Award. Apollo General Engineering (VIC) secured two Highly Commended awards – in the Tony Fotea Exporter of The Year and Import Replacement of The State Sales Manager - Queensland

IN TOUCH ’S STUNNING ONLINE NEW STEEL BRIDGE The first major cable-stay bridge to be built in in the last 10 years is expected to open in Brisbane early in 2007. When it becomes operational, the Eleanor Schonell Bridge will provide an alternative route for university staff, students and visitors. The $55 million bridge contains more than 875 tonnes of Grade 350 XLERPLATE® steel. Designed and constructed by the John Holland Group, the bridge will cross the and link Dutton Park (5km from the Brisbane CBD) with the at St. Lucia. fabricated the bridge’s huge welded sections. The structure spans 390 metres and includes The structure was delivered to the company’s two twin-column, 70-metre-high towers supporting John Holland Manager – Fabrication and Coatings, on-site construction staff in steel modules 9.6 metres Alban Manning. a composite steel and concrete deck. The bridge’s long, each weighing up to 24 tonnes. It was then deck is 20 metres wide, 1.5 metres deep and assembled and checked in a jig before being lifted “The sophistication of the steelwork design and 185 metres long. into position by crane. the quality required was extremely high,” John John Holland Group’s specialist Structural Holland Manager – Fabrication and Coatings, Most girders are 1200mm deep, and XLERPLATE® Mechanical Process (SMP) division at Richlands Alban Manning said. steel thicknesses range from 12mm to 70mm. “Reliable supply of XLERPLATE® steel in the required John Holland Group Project Director for the bridge, thicknesses was crucial because we were working David Balmer, said steel had proved an innovative on 12 modules in various stages of fabrication at any and economical choice. one time. My main focus was on service and speed “Specifying steel for the composite deck provided an of supply for the steel we required – and I’ve been opportunity for significant cost savings and helped impressed by the standards achieved by BlueScope reduce the construction timetable,” he said. Steel for this project.”

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News for Queensland Customers www.xlerplate.com.au

® ENTRIES OPEN FOR 2007 XLERPLATE CUSTOMERS ENDEAVOUR AWARDS

The 2007 Manufacturers’ Monthly Endeavour SECURE TOP AWARDS Awards are now open to all Australian Innovation and product excellence have manufacturers, big and small, who have been secured big wins for two XLERPLATE® operating for at least two years. steel customers at the 2006 The awards, heading into their fourth year, Manufacturers’ Monthly Endeavour cover eight categories: Awards for Manufacturing Excellence. NSW company Waratah Engineering • Import Replacement of the Year won two awards – Manufacturer of the Year (the major award) and Import • Technology Application of the Year Replacement of the Year – for its Waracar shuttlecar designed for use • Innovative Product of the Year – Consumer in underground coal mining. • Innovative Product of the Year – Industrial Victorian company Apollo General Waratah Engineering’s Waracar. Engineering secured two Highly • Exporter of the Year Commended awards – one for Exporter of the company building mining machines in South Africa. Year for its boiler drums exported to Indonesia, Waratah Engineering has 130 employees and uses • Environmental Solution of the Year the other for Import Replacement of the Year for 250-300 tonnes of XLERPLATE® steel a year. • Safety Scheme of the Year its large pressure vessels used at Queensland’s Apollo General Engineering, an Australian-owned Mt Isa mines. company with more than 50 years’ experience in • Young Manufacturer of the Year The Endeavour Awards, designed to recognise and medium-to-heavy fabrication, assembly and reward Australian manufacturing excellence, are machining, is another Australian success story. An overall winner will be selected from those open to all manufacturers throughout the country. Exports of the company’s machinery and fabricated categories and awarded the top prize – This year’s presentation event, held in Sydney, metal products are growing rapidly due in part to Manufacturer of the Year 2007 – in recognition attracted more than 120 guests from all areas of some smart strategic investments by the company. of the winning company’s manufacturing manufacturing. Apollo General Engineering’s General Manager, Sam innovation and excellence. Waratah Engineering made a huge impact with its Guccione, said his company had been supplying boiler Nomination forms and conditions are available Waracar shuttlecar, launched in 2003. The company drums to Indonesian customers for a number of months. in the December edition of Manufacturers’ has built 25 of the $900,000 Waracar shuttlecars and BlueScope Steel’s National Sales Manager Distribution Monthly magazine or online at is fabricating another five at its Newcastle workshop. and Manufacturing, Stan Clark, said he was delighted www.ferret.com.au/FerretAwards/Mmawards.asp Designed to carry up to 16 tonnes of coal in to see fabricators like Waratah Engineering and Apollo Entries close 30 April 2007. underground mines, the unit is made from 20 tonnes General Engineering securing awards and high of Grade 350 XLERPLATE® steel. commendations. “It underpins the innovation and It can also be fitted with a wireless data expertise that Australian manufacturers are transmission system, which helps track the unit encompassing in their work,” he said. when it is in operation deep underground. For more information: Waratah Engineering – CHANGES TO COIL The carrier has allowed Waratah Engineering to www.wareng.com.au and Apollo General break into an Australian market dominated by a US Engineering – www.apollo-engineering.com.au IDENTIFICATION A new alphanumeric system is now identifying steel coils leaving BlueScope Steel’s Springhill (Port Kembla) and Western Port plants, and the SMORGON CUSTOMERS company’s Service Centres. Although this mainly affects coated steel, cold rolled and hot rolled products marketed by our TOUR PORT KEMBLA Australian Manufacturing Markets Division, it will Smorgon Steel Metals Distribution recently flew its affect 1800mm-wide hot rolled coil and coil plate Queensland XLERPLATE® steel customers to Port product, sold by Industrial Markets. Kembla for a Steelworks tour. The changes, prompted by customer feedback, Smorgon Steel’s Brisbane representatives David apply to alphanumeric prefix ranges for several McCarthy, Roslyn Jeppesen and Tony Wheeler coil units leaving Western Port; e.g. Z12345 has accompanied the group, as did our Queensland become J12345. Sales Manager Tony Fotea. Also, the letters “W” and “P” have been removed The event was initiated by Smorgon Steel and from seventh position in the alphanumeric included a tour of the Steelworks and visits to Smorgon's tour group included representatives from markings; e.g. J12345W has become J12345. BlueScope Steel’s Welded Products Mill at Sun Engineering, Bradken, GM Poles, PCD Steel Processing Coils processed at BlueScope Steel’s Service Centres and Barfab. Unanderra, south of Wollongong, and to nearby have had an “S” added to seventh position in the Bisalloy Steels. steel,” Smorgon Steel’s Business Development identification code; e.g. J12345 has become J12345S1. ® Manager, Tony Wheeler said. “We wanted to give our XLERPLATE steel The changes will provide alphanumeric code customers a better understanding of what goes Tony said the visit proved a great networking consistency for despatch and invoice documentation, on behind the scenes in the steel industry, ensuring opportunity for Smorgon Steel, its customers and and will help to improve inventory management. their continued commitment to Australian-made BlueScope Steel representatives.

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News for Queensland Customers

PEN FOR 2007 SAFETY MESSAGE: UR AWARDS BOAT WITH CARE COMMODITY BOOM Now it’s summer, many of us will be heading DRIVING STEEL SALES onto open water – lakes By BlueScope Steel Economists Max Serrano, Nick Scavarelli and Amy Davidson and the ocean – in small Domestic demand, a major component recreational boats. of the Australian economy, grew Total Mining Investment in Australia While many safety- 4.2 per cent in 2005/06. It is now 18,000 conscious boat users slowing partly because of the Reserve 16,000 always pack flares, a Bank’s decision to lift interest rates 14,000 two-way radio (and 0.75 percentage points this year in an 12,000 mobile phone), life effort to control inflation. 10,000 jackets and fresh water, Falling house prices, particularly 8,000 how many think of additional safety equipment? 6,000 in NSW, appear to also be slowing Constant A$Million 4,000 Most Australian boating safety authorities list the domestic demand and impacting 2,000 following additional items as being very important: on consumer confidence. As house 0 • small fire extinguisher prices rose, consumers increased 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Financial Years • first aid kit their borrowings. We now seem to be experiencing the opposite effect. • a basic tool kit (for possible breakdowns) New South Wales, Victoria and South Australia are Investment, the other major component of the affected by several factors including the following: • rope (for towing) economy, remains strong, with the commodity boom • Falling house prices are reducing housing activity • a bucket (for bailing) helping to lift investment to unprecedented levels. and consumption; • oars (in case your outboard breaks down) Non-dwelling building investment rose about • An overvalued Australian dollar (due to the Always heed the day’s weather forecast . . . 12 per cent, mining investment rose 68 per cent, commodity boom) is making local manufacturers and tell friends and family where you intend and private plant and equipment investment rose less competitive, which is aggravated by China’s heading and your estimated time of return. more than 18 per cent in 2005/06. The 2006/07 efforts to increase its exports of manufacturing outlook remains positive. However, prospects for products into Australia; and rural production and investment appear to be • Our national skills shortages are limiting deteriorating rapidly. An El Nino weather pattern expansion of some manufacturing components. will likely impact on rural production in 2006/07. The drought is also having an impact on these CHANGES TO High commodity prices have boosted the mining states. Ironically, when the commodity boom states (Western Australia and Queensland) and subsides the dollar will be likely to weaken and aid END-OF-YEAR investment in these states continues to rise, with recovery in these states. ® the outlook for 2006/07 looking positive. Strong mining and non-dwelling construction XLERPLATE However, demand for labour and materials, investment is helping to lift steel sales in these especially in Western Australia, is outstripping sectors, although much mining equipment is supply, causing costs of both to rise. Future imported. This lift in sales is, however, being partly DELIVERY prospects may be less buoyant when the affected by falls in both dwelling activity and in Plate Mill maintenance work and wide-load commodity cycle returns to more sustainable levels. manufacturing and rural activity. delivery restrictions will affect XLERPLATE® and XLERCOIL® steel delivery times over the Christmas and New Year period. HIGHEST THROUGHPUT SINCE 1982 Maintenance will be carried out at the Port Kembla Steelworks Plate Mill from 29 December to 15 Port Kembla Plate Mill throughput has reached its January. XLERPLATE® steel will not be produced highest level in 25 years, in large part due to the during that time, and extended lead times will apply. combined efforts of the Plate Operations team and ® Please speak to the XLERPLATE® Customer Service the XLERPLATE Customer Service group. group or your sales branch for further information. A total of 213,239 tonnes of XLERPLATE® steel has Restrictions to XLERPLATE® Coil Plate and Coil been produced at the Plate Mill in the last six months, Floor Plate will apply during this time because of and if production continues at its present rate, mill the Metpol site closures, and deliveries will be output will exceed 400,000 tonnes for the year. Annual allocated in line with Metpol’s planned reopening. output was initially budgeted to reach 388,000 tonnes.

Road and traffic authorities have also imposed On-time delivery performance into our customers’ Our friendly XLERPLATE® Customer Service group. wide-load restrictions that affect the delivery of stores nationally, has risen almost 30 per cent; from Standard and General XLERPLATE® steel in 65 per cent in April 2003 to 92 per cent year-to-date The group regularly deals with as many as 150 December and January. to October 2006. customers each week across Australia. Widths of 2500mm or more cannot be delivered The XLERPLATE® Customer Service group consists Queensland customers will be familiar with the between 25 December and 5 January (DIS Week of 15 officers – including six in the Planning and voice of Customer Service Officer Keven May, 52, Week 1). In NSW, load restrictions also apply Scheduling team, six Customer Service Officers who deals with their specific inquiries. between 22 January and 26 January (DIS Week 4). and two Technical Metallurgists. The six Customer Keven has worked at BlueScope Steel for 17 years Orders for widths of 2500mm or more during these Service Officers field inquiries, provide product and has spent recent months tracking and restricted periods will be booked for delivery the information to customers, book orders and track the managing orders for resources and mining projects following week. progress of existing orders to keep output on course. in Queensland.

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News for Queensland Customers www.xlerplate.com.au

The XLERPLATE® Team GOODBYE AND FAREWELL 76 Lysaght Street PO Box 302 DAVID FEA Name: David Fea Time I spend in Acacia Ridge QLD 4110 Job title: David resigned on 17 November as Smorgon my car each day: Phone: 07 3845 9350 Steel State Manager – Metro Queensland. Ed Manzi 160 minutes has been appointed to the role. Welcome Ed! Hardest habit to Fax: 07 3845 9393 No. of years with Smorgon Steel: 8 break: Cigars E-mail: No. of years in the steel industry: 8 Favourite drink: Red wine (Shiraz) [email protected] Description of current role: Responsible for Best car on the road/favourite car of all time: Maserati Quattroporte GT [email protected] large steel sales, processing and distribution centre, Brisbane Most useless possession: Lawn mower Previous position: State Manager (NSW) Favourite outdoor recreational activity: Smorgon ARC Boating (any kind) Previous position duties: Managed $200m steel What kick-starts my day: 60 minutes at the gym reinforcing distribution business If I had $1m to blow it would be on… Woman I most admire: Hillary Clinton A boat, of course Man I most admire: Geoff Dixon – Qantas CEO If I could have one person over for dinner, it would Tony Fotea Simon Ritchie E-mails received on average per day: 40-50 be… Bono (U2) State Sales Manager Account Manager Best invention of the last century: If there was one thing I could do all over again… Screw-top wine bottles Spend less money on cars and boats! XLERPLATE® Customer Worst television program: Big Brother Favourite holiday destination: Egypt Service Group Phone: 1300 135 004 STEEL IN TOUCH Fax: 1300 135 003 ANYTHING E-mail: [email protected] BUT STEEL GOES ONLINE If you think the cost of living in Sydney is eye- watering, spare a thought for the denizens of Keven May Tokyo, London Customer Service Officer and Moscow; For technical enquiries the world’s most expensive cities. call 1800 800 789 Sydney, while rocketing up the ® For XLERCOIL enquiries charts in recent years, is still down call 1800 008 247 at number 20, nestled between equally cosmopolitan Vienna and Rome. Auckland, ranked number 80, is a much less Back issues of Steel In Touch are now expensive proposition. available online. Mercer Human Resources Consulting, which The creation of the online archive provides compiles the annual figures, bases its rankings on readers with access to stories on 200 goods and services – including the monthly rent XLERPLATE® steel projects published in all on a two-bedroom apartment, the cost of a five state editions since Steel In Touch was hamburger, transport and entertainment. launched more than a year ago. The dearest rent (Tokyo) is approximately $A6000 a It addresses feedback from a recent reader month, while the rent in Buenos Aires for the survey in which 95.6 per cent of respondents equivalent standard apartment will set you back said they wanted to read about interstate about $A800 a month. developments. And the three cheapest cities in the world on To access archive editions of Steel In Touch, Mercer’s list of 144? Asuncion (Paraguay), go to www.xlerplate.com.au and click on The Steel in Touch Newsletter has been prepared for information purposes only. Montevideo (Uruguay) and Santo Domingo BlueScope Steel makes no representation or warranty as to the completeness or accuracy Steel In Touch. of the information contained in the Newsletter. You must make your own assessment of (Dominican Republic). the information contained in the Newsletter and rely on it wholly at your own risk

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XLERPLATE®, XLERCOIL® and BlueScope are Registered Trademarks of BlueScope Steel Limited ABN 16 000 011 058. © 2006 BlueScope Steel.