Report on BlueScope Steel Lab Example | Topics and Well Written Essays - 2000 words

On BlueScope Steel - Lab Report Example The most important growth element in BlueScope Steel is evident in its major restructuring plan covering Australian operations, which seeks to reposition the company for increased profitability and as well as growth. The Board approved the restructuring plan and as such, it will contribute to major changes in the operations of the firm that include shutting down the No. 6 Blast Furnace at the Port Kembla, closure of No.4 Cokemaking battery, No. 3 BOS steelmaking furnace and No.1 slab caster as well as closure of the Western Port Hot Strip Mill. Mergers and acquisitions are considered the best corporate strategy for BlueScope Steel owing to a wide range of positive attributes associated with it. With mergers or acquisitions, the company will certainly avoid the hustles associated with joint ventures or funding a subsidiary. The company has managed to expand a number of its operations owing to acquisitions. Key among the acquisitions made by BlueScope over the previous financial years include IMSA Steel Corp, a steel products manufacturing company, from Ternium SA subsidiary of San Faustin NV's Grupo Techint unit as well as Smorgon Steel Group Ltd (SS) steel and metal marketing division. Member 3 WANG, YING 2766757 To a steel-making company such as BlueScope, the value for its business comes from the steel and iron production, which is the most important valuation measurement. Besides the workforce, the steel industry is labor-intensive business. Then, the equipment and devices are also the value for this kind of industry. To increase the enterprise value, there are three major missions, namely reinvigorating their domestic business, including Australia and New Zealand; expanding and improving Asian and North American market; and continuing to grow sunrise business to make BlueScope Steel a unique steel production enterprise (2010/2011 Annual Report 2012). Coated and Industrial Products and Pacific Steel Products have significantly helped the company earn much mo re profit than before, in Australia and New Zealand, respectively (BlueScope Steel Limited Products2012). Because for the domestic market raw materials can be mined in Australia, the transportation expenses can be saved and steel marketing industry is the mainstay industry to countries in Oceania. Therefore, the growth project for steel making in these two years was very strong (IBIS World 2012). In addition, this program makes raw materials a very important role of producing iron for steel-making companies. As everybody knows, Australia is the origin of iron and its economy based on the export of the raw materials and iron. Australia gained a huge amount of capital during these four to five years (2010/2011 Annual Report 2012). Moreover, Australia was just affected slightly by economic crisis. According to this advantage, steel and iron production increased rapidly in Asian countries, and BlueScope Steel seized this opportunity. They take the advantage of Australia's natural resour ces, transfer them to the capital, and make the steel industry to be one of the top three pillar industries both in Australia and in New Zealand. The hot strip mill and the plate mill have been identified as the most two profitable products.However, this only depends on the market demand. For instance, if the market is in a positive situation, the steel price is high and market demand is optimistic, hence the production level will be maintained and the profit will be guaranteed at the same time. When it comes to the real