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BlueScope Proceeding with North Star Expansion

Steel News - Published on Mon, 19 Aug 2019

Image Source: ABC
BlueScope Managing Director and CEO, Mr Mark Vassella said “After careful due diligence, today we advise that the Board has approved the expansion of our successful North Star business at Delta in Ohio USA, subject to anticipated receipt of necessary air permits and local and state incentives. BlueScope will add around an additional 850,000 metric tonnes per annum of domestic steelmaking capacity in the US. With an estimated cost of USD 700 million, commissioning of the expansion is targeted for mid FY2022, with full ramp up approximately 18 months later. North Star is recognised as a best-in-class asset. Based on long-term historical spreads, this project is expected to deliver compelling ROIC of 15 per cent or more, once fully ramped-up. Moreover, the project has future potential growth, through possible debottlenecking to add a further 500,000 metric tonnes per annum of steelmaking capacity.”

He said “This project fits our strategy perfectly. It offers long-term sustainable earnings growth from a high-quality asset. It is a significant tribute to the 400 employees at Delta who work hard to make it such a strong performing asset. The BlueScope investment proposition now comprises a strong suite of assets and options, capability and discipline, all focused on growing long-term shareholder value and returns.”

He added “To ensure appropriate management and governance of the North Star expansion, we have made some changes to our Executive Leadership Team. Mr Pat Finan will take the new role of Chief Executive Hot Rolled Products North America, responsible for both the North Star operations and the expansion project. Mr Finan is well placed to oversee this important investment, having held executive responsibility for the North Star operations in his current role, and been closely involved in the due diligence phase. Mr Alec Highnam, President BlueScope North America, will take on the expanded role of Chief Executive BlueScope Buildings leading the Group’s engineered steel building business in North America and taking on executive responsibility for BlueScope’s other corporate interests there, including Innovation and the BlueScope Properties Group.”

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Posted By : Sanju Moirangthem on Mon, 19 Aug 2019
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