BlueScope Horizon Issue 29

A BUSINESS NEWSLETTER FOR BLUESCOPE PEOPLE Issue 29 August/September/October 15

BLUESCOPE FULL YEAR RESULT: $219M INCREASE IN NPAT AND RECORD SAFETY PERFORMANCE EBIT summary by business: Australian Steel Products: $150.3M up 216% • Increased spreads (lower raw materials prices) • Domestic volume slightly weaker • Strong contribution from acquisitions • Significant losses continue in commodity steelmaking New Zealand & Pacific Steel: ($33.2)M down 144% • Losses continue in commodity steelmaking • Lower earnings from iron sands exports • Higher proportion domestic COLORSTEEL® steel sales • Contribution from Pacific Steel acquisition Building Products: $98.3M up 11% • Improvements in Indonesia, India and Vietnam • Softer results from Thailand, Malaysia and North America • Improved performance from Tata BlueScope Steel JV in India

Paul O’Malley, Managing Director and CEO, speaks to media at Port Kembla Steelworks after the results announcement.

On 24 August, BlueScope announced its financial results for the 12 months to 30 June 2015 – the best financial result in five years. We also recorded our best safety performance ever: LTIFR of 0.6, and MTIFR of 4.6.

“All credit to BlueScope employees around the globe for this year’s result,” said Paul O’Malley, Managing Director & CEO. “And congratulations for your contribution to our record safety performance. However, people are still being injured. Please continue to switch on to safety and choose the right behaviours.”

The headlines: • Reported Net Profit after Tax (NPAT) of $136.3 million, a $218.7 million increase on FY2014 • Underlying NPAT was $134.1 million, nine per cent higher than the previous corresponding period

• Underlying Earnings Before Interest and Tax (EBIT) 14 per cent higher at $301.8 million • As at 30 June 2015, net debt was $275.2 million, with gearing at 5.5 per cent.

• BlueScope’s Board approved payment of a fully franked final dividend of three cents per share “These results clearly show that BlueScope is operating on two tiers,” continued Paul. “There are challenging times in some parts of the business, countered by some really great opportunities to grow in other parts. We all need to work together and do our best for the Company. It is imperative that we adapt to deliver permanent cost savings to ensure a sustainable business for the future.”

“BlueScope has a diverse portfolio of businesses.

We are a global leader in premium branded coated and painted steel products, and have regional strengths in engineered buildings.

Hot Rolled Products North America: $107.3M up 3% • Continued full capacity with incremental increase in volume • Favourable foreign exchange translation from weaker AUD:USD • Slightly weaker spreads – lower steel prices but lower scrap and pig iron prices

Looking ahead, 1H FY2016 underlying EBIT is expected to be similar to 2H FY2015, which was $130.8 million.

Strategy review – portfolio management priorities With the release of the FY2015 full year results, Paul O’Malley, Managing Director & CEO spoke about the corporate strategy review underway.

Global Building Solutions: $43.7M up 62% • High volumes and margins in North America • China and Asia engineered buildings – lower volumes and margins from slowing economy • Continued strong performance from China Coated business

“We have a strong competitive advantage in global markets – highlighted by our outstanding brands, technology, channels to market and manufacturing footprint.

“We are the third largest global manufacturer of painted and coated steel products, and the number one in building and construction markets.

WELCOME

In our North Star BlueScope Steel joint venture, we operate arguably the highest performing steel plant in the US. “Our plan is to focus on growth of our premium branded businesses around the world. We must also dramatically improve the cost competitiveness of our commodity steelmaking in Australia and New Zealand.

“There have been extensive changes recently in the global steel industry. From the years 2010 to 2013, China’s finished steel exports have doubled to a Page 2

IN THIS ISSUE 02 Market reaction to FY2015 results

05 See the new Lysaght app

03 Chairman to retire

07 Innovation in China

04 Inaugural environment award

08 SuperDyma® passes the test

HORIZON Issue 29 August… 15 Page 2

WHAT THE MARKET SAID: Bank of America Merrill Lynch Small beat vs street, one step closer to Aust. steel closure BSL advised they were collaborating with the state government, trade unions, employees, suppliers and customers to achieve $200m in cost reductions, while also conducting “ongoing” work on withdrawing from direct steel supply and closing PKSW. We continue to believe closure is likely… NZ also faces similar issues to Australia, with high domestic steel production costs. Buy retained CBA FY15 result – changing the game PKSW restructure. Management is confident in delivering at least half of the A$200m target, with the balance requiring cooperation from stakeholders. We believe these savings would need to be delivered in full to avoid a potential closure of commodity steel manufacture. It would appear to be a significant challenge to deliver a satisfactory return from this business without help from macro drivers. Overweight Citi Value is in the downstream Our investment thesis contends that BSL top three position as a branded supplier of coated and painted flat product is overwhelmed by its globally insignificant role as a crude steel producer.

Although BSL management has indicated a preference to keep PKSW open, from an investment perspective, we are ambivalent…

Regardless of the outcome, we see ongoing margin strength in the downstream where value is added to HRC and not in the making of slab and HRC. Buy Credit Suisse Steel making on notice: Breakeven or exit BlueScope has delivered an ultimatum to all stakeholders including government. If the cost

reduction is not delivered (at the cost of 500 jobs), steelmaking ceases at the cost of all 5,000 jobs (an incremental 4,500 jobs under risk after FY16 planned 500 redundancies). BlueScope… will import steel for a better outcome for shareholders and business sustainability. Outperform Deutsche Bank Port Kembla will be mothballed if $200m in cost reductions can’t be realised Mgmt made it very clear today if $200m in cost reductions cannot be achieved by FY17, Port Kembla Steelworks (Blast Furnace 5) will be mothballed. Given 1/3 of the cost reductions involve stakeholder support, we believe the target will be difficult to achieve, and therefore BF5 will likely be mothballed. Buy Goldman Sachs FY15 Result: Strong beat illustrates BlueScope still has levers to pull The key takeout of today’s result is that BSL is seeking to aggressively restructure the cost base of the business to ensure it stays viable. BSL used today’s release to send a very strong and clear message.… constructive engagement is the only option to ensure the longer-term viability of the business. Management will provide an update to the market on the progress of its cost reduction strategy around its AGM in November. Buy JP Morgan Ultimatum Set for Port Kembla Steelworks The directive from BSL’s CEO could not have been much clearer: either achieve $200m of cost savings by FY17, or mothball the last blast furnace at the Port Kembla Steelworks. The preferred route for the company is to deliver cost savings, but management stressed the need for key stakeholder engagement over the next 6-8 weeks to ensure the target can be met. Overweight

Macquarie It’s a whole new world In line with our recent upgrade, BSL is now confirmed as an attractive restructuring story.

The resolute intent to reposition the business from a competitive point of view in Australia is key – with either $200m in cost savings or a difficult decision to close/mothball Port Kembla steelmaking capacity lies ahead. Outperform Morgan Stanley Australian Steel Restructuring – targeting A$200mn of cost savings: We see any continued operation of Port Kembla as likely to be an interim measure rather than a long-term solution. In addition, management is targeting NZ$50mn of cost savings at the NZ Steelmaking facilities… Within our current forecasts, we assume little earnings uplift from cost-out in FY17 and see significant upside should Port Kembla steelmaking facilities be closed.

Overweight UBS We still believe exiting steel making could add shareholder value We believe the scenario of moving to a downstream focus on value added coated and painted products remains the preferred option for shareholder value creation. We note the long term sustainability of any cost reductions remains inherently risky given BlueScope’s sub scale manufacturing footprint and high cost base relative to larger Asian peers… We estimate mothballing the PKSW could… potentially provide a more predictable, less volatile cashflow stream that could attract a higher valuation multiple. Buy

Strategy review – portfolio management priorities Cont from page 1 run-rate this year of over 100 million tonnes per annum – an increase equivalent to the output of 20 Port Kembla Steelworks.

“With steel demand having peaked in China, and rising global steel production and exports, steel prices and spreads have come under significant pressure. Indicative Asian hot rolled coil steel spreads are now below US$200 per tonne, down from an average of around US$295 per tonne over the five years to 30 June 2014.

“In this situation, it is clear to see that making steel in Australia and New Zealand at the moment is loss-making. We have to stop these losses. We must deliver a game-changing approach to costs to be competitive.

“We have initiatives underway to achieve sustainable reductions in the costs of raw materials, manufacturing, procurement and supply chain, overheads and property. In tandem, we are pursuing initiatives to achieve revenue growth. Our target is to deliver $200 million of permanent annual cost reductions in Australia, and over NZ$50 million in New Zealand, by FY2017.

“We also need Federal and State governments to contribute, for example by reducing payroll tax, EPA and WorkCover costs, and by using the EITE (emissions intensive trade exposed) framework to defer carbon costs until our major trade competitors, those that compete in our markets, face such costs.

“Our objective is to maintain steelmaking at Port Kembla and Glenbrook – allowing us to keep more people employed in the Illawarra and Franklin regions, and retain exposure to the upside of improving margins without incurring significant restructure costs.

“The strategic review is well underway and we are committed to the delivery of the targeted savings. However, we must realise that if this target in not achievable, we will have no option but to move to external supply of quality hot rolled coil and billet steel feed with mothballing or closure of steelmaking.

“We now urgently need firm commitments to a more flexible and productive approach to labour.

“And in New Zealand we are also reviewing the iron sands export business.

HORIZON Issue 29 August… 15 Page 3

BLUESCOPE CHAIRMAN TO RETIRE As well as his Chairmanship of BlueScope, Graham is a Director of Djerriwarrh Investments.

He was previously Chairman of Brambles, Chairman of National Australia Bank, and a Director of News Corporation and the Reserve Bank of Australia. His executive career spanned 30 years as CEO of a number of businesses in the diversified industrial and wine sectors including Pacific BBA and Southcorp. He has held many business and community roles including national President of the MTIA (now Australian Industry Group), national President of the Australian Wine and Brandy Association, and Chairman of the Future Directions Forum. In December, 2013 he was appointed to the Australian Prime Minister’s Business Advisory Council. In 2003 he was made an Officer of the Order of Australia for services to industry and the environment.

Graham Kraehe, AO (left), with incoming BlueScope Chairman John Bevan

BlueScope Chairman, Graham Kraehe AO, has announced his intention to retire from the Board, effective at the conclusion of the AGM on 19 November. He will be replaced by John Bevan, a non-executive director of the Company.

Graham was appointed BlueScope’s inaugural Chairman after the Company demerged from BHP Billiton in 2002, and he has led the Company throughout great volatility in the global steel sector.

Announcing his intention to retire, Graham said he was proud to see the Company well positioned, with more than 16,000 employees working in 17 countries around the world.

“It has been a great privilege to work with the global BlueScope team. While it has been a tough ride in recent years, I have nothing but admiration for the dedication to safety and quality that all BlueScope people share. We have built a world class platform of assets with leading edge technology and brands.

“I will hand over to John Bevan following the AGM, knowing the Company is in excellent hands to meet the challenges of the future,” he said.

“I know John Bevan will do an excellent job and he will be working with an outstanding Board and management team. Shareholders can feel confident that BlueScope is very well led and on the right track.”

John Bevan congratulated Graham on his long and distinguished career in leading roles in corporate Australia. “Graham has been a great conviction businessman, passionately arguing for economic reform to improve Australia’s overall competitiveness. He has led some great Australian companies, and as Chairman of BlueScope he led the Board and management through some difficult times, and major restructuring which has returned the Company to profitability post the global financial crisis. All of us wish him well in his retirement.”

John Bevan was CEO of Alumina Limited from 2008 to 2014. Before joining Alumina Limited he spent 29 years in a variety of senior management roles with BOC Group, including as a director on The BOC Group plc Board, Chief Executive Process Gas Solutions with responsibility for the bulk and tonnage business for the entire BOC group, Chief Executive Asia and country lead roles in the United Kingdom, Thailand and Korea. John is also a non-executive director of Ansell Limited and will join the Board of Nuplex Industries Limited in September. He brings to BlueScope’s Board extensive experience in international business and heavy industrial operations.

been the turnaround in Buildings in North America, where we had two years of losses, and now we’re making good profits, or conversely it was the really good performance in Buildings in China where we made a lot of money, and now we’ve got losses. There is good performance in BlueScope, and great opportunities – but also great challenges. We have made no decisions to close any assets at this stage, we are investing our entire effort on finding solutions to ensure that we can deliver improved business performance or game-changing cost reductions where necessary.

“We will update employees on the progress of the strategy review by our AGM in November.

“Our employees all across Australia and New Zealand need to understand the world has changed, the markets are competitive, and for us

to continue steelmaking in Australia and New Zealand, we must have a game-changing approach to costs.

“Everyone in BlueScope in the last five years has been through a challenging time, whether it’s

“You should be proud about working for BlueScope, and confident that we will do what is right, and we will do our best to ensure that we work together to be a successful business with an appropriate cost base.”

HORIZON Issue 29 August… 15 Page 4

WASTE RECOVERY TAKES OUT ENVIRONMENT AWARD The Port Kembla Steelworks’ Slabmaking – Basic Oxygen Steelmaking (BOS) team has won the inaugural BlueScope Environment Award.

The large-scale ‘Waste Recovery and Minimisation of BOS Filter Cake’ project was recognised for significant cost and environment savings achieved through efficient use of resources. Implementing the project has eliminated using approximately 62,564 tonnes of iron ore, resulting in $7.6 million in cost savings and reduced overall waste that might otherwise represent a disposal liability.

The winning project was selected from 19 entries.

In line with the FY2015 Corporate Environment

Strategic Plan, each business unit was encouraged to submit an environmental engagement or improvement activity which demonstrates commitment to Our Bond and BlueScope’s HSEC Policy: “We care for our environment through the efficient use of resources; pollution prevention strategies and mitigation of process disturbances; reducing the environmental impact of our operations and products; and community engagement and consultation.”

The award was announced on 5 June, recognised as World Environment Day across the globe and in many BlueScope businesses, and will be formally presented to the BOS team later in the year.

Waste recovery project overview First Generation BOS Filter Cake is stockpiled at the Port Kembla Recycling Area. At its largest, in May 2012, the 1st Gen Filter Cake waste streams accounted for 105,712m3 (243,000t) stockpile, classified as general solid, with a baseline liability of approximately $50 million.

BlueScope had been unable to find a long term use or customer for this material. It was then discovered that processing the 1st Gen Filter Cake via tube press filters resulted in a self-sintering reaction* in the stockpile which generated an iron ore-like product (~60% Fe). As the properties of this self-sintering material were similar to iron ore, the team began investigating if it could be a substitute feed material in the BOS process.

The BOS was then consuming approximately 3,000t per month of iron

ore as a raw product. In July 2012, a three month trial assessed the impact of reusing limited quantities of the self-sintering 1st Gen Filter Cake in the BOS. Initial results indicated the portion of the stockpile that was >10mm in particle size was suitable for use. In July 2013 this was revised to >4mm, meaning there was the potential to use approximately 60%, or 63,427m3 (121,569t), of the waste stockpile.

From November 2012 1st Gen Filter Cake was integrated into normal operating consumption. The resulting BOS Filter Cake from this operation is now called 2nd Generation BOS Filter Cake.

In October 2013 a similar trial assessed if this material could also be used in the BOS to substitute for iron ore. Again the results indicated the portion of the stockpile that

was >4mm in particle size was suitable.

Between July 2012 and November 2014, the BOS has consumed approximately 65,692t of 1st and 2nd Gen Filter Cake.

The stockpile of 1st Gen Filter Cake has been reduced by 45,865m3 (105,490t), representing a 72.3% reduction of the usable stockpile, 43.4% reduction of total usable and unusable fraction stockpiles, and a liability reduction of $23 million.

Even taking into account generation of the 2nd Gen Filter Cake, the combined stockpiles are still around 10.6% smaller than in November 2012. * the process of compacting and forming a solid mass via inherent heat caused by an exothermic reaction without melting it to the point of liquefaction.

A VERY GREEN SOLUTION An innovative solution at Port Kembla Steelworks has resulted in nearly two tonnes of printer cartridges being sent for recycling since October 2014, saving costs and reducing waste to landfill.

“For some years now, many people at the Steelworks were trying to be environmentally responsible by recycling cartridges, but without a consistent, coordinated approach in place it took individual business areas time and effort to make it happen,” says Justin Callinan, Team Leader, Contractor Performance, BlueScope ANZ. “The Alliances and Recycling team saw there was an opportunity to assist by improving and unifying recycling programs already in place, and extending the service to all areas on site.’

Sue Stevens from Fluor and Justin Callinan, Team Leader, Contractor Performance, BlueScope ANZ, with printer cartridges ready for recycling

Some Port Kembla departments had already engaged the services of resource recovery and recycling company ‘Close the Loop’ for printer cartridge recycling. Close the Loop promises ‘Zero Waste to Landfill’ and it made sense to expand the service across the site, but the problem was how to collect the cartridges from many locations and establish a simple process.

“An elegant solution emerged when we discovered Close the Loop uses Australia Post to deliver cartridges to its recycling plant,” continued Justin.

“We decided to replicate this model and asked our own internal mail provider, Fluor, if they could help.

The response was positive from the beginning, and we worked together to determine how the existing mail run could be used to safely pick up cartridges and other printer consumables from across our Illawarra sites.”

The process now sees used printer cartridges left in a plastic bag at mail collection points anywhere in BlueScope in the Illawarra for collection the next mail day. At their office, Fluor employees transfer the cartridges into garbage bags which, once full, are picked up by Australia Post with the mail for despatch to Close the Loop. Fluor also collects the plastic bags used to catch any toner spillage from each cartridge and sends them to be recycled by Flagstaff, another Port Kembla alliance partner.

“We are thrilled with this result – it means that you if you recycle the cartridge this way, AND put the cartridge box in the cardboard recycling bin, then everything has been recycled,” concludes Justin.

HORIZON Issue 29 August… 15 Page 5

LYSAGHT – 50 YEARS AND GOING SOCIAL • consultative selling by being closer to customers through the entire sales process; • instant and measurable feedback.

“We have also taken our first step into social media with a Facebook page in Thailand, which has already achieved 10,000 followers. Similar pages are planned in other countries,” adds Atul.

In metal roofing, Lysaght is the first company in ASEAN to launch an app focused on providing rich technical data and inspirational ideas.

Across ASEAN BlueScope Lysaght is celebrating 50 years in the region. At customer events held to mark the occasion, the Lysaght team introduced a suite of new products, collateral and communication channels including a mobile app, new website and corporate video, an updated look for the logo, and the Products Innovation Centre in Singapore.

“This is part of our strategy to restore Lysaght to its technical, brand and market leadership position in ASEAN,” says Atul Gogna, Vice President Strategic Marketing.

“The Lysaght app is central to our digital marketing strategy. Adoption rates of mobile and social media, especially in Indonesia, Singapore and the Philippines, rank amongst the highest in the world, and we see that digital media brings many benefits: • for customers, quick, real-time access to large database of information; • target customers more precisely and customize messages to different segments; • disseminate information continually, instead of intermittent marketing campaigns;

“Developing the app was a complex process,” continues Atul. “We started out with a high-level concept of the purpose, customer benefits, features, aesthetics, technical performance standards, mobile platforms and delivery mechanism. The next step was finding a reliable and cost-effective app developer. But by far the most arduous and time-consuming aspect was populating the structure with attractive, useful and accurate content. Yeoh Moi Tian, Lysaght Marketing Manager Malaysia, made an immense contribution by managing this entire process and meticulously scrubbing every piece of data for accuracy.

“We canvassed ideas with some customers to ensure the app was useful and easy to navigate.

One of the challenges was selecting features for users in different industry segments. For example, architects may expect the app to help inspire design ideas, while contractors look for products that help them complete a project more efficiently, and engineers want solutions to an engineering problem. And, it needed to work for all Lysaght sites and accommodate all categories of products and product types across the region.

“And the ‘colour visualizer’ feature had to be vivid, real and attractive, without compromising the original roof details. This was especially tough when we tried to visualise a light Clean COLORBOND® steel colour onto a dark roof.

The graphic designers spent countless hours meticulously fine-tuning their work to achieve the best effect.

The Lysaght app: • Instant connectivity on the move: 24/7 access to Lysaght and its products, which is especially important for younger generations • Builds market image: Lysaght prides itself as the technology leader in building and construction, hence this is a really important step in branding and taking a leadership position • Instant access to practical information and data: all information is downloadable, in a user-friendly interface • Customer service: product enquiries are instantly delivered to the Marketing team for immediate attention and action Key features: • Product Library: full collection of Lysaght products, brochures and data sheets • Product Finders: step-by-step guide to choose the most suitable product for specific project and design requirements • Visualizer: instant indicator of how a colour will look on selected buildings, roofs and walls • Knowledge Centre: full collection of downloadable brochures, technical data sheets, product literature and audio visual files “So far, the app has been very enthusiastically received. We plan to gather feedback on its usefulness and on additional features that users would like, and based on that we will look to release an upgrade by next year. We also intend to launch similar apps for other products in the ASEAN market, such as BlueScope Zacs® steel which is our rapidly growing steel roofing consumer brand.”

HORIZON Issue 29 August… 15 Page 6

BIG BENEFITS FROM NEW RINSE TANK A team at Western Port has overseen the installation of a new Pickle Line rinse tank which has improved product quality and created a safer working environment for employees carrying out operational and maintenance tasks.

“With age and damage from corrosion, the old rinse tank had deteriorated to the point where we were facing an unacceptable operational security risk,” explains Brent Jarrett, Project Engineer.

“In addition, the poor condition of the tank and the outdated rinsing system was leaving stains on the surface of some product, resulting in it becoming non-prime.”

The size of the tank – 15.9m long, 3.9m high and 3.9m wide – presented a number of challenges in removing it and installing its replacement safely and efficiently. “We worked closely with C&E Plastics, the tank supplier, to determine the best approach,” continues Brent. “On their advice the tank was constructed in an upper and lower section, joined with a flange and seal arrangement above the liquid level of the tank.

This was the ideal solution for a tank being installed in a brown field site, such as ours at Western Port, where there is limited room to move and lift equipment.

“The original rubber lined brick and steel tank was cut into five sections, and removed by the overhead Pickle Line cranes. Damaged supporting structures were removed or repaired in preparation for new support structures, and we stripped back the connections to adjoining process equipment ready to be modified for the new tank.”

The new tank was lifted into place by means of a customised rig, working around the constraints posed by the limited headroom. The rig was also used to unload and transport the tank sections from storage to the Pickle Line.

The lower section of the tank was placed on the base plate and aligned to the centre of strip,

then the access platforms and decks were positioned. Finally the upper tank section was positioned, and the installation of the process connections and wringer rolls completed.

“A preliminary review indicates the new tank is meeting its design criteria,” says Glenn Toy, Project Engineer. “Our Cold Reduction Process Engineers are now looking at how they can refine process improvements and leverage the opportunities the new tank offers for both product quality and reduced life cycle cost of maintainable equipment.

“We couldn’t have had such a great result without careful planning amongst the team, and working closely with the supplier from start to finish.”

STELTECH TAPS NEW MARKET ®

New Zealand Steel’s Steltech® business custom manufactures columns and beams to almost any size, shape, or length. After the business development team identified a gap in its product offer that was allowing imported hot rolled steel sections into the medium-span portal frame building market, Steltech® engaged with one of its customers, manufacturer Donovan Group Ltd (DGL), to co-develop a lightweight and efficient new product.

connections, which prevent birds from roosting and rats moving along the beam! As it turns out, the initial product trials show this to be one of the most attractive features of the design, and many customers are choosing the product, particularly for food storage and industrial applications. This is a classic case of Lean Start-Up methods

uncovering customer value through early-stage in-market trials.”

Further work is now being done, through the University of Auckland with the support of government funding, to develop software to optimise portal frame building design using this product.

Together Steltech® and DGL are commercialising the novel beam which comprises coil plate folded into a long tapered C section and nested inside another C section of the same dimension.

A patent application has been filed on the beam design, and the engineering has been independently tested by the New Zealand’s Heavy Engineering Research Association. DGL has sold around 1000 tonnes of this product already, even though it has undertaken very little marketing effort.

“Initially, the marketing team thought the product’s value proposition would be its aesthetically pleasing design, the engineering efficiencies and cost savings,” says Dr Troy Coyle, Manager of Innovation and Product Development. “However, an unexpected benefit has arisen from the beam tapering and flush

The Steltech team: (standing, l-r): Tim Williams, Donovan Group Ltd, Nigel Bradley, Key Account Manager, NZS, Neil Pollock, Acting VP Sales NZS Troy Coyle, Manger Innovation & Product Development, NZS, Andrew Mackay, Product Launch Manger, NZS, Brett Donovan, Donovan Group Ltd. (sitting, l-r): Kirsten Magnusson, Category Manager, Building & Construction, NZS, Kyle Donovan, Donovan Group Ltd, Chris Cussen, General Manager Steltech.

HORIZON Issue 29 August… 15 Page 7

LYSAGHT PROVIDES A BEAUTIFUL SOLUTION

INNOVATION ADDS VALUE TO ROOFING SYSTEM

After devastating floods in 2011 left eight ferry wharves damaged beyond repair, the Brisbane City Council called for new wharves that were not only practical and flood resilient, but would also become an eye-catching feature of the Brisbane River. The architects chose LYSAGHT LONGLINE 305® – a striking architectural cladding with bold, sharp ribs and flat pans which, when combined with COLORBOND® Ultra Monument® steel, met the council’s brief perfectly.

Traditionally, the Butler MR-24® roofing system has been manufactured from aluminum zinc plate. Recently, BlueScope Buildings China’s R&D department completed breakthrough roll forming and flanging tests on using aluminum magnesium manganese plate for the MR-24® roofing system.

Zelko Nagy, Account Manager Roofing, and Ray Knight, Business Development Manager Commercial & Industrial, worked closely with the architects and roofing contractors to help deliver a successful project.

Aluminum magnesium manganese plate is a highly cost-effective roofing and walling building material, known for its moderate structural strength, weather and stain resistance, and flexibility which give it a life span of more than 50 years.

After the initial round of successful tests, the R&D team performed the wind resistance test which achieved the necessary 2.9kPa (FM1-60) wind lift requirement. The series of tests proved that the product met the minimum standards for a metal roofing material, and it can now be widely used across China. BlueScope China will market the new roofing product as “AR-60” aluminum magnesium manganese roof panel.

The development of AR-60 aluminum magnesium manganese roof panel broadens the range of applications where Butler MR-24® can be used, such as airport terminal buildings, stadiums, stations and other public buildings. It is also suitable for a highly corrosive environment.

All spare parts of AR-60 aluminum magnesium manganese roof panel can use the MR-24 ® standard products, thus greatly reducing development and inventory costs.

AR – 60 rolls off the assembly line.

A birds-eye view of one of the Brisbane River ferry wharves featuring LYSAGHT LONGLINE 305®.

GREAT BENEFITS FROM INNOVATIVE RECYCLING PROJECT

Peter Bishop from NRP, Gasper Adaikalaswamy, Senior Technical Process Leader, BANZ, and Albert Nowlan, Procurement Specialist – Packaging, BANZ.

At home, we have the power to recycle the packaging that protects the goods we buy.

For the customers who purchase our products, it’s not so easy. However, the BANZ Procurement team, along with a number of Operations, Techincal and Customer Service personnel, have achieved outstanding results in recycling the packaging materials – pallets, surface protection, donuts and circles – that protect the BlueScope products despatched to customers.

“Typically the packaging is stripped off and discarded at the customer’s site,” says Albert Nowlan, Procurement Specialist, BANZ. “We’ve worked with a core recycling specialist group, NRP, to visit customers’ sites and collect packaging waste which is sorted, cleaned and repaired where it is economically viable to do so.

The reconditioned packaging is then sold back to us at significantly reduced rates than the cost of new material.”

The main packaging materials recycled are bolted coil pallets used to transport large coils out of the Springhill, Western Port and Western Sydney

Service Centre sites, as well as the nailed coil pallets that transport coils out of Supply Chain and Processing Services sites such as Braeside, Chullora and Acacia Ridge.

“Today, 49 per cent of the pallets used to transport coils are recycled,” continues Albert.

“From 2010 to 2014, this has delivered substantial savings to BANZ, and has directly influenced our spend on packaging lines. Continuing our core relationship with NRP has delivered incremental reductions to baseline costs, as well as giving us the opportunity to reduce our environmental footprint.”

HORIZON Issue 29 August… 15 Page 8

SUPERDYMA PASSES THE TEST ®

Great team work and detailed planning resulted in a successful manufacturing trial of SuperDyma® at Springhill Works. SuperDyma® is a third generation coating technology developed by BlueScope’s coated products joint venture partner Nippon Steel and Sumitomo Metal Company (NSSMC) in Japan, but exclusively licensed to BlueScope in Australia and New Zealand.

A BANZ project – known as Project Regal – is considering the feasibility of replacing the complete range of galvanized steel applications with SuperDyma®, and one of the key

components is to develop manufacturing capability to produce the new coating. If proven viable, the coating metal savings and customer benefits will be a significant contributor to the BANZ Strive 2 Thrive program.

The three day trial followed months of planning and preparation by a dedicated cross functional team. Amongst the challenges was the need to source and handle a different mix of coating metal ingots, which necessitated engineering and procedural modifications to the pot alloying feeding equipment.

Considerable effort went into establishing a temporary passivation chemical mixing and application rig. The Manufacturing and Maintenance teams at Springhill also took on the challenge of safely pumping out the galvanized liquid coating metal, replacing it with SuperDyma® composition ingots, and then repeating the process at the end of the trial.

In total 2,200 tonnes of SuperDyma® was produced with coating weight ranging from 60 up to 550 grams per square metre. All the product has subsequently passed tests checking for satisfactory shelf life during transport, storage and handling - a key objective of the trial. Surface inspection of each coil is now almost complete, with the next step being extensive trial and evaluation by customers in their manufacturing processes. Trial product has been earmarked for use in purlins, decking, sub-floor components, nail plate, and internal dry-wall structures.

Trial SuperDyma®

In parallel with the customer evaluation, Engineering teams have begun a detailed feasibility study to confirm the scope and cost of associated equipment upgrades, in preparation for a funding decision at the end of 2015.

A large number of people contributed to this success, with specific recognition to Ben King, Libby Ackers, Lyndal Evans, Tim Jaques, Greg Horton, Rob Ciguenza, Dan Parker, Wayne Renshaw, Jason Hodges, Geoff Dale, Geoff Tapsell, Brett Tarrant, Vince Daly, Andrew Micallef, Michael Tran, Simon Correnti, Steve Rowland, Andrew Collins, Mo Achaechi, Nick Dunstan, Aaron Neufeld, Hung Dam, Damien Jinks, Felicity Ball, Nick Stacey, Damien Garrety, Linda Pendlebury, Jessica Grossmann, Nicole Ryan, Ben Wiggins, Scott Cluff, Greg Wright, John Read, David Buxton, Anita Rojas, Cheryl Humphries, and Kristina Bicanic.

Lyndal Evans, Material Engineer, and Nick Stacey, Materials Engineering Cadet, during the SuperDyma® trial

EXCITING NEW MARKET OPPORTUNITIES

After seven months of developing processes and preparing test samples and reports to comply with the ISO3834 and EN1090 standards, the BlueScope Guangzhou team has received the European Certificate of Conformity which

enables it to sell Butler primary and secondary structural products into the European market.

The assessment also required a group of welders to complete an exam to demonstrate compliance with European standards. The Certificate is a

strong sales tool for BlueScope’s business in China, providing an excellent platform for the global buildings business to enter the European market.

The team is now focusing on obtaining European accreditation for roofing and walling systems.

CUSTOMERS SEE INNOVATION AT WORK

BlueScope Malaysia customers at Port Kembla Steelworks Innovation Lab

A group of BlueScope Malaysia customers has visited BlueScope’s Innovation, Research and Development Centre at Port Kembla Steelworks to get a first-hand look at the detailed work that goes into developing new products.

world-class products are made,” said Pongsak Padungkran, Country President Malaysia, Singapore and Brunei. “We hope this once in a lifetime experience will give them a greater appreciation of our products.”

“BlueScope prides itself as a world-leading steel manufacturer, and we are very pleased to give our customers this opportunity to see how our

The visitors toured the manufacturing processes at the Steelworks, and also inspected a number of buildings in Sydney featuring BlueScope

products, including Netball Central, the Olympic Park Train Station, and Pier One at Sydney Harbour Hotel.

The visit is in line with BlueScope Malaysia’s year-long plan to provide educational tours and seminars for customers, architects and other construction and building industry professionals.

FOCUSING ON ZERO HARM

(l-r back row): Bob Pullein, Zillion Wang, Sean Power, Steve Norbury, Richard Van Auken, Teerapong Raksasang, Prakash Velu, Andrew Montgomery, Dung Do, Ruamporn Tantapakul, (l-r front row): Owen Wilson, Syed Kamarudin, Chayaphon Sirithunyakorn, Suwit Veratantana, Kerry Yu

BlueScope’s safety leaders maintain strong networks to share best practice, keep abreast of new initiatives in safety, and drive safety improvements across the Company.

At the Global Construction Safety Conference in June the team committed to address specific

areas of focus in FY2016: Horizontal life lines, the Sky-Web® II passive fall protection and insulation support system, temporary bracing, contractor selection and performance management, construction safety reporting and Construction Global Requirements auditing.

WHAT’S YOUR OPINION email

(l-r back row): Bob Pullein, Richard Van Auken, Bruce Latham, Steve Norbury, Prakash Velu, Andrew Montgomery, (l-r front row): Kerry Yu, Hanim AbuBakar, Gemma Carr, Tommy Taggart

The BlueScope OH&S Lead Team, comprised of representatives from all businesses, also met recently, and prominent among the range of issues discussed were critical risk

focus, hand safety, manual handling, safety coaching and the importance of leaders demonstrating felt leadership.

HORIZON@bluescope.com

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