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ISSUE 7 JUNE 2013

GIVING CUSTOMERS AND INDUSTRY THE EDGE WITH NEWS AND INNOVATION

Sun ray

A bright future ahead with the help of BlueScope Distribution Export

IN THIS ISSUE Industry Edge - $1 billion innovation package for the steel industry 8 Product Edge - Next Generation ZINCALUME速 steel 12 Book Review - Exceptional Service Exceptional Profit 14

DISTRIBUTION UPdate WELCOME Welcome to the seventh edition of The Edge. In this issue you’ll find case studies featuring a range of steel products and their applications in a variety of industries, plus important industry information and news from across our BlueScope network.

Once again we have sought to bring you an interesting and informative read on what’s happening in the steel industry and at BlueScope Distribution. As usual, we give you a global economic snapshot, an interesting look into ‘steel at work’ with our case studies and also an inspirational book review. We also look at the federal government’s $1 billion innovation package for the Australian steel industry, the importance of ACRS certification and we introduce our new Next Generation ZINCALUME® steel.

Our Steel Efficiency Review™ program has been successfully rolled out nationally.

Utilising the concepts of LEAN and principles delivered by the Toyota Way, we endeavour to understand the key issues and bottlenecks in our customers’ businesses. To learn more, visit steelefficiencyreview.com.au I hope you enjoy this edition of The Edge.

We have received great feedback so far and continue to welcome your thoughts on future editions and topics you would like to see covered.

Please forward your comments or suggestions to contributions@bluescopesteel.com

Andrew Bray Andrew Bray General Manager BlueScope Distribution

Committed to continually improving our partnership with our customers Because evaluating our products and services is an important part of improving our offering to our customers, BlueScope Distribution will be conducting our third Customer Satisfaction Survey later this year. These surveys allow us to identify areas where we can improve, and also the areas where we are performing well.

Along with evaluating our service, another key purpose of our Customer Satisfaction Survey is to identify exactly what factors are paramount to you, our customer. One of the pillars of Our Bond is ‘our customers are our partners’, and your feedback is a vital tool without which we couldn’t effectively evaluate our service and improve on our partnership.

Additionally, if you have feedback or comments you would like to share outside of the survey, please feel free to contact your local branch, or email contributions@bluescopesteel.com As part of our ongoing commitment to safety, we are continuously evaluating our systems and processes to identify room for improvement in this crucial area. One of the important challenges in our industry is to always safely restrain the highly varied configurations of steel products being delivered.

Varying lengths, widths, packaging, finishes and shapes make each truckload of steel unique, with each load having its own safety and efficiency considerations.

BlueScope Distribution works with a dedicated team of engineering specialists to continuously improve and educate our people on the best and safest way to optimise the loading and restraint system. Our operations personnel ensure our steel loads leave the warehouse as safely restrained as possible - for us, our customers and other road users. Load restraint has been a major focus within our business, and it’s just one of the ways we are endeavouring to deliver to you safely and efficiently, every time.

With the Australian steel industry constantly changing, BlueScope Distribution will continue to evaluate the way we do business and, together with our customers, we will remain focused on a successful future by continuing to deliver on our commitments to our customers, to safety and to our people.

GLOBAL ECONOMIC UPD ATE The Global Steel Industry There have been no significant developments in February demand, with the rise in Chinese demand being seasonal and typical for January and February, although end-use consumption growth has been slow and has resulted in increased inventories. CISA (China Iron and Steel Association) is expecting 750mt of crude production in China, indicating annualised numbers are potentially overstating production growth. CISA is optimistic for the Chinese steel industry in 2013, though market participants are reportedly less bullish.

Increased production drove Chinese crude utilisation to above 87% for the first time since June 2011, however given an annual capacity forecast of 960mt, Chinese crude utilisation is expected to average 78% for the year based on CISA’s production estimate. Crude utilisation in the US has maintained an upward trend, while the declining trend in India seems to have eased.

Building approvals fell in January, when the market was looking for a rise. While weaker than expected, this was driven by the volatile medium-density component, which was strong over 2H 2012. The component which provides a better guide to underlying growth, private-sector house approvals, actually rose by 3.2% MoM. That was welcome, but it basically reverses the fall in the previous month. As a result, housing construction indicators remain muted at a time when the RBA is looking for a strong rebound. Housing finance approvals remained soft in January.

However loans for purchase of new dwellings was up, which is a good lead indicator for future activity and steel demand. NSW is showing positive momentum for construction of new dwellings.

Steel prices in China have eased recently, while market sentiment in China strengthened over January - March, with flat steel prices increasing by 6.2%. Hot rolled coil spread is forecast to improve through to mid-2013, although at a slightly lower level than last month, followed by a decline back to current levels. With the AUD remaining elevated, iron ore prices are expected to remain high throughout the first half, while coking coal prices are forecast to rise in the second half. Steel prices continue to be driven by raw material costs.

The Australian Economy The Australian economy expanded by 3.6% YoY in calendar 2012, which is the highest YoY growth since the GFC. Once again, this data highlights how well the Australian economy has performed, in absolute terms and relative to other developed economies. The main drivers of growth over the past year have been population growth, lower interest rates and continued growth in mining-related investment. While 3.6% YoY growth is impressive, much of this reflects growth that occurred twelve months ago. Over the past three quarters, quarterly GDP growth has been around 0.6% - still respectable, but a definite slowdown from the earlier break-neck pace.

The Westpac Melbourne Institute Index of Consumer Sentiment continues to improve, with the more positive readings (110.5 in March) lately suggesting that lower interest rates may finally be starting to gain more traction with the consumer.

The most recent NAB Business survey showed conditions weakened a touch in February, down 1 point to -3 index points, after rising modestly in January. The below-average outcome suggests that firms continue to tread water as risks to the transitioning economy intensify.

On the CAPEX side, mining investment grew further over the December 2012 quarter, while the manufacturing sector continued its trend decline. Non-Dwelling Work Done increased due to strength in the private sector, despite being hampered by ongoing falls on the public side. Dwelling Work increased for the second quarter running, but engineering construction fell back from the record levels of the previous quarter.

Engineering Construction work done registered A$31.8 billion in the December quarter, down 1.3% in the quarter but up 25.2% for the year. At the national level, publicly funded engineering construction grew 2.5% for the quarter, while it contracted 2.5% for privately funded work which is more focused on mining and energy investments.

AiG PCI: Expansions in house building and engineering construction in February contributed to the sector's strongest reading since June 2010. While still in concretionary territory, the latest Index increased by 9.4 points to 45.6 in the month.

AiG PMI: Australian manufacturing showed some tentative signs of improvement in February with the rate of contraction across the sector easing in the month. The Index lifted 5.4 points to 45.6 in February. Encouragingly, the new orders sub-index rose to 41.8, however the strong Australian dollar continues to impede exports.

Chart Source: ABS, BIS Shrapnel, HIA, *Deloitte Access Economics (based on Gross Output growth rates) Aust Economy Source: BSL Economics Global Steel Industry Source: BSL Economics Source: BlueScope Steel Economics Disclaimer: This document is made available to you on a strictly confidential and non-reliance basis. While every care has been taken to ensure the accuracy of the information, BlueScope Distribution Pty Ltd does not warrant the accuracy, completeness, currency or fitness for purpose of the information.

You should verify and check the accuracy, completeness, reliability and suitability of the information contained in this document for any use to which you intend to put it. Except to the extent to which liability may not lawfully be excluded or limited, BlueScope Distribution Pty Ltd and its related bodies corporate will not be liable to you or any third party for any direct, indirect or special loss or damage however caused (including, without limitation, breach of contract, negligence and breach of statute), which may be suffered or incurred in connection with the information.

Study

Case

Gekko Systems

A team effort that’s

PURE GOLD

Gekko Systems has grown from a husband and wife team in a small Victorian town in 1996, to a leading global supplier of mineral processing equipment with operations in North America, South America and South Africa, and knows a thing or two about what works. Which says a great deal about their enduring 16-year working partnership with BlueScope Distribution.

Mind you, the dynamic duo of Elizabeth Lewis-Gray and husband Sandy Gray weren’t starting exactly from scratch. Each brought exceptional talents to the table in the creation of Gekko Systems – talents which have played an integral part in the company’s extraordinary success.

CEO and Managing Director of the powerhouse mineral processing technology company, Elizabeth Lewis-Gray, worked in stockbroking and strategic planning prior to co-founding Gekko Systems. Bringing her wealth of experience to bear on the establishment of Gekko’s operations, Elizabeth is a multi-award winning businesswoman whose accolades include membership in the Australian Businesswomen’s Hall of Fame, Director on the Australian Federal Government's Innovation Australia Board, member of the newly established National Precincts Board, and Deputy Chair of Austmine.

And beside every great woman, particularly in the case of Gekko Systems, is a great man.

Now Technical Director of Gekko Systems, Sandy Gray has grown from one-time mine manager to become one of the world’s foremost figures in the development of mineral processing technology, rejuvenating the art of gravity separation of alluvial gold using the basis of panning and becoming a leader in gravity gold and leaching flowsheet design, materials handling and effective plant design.

Sandy's designs are breakthroughs in the field of mineral processing, with over 400 of his inventions installed at mines in 40 countries worldwide including Gekko’s patented systems such as the InLine Pressure Jig, InLine Leach Reactor and the Python modular plant. Sandy has also won multiple awards for his work, including the prestigious Clunies Ross Award, Australia’s pre-eminent award for scientists, technologists and innovators, and holds memberships on bodies including the CSIRO Mineral Resources Sector Advisory Council.

"Our developments have the potential to significantly improve financial returns, which is why we believe Gekko will play an important role in the mining industry's future,’’ Sandy said. "Despite our youth, the company has

built outstanding teams of specialists who are passionate about producing timely, high-quality products and services for our customers.’’

On the ground at Gekko Systems’ Ballarat headquarters, this dedication to customer service and satisfaction is greatly assisted by the support of BlueScope Distribution, as Gekko Systems’ Manufacturing Planning Team Leader, Phil Amoore, can attest.

"Our partnership with BlueScope Distribution over the last 16 years has been a very fruitful one which has made our task of delivering on projects so much simpler,’’ Phil said. "They are able to work with short lead times and still deliver in a timely fashion which helps us meet a busy delivery schedule when multiple projects are on the go".

"We issue the orders to BlueScope Distribution and they consistently deliver when we want it and how we want it, with the steel supplied to us in a kit basis, cut to size, which eliminates waste and supports one of Gekko’s core values of working in a LEAN manufacturing environment.’’

Our recent Steel Efficiency Review™ has strengthened our ability to deliver for Gekko Systems in kit form for five ILR5000 InLine Leach Reactors, predominantly used for mineral separation in gold mining, and required for a Russian mining operation.

"We had a 22-week build time which started two weeks before Christmas, so it’s been a mad rush with closures over the holiday season,’’ Phil Amoore said.

"The longest piece we needed was 11 metres and the finished product, with tanks on top, is about 12 metres high and over two metres wide, so this has been no small task for BlueScope Distribution "With BlueScope Distribution’s assistance the project stayed on track and all five units are now on their way to Russia."

BlueScope Distribution’s Ballarat Account Manager, Ben Carey, is equally enthusiastic about the team effort between BlueScope Distribution and Gekko, particularly in relation to the latest project.

"This has been a big, complex project with tight deadlines. Meeting the challenging schedule has relied heavily on working closely with the team at Gekko,’’ Ben said. "But they are great people and the spirit of co-operation in both companies has enabled us to play our part in helping Gekko be successful with this important business opportunity.’’

Our partnership with BlueScope Distribution over the last 16 years has been a very fruitful one which has made our task of delivering on projects so much simpler,’’ Phil said. ``They are able to work with short lead times and still deliver in a timely fashion which helps us meet a busy delivery schedule when multiple projects are on the go.

Study

Case

tankweld engineering

POWERFUL PARTNERSHIP

WORKS A TREAT

Tankweld Engineering’s long-standing relationship with BlueScope Distribution worked a treat for the company when it went to work on Melbourne Water’s Eastern Treatment Plant upgrade.

When Tankweld Engineering in Hallam, Victoria, was selected to design, fabricate and install walkways, stairways and platforms during a major upgrade to Melbourne Water’s sewerage treatment plant at Carrum Downs, south east of Melbourne, the company was naturally pleased to be involved in a project of such importance.

Handling 40 per cent of Melbourne’s sewage and previously treating recycled water to Class C quality, the $380 million upgrade to tertiary treatment has meant the facility can now produce 100 billion litres of high quality recycled water each year for a broad range of non-potable applications.

South East Water and Melbourne Water have identified projects that will use a further 7 billion litres of recycled water from the plant following the upgrade, with a range of projects being investigated which will use up to 40 billion litres each year over the next 30 years.

Transforming the plant into one of the most sophisticated facilities of its kind in the world, the upgrade has also meant a dramatic improvement in the quality of treated water discharged into Bass Strait and significant benefits for the marine environment.

At the time they were awarded the contract, however, it quite simply meant Tankweld Engineering faced a mammoth task and Tankweld’s Purchaser Lindsay Knowles knew it was time to call BlueScope Distribution.

The company’s two-year contract to provide safety access structures across the new tertiary treatment facilities, which comprise seven buildings spread over an area of about six hectares within the Eastern Treatment Plant, was, in Lindsay’s words "a BIG project’’.

“It was very extensive, with a lot of walkways, platforms and handrails - mainly structural work,’’ he said of Tankweld’s work on the site, which began in late 2010. "There was a huge amount of tonnage involved and I naturally turned to BlueScope Distribution to supply it all.’’

Having worked on numerous projects for Tankweld Engineering over the years, Lindsay said the BlueScope Distribution team made it easy as they "know the drill’’ - quite literally.

“The team over at the Melbourne branch in Clayton South really went the extra mile as always, preparing a lot of the steel for us, drilling holes and cutting a lot of the materials, which certainly saved us a lot of time.

“We always receive an excellent standard of service from BlueScope Distribution and this was no different,’’ he continued. "I just keyed up the orders and sent them over and BlueScope Distribution delivered brilliantly as usual.’’

While relatively small in size, currently employing around eighteen staff, Tankweld Engineering is big on delivering for clients which is why Lindsay enjoys dealing with BlueScope Distribution.

“We may not be the biggest company, but you wouldn’t know that from BlueScope Distribution's response,’’ Lindsay said. "I regularly deal with Shan Senn and Pauline Moon at the Melbourne branch and they’re always on the ball for us, making even our smallest request a big priority.

“BlueScope Distribution is always my first call when I need any material.’’

Shan Senn, BlueScope Distribution’s Account Manager Vic/Tas, said his team was equally pleased to have worked with Tankweld Engineering on the important project.

"Utilising the Steel Efficiency Review™ as a tool to continuously improve our unique offer, we’ve been fortunate to deal with Tankweld Engineering on many projects over the years, so we know they’re one of those great Aussie companies that puts enormous store in a job well done; a fact which is reflected in their long and successful history,’’ he said.

“Their professionalism and experience make them a dream client for BlueScope Distribution, with both companies' dedication to quality and excellence making us a powerful partnership on any project.’’

While most recently having helped Melbourne’s improved recycled water to flow, Tankweld’s history began nearly 60 years ago in the field of liquid storage when the company established operations for the design, fabrication, testing, installation and repair of a variety of storage tanks ranging in volume from 500 litres to 160,000 litres.

“We supply a range of standard tank designs in a variety of shapes, sizes and volumes, however most clients have specialist needs and our in-house engineering team are experts when it comes to providing costefficient, custom-made solutions,’’ Lindsay said.

“Our company directors Stan Sliwinski and Jeff Harley share over 50 years combined engineering experience in the water, sewerage, pulp, paper, mining and petrochemical industries, which is invaluable in delivering innovative and effective solutions for our clients.’’

Tankweld designs and constructs tanks in accordance with Australian Standards carbon and AS1940, while also offering alternative standards if circumstances require. Although often fabricated with AS3678 steel, Tankweld also offers extensive experience in stainless steel fabrication plus the expertise to offer flexibility to clients at all stages of design and fabrication.

In more recent times, while continuing to provide outstanding tank expertise and production, Tankweld has expanded its activities to achieve significant success in a number of diverse areas for a client base ranging from small companies to government bodies and including power generation, mining and public utilities sectors.

A significant part of Tankweld’s current business activities is in the area of on-site construction and maintenance. The company offers extensive experience in the fabrication and site installation of high pressure piping to AS4041, in both carbon steel and stainless steel, along with mechanical installation and commissioning of plant and equipment including piping systems, vessels, generator sets and associated steelwork.

However the area of expertise which won the Melbourne Water upgrade contract for Tankweld was their excellence in the design, fabrication and installation of safety access walkways, platforms and stairways.

“Our ability to manage and co-ordinate these three facets simultaneously allows us to maintain efficient control of time and budget resources and respond flexibly to clients’ changing needs,’’ Lindsay stated. “These capabilities were key to our winning the Eastern Treatment Plant contract and to our efficient delivery on the project.’’

Tankweld Engineering and the BlueScope Distribution team are extremely proud of their latest collaboration on a project which will have extraordinary benefits for the city of Melbourne in years to come, and Tankweld is looking forward to meeting the challenges of further projects together “Tankweld Engineering delivers a one-stop-shop for engineering services from concept and design through to installation and commissioning, and BlueScope Distribution will always be our first choice to help us deliver on that promise,’’ Lindsay said.

Their professionalism and experience make them a dream client for BlueScope Distribution, with both companies’ dedication to quality and excellence making us a powerful partnership on any project.

INDUSTRY

EDGE

STEEL INDUSTRY support

PLAN TO IGNITE LOCAL STEEL INDUSTRY Government support for greater local participation in major projects The federal government’s $1 billion innovation package will assist the Australian steel industry gain better access to major infrastructure projects, says the peak body representing Australia’s steel supply chain.

The Australian Steel Institute (ASI) welcomed the government package, which aims to secure more work for Australian industry on major projects. ASI Chief Executive Don McDonald has urged the government to legislate the changes as a matter of urgency.

The Industry and Innovation statement, unveiled by Prime Minister Julia Gillard and Minister for Industry and Innovation Greg Combet earlier this year, will provide more opportunities for Australian companies to secure major contracts.

The policy statement broadens the onus for the use of Australian Industry Participation Plans (AIPPs). Under the proposed new policy, Australian Industry Opportunity officers will be involved in all major private and public projects worth over $500 million and projects worth $2 billion or more that apply for taxpayer funded concessions under the Enhanced Project By-Law Scheme.

“We have been lobbying for a greater and more rigorous and transparent use of Australian Industry Participation Plans for the past 18 months", Mr Cairns said.

“The recent Industry Innovation Statement from the PM and Minister Combet delivers on this.”

Mr Cairns said low domestic demand has been badly hurting the Australian steel industry. “All major traditional markets are down – manufacturing, commercial and industrial building and residential are all at decade lows. On top of this our share in mining construction is very low.”

Mr Cairns said rising costs, particularly energy prices, had also impacted on the steel industry. Also, the cost of compliance is high. The industry has had to cope with the added expense of industrial relations regulations, OH&S, payroll and company taxes.

“And of course the high Australian dollar has had a huge effect on industry viability,” Mr Cairns said. “In the ’80s and ’90s the Australian dollar was trading between US0.75c to 80c. It is now about $1.05 – 30 per cent over valued.

Mr McDonald said the steel industry supported the greater requirements to spread work opportunities for major projects much further across the supply chain.

“By comparison, we have our major competitor, China, whose currency according to many economists is between 25-35 per cent under-valued. That gives them a 60 per cent head start before we strike a blow … so it’s a major issue.”

But the ASI considers the threshold for AIPPs to be required as too high, he warned.

Mr Cairns urged Australian manufacturers to support the local steel industry.

“It would be better for AIPPs to apply to projects worth over $300 million to open more opportunities in major projects where local industry is routinely bypassed,” Mr McDonald said.

“We also welcome the establishment of an Australian Industry Participation Authority as outlined in the Statement to administer greater use of AIPPs and engagement with local industry.

“However we would like to see it operate in tandem with some form of industry working group comprising representatives from industry, unions, associations and the research community similar to the Manufacturing Taskforce consulted for the current Statement. This would create better communication back to industry on the strengthened AIPP process.”

In an exclusive interview, Industry Update ASI National Manager – Industry Development, Ian Cairns, said the ASI has long been concerned at the amount of imported fabricated steel being used on major resource and infrastructure projects in Australia.

“It is a strategic industry, he said. “The broader industry and community cannot afford to see it fail. Every prosperous western economy has its own steel industry. If we see the demise of the steel industry we will be at the mercy of imports for surety of supply and price. We have had very bad experiences before when we have seen spikes. Foreign countries have no allegiance to Australia.

We need a local steel value chain to build and maintain our nation.”

Mr Cairns said by buying Australian steel, manufacturers could be assured of a better quality product and surety of supply. The ASI is optimistic for the industry’s future.

“The steel industry is very resilient", said Mr Cairns. “Many companies have invested in new technology and many others have trimmed their costs to keep their businesses viable. We are continuing to look at ways to be more globally competitive and pick the niche areas where we can compete best.

“As the song goes … We Will Survive!”

'Reproduced with permission from Industry Update magazine'

EDGE

INDUSTRY

ACRS REVIEW

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ACRS’ mission makes confidence possible 13348 ++ ^^ >>78643 + 235

In today’s challenging business climate, some companies are tempted to use cheaper steel products.

However the short-term budget benefits can lead to serious and costly long-term problems.

By now everyone in the industry is well aware of The Australian Certification Authority for Reinforcing Steels, known as ACRS, which administers an independent, expert, industry-based, thirdparty product certification scheme that certifies manufacturers and suppliers of reinforcing, pre-stressing and structural steels to Australian/New Zealand Standards.

Formed by industry in 2000, ACRS is supported and endorsed by member companies ranging across engineering, inspection, manufacture, government, and importantly, customer bodies, and states its mission as, "The continued manufacture and supply of reliable, safe, consistent quality reinforcing, pre-stressing and structural steels to Australian/New Zealand Standards".

Delivering on this mission, ACRS currently certifies over 150 manufacturing locations, in 15 countries around the world, and has undertaken more than 500 technical conformity assessments to AS/NZ steel Standards.

Among the manufacturing locations ACRS has certified is BlueScope Steel’s Port Kembla Steel Plate Mill, independently assessed by ACRS to have the capability to manufacture structural steel hot-rolled plates and slabs to AS/NZS 3678, with ACRS verifying that it consistently does so.

Reliable, safe and consistent quality. Surely it’s what every responsible company wants to provide on every project. It’s certainly what BlueScope Steel provides for every one of our many customers to ensure a quality build on all their projects.

ACRS certification benefits the construction industry.

ACRS certification reduces the risk of using steel which doesn’t meet minimum requirements and enables feedback and corrective action if problems arise.

Major construction clients, designers and contractors around the world recognise, and even specify, ACRS and its Product Certification Scheme to confirm the technical competence of suppliers and assure consistent product quality.

Yet some companies still settle for lesser quality steel in pursuit of a bigger profit, which is surely false economy at its highest and most dangerous level.

The use of low-grade and non-compliant steel can lead to long-term issues with the safety of construction projects and costly consequences for the companies who utilise these inferior products.

Reinforcing, pre-stressing and structural steels that fail to meet the minimum requirements of the applicable AS/NZ Standards have arrived on construction sites, resulting in project delays (such as the requirement for additional testing), substantial costs to involved parties (such as extensive redesign) and even serious court action.

Some of the serious problems identified have included inadequate product traceability, misleading and false supporting documentation, excessive variation in materials properties and inappropriate product markings. ACRS strives to eliminate the use of inferior and inappropriate products and, along with certified manufacturers such as BlueScope, ensure every build is built on safety and quality.

XLERPLATE® steel-quality is just one of its many strengths.

The XLERPLATE® steel range of hot-rolled products have become synonymous with a guarantee of exceptional quality and consistency and have long been held as the industry benchmark by Australia's fabrication and manufacturing industries.

Now, with ACRS certification, our customers have further confidence that when they specify BlueScope steel they are using industry-standard quality steel.

Australian manufactured, XLERPLATE® steel boasts a broad range of products available on short, flexible lead times and has been employed in some of the world’s most challenging engineering projects. The brand also brings with it access to BlueScope Steel's advanced technical support service, which has been consulting to the Australian manufacturing industry for over 40 years.

BlueScope Steel and ACRS - your guarantee of a quality build.

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Study

Case

Sun ray

A

SHININg SuCcess

Solar hot water system manufacturer Sun Ray took a shine to BlueScope Distribution ten years ago and is now making global inroads with the help of our expert export team.

Sun Ray's story began in the late 1970s, when founder Claude Guérin became the New Caledonian dealer for an Australian manufacturer of solar water heaters. The first products, imported from Australia in 1979, proved to be such a great success that the decision was taken to manufacture them in New Caledonia.

Residential Sun Ray thermosiphon solar hot water systems, with roofmounted tanks, come in six sizes and seven COLORBOND® steel colours including Dune®, Surfmist®, Pale Eucalypt®, Deep Ocean®, Headland®, Night Sky® and Citi®. Sun Ray thermo circulated solar water heaters, featuring roof-mounted panels with remote tanks, come in two sizes in Dune® colour.

In 1983 Sun Ray’s first solar hot water systems were produced in New Caledonia, utilising Australian technology and supervision. Sun Ray’s systems received the label of quality manufacturing from French certifying body CSTB, for the tanks in 1989 and the panels in 2004, and Sun Ray commenced its expansion around the world.

Excellence in Export Support

In 2007, to control quality and stay at the cutting edge of solar water heating technology, Sun Ray established their research and development lab, Sun Ray R&D, and at the beginning of 2010 the company launched its first Sun Rayowned subsidiary in Australia to deliver to the Australian market.

Sun Ray’s products have been so well received in Australia that it is now represented around the country through a network of dealers.

For 10 years, BlueScope Distribution Export has made the cut for Sun Ray with COLORBOND® steel.

To meet the demands for a quality product, Sun Ray enlisted the help of BlueScope Distribution Export to provide ready-cut COLORBOND® steel sheets for use in their tanks – a partnership that has seen BlueScope Distribution Export supply cut steel to Sun Ray for 10 years now.

BlueScope Distribution Export has proved a valuable partner to Sun Ray in its growth, as Market Development Manager - Export, Lawrie Cheung, explained.

“Sun Ray opted to approach BlueScope Distribution in Australia because we offer reliability, outstanding service, competitive pricing and exceptional export experience and capabilities,” Lawrie Cheung said.

“We’ve now been working with Sun Ray for over 10 years, supplying COLORBOND® steel sheets, cut specifically to size for their range of tanks, to meet their growing manufacturing needs.”

With a superior oven-baked finish that resists peeling, chipping and cracking, just as it does for roofing, COLORBOND® steel provides a high-performance, durable solution for Sun Ray’s solar hot water system tanks.

“COLORBOND® steel is the perfect product for our solar hot water systems,” Sun Ray Managing Director, Williams Danger, said. “At Sun Ray we manufacture very high quality systems and COLORBOND® steel is a durable, high quality product that meets our very demanding standards for performance.”

BlueScope Distribution Export offers comprehensive supply and service solutions across all BlueScope Distribution products and services, currently delivering to destinations including the South Pacific and Pacific Rim, South East Asia, China and Sri Lanka.

Specialising in Forward Purchasing Agreements, Vendor Managed Stock Arrangements and Major Project supply contracts, BlueScope Distribution’s export team is a valuable partner with extensive capabilities and experience supporting the mining industry, the heavy engineering industry, the transport industry (both heavy and light) and the piping industry.

Strategically based in Brisbane, the BlueScope Distribution Export business unit is close to major port facilities for both break bulk and unitised shipments and is in close proximity to the major service and manufacturing centres of the BlueScope Steel network.

“Our exports unit is manned by people with years of experience in international trading, not only adept in the supply of steel and metal products and services, but also aware and capable of dealing with the specific demands of export and international markets,” Lawrie Cheung said.

From bulk supply of high quality steel plate to the airfreight of a small, single, specialised valve to the remotest location, BlueScope Distribution Export has the resources, experience and commitment to satisfy every metal supply requirement for any customer, just as they have for Sun Ray for the last decade.

“This has been a great working partnership between BlueScope Distribution Export and Sun Ray throughout the company’s growth and now in its expansion into Australia, Asia, Europe and the Pacific,” Lawrie Cheung said.

Williams Danger is equally pleased with the business relationship, echoing Lawrie’s sentiments.

“Working with BlueScope Distribution Export has always been a pleasure,” Mr Danger said. “Lawrie and his team always work hard to expertly meet our every need and I am looking forward to doing business with them for many years to come.”

PRODUCT product testing

EXTENSIVE TESTING PROVES

NEXT GENERATION ZINCALUME STEEL’S ®

DURABILITY

An innovative new building product about to be launched by BlueScope Steel has benefited from a durability testing program remarkable even by its own thorough standards.

Next generation ZINCALUME® steel with patented Activate™ technology has been developed by testing more than 5000 panels in a wide variety of laboratory and ‘real world’ climatic conditions over 17 years.

BlueScope Steel says the extensive testing has confirmed the more effective corrosion resistance of its innovative coating formulation.

“Our improved ZINCALUME® steel represents an enormous investment of time, manpower and money by BlueScope Steel in developing a product that provides significant durability advantages over other steel building products,” said BlueScope Steel Market Manager Commercial and Industrial, Manu Siitonen.

To be introduced in August 2013, next generation ZINCALUME® steel incorporates magnesium compounds in its formulation which ‘activate’ the aluminium in the coating to provide even more effective corrosion resistance.

The first steel panels with the new formulation were sent for outdoor testing in 1995.

In 2006 the field testing was expanded to 22 sites in 10 countries, including China, the United States and New Zealand.

Product Durability Team Leader Tahnee Lowe has been monitoring the progress of next generation ZINCALUME® steel for the past six years.

“Our heavy emphasis on real-world field testing of new products contrasts with other manufacturers who predominantly assess small test panels using accelerated weathering techniques to fast-track durability results,” said Ms Lowe.

“Several decades of product testing experience has taught BlueScope Steel that accelerated testing is useful in initial phases of development, but is no substitute for the assurance that comes from many years of field testing.”

“As a result of our comprehensive testing process, we are confident that next generation ZINCALUME® steel will be more durable, provide a reduced environmental impact* and maintain its renowned aesthetic appearance.”

The majority of field testing was conducted in Australia to ensure that next generation ZINCALUME® steel will cope with unique local conditions.

Next generation coated products were fitted to more than 50 buildings including several purpose-designed assessment structures.

A wide range of roll-formed products were installed using typical building industry construction methods.

“When we compared the corrosion performance of next generation ZINCALUME® steel with the current product, we found the biggest improvement in the most severe environments – such as surfaces which are unwashed by rainfall and also subject to air pollution,” Ms Lowe said.

The superior corrosion resistance of next generation ZINCALUME® steel was confirmed via independent testing conducted by the internationally recognised French Corrosion Institute.

Manufactured under a range of Australian and International patents, BlueScope Steel has invested more than $100 million dollars to develop its next generation coating and the associated manufacturing technology.

Manu Siitonen says the new product is a response to emerging building requirements necessitating advances in areas such as material efficiency, durability and sustainability.

“To adequately address changes in the building industry such as site and location variations, as well as changes to regulations, it is imperative that today’s building products are constantly improving in line with evolving industry standards.

“Essentially, next generation ZINCALUME® steel is a better product that caters for current and future advances in the building industry,” he said. * Compared to original ZINCALUME® steel (AZ150 coating) in all LCA environmental impact categories when used in Commercial & Industrial roofing applications. This improvement is the result of innovation in the metal coating formulation that delivers an increased lifespan while using fewer metal resources.

For further information visit nextgenzincalume.com.au ZINCLAUME® and BlueScope are registered trade marks and Activate™ technology is a trade mark of BlueScope Steel Limited.

BlueScope Steel Product Durability Team Leader Tahnee Lowe has been monitoring the progress of next generation ZINCALUME® steel over many years of field testing.

Several decades of product testing experience has taught BlueScope Steel that accelerated testing is useful in initial phases of development, but is no substitute for the assurance that comes from many years of field testing.

Self-sealing Activate™ Technology

Protective coating

Base metal

Protective coating

Base metal

Protective coating

Base metal

Next generation ZINCALUME® steel AM125 features a highly efficient active metallic coating, which provides superior corrosion resistance of the coated product via two strategically positioned magnesium compounds.

In the presence of moisture a thin zinc aluminium oxide layer forms on the surface. The magnesium compounds make this surface oxide layer more stable and less permeable, proving a better barrier against corrosion especially at cut edges and scratches Deeper in the metallic coating the second magnesium compound provides and additional barrier restricting corrosion pathways to the based metal. These activate the aluminium and reduce depletion of the coating, providing greater protection for longer.

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Exceptional Service Exceptional Profit

Exceptional Service Exceptional Profit The Secrets of Building a Five-Star Customer Service Organisation Recommendation What Apple is to innovation and Rolex is to quality, Ritz-Carlton is to service.

Consider the luxury hotel chain’s famous $2,000 customer-satisfaction pledge.

This remarkable program, now in place for decades, allows any Ritz-Carlton employee, regardless of rank, to decide alone to spend up to $2,000 to resolve any customer problem. To date, no Ritz-Carlton employee has felt it necessary to spend the full amount on behalf of a customer, but many take creative action to address problems promptly. This policy sends a powerful signal to Ritz-Carlton clients and employees about how much the company values quality and service. In their book, service experts Micah Solomon and Leonardo Inghilleri teach you how to plan and implement an exceptional service program.

Service that anticipates customers’ needs Picture this situation: A hotel’s maintenance engineer perches on a ladder in the lobby, changing a lightbulb. He notices a guest coming in from the adjacent pool area. She is wet, wrapped in towels and carrying numerous beach bags. With her hands full, she has trouble opening the door to the lobby. When he sees her “fumbling” with the latch, he climbs down from the ladder to help her. “Welcome back to the hotel, ma’am,” he says. “Let me help you with your bags. How was the pool?” He then carries her bags to the elevator and punches the button to her floor.

Admirable service? Yes, but what if the engineer had climbed down to assist the guest immediately, when he first saw her coming and realised her plight? Then, instead of providing “reactive service,” which involves

spotting a negative customer experience and fixing it, he would have provided “anticipatory service,” which prevents the negative experience from happening in the first place. You want your employees to anticipate what your customers need.

Providing this level of “customer satisfaction” has four pivotal aspects: 1. P erfect product – Unless your product or service is as flawless as possible, customers will always feel the need to keep seeking an alternative.

2. C aring delivery – If your employees don’t interact with your customers in a caring manner, their bad attitudes will colour your clients’ feelings about your products or services, no matter how ideal they may be.

3. T imeliness – If you don’t deliver on time, you’re already in the wrong.

4. E ffective problem resolution – Problems sometimes occur in even the most polished organisation. How your company handles them makes all the difference.

To build loyalty among your customers, deliver top quality service all the time to cultivate truly devoted clients who stop looking for alternatives to your firm.

Even though customer loyalty is that pivotal, many managers don’t know how to foster dedicated followers. To begin, learn what makes your customers tick, and use that knowledge to build sustained relationships. Without that connection, clients may view your goods or services as easily replaceable commodities.

Language engineering To engender customer loyalty, teach your employees what type of terminology to use. The kind of language they employ is far more important than the words in your marketing materials – and think how carefully your promotional professionals select those terms. Your employees’ conversations with clients have tremendous power to make your customers’ experiences rewarding, reinforcing and positive.

• Preferences change; assumptions are tricky – Just because a customer once ordered tea before dinner does not mean that he or she will always want tea before dinner. Enquire, don't assume.

The right words can make service breakdowns bearable, just as the wrong words can quickly dismay even the most satisfied customers. Train employees to use the right words at the right time, a practice that works well for Ritz-Carlton. To illustrate, consider these examples: Telling a customer “you owe…” is bad usage, but saying “Our records show a balance of…” is better.

It’s all about your people

Of course, words will only take you so far. Your actions must be equally engaging. For example: • Don’t screen calls – This alienates current and potential customers.

• Using technology to ask for information? It’s a fine line between clever and creepy – Employ your database information discreetly. Don’t sound like Big Brother. You don’t want customers to think you spy on them.

The best way to ensure quality service is to hire the right people. Look for these traits: • Genuine personal warmth – Everyone wants to deal with welcoming, kind people.

• Answer the phone quickly – Unanswered rings create anxiety, then anger.

• Empathetic skill – Employees who can relate to people will deliver better service.

• Make sure customers can reach you easily – Putting “please do not reply to this message” at the bottom of a mass email is not the way to win friends.

• An optimistic, upbeat attitude – No one wants to be around a pessimist.

• Back up your website with personable people – Having your telephone staffer initiate a call by saying, “Hi! This is Jane at Company X” is impersonal. Personalise your interactions with clients by using full names and saying “Hi, this is Jane Chang-Katzenberg.”

• Include salutations in all emails – You would not send out a standard letter without a “Dear” or a “Hi.” Be as polite in your emails as you would be in a letter.

Service recoveries Ensure that everyone in your organisation feels responsible for helping customers resolve problems or complaints. Follow four steps to get things back in shape for your customers: 1. Apologise and ask for forgiveness – Make your regret personal, believable and sincere. Acknowledge the customer’s grievance. Be careful with your phrasing.

2. Review the complaint with your customer – To find out exactly what happened, you will need to ask some pertinent, basic questions, along the lines of “Did you plug it in?” That’s called a “DYPII” question, and it will help you discover if the client took the necessary, first steps to make a product function.

3. Fix the problem and then follow up – Use this opportunity to establish a tighter bond by offering the client something additional, for example, a free upgrade. This will restore a feeling of justice to the customer, who currently feels wronged. Once you have resolved the problem, follow up to show your concern.

4. Document the problem – This is the way to learn from any mistakes and to track the causes of a problem.

Know your customers To keep on top of the details about your customers, develop a tracking system listing their main preferences and traits. Update it after each interaction.

Some “noting and sharing” principles: • Keep your systems simple – Don’t track everything. Focus on major attributes.

• If it’s important to your customer, it belongs in your system – Record “service preferences” and personal data. Include pertinent information on any previous missteps on your company’s part concerning this customer.

• The information you gather needs to be available in real time – Make sure all front-line employees have immediate access to the tracking system.

• A team orientation – People should have a positive impact on their work groups.

• Conscientiousness – Seek employees who are proud of their work, strive to do it well and follow through on all tasks. Staffers who are not conscientious will cause trouble.

Exceptional service also demands capable leadership. Seek top executives who have: • Vision – “Great service leaders” ponder what the future should hold for their firms.

• Alignment – These leaders encourage their workforce to understand and support their vision.

• Standard setting – Good bosses set high standards and hold employees to them.

• Support – Thoughtful leadership includes making sure people have the resources they need to reach their organisational goals.

• Motivation, recognition and reward – To spur performance, make it worthwhile.

Even some managers who support high-quality service still object to its cost. This is shortsighted. Building in exceptional service may increase your operational expenses, but you can’t put a price tag on the value of superbly satisfied customers who speak glowingly about your firm.

Additionally, the best employees prefer to work for companies with positive consumer relationships based on quality products and exceptional service.

Companies with elevated “loyalty-building standards” have lower turnover of both employees and customers.

Online considerations The internet is a magical medium. However, its great power and amazing capabilities can push you toward behaviour that is antithetical to consumers.

Do not fall prey to the web’s “dark side.” The web may sway you to commoditise your online customers. For example, providing answers to frequently asked questions (FAQs) on your website is fine, but don’t assume that listing the replies to a series of stock questions completes your online customer service.

Some visitors to your website may not find the answers they need in your FAQs, so post additional information in two formats: short – for customers with brief attention spans – and long – for people who want all the details. Let your consumers choose what type of data they want. Always treat your customers – including online clients – as individuals, not as commodities.

STAFF PROFILE Gerald Cornelius

13 72 82

National Manager BlueScope Steel & Sheet Metal Supplies

Incorporating

Time in current role: 2 years Time with BlueScope: I was part of the Smorgon Steel acquisition in 2007, and 12 years overall in the steel industry. Prior to my current role I managed the NSW and SA Sheet Metal Supplies businesses.

Sheet Metal Supplies

1800 010 247

1300 661 156

1300 306 204 THE EDGE newsletter has been prepared for information purposes only. BlueScope Steel makes no representation or warranty as to the completeness or accuracy of the information contained in the newsletter. You must make your own assessment of the information contained in the newsletter and rely on it wholly at your own risk.

Published by BlueScope Steel Limited. ® are registered trade marks of BlueScope Steel Limited. ™ are trade marks of BlueScope Steel Limited. © 2013 BlueScope Steel Limited ABN 16 000 011 058

Responsibilities: I am responsible for leading our National Sheet & Coil businesses - Sheet Metal Supplies and Impact Steel. Primary responsibilities centre on generating value for our diverse customer base in a safe and efficient manner, whilst always looking for opportunities to further improve our compelling value proposition.

What satisfies you most about your work?

Developing our people is the most rewarding experience.

Creating an environment where everyone understands their role and we can collectively deliver positive results is what motivates me to get up in the morning.

How do you relax? Enjoy all sports both as a participant and spectating – Penrith and Port Power are my two favourite teams.

I play cricket through the summer and even though it has been a few lean years with the bat I really enjoy having that competitive release on a Saturday afternoon. I am also quite partial to a few beers and a punt when the good horses are getting around.

What book are you reading right now? I am currently reading Rudy Giuliani’s book Leadership on the recommendation of a colleague.

Some good leadership insights through what was a truly challenging period in our history. I also quite like John Grisham’s books and recently finished The Broker which was an enjoyable read.

STATE OFFICE CONTACT DETAILS VICTORIA / TASMANIA Westall Ph: 03 8543 3666 NEW SOUTH WALES Auburn Ph: 02 9714 8000 QUEENSLAND Northgate Ph: 07 3622 9222

It’s a necessary part of our industry that steel products are delivered on trucks. Accidents (slips/falls) can happen when drivers and/or receiving staff access the truck trailer to secure and/or loosen loads. A truck trailer should be considered in the same way as any elevated platform and appropriate “working at heights” protocols should be observed whenever anyone needs to undertake tasks on or near a truck trailer.

SOUTH AUSTRALIA / NORTHERN TERRITORY Ottoway

Wherever possible, work should ALWAYS be performed from Ground Level.

Ph: 08 8245 3801

Where not possible to work from ground level, to access a vehicle one should always:

WESTERN AUSTRALIA

1. Wear a safety helmet, with the chin strap applied.

3. Use an approved FALL RESTRAINT system

Kewdale

2. U se a safe method to get on and off the trailer (no climbing).

4. O perators using fall restraint must be trained and assessed as competent in its use

Ph: 08 6250 1000

www.bluescopedistribution.com.au

BSD0168 6/13

Working at heights on truck trailers