Employees at Port Kembla Steelworks.
OUR CUSTOMERS ARE OUR PARTNERS
Our success depends on our customers and suppliers choosing us. Our strength lies in working closely with them to create value and trust, together with superior products, service and ideas. |
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OUR SHAREHOLDERS ARE OUR FOUNDATIONS
Our success is made possible by the shareholders and lenders who choose to invest in us. In return, we commit to continuing profitability and growth in value, which together makes us stronger. |
OUR PEOPLE ARE OUR STRENGTH
Our success comes from our people. We work in a safe and satisfying environment. We choose to treat each other with trust and respect and maintain a healthy balance between work and family life. Our experience, teamwork and ability to deliver steel inspired solutions are our most valued and rewarded strengths. |
OUR COMMUNITIES ARE OUR HOMES
Our success relies on communities supporting our business and products. In turn, we care for the environment, create wealth, respect local values and encourage involvement. Our strength is in choosing to do what is right. |
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Our products are highlighted in (from left): BlueScope Lysaght office in Indonesia - a BUTLER® pre-engineered building;
the Landcare building in New Zealand.
Since our listing on the Australian Stock Exchange in 2002, BlueScope Steel has designed and implemented an investment strategy that differentiates us from many other steel companies. A brief summary of our operations will assist your understanding of this strategy.
Our Company manufactures steel slab, hot rolled coil and plate at our three steelmaking facilities. We call these our 'upstream' businesses. However, we differ from many steel companies in that we retain a large proportion of our steel and further process it, primarily into building products, while we also supply the automotive, manufacturing, whitegoods and packaging sectors in Australia.
This processing and marketing is done through BlueScope Steel businesses such as Australian Manufacturing Markets; BlueScope Lysaght; our Asia Coated and Building Products businesses including BlueScope Buildings; and Butler Buildings in North America.
WE CONTINUE OUR PUSH INTO HIGH-VALUE STEEL MARKETS WITH OUR BRANDED STEEL SOLUTIONS.
We call these our 'downstream' businesses, and they market our brands such as COLORBOND® and ZINCALUME® steel, LYSAGHT® steel building solutions, and BUTLER® pre-engineered buildings (PEB) to intermediate suppliers, and directly to end-use customers.
Over the last three years, we have invested heavily in our downstream businesses, pushing further into high value-added, branded steel products. This investment strategy aims to capture the profit margins that accumulate as we retain steel and add progressively greater value to it.
For example, in April 2004 we acquired Butler Manufacturing, an iconic PEB business in North America and a market leader in China. So, in this niche, we now occupy every stage of the value chain. We make steel, we make building products from that steel, and we design, market and supply buildings made from those products.
Importantly, the margins on value-added steel products are less volatile than those obtainable on commodities such as steel slab and hot rolled coil. Therefore, we expect our investment strategy to help insulate BlueScope Steel against the effects of future volatility in global steel pricing. As a large part of our new capital investment is in Asia, we are also aligning our growth with that of the world's fastest growing economies.
The global steel market has been historically volatile, and this has driven capital away from steel companies. Our aim is to reduce the effects of this volatility, enhancing stable growth, and making BlueScope Steel a prosperous, long-term home for our shareholders' capital. It is this which makes us a different kind of steel company.
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Product development and brand building are critical to our future growth. BlueScope Steel offers many highly regarded brands to the market, and these represent important assets to our business. In Australia, our core brands - COLORBOND®, ZINCALUME®, and XLERPLATE® steels and the LYSAGHT® range - are market leaders in the building, construction, and manufacturing industries.
Our BlueScope Water business adds more brands to our portfolio, including HYDRORIB® drainage pipes, WATERPOINT® rainwater tanks, AGRIRIB® low-pressure irrigation pipe, and GALAXY™ water tanks. While our Butler Manufacturing business brings us the iconic BUTLER® brand, as well as the VISTAWALL™ architectural product range. Region-specific brands, such as new Clean COLORBOND® steel, enhance our reputation as a provider of solutions for demanding conditions.
We are constantly looking for ways to leverage our brands. Two examples are fencing made from COLORBOND® steel and our TRUECORE® steel house framing. We are also expanding our renowned LYSAGHT® range of steel building solutions across our global footprint.
During the year, we introduced a customer partnership program to further increase the value of the BlueScope Steel brand. The program, named 'Steel By' allows our customers to benefit from our Company brand through the inclusion of the BlueScope Steel partnership logo in their promotional material. This logo is accompanied by the statements: 'Steel Manufactured By BlueScope Steel' or 'Steel Supplied By BlueScope Steel.'
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Thai children in front of relief housing in Phuket.
Our Bond states that 'our communities are
our homes.' As well as succeeding as a
business, we strive to succeed as a citizen
of those communities in which we operate.
Our community programs provide support for
youth, the disadvantaged, the environment,
the arts and cultural diversity. Each year
we run hundreds of these programs, aimed
at improving and enriching the lives of our
fellow citizens. An example is our Australian
Workplace Giving program, introduced during
the year, which enables Australian employees
to contribute financially to partner charities,
supported by matched giving by the Company.
In addition to community programs and
projects, we undertake community work in
direct response to emergencies and disasters.
This work is often based on our understanding
of steel building materials and design. The
provision of relief housing is a typical example.
TSUNAMI RELIEF
The worst natural disaster during 2004/05
was the Asia Tsunami. Donations to the Red
Cross Asia Quake and Tsunami Appeal from
BlueScope Steel and our employees totalled
almost $1.3 million. Our Company made an
initial donation of $200,000 in late December,
and then announced we would match employee
donations dollar for dollar. When the Appeal
closed on January 31, direct employee
donations had reached $532,000.
Aside from the Appeal, employees and the
Company have contributed to the tsunami
relief effort in a number of ways. BlueScope
Steel's businesses in Asia have donated steel
buildings and building materials, and individual
employees in the region have donated food,
clothing and other essential supplies, as well
as giving their time to assist embassies and
others in relief work.
Support for our communities (from left): Australian Surf Lifesaving; Tsunami fund raising concert in Yogjakata, Indonesia; BlueScope Steel Youth Orchestra.
Our Company has also worked with architects, designers and aid agencies, preparing designs for emergency aid buildings. BlueScope Water has manufactured and shipped over one hundred rainwater tanks from Australia to Banda Aceh, Indonesia. Many of the worst affected countries, such as Indonesia, Malaysia and Thailand, are countries in which we have operations, but thankfully, none of our employees were injured. BlueScope Steel continues to support the rebuilding effort.
WORKING WITH RED CROSS
BlueScope Steel is involved with many community groups, including Red Cross.
Over the last 12 months, we worked closely with Red Cross in a number of countries.
The following letter acknowledges our involvement.
Australian Red Cross offers sincere thanks to the staff and management of BlueScope
Steel for your generous support over the last 12 months. Such support has helped to
fund a range of vital domestic and international programs targeting vulnerable people,
including those affected by the devastating Boxing Day Tsunamis.
With the help of organisations like BlueScope Steel, Australian Red Cross raised
$112 million towards our Asia Quake and Tsunami Appeal, of which $58 million has
already been spent or committed. Such tremendous funding support enabled us to
reach over one million people in affected areas with vital aid including food, medical
assistance, safe water, shelter and clothing.
Our relief efforts are now turning to rehabilitation and recovery. Australian Red Cross
has so far identified 30 longer-term programs of assistance, such as the community
housing project on Indonesia's Nias Island. There, the Red Cross is helping to build
254 houses, nine bridges, two schools, three clean water systems and one first aid
centre. In the Maldives, a Red Cross tsunami waste and debris clearance project will
benefit some 50,000 affected people across 70 islands.
In addition to its support of our Tsunami Appeal, the staff and management of
BlueScope Steel have provided ongoing support through workplace giving. Dollars
raised through this initiative have helped to fund a range of community programs in
Australia, including our Good Start Breakfast Club, which serves more than 300,000
healthy breakfasts annually to primary school kids in areas of greatest need around
Australia. Australian Red Cross is proud to have been chosen as a participant in
BlueScope Steel's Workplace Giving program and we thank all staff members who
have generously supported our cause. |
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BlueScope Steel facilities in Indonesia. For every employee
at every site, safety comes first.
BlueScope Steel has a goal of Zero Harm. This goal is based on our
fundamental belief that all injuries can be prevented, and it drives continuous
improvement in health and safety performance at every level of the Company.
BlueScope Steel employees and contractors continue to work safer. Less
people are being injured than ever before, and our Company is being cited
as best practice in industrial safety. However, this does not diminish our drive
for yet more improvements.
In 2004/05, we improved our record low injury
performance, recording a Lost Time Injury
Frequency Rate (LTIFR) of less than one lost time
injury per million hours worked. This compares
exceptionally well to an international industry
average of just under 10. In the majority of
Company facilities, the Medical Treatment
Injury Frequency Rate (MTIFR) also continues to
decrease to record-best levels. The graphs on this
page show the impact of incorporating the Butler
performance data from July 2003. This business
has now embraced our safety journey.
Tragically, we experienced a fatality at our
New Zealand Steel operations just after the close
of the 2004/05 financial year. In the past eight years,
BlueScope Steel has had five fatalities. This equates
to a fatality every 55 million hours worked, which
is a marked improvement on historical performance
and less than half the rate of the international iron
and steel industry. But the only acceptable number
is zero, and we are doing everything possible
to achieve this.
In 2004/05, 78% of our people were involved in
conducting monthly safety audits, and the majority
of teams have every person involved in audits on a
monthly basis. Our newly acquired North American
businesses have also made good progress. Prior to
acquisition, audit participation rates were very low in
these businesses, but in one year, they have achieved
safety auditing involvement levels of over 60%. Another
proactive strategy sees our people involved in more
'near miss' reporting than ever before. In the past year,
over 23,390 near misses were reported.
BlueScope Steel facilities in (from left) Sunshine, Victoria,
and New Zealand.
BlueScope Steel has a comprehensive Occupational
Health and Safety Management System in place, which
is mandatory in all our operations. The Management
System focuses on three basic aspects: safe and
healthy people, safe systems, and a safe and tidy plant.
Under the System, 23 Safety Management Standards
have been established. Each business is required
to demonstrate compliance with these Standards.
We are pleased to report that during the year, the
self-assessment process showed a continuous
improvement in meeting these Standards.
COMMUNITY, SAFETY AND ENVIRONMENT REPORT
This Report will be available December 2005. Shareholders wishing to register and receive a copy of the Report can do so by visiting our website or by contacting BlueScope Steel Direct in Australia on 1800 800 789. |
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AUSTRALIA
STEEL PRODUCTION, ROLLING,
COATING AND PAINTING FACILITIES
Port Kembla, NSW, Port Kembla Steelworks
Port Kembla, NSW, Springhill Works
Chullora, NSW
Hastings, VIC, Western Port Works
Acacia Ridge, QLD
CORPORATE OFFICE
Melbourne, VIC
SERVICE CENTRES
Acacia Ridge, QLD
CRM, Port Kembla, NSW
Chullora, NSW
Sunshine, VIC
Braeside, VIC
Wingfield, SA
WA Service Centre
BLUESCOPE LYSAGHT AUSTRALIA
Archerfield, QLD
Rocklea, QLD
Rockhampton, QLD
Mackay, QLD
Townsville, QLD
Cairns, QLD
Gold Coast, QLD
Toowoomba, QLD
Chullora, NSW
Emu Plains, NSW
Smithfield, NSW
Minchinbury, NSW
Smeaton Grange, NSW
Cardiff, NSW
Tamworth, NSW
Dubbo, NSW
Coffs Harbour, NSW
Albury, NSW
Queanbeyan, ACT
Lyndhurst, VIC
Dandenong, VIC
Campbellfield, VIC
Geelong, VIC
Hobart, TAS
Launceston, TAS
Devonport, TAS
Gillman, SA
Darwin, NT
Forrestfield, WA
BLUESCOPE WATER
Keysborough, VIC
St Marys, NSW
Unanderra, NSW
Beenleigh, QLD
THAILAND
Map Ta Phut, Rayong, BlueScope Steel Thailand
BLUESCOPE LYSAGHT THAILAND
Bangkok
Khon Kaen
Map Ta Phut, Rayong
MALAYSIA
Kapar, Selangor, BlueScope Steel Malaysia
BLUESCOPE LYSAGHT MALAYSIA
Shah Alam, Selangor
Kota Kinabalu, Sabah
Kuching Bintulu, Sarawak
INDONESIA
Cilegon, Java, BlueScope Steel Indonesia
BLUESCOPE LYSAGHT INDONESIA
Cibitung, Java
Medan, Sumatra
Surabaya, Java
VIETNAM
Ba Ria-Vung Tau Province,
BlueScope Steel Vietnam
(operational 2006)
BLUESCOPE LYSAGHT VIETNAM
Ho Chi Minh City
Hanoi |
CHINA
Suzhou Province, BlueScope Steel China
(operational 2006)
BLUESCOPE BUILDINGS
Shanghai
Tianjin
Langfang
Guangzhou
Chengdu
INDIA
BLUESCOPE BUILDINGS
Pune (operational 2006)
Chennai (operational 2007)
New Delhi (operational 2007)
OTHER BLUESCOPE LYSAGHT - ASIA PACIFIC
SINGAPORE - Jurong
BRUNEI - Bandar Seri Begawan
SRI LANKA - Colombo
TAIWAN - Kaohsiung
NEW CALEDONIA - Noumea
VANUATU - Port Vila
FIJI - Suva, Nadi and Lautoka
USA
CORPORATE OFFICE
Dallas, TX - Regional Headquarters
BUILDINGS GROUP MANUFACTURING PLANTS
Annville, PA
Laurinburg, NC
Jackson, TN
Visalia, CA
San Marcos, TX
Selmer, TN
BUILDINGS GROUP ADMINISTRATION
AND ENGINEERING
Kansas City, MO
Birmingham, AL
Peoria IL
Memphis, TN
Mason, OH
KORETECK
Staunton, VA
VISTAWALL MANUFACTURING PLANTS
Terrell, TX
Greeneville, TN
VISTAWALL SERVICE/DISTRIBUTION CENTRES
Seattle, WA
San Francisco, CA
Sacramento, CA
Modesto, CA
Los Angeles, CA
Denver, CO
Dallas, TX
Houston, TX
Minneapolis, MN
Wausau, WI
St Louis, MO
Chicago, IL
Detroit, MI
Cincinnati, OH
Cleveland, OH
Warwick, RI
Washington, DC
Tucker, GA
Newnan, GA
Tampa, FL
Bristol, PA
Bloomsburg, PA
JOINT VENTURE OPERATING SITES
Delta, OH- North Star BlueScope Steel
Crawfordsville, IN - Castrip®
CANADA
BUILDINGS GROUP SALES OFFICE
Burlington, ONT
Edmonton, Alberta
MEXICO
BUTLER GROUP MANUFACTURING PLANT
Monterrey, Nuevo Leon
NEW ZEALAND
Glenbrook - New Zealand Steel
Waikato North Head - Ironsands Mine
Taharoa - Ironsands Mine |
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STEEL PRODUCTION, ROLLING, COATING AND PAINTING FACILITIES 
CORPORATE OFFICE 
SERVICE CENTRES 
BLUESCOPE LYSAGHT AUSTRALIA 
BLUESCOPE WATER 
NEW ZEALAND OPERATIONS 
BLUESCOPE LYSAGHT OPERATIONS - ASIA PACIFIC 
BLUESCOPE LYSAGHT THAILAND 
BLUESCOPE LYSAGHT MALAYSIA 
BLUESCOPE LYSAGHT INDONESIA 
BLUESCOPE LYSAGHT VIETNAM 
OTHER BLUESCOPE LYSAGHT - ASIA PACIFIC 
CORPORATE OFFICES 
BLUESCOPE BUILDINGS INDIA 
BLUESCOPE BUILDINGS CHINA 
CORPORATE OFFICE 
BUILDINGS GROUP MANUFACTURING PLANTS 
BUILDINGS GROUP ADMINISTRATION AND ENGINEERING 
KORETECK 
VISTAWALL MANUFACTURING PLANTS 
VISTAWALL SERVICE/DISTRIBUTION CENTRES 
JOINT VENTURE OPERATING SITES 
BUILDINGS GROUP SALES OFFICE CANADA 
BUTLER GROUP MANUFACTURING PLANT MEXICO