Deal will make NZ steel sector ‘more sustainable’

New Zealand – Australia’s BlueScope Steel has agreed to acquire assets of downstream long products business Fletcher Building’s Pacific Steel (PSG) for a sum of NZ$ 60 million (US$ 51 million) plus working capital.

The deal, completion of which is scheduled for mid-2014, includes PSG′s rolling mill and wire drawing facilities located in Auckland as well as a rolling mill in Fiji.

BlueScope says its wholly-owned subsidiary New Zealand Steel will invest approximately NZ$ 50 million (US$ 42 million) in the construction of a billet caster and associated plant at the Glenbrook steelworks, and on integration costs. ′The new caster will supply steel billet as feed to the rolling mills in NZ and Fiji,′ it notes.

Construction work is expected to create around 70 new jobs over the two-year project. BlueScope′s ceo Paul O′Malley says the move is ′a positive step′ and will help make the New Zealand steel industry more sustainable.

For more information, visit: www.bluescopesteel.com