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AUSTRALIA

Hot Rolled Products

HIGH QUALITY, BRANDED PRODUCTS MADE AT THE STEELWORKS CONTINUE TO DIFFERENTIATE US FROM OUR COMPETITION AND GROW OUR BUSINESS AND REPUTATION WITH CUSTOMERS.

XLERPLATE® pylons used in the bridge over Lal Lal Creek near Ballarat, for the Regional Fast Rail project.

MOORABOOL, VIC., AUSTRALIA
XLERPLATE® pylons used in the bridge over Lal Lal Creek near Ballarat, for the Regional Fast Rail project.


WORLD CLASS IN TOUGHER TIMES

Port Kembla Steelworks, on the coast of New South Wales south of Sydney, is a fully integrated operation - turning the raw materials iron ore and coking coal into iron, then into steel slab and hot rolled coil - all at the one site.

Slab and coil are the primary feedstock for our metal coating, painting, and rollforming operations used in making steel roofing and walling, fencing, house framing, water tanks, fully engineered sheds, warehouses and distribution centres.

The Port Kembla Steelworks is one of the world's lowest cost producers of hot rolled coil, due to its high level of automation and the dedication of its 3,500 employees to manufacturing excellence.

During 2005/06, Port Kembla Steelworks achieved record raw steel production of 5.283 million tonnes, and hot rolled coil production of 2.556 million tonnes. These results, together with increased sales volumes and despatches, best-ever delivery performance, reduced inventories, lower unit costs and other cost savings again demonstrate the plant's world-class operational efficiency.

Despite this excellent performance, dramatically higher raw material costs and lower international prices for slab and hot rolled coil led to lower sales revenue, down seven per cent, and EBIT which fell by 60 per cent on the previous year.

The Steelworks continues to improve the value it generates for the Company. The $100 million expansion of the hot strip mill was completed on schedule. Once production is fully ramped up, it will convert an additional 400,000 tonnes of slab into hot rolled coil.

Port Kembla's No. 5 and No. 6 blast furnaces, which turn raw material into iron ready for steelmaking, both set production records. No. 6 Blast Furnace marked its 10th year of operation. Plans are in progress to reline the No. 5 Blast Furnace to deliver environmental and efficiency improvements and extend its life by a further 15 years.

High quality, branded products made at the Steelworks continue to differentiate us from our competition and grow our business and reputation with customers.

XLERPLATE® and XLERCOIL® are premium brands and are used in making barbecue hotplates, farm machinery, mining equipment, trucks - and other industrial products requiring high quality hot rolled plate and coil steel.

Our SURELINE® power poles, developed in conjunction with the electricity industry, are proving a viable alternative, being lightweight, easy to transport and long-lasting.

Our employees continue to work towards our goal of Zero Harm in the workplace and it was pleasing to note that Port Kembla's slabmaking operation achieved three million hours free of lost time injuries.

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The Port Kembla Steelworks is one of the world's lowest cost producers of hot rolled coil. THIS YEAR we INCREASED sales volumes and despatches, AND achieved record raw steel production and best ever delivery performance.


WOLLONGONG, NSW, AUSTRALIA
Blast furnace at Port Kembla Steelworks.

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