Slide 1: Analyst Site Visit - Western Port Plant, Hastings
For personal use only Steel Manufacturing Businesses Analyst Site Visit - Western Port Plant, Hastings Aimee Allen, General Manager Western Port 19 June, 2008
Slide 2: Internal business re-structure to focus on strategic priorities and execution
Internal business re-structure to focus on strategic priorities and execution For personal use only Managing Director and CEO Legal (Michael Barron) CFO (Charlie Elias) Paul O’Malley People and Organisational Performance (Ian Cummin) Aus/NZ Steel Australian Coated Australian Corporate Strategy Manuf
Slide 3: Western Port Manufacturing Business
Western Port Manufacturing Business For personal use only Aimee Allen General Manager Jann Barker Personal Assistant Elise Latchford Gary Elliott Ron Bange Garry Battye Russell Gibbs Andrew McFarlane John Waugh Manager People & Manager Manager Manager Manager Manager Manager Finance Organisation Ass
Slide 4: Safety Performance – Our Goal is ZERO HARM
Safety Performance – Our Goal is ZERO HARM For personal use only 30 Lost Time Injury Frequency Rate 12MMA 25 20 15 10 5 0 16 MTI Frequency Rate Audit Participation 100% 14 12 80% 10 60% 8 6 40% 4 20% 2 0 0% 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2001/02 2002/03 2003/04 2004/05 2005/
Slide 5: Environment
Environment For personal use only • Re-certified to ISO 14001 October 2005 • EPA Accredited Licence since June 1996 • Third (2006-2011) Environmental Improvement Plan (EIP) with EPA underway • 2007 Tidy Town Award winner • 90% of captured stormwater is re-used in processes • 100% of by-product steel
Slide 6: Community
Community For personal use only • Philosophy built on Our Bond • Relationship and involvement focus Examples: • Active and supportive Community Liaison Committee • Sponsor many community activities such as: • Major and founding sponsor of Fit to Drive • Long-term sponsor Mornington Peninsula Schools
Slide 7: Western Port History
Western Port History For personal use only Why Western Port? Milestones • Deep water port • 1970: Victorian Government approval for a • Energy from Bass Strait and Latrobe steel plant on 800 Hectare site at Hastings Valley • 1972: First production units commissioned • Key southern states customers i
Slide 8: Western Port Today
Western Port Today For personal use only • Experienced workforce with strong depth of process knowledge • Majority of auto products now metal coated (MCL6) • One of Victoria’s safest and environmentally sustainable manufacturing sites • Major employer on the Mornington Peninsula • New production rec
Slide 9: Highlights and Successes
Highlights and Successes For personal use only • In total, the 3 Metal Coating lines are expected to have a record year in 2007/08 with production at just under 800,000 tonnes. Previous best was 778,000 tonnes in 1999/00. • Over the last five years we have: o reduced LTIFR by 81% and MTIFR by 78% o
Slide 10: Western Port Mission and Execution Excellence Measures
For personal use only WESTERN PORT MISSION: A reliable and efficient coated steel manufacturer EXECUTION EXCELLENCE MEASURES • Be a reliable and flexible supplier of quality products • Delivery Performance – Delivered in Full On Time (DiFOT) • Deliver on development and implementation of approved ne
Slide 11: Western Port Plant Material Flow
Western Port Plant Material Flow For personal use only Iron Monarch Western Port Hot Rolled Strip Hot Strip Mill 200 kt/a Slab 1.4 Mt/a Hot Rolled Pickle Line Pickled Strip 1.2 Mt/a 200 kt/a Cold Mill 1.0 Mt/a Uncoated Strip 150 kt/a Metal Coated Metal Coating Lines Strip 830 kt/a 480 kt/a Paint Lin
Slide 12: Our Markets and Supply Chain
Our Markets and Supply Chain For personal use only Building & Construction Direct Western Port Domestic Service Manufacturing Centres Export Distributors Off-shore customers Automotive Page 12
Slide 13: Our Product Range
Our Product Range For personal use only Unique to Western Port ZINCANNEAL® AQUAPLATE® UNCOATED HOT ROLLED > 1500 mm wide Width of Lines - HSM, MCL6, CPL2 Across BlueScope Steel COLORBOND® ZINCALUME® GALVASPAN® TRUECORE® Page 13
Slide 14: Market Penetration
Market Penetration For personal use only Western Port TRUECORE ® Despatches • Growth continues in the Residential Framing segment with a 50 45 major milestone being reached with more than 100,000 40 tonnes being sold in under 3 years since its launch 35 '000 Tonnes 30 25 • More responsive pricing po
Slide 15: Capital program aimed at growth, cost, operational security & the environment
Capital program aimed at growth, cost, operational security & the environment For personal use only Project Benefit Timing MCL Coating Mass Control Systems • Reduced excess coating metal FY 2008/09 & Upgrades • Cost Savings FY 2009/10 Implementation/feasibility Recycle Water Project • Reduction in f
Slide 16: Workplace Reform – now delivering real business benefits
Workplace Reform – now delivering real business benefits For personal use only BSL Employee Numbers Shifts Absent per Employee per Annum 1,500 7 6 1,250 5 1,443 1,441 1,313 4 1,000 1,243 6.3 5.3 3 1,147 5.5 4.9 1,073 4.6 750 2 3.9 958 960 921 4.3 1 500 0 1999/00 2000/01 2001/02 2002/03 2003/04 2004/
Slide 17: Major Costs – compressible costs the focus through site wide initiatives
Major Costs – compressible costs the focus through site wide initiatives For personal use only Total Costs by Major Category $Million 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Outlook Conversion Costs Other Raw Materials Delivery / Selling & Admin Feed • Feed and Zinc are the b
Slide 18: Continuing Cost Focus
Continuing Cost Focus For personal use only 20 Conversion Costs Financial Benefits 15 $ / Packed Tonne $Million 10 5 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Outlook Outlook • Targeting 1% reduction in total costs year Workers Co
Slide 19: Hot Strip Mill and Coating Lines Production – beginning ramp up
Hot Strip Mill and Coating Lines Production – beginning ramp up For personal use only HSM Tonnes per BlueScope & Silcar Employee 1,500 1,250 • HSM reliability initiatives starting to realise benefits tonnes per employee 1,000 750 • Volume in the 2004 – 2006 period 1019 500 904 822 1021 962 995 impac
Slide 20: Building on Our Strong Foundations and Expertise
Building on Our Strong Foundations and Expertise For personal use only “Western Port – Our People Are Our Strength” Page 20
Slide 21: Our Focus Moving Forward
Our Focus Moving Forward For personal use only • Continue the drive towards Zero Harm • Further advance employee engagement and continued increase on individual accountability and workforce flexibility • Deliver on planned Blueprint objectives – MCL4 and Hot Strip Mill initiatives underway • Focussi
Slide 22: Appendices – Production Processes
For personal use only Appendices – Production Processes Page 22
Slide 23: Hot Strip Mill
Hot Strip Mill For personal use only Roughing Furnace Finishing Process: Slab from Port Kembla is reheated to 1250°C, then descaled, rough rolled to 25mm thick, coiled at the coilbox to retain heat, finish rolled to customer order thickness, then cooled for metallurgical properties and coiled Output
Slide 24: Pickle Line
Pickle Line For personal use only Preheat Furnace Pickle Tanks Rinse Tanks Dryer Shear Welder Side Trimmer Shear Exit Looper Uncoiler Entry Loopers Recoiler Process: Hot rolled coil is processed through hydrochloric acid tanks to clean scale from the strip and is then side trimmed to the required wi
Slide 25: Cold Rolling Mill
Cold Rolling Mill For personal use only Product Flow Process: Hot rolled pickled coil is fed into the Cold Rolling Mill (five stands) that applies roll force (2500t) and tension to the strip reducing the thickness of the strip by up to 80% Output: Sold as cold reduced uncoated steel, or further proc
Slide 26: Uncoated Circuit
Uncoated Circuit For personal use only Process: Cold reduced coils are Batch Annealed, Temper rolled (Coil Temper Mill CTM) and Tension Levelled (Tension Leveller Recoil Line TLRL) to impart the desired mechanical properties, shape and surface finish Output: Sold as uncoated steel products for the a
Slide 27: Metal Coating Lines (No. 4, 5 and 6)
Metal Coating Lines (No. 4, 5 and 6) For personal use only Skin Passing Process: Cold reduced coils are hot dipped coated with ZINCALUME® coating (Nos 4 & 5 Lines) or galvanised (zinc) coating (No 6 Line) to provide corrosion protection Output: Sold as ZINCALUME® coil or galvanised coil to building,
Slide 28: Paint Lines
Paint Lines (No. 2 and 4) For personal use only Laminating Process: Uncoated or metal coated strip is thoroughly cleaned and chemically treated to provide best surface to apply a primer coat followed by a finish coat of paint, via roller application, which is then oven cured, CPL2 has a laminator. O
Slide 29: Steel Manufacturing Businesses - Analyst Site Visit
For personal use only Steel Manufacturing Businesses Analyst Site Visit - Western Port Plant, Hastings Aimee Allen, General Manager Western Port 19 June, 2008