Bluescope studies more North American acquisitions

Australian steelmaker “pleased” with U.S. financial results

by Tom Stundza -- Purchasing, 8/20/2008 1:12:00 PM

Bluescope Steel of Australia plans to expand its ownership of steel-related operations in North America. The Sydney Morning Herald reports that CEO Paul O'Malley has no specific takeover targets but will look at opportunities, particularly at distressed assets.

BlueScope has a U.S. presence already from its 50% ownership in North Star Bluescope Steel, a 2 million ton/year mini-mill in Ohio, its $1 billion purchase of Butler Manufacturing of Kansas City, Mo., in 2004 and its $730 million purchase of IMSA Steel in February. IMSA Steel has four businesses with manufacturing facilities throughout the U.S: ASC Profiles, a manufacturer of building components at 10 plants; Steelscape, a producer of coated and painted steel coils at three plants; Metl-Span, a manufacturer of insulated steel panels at five plants; and Varco Pruden Buildings, a producer of pre-engineered building systems at five plants.

 "Notwithstanding all of the doom and gloom in the U.S., our businesses are doing well,” O’Malley says in a statement attached to Bluescope’s fiscal year earnings report.

He says these downstream holdings “are performing at the solid levels at which they finished fiscal year 2008 (ended June 30),” despite the uncertainty surrounding the U.S. economy.

O’Malley also says BlueScope management sees “a real opportunity” to grow market share in the U.S., where imports slowed faster than demand in recent months. “There is nothing obvious we would [purchase] at the moment but … we will look at opportunities, particularly if there are assets which are distressed," he says.