Australian steelmaker BlueScope reported fiscal 2022 net profit after tax of A$2.81 billion ($1.97 billion), which its CEO calls “record performance in 20 years of business.” history of BlueScope as a listed company”. The company also revealed that it recently purchased a scrap yard in Ohio for around $80 million. Milliron RecyclingMansfield, Ohio was owned and operated by Grant Milliron.
According to a statement from BlueScope to recycle today, the acquisition of Milliron provides the company with a supply guarantee for many of the major food products destined for its North Star mini-plant in Delta, Ohio. According to BlueScope, Milliron also has a presence and expertise in the treatment of premium and obsolete waste, which helps the steelmaker to increase its participation in the circular economy.
The company says the acquisition allows the North Star plant to improve the quality and quantity of obsolete scrap it uses and reduce the mix of more expensive premium scrap. BlueScope says the acquisition will also help the company achieve additional scrap self-sufficiency.
BlueScope Managing Director and CEO Mark Vassella said full-year earnings represent a 135% ($1.14 billion) increase over fiscal year 2021 earnings. outstanding, with outstanding performance across our business portfolio,” he said.
Vassella continues, “We have seen continued strong demand for our steel products and solutions despite recent macroeconomic and geopolitical volatility. It is truly encouraging to see our employees continue to pull together, serve our customers, and operate safely and with great resilience. This record result is their record result.
Commenting on the high-profile activity in the United States, Vassella said: “Operating cash flow, after investments, including on the North Star Extension, was A$1.71 billion ($1.2 billion). From there, investments of 1 billion Australian dollars ($700 million) were made in the United States the acquisition of MetalX the ferrous recycling activity and the Coil Coatings activity. These were well-considered and well-executed investments in our US growth plan. »
In its report to shareholders, BlueScope calls its recently completed fiscal year, which ended June 30, “a year of major achievement and progress for BlueScope in the United States.”
The company continues, “Construction of our largest single capital project is substantially complete, to add 850,000 metric tons per year of capacity to the North Star mini-mill in Delta. [Ohio]. The first coil was produced in June 2022, and we are beginning the 18-month ramp-up to full production, at which time North Star will represent approximately 5% of total annual flat steel production in the United States.
Regarding its entry into the scrap metal market, the company writes: “In December, BlueScope created BlueScope Recycling and Materials, or BRM, by acquiring MetalX’s scrap steel recycling business in Waterloo, Indiana, and Delta, Ohio, for about $220. million.”
Referring to its most recent acquisition, without providing details, BlueScope writes: “In August, a third scrap processing site was acquired.” A slide accompanying BlueScope’s fiscal year 2022 presentation refers to “the recent acquisition of an additional scrap processing site in Ohio for approximately US$80 million.” The third site is not yet listed on BMR’s website to August 16.
In its report to shareholders, BlueScope adds: “BRM gives us a crucial presence and expertise in scrap processing. The new business unit will allow North Star to improve the quality and quantity of obsolete scrap it uses and reduce the mix of higher cost premium scrap.
Regarding downstream finished steel, the company adds, “In June, BlueScope established a significant national paint footprint in the United States with the $717 million acquisition of the Coil Coatings business of Cornerstone Building. Brands. [which is] now called BlueScope Coated Products, or BCP.