BlueScope considering US expansion following full year results
Australia’s largest steel manufacturer, BlueScope Steel, has announced potential plans to expand its US operations.
The firm could invest up to AU$954mn (US$700mn) into its North Star facility, located in Delta, Ohio, over a period of two to three years.
The company would be taking advantage of the current protectionist tariff policy implemented by the Trump administration for imported steel and aluminium.
The potential future expansion follows BlueScope’s full year results ending June, which saw the firm’s net profit increase by 119% to reach AU$1.57bn (US$1.14bn), compared to the previous year.
The company’s sales revenue from continuing operations hit AU$11.49bn (US$8.35bn), increasing by 9%.
According to the BlueScope’s Chief Executive Officer, Mark Vassella, the successful results could be attributed to increased demand and profit margins.
“We have a simple and sustainable strategy across a complex and diverse business that is working,” stated Vassella, Herald Sun reported.
“Our businesses are generating strong cash earnings. The balance sheet is in good shape.”
During the review period, the company saw its best half year results in over 15 years, since December 2008.