The Edge Issue 3 by Andrew Silcox

ISSUE 3 APRIL 2011

GIVING CUSTOMERS AND INDUSTRY THE EDGE WITH NEWS AND INNOVATION

SUSTAINABLE STEEL

Keppel Prince and BlueScope power ahead

IN THIS ISSUE Community Edge - BEDFORD 4 Cutting Edge Profile - KEPPEL PRINCE ENGINEERING 8 Giving You The Edge - THE 60 SECOND INNOVATOR 14

DISTRIBUTION UPdate Challenging conditions continue for Australia’s steel industry. During recent times the steel industry has faced many challenges and BlueScope Distribution has continued to work closely with our customers to tackle this new business environment. Steel prices are increasing whilst demand has softened in key construction segments and on top of this, many of our communities are dealing with the aftermath of extreme weather conditions.

WELCOME Welcome to the third edition of The Edge. We have received great feedback following the first two editions and have worked to further develop The Edge to be even more relevant and interesting to you. In this edition we have gathered an assortment of case studies from across the BlueScope Steel network that highlight some of the relationships BlueScope Distribution has developed with our customers. These relationships underline how we have achieved great results by working with our customers in varying industries; from wind towers to mining to innovative manufacturing techniques in the crane and hoist industry. We also take a look into some unique products; TRUCORE® steel and LYSAGHT KLIP-LOK®.

Global steel markets are experiencing strong steel price increases, driven largely by continued increases in the price of raw materials and by broad steel restocking. Australia is a key supplier of raw materials into global steel markets. This supply was recently disrupted by the devastating floods in Queensland that will add further price pressure to raw materials. Whilst prices are increasing there has been a slow down in key building and construction sectors. The Non-Residential sector has suffered, following the wind-up of government spending relating to the educational stimulus program. The Residential housing development sector has also slowed after recent increases in interest rates and further reductions in government support in the form of grants. As mentioned, Queensland suffered a series of devastating natural disasters recently, with mass flooding and three quarters of the state being declared a disaster zone. Many people and businesses have been seriously affected. Before Queensland could recover from the devastation of the floods, Cyclone Yasi hit the north of the state, leaving even more communities devastated. Unfortunately, Queenslanders have not been alone in facing devastating weather conditions. Victoria has faced further bushfires and also faced severe flooding in regional locations, while Western Australia has also recently experienced terrible bushfires. These events are devastating on a mass scale and will impact communities for years to come. At BlueScope we believe our communities are our homes and will work with the communities in which we live and operate to

GLOBAL ECONOMIC UPD ATE Global steel markets have continued to experience price volatility over recent months. In addition, there has been a slowing growth rate within the Australian economy as government spending tightens and interest rate increases take hold. These factors have created challenges for the Australian steel sector, however the outlook remains solid in 2011. Rising raw material prices have created significant cost pressures resulting in steel price increases. Iron ore, coking coal and scrap prices have all increased sharply between December 2010 and March 2011.1 The Queensland floods earlier this year have adversely impacted the supply of coking coal, which has contributed to price increases of over 65%.2 In addition, iron ore prices have increased close to pre-GFC levels.3 Furthermore, increased production of iron ore and coking coal is needed to meet increasing Chinese steel demand, due to strong economic and building growth. While major miners have recently announced record production levels the rate of increase has not been sufficient to relax pressure on raw material prices.4 In addition, the recent Japanese earthquake will have a short-term impact on the production and supply of steel in the Asian region. Japanese steel production will be affected through damage to some steel making facilities, electricity shortages and damaged ports and freight corridors.

Support for the communities in which we live and work is a deeply held conviction within the BlueScope business and we are proud to support those who need it most. Accordingly, you will find two case studies in this edition of The Edge that look into the support the BlueScope network provides for our local communities. We have also included a general interest article and an economic update as part of our ongoing objective to keep you informed. I hope you enjoy this edition of The Edge and encourage you to send your thoughts and feedback on future editions and topics you would like to see more of. Please forward any comments or suggestions to: contributions@bluescopesteel.com

Dean Mehmet Dean Mehmet General Manager BlueScope Distribution

offer assistance and support where we can. Work has already begun in numerous BlueScope branches across the country to raise funds to donate to the rebuilding effort in Queensland and BlueScope will be donating $250,000, in cash or in-kind, for an emergency facility to support those most in need. As always, safety is top of mind in our business and we have reached a particularly important milestone with one year without a Lost Time Injury as of February 2011. The entire Bluescope Distribution network continuously strives for zero harm in everything we do and to achieve 12 months with no members of our team having time off due to an injury sustained at work is a success we are proud of. Our people are our strength; their safety and the safety of our customers is paramount to everything else. Though the steel industry faces more testing times ahead, BlueScope Distribution will continue to support our customers by providing quality products, technical expertise and steel supply solutions to help your business meet the challenges ahead.

As these higher-cost raw materials are consumed by the steel manufacturing supply chain, finished steel prices will likely rise. This has been noted already with East Asian hot rolled coil prices increasing over 16% since December 2010.5 Expectations remain that there will be further steel price pressures for the Australian market. Further potential supply pressures due to the Japanese earthquake may exacerbate existing price pressures. In addition to the expected steel price increases in the Australian steel market, the economy locally remains solid, which is reflected through the relatively low unemployment rate of 5.0%.6 The Australian economy has continued to grow throughout 2010 with a seasonally adjusted GDP increase of 0.7% in the December quarter taking the annual GDP growth rate to 2.8%.7 This, however, is slightly lower than the expectations of market economists. This result is partly due to the slowdown in the building and construction sector.

Recent data released by the Australian Bureau of Statistics indicates that housing starts have decreased by over 15% in January, partly due to the Queensland floods.8 The Housing Industry Association has suggested that a key driver of the poor housing start figures has been the Reserve Bank of Australia steadily increasing interest rates over 2010.9 BIS Shrapnel suggested that the natural disasters experienced over the Australian summer will cause some further slowdown in the short-term, but a rebound in production and reconstruction work will bolster activity in 2011-12.10 It also anticipates resumption in growth for the building sector, partly due to the pent up demand from population growth and limited housing construction creating a housing deficiency.11 Finally, strong investment in mining projects is expected to fuel growth over coming years as the economy gears-up to meet demand from China for iron ore, coal and natural gas. In addition, the IMF has suggested that world growth is expected to remain solid, with the outlook for the US economy improving.12 These global factors build on the solid platform established within the Australian economy. Although challenges are evident, further economic growth and steel price increases are expected in 2011.

1. Steel Business Briefing – Steel Price Analyser HRC East Asia, March 2011 2. CRU Steel Monitor, March 2011 3. Steel Business Briefing – Global Market Outlook, February 2011 4. Steel Business Briefing – Steel Price Analyser HRC East Asia, March 2011 5. Steel Business Briefing – Steel Price Analyser HRC East Asia, March 2011 6. Australian Bureau of Statistics – 6202 Labour Force, January 2011 7. Australian Bureau of Statistics – Australian National Accounts, March 2011 8. Australian Bureau of Statistics – Building Approvals, February 2011 9. Housing Industry Association – National Outlook, December 2010 10. BIS Shrapnel – Economic Outlook, February 2011 11. BIS Shrapnel – Building Industry Prospects, February 2011 12. International Monetary Fund – World Economic Outlook Update, January 2011

Disclaimer: This document is made available to you on a strictly confidential and non-reliance basis. While every care has been taken to ensure the accuracy of the information, BlueScope Distribution Pty Ltd does not warrant the accuracy, completeness, currency or fitness for purpose of the information. You should verify and check the accuracy, completeness, reliability and suitability of the information contained in this document for any use to which you intend to put it. Except to the extent to which liability may not lawfully be excluded or limited, BlueScope Distribution Pty Ltd and its related bodies corporate will not be liable to you or any third party for any direct, indirect or special loss or damage however caused (including, without limitation, breach of contract, negligence and breach of statute), which may be suffered or incurred in connection with the information.

THE EDGE | Issue 3 THE EDGE | Issue 1

EDGE

Australian-made drilling equipment takes on the world...

CREATE A

BRIGHTER

FUTURE Australians are renowned for our sense of community, and looking after those less fortunate is ingrained in our psyche. In South Australia, BlueScope Distribution has recently become involved with Bedford. It’s a decision very much inspired by the BlueScope Steel Bond (company charter), which places significant importance in the Company participating and engaging in local communities. Since 1945 Bedford has created a brighter future for South Australians with a disability; offering employment, recreational and day activities, training, life skills, community housing and support services. Bedford provides much needed services to more than 3500 people across South Australia, with a focus on addressing individual’s evolving needs in a caring and supportive environment. With the help of the community, Bedford can ensure people with a disability or disadvantage are given the opportunity to realise their potential.

(L) and Brett Minervini Award winners drew Mills An BlueScope’s ith w ), (R ht rig David W

“Two individuals and one team took out Community Involvement Awards at our gala December presentation. Brett Minervini, who works in Bedford’s packaging team in Panorama, received an award for his involvement as a Special Olympics Ambassador. David Wright, a member of Bedford’s stores and distribution team and also based in Panorama, received an award for donating blood more than 100 times! Finally, but certainly not least, the team at Bedford’s Day Options programme in Wallaroo received an award recognising their positive work within their local community. The team is involved in delivering Meals on Wheels and also provides a transfer service to the local libraries, delivering books between Kadina and Wallaroo.” Samantha said, enthusiastically.

Samantha Abbott, General Manager of Marketing and Fundraising for the Bedford Group said, “The Bedford Achievement Awards are the highlight of the year; where the achievements of many members of the Bedford community are publicly recognised and celebrated with friends, family and supporters. This year, 4 Achievement Award ceremonies across the State celebrated the remarkable individual and team achievements of 101 people with disability or disadvantage.”

RUC MINING

Impressively, an RUC Cementation Mining raise boring machine, a massive Strata 950, played an important part in the rescue of 33 trapped miners in the Chilean desert, last October. The machine was one of three drilling rigs working side-by-side to try and reach the miners, trapped 650 metres underground. Ultimately, it was one of the other rigs that reached the men first, but it’s a measure of the ability and reputation of the RUC machine that it was included in the international rescue effort.

Kalgoorlie-based RUC Cementation Mining Contractors specialises in vertical shaft developments for the mining industry, both in Australia and abroad. Located in the heart of the Western Australian Goldfields, the business specialises in raise-boring and shaft-sinking equipment and with the help of BlueScope Distribution’s Kalgoorlie branch they manufacture some very impressive equipment. Raise boring, primarily, is the process of drilling a shaft between two levels in a mine. It offers a safe, efficient and cost effective method of making holes through different geological formations. The raise boring machine is set up on the upper level of a mine and a small diameter pilot hole is drilled to the level below. Once it has broken through, the drill bit is removed and a reamer head attached. This then reams-out a larger diameter hole as it’s raised back up towards the machine. Debris from the reamer head falls back to the tunnel below and the finished tunnel has smooth walls that often don’t require rockbolting or other forms of ground support. The finished shaft can be up to 6 metres in diameter and shaft lengths to 1000 metres are now possible. Safety is a key advantage of the raise boring method. The absence of explosives and the fact no personnel need to enter the hole makes it a highly desirable technique. Additionally, only two staff are required per shift, dramatically reducing costs and making it the cheapest form of vertical raising. “RUC is probably our biggest plate customer and we do whatever we can to help them. We’ve supplied steel since they started building their Strata drilling rigs; everything from 6 mm right up to 410 mm Grade 350 steel,” said David Johnson, BlueScope Distribution’s Manager in Kalgoorlie.

Andrew Mills, BlueScope Distribution’s State Manager SA/NT said “We see Bedford as an ideal organisation to be involved with as they do such worthwhile work within our community. About 40 of our staff, family and friends ran or walked for Team Bedford in Adelaide’s City-Bay Fun Run last September, an annual event that’s been ‘running’ since 1973. It was a great day out and Team Bedford officially raised more than $30,000 on the day, taking first place in the fundraising stakes for teams.” “We also support Bedford’s annual trivia night, the Bedford Big Battle, which is another important fundraiser for them. But a real highlight is their annual Bedford Achievement Awards, held in December. For 2010, BlueScope Distribution sponsored the Community Involvement Awards, which I had the pleasure and honour to present. Other organisations that support Bedford include Holden, which has sponsored the Annual Achievement Awards for the last 42 years, Optus, Network 10 and the NAB.” Andrew said.

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un and Sandra i, Vin Padmanabha an ss lda Ba ul Pa L to R: Chahhoud, Brett ound) with George Baldassani (foregr e and Jeff Brownwood (rear) Mander, Brad Whit

BlueScope Distribution is proud to actively sponsor Bedford and is committed to further developing the relationship into the future. Congratulations to everybody who ran in Team Bedford for making the City-Bay Fun Run such a successful fundraising event. Congratulations also to everybody at Bedford for making the iconic South Australian organisation such an enduring success.

“We practically do all the profiling for them, for the various parts of their different rigs. These things are pretty big – up to 28.5 tonnes – and we have upwards of 40 drawings on-hand for each machine. Now, when they ring up and say ‘we need a base plate for a Strata 950’, or whatever, I’ve got the drawings and know exactly what they need.” According to Freddie Fraser, RUC Cementation Mining’s Maintenance Controller, working with BlueScope Distribution is simple and straightforward. “We have a good relationship with BSD; they are our major steel supplier and look after us well,” “Our business is picking up nicely and what we do is quite straightforward. We build machines to order and with BSD holding drawings for all of them, when we get an order they supply the plate cut to size and ready to go.”

Greg Newberry (L) with BSD’s David Johnson and a new Strata 960 raise boring machine

THE EDGE | Issue 3

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TRUECORE

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L to R: Michael McKern, Daryl Huggard and Joe McKern inspecting the latest steel delivery

McKern Steel and BlueScope Distribution build an enduring partnership. Steel – the Housing Industry’s Perfect Partner

OH&S Considerations

Because of the long list of homeowner advantages provided by a house frame made from TRUECORE® steel, demand has never been greater. But the truth is that TRUECORE® steel can also provide opportunities for fabricators and resellers right across Australia.

House frames made from TRUECORE® steel are strong yet lightweight. That means easier handling with less chance of lifting-related injuries.

For example, by working with local builders and developers there is the opportunity to supply precision frames made from TRUECORE® steel for new homes; from one-off architectural designs to green field project home developments. Imagine the possibilities TRUECORE® steel can open in your local area?

100% Termite and Borer Proof A house frame made from TRUECORE® steel is 100% termite and borer proof, without the need to apply chemical treatments. That’s a very attractive selling point and a huge benefit to homebuyers.

100% Recyclable

The advantages of working with TRUECORE® steel, compared to traditional framing materials, are many. Here’s a quick run down to highlight its many advantages.

Steel is one of the most recycled materials on Earth. Structures made with steel can be easily dismantled, recycled and used again in new buildings. All steel made by BlueScope Steel includes recycled steel as an integral part of the production process.

Quick and Easy to Work With

Peace of Mind

Framing made from TRUECORE® steel is exceptionally quick to erect. Prefabrication and modern fixing techniques make construction simple. Holes can be pre-punched for electrical and plumbing requirements. Construction time and costs are minimised along with site waste.

Residential house framing material made from TRUECORE® steel is backed by a 50 year warranty* from Australia’s BlueScope Steel, which means we’ll still be here should any warranty issues arise. Warranties can be applied for online, too, for ease of registration.

Fewer Call-Backs

Sales and Support

Building frames made from TRUECORE® steel won’t warp, twist, sag or shrink. Internal walls stay perfectly straight, reducing the occurrence of jamming doors, sticking windows, cracked cornices and sagging and wavy rooflines. Think happier home owners and fewer call-backs for builders.

Framing made from TRUECORE® steel is available in every state and territory of Australia, along with the latest online technical support. *Visit www.truecore.com.au for details.

In these days of short-termism, the pursuit of short term gain over longer term return, it’s good to see a company value the benefits of building and maintaining mutually beneficial relationships. One such business is McKern Steel, a family run business based in regional Victoria that services many of the state’s top domestic home building firms, across all metropolitan and regional areas. The company began in 1969 when Gordon and Anita McKern established McKern Manufacturing Company Pty Ltd in Melbourne, to make steel building products for the domestic housing industry. The McKerns then relocated their growing business to the current purpose-built and family-owned factory in Eaglehawk, just outside Bendigo, in 1976. Since then the McKern name has become synonymous with industryleading quality steel lintels and structural steel, with many of McKern Steel’s products protected by exclusive design registrations. Today, the McKern’s son Michael is Managing Director, supported by his children Joe and Emma, plus other staff, in the daily operations of the business. It’s the sort of Australian success story that never attracts news headlines but brings enormous rewards to everyone involved and the greater community at large. Indeed, McKern Steel is heavily involved in the local community, sponsoring a range of organisations like the Eaglehawk Football, Netball and Cricket Clubs plus the local Men’s Shed, amongst others. They also proudly support Melbourne’s Royal Children’s Hospital and have now even established the McKern Steel Foundation; inviting

groups from around the country to apply for funding or in-kind support. It’s an impressive track record other businesses would do well to emulate and no doubt contributed to Michael McKern being named Greater Bendigo Citizen of the Year in 2010. “McKern Steel is one of our most valued customers and we’ve been dealing with them for years,” said Daryl Huggard, BlueScope Distribution’s Branch Manager at Kangaroo Flat. “They supply lintels, T-bars and structural steel to many, if not most, of the top residential housing builders across Victoria,” “We’ve grown steadily with them and built a valuable working relationship. We provide an excellent service with daily deliveries and, basically, he gets the first truck out of the yard every morning. In return, we get continuity of business and because we’ve been working together for so long, we know their needs and keep plenty of the right steel in stock. It’s a genuine win-win situation for McKerns and BlueScope Distribution.” Daryl enthused. For Michael McKern, the benefits of working with BlueScope Distribution are many. “They’re a great partner for us; reliable and their communication is first class. Their general business and product knowledge fits in perfectly with what we’re doing and where we’re going,” “Most of our requirements are quite straight forward, but we do have the ability with them that if we require a certain product, even if it might not be quite in their usual range, they will source it and get it for us, which is very helpful. We’ve dealt with BlueScope Distribution for many years now and will certainly continue to do so for many years to come.” Michael said.

THE EDGE | Issue 3

CUTTING CUSTOMER PROFILE

TOWER‘N

“We see that as a real strong growth prospect for our business in the next decade and we expect to expand our workforce considerably by 2012. It’s a great boost to the local economy, too, and we see South Western Victoria becoming the Renewable Energy Hub of the Nation,”

Division (R), ager, School Road iste an M ’s ce in Pr el pp BSD’s Joe Bapt Geoff Trickey, Ke quirements with re el ste s se us disc

Steve Garner inside a finished wind tower

Keppel Prince Engineering began in 1968, specialising in aluminium and forestry, before quickly expanding into a broad range of other industries. Today the company specialises in the construction, fabrication and maintenance of industrial structures and equipment, offering end-to-end solutions across a broad range of industries. Keppel Prince operates primarily from plants in Portland, Victoria, and employs a talented team of some 455 engineers, project managers, technicians, trades people, apprentices and support staff. It’s a very impressive operation that reaches far from its Victorian base of operations. An ISO 9001-accredited company, it has successfully completed hundreds of projects across Australia and around the world; from wind farms, bridge pylons and large steel structures to telecommunications towers, gas/oil/ water piping and aluminium smelter maintenance. Since 2001 Keppel Prince Engineering has been one of Australia’s largest producers of wind towers and erectors of wind farms. Today, they offer specialist engineering solutions for the renewable energy industry, backed by years of experience in wind energy and are now moving into solar energy, wave and hydro power. The company is now an Australian subsidiary of Keppel Corporation Ltd, a major global engineering firm based in Singapore that purchased the local business about 20 years ago. This combines the personal service and cando attitude of an Australian organisation with the deep resources, stability and expertise of a global leader.

Diverse Capabilities

“Locally, we’ve done projects like the conveyor system for the Gunns woodchip loading terminal down at the port and we even built the tennis stadium in Melbourne and shipped it all down there, including the opening roof sections, so we do lots of general engineering work,”

Aside from renewables, Keppel Prince Engineering’s capabilities span an enormous range. For example, in construction their solutions include installation and commissioning; providing mobile cranes access equipment; transport logistics; storage and project management.

“Of course it was the local Alcoa aluminium smelter that brought us here in the first place. Once we’d helped build it, we then won contracts for ongoing maintenance work and this is still a major part of our operation,” Steve continued.

Fabrication solutions comprise plate rolling; heavy fabrication; manufacture and assembly; fitting and machining; industrial coatings; emission control equipment and project management.

The Right Connection

Dovetailing in with all these activities is an active and capable maintenance division. Its available solutions include plant and equipment maintenance; complete facility maintenance; accredited inspection and testing; welding inspections; non-destructive testing; shutdown maintenance and project management.

From wind turbine towers to aluminium smelter pots, the story of Keppel Prince Engineering reads better than a blockbuster movie script! Focus on Renewables Portland, on the south-western coast of Victoria, is very much in the heart of wind farm territory and it’s from here Keppel Prince’s considerable renewable energy expertise is deployed. Wind towers are constructed in a world-class, purpose-built facility designed to manufacture, fit-out, blast, paint and store them, without costly doublehandling. They also supply and install the complex internal components such as platforms, ladders, electrical cables, lights and fall arrest systems. Having worked on some of the largest wind farms in Australia, Keppel Prince now offer a complete service from the ground-up; including site preparation, foundations, assembly of rotors, erection of towers and nacelles, electrical terminations, painting and welding. Other capabilities in the renewable energy sector allow the company to deliver the towers, steel structures and components required for major solar energy projects, while providing the cranes and equipment to construct and install these facilities. Interestingly, by applying their skills in pipe work, mechanical construction and turbines they are well equipped to participate in the emerging energy solution of wave power. By drawing on global expertise in waste water treatment and re-use, plus local experience with high-pressure gas, oil and water piping, Keppel Prince has partnered with Pacific Hydro on several innovative projects.

“Wind towers aside, we’ve had a strong, long-term relationship with Telstra for over 20 years now, supplying all their mobile phone towers right across Australia. In fact we’ve even exported towers to Mozambique for them in the past. It’s highly skilled, high-quality work that helps us maintain our technical standards,”

A good example of Keppel Prince’s diverse capabilities is their association with the Portland Aluminium smelter; majority owned by Alcoa and capable of producing approximately 352,000 tonnes of aluminium annually. Involved since 1983, the company’s role included construction services during the mid 1980s and continues to this day with the provision of project support and mechanical maintenance services. This includes the repair and refurbishment of major items such as potshells, superstructures and anode bars. Currently, Keppel Prince has around 160 maintenance and support service staff, working on-and-off site. Joe Baptiste, BlueScope Distribution’s Account Manager in Portland said “Because of the scale of their operation, the massive amounts of plate steel required for the pylons are supplied direct from Melbourne. At the branch level, however, we supply steel for all the internal fittings, which includes ladders, platforms and the like. Considering these towers are 80 m tall there is actually a lot of steel inside and the towers are quite complex. To put their size into perspective, you can accommodate 65 adults standing up in the base of each wind tower,”

When asked to sum up the relationship between Keppel Prince Engineering and BlueScope Distribution, Steve was quick to point out he viewed it as a working partnership, not just a business relationship. “We really are in business together. We need BlueScope Distribution as much as they need us. We’ve always believed in using the BlueScope product and keeping everything Australian-made. In fact we sold that concept to the Federal Government (for the Renewables target) in the sense it would keep a tremendous number of jobs in Australia and it’s something we firmly believe in,” “BlueScope Distribution supplies us with high quality products at the right price, with assured supply, on-time delivery and expert technical backup. The relationship we have with them suits our organisation and BlueScope has always been very supportive, which is vital to the nature of this business.” Steve concluded. Keppel Prince Engineering is a remarkable success story whichever way you look at it; made even more remarkable by the company’s location in regional Victoria. Diversified across a wide range of engineering disciplines, the company’s future looks bright and BlueScope Distribution is proud to be a partner of its ongoing success.

“The other side of the coin is that we supply all their steel requirements for service work at the local Alcoa aluminium smelter, including plate steel for the smelting pots, which weigh about 14 tonnes each. We also supply steel for their general fabrication shop, which is a big business in its own right.” Joe enthused.

Bright Future Steve Garner, General Manager of Keppel Prince Engineering, is upbeat about the company’s future, especially since the Renewable Energy Target of 20 percent by 2020 has been legislated by the Federal Government.

Wind towers

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THE EDGE | Issue 3

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The objective of this standard is to ensure processes are well defined and maintained and that they are customer focused, with measurable results regularly reviewed. A process of continuous improvement provides the necessary resources to maintain these key elements. Standardisation of processes are to ensure the service level will be the same, independent of which site or person a customer interacts with. The benefits for customers are processes that are customer focused, resulting in increased value and reduced cost. Value is increased by continuously reviewing all interactions with customers and striving to meet their needs moreeffectively. This includes improving the ease of doing business with Bluescope Distribution by providing the right quality product at the right time with the correct paperwork and a minimum of follow-up. Costs are reduced by continuously improving performance and getting it right the first time. This saves valuable time on emails and phone calls, rework, product exchanges and credits.

JDN Monocrane is Australia’s premier crane and hoist manufacturer. Founded in 1979, today the company designs, manufactures, installs and services a comprehensive range of world class hoists, cranes and componentry.

ISO 9001:2008 is a set of quality system standards that have been determined by the International Standards Organisation (ISO) and agreed by Australian Standards.

JDN Monocrane is unique in the Australian market in that they design and manufacture all their own hoists, end carriages and components. This, combined with their extensive in-house design capabilities, means they can offer standard solutions to 200 tonnes capacity as well as specialised, customer-specific cranes and lifting equipment.

Impressively, results from the October 2010 recertification audit were the best ever and are a testament to the continuous improvement of Bluescope Distribution’s Quality Management System.

As customers become more aware of the need for quality assurance, this requirement is being sought from all parties in the supply chain; from manufacturers to end users. Increased demand for quality assurance has escalated to the point where now it has become a ‘ticket to the game’.

Instrumental to JDN Monocrane’s success has been their constant focus on research and development. “Two core technologies are unique to our cranes: Hyperspeed and i-Glide,” said Paul Kelly, JDN Monocrane’s General Manager. “Hyperspeed is on the hoisting side of things and allows the unloaded hook to be raised or lowered at twice its normal speed. In the crane business, you want to get the hook down to a job as quickly as possible and when you’re finished you want it out of the way equally quickly. Hyperspeed does this automatically, by sensing the load on the hook, massively increasing productivity,”

Bluescope Distribution first achieved ISO 9001 certification on the 25th of November 1994 and has maintained it ever since; including recent recertification to the upgraded 2008 version of the standard. To ensure compliance with these standards, monthly internal audits of all processes are conducted. Nine monthly external surveillance audits take place, as well as three yearly recertification audits by Lloyds Register Quality Assurance Limited (LRQA), who act on behalf of the ISO.

“i-Glide is our automatic anti hook-sway technology. With a standard crane, when you hook up a load and send it off, the crane takes off but the load stays still. Once it gets going you get a swinging motion with the load, which is quite dangerous. Fortunately, i-Glide controls the acceleration and deceleration of the crane and you get virtually no hook-sway. This not only increases safety, it significantly increases productivity.” Paul continued. “We’ve also recently launched a product called Planet. Put simply, it’s a regenerative braking system that feeds electricity back into the grid whenever a load is being lowered. This helps offset the cost of electricity used during the lift and is unique to our cranes,” “BlueScope Distribution is one of our core suppliers. Our steel use is divided between profile-cut plate and structural steel. When it comes to plate, quality is absolutely paramount and the quality we get out of BlueScope Distribution is what sets them apart,” “Over the years, with BlueScope Distribution it’s always the quality that comes to the fore. If you shop around you might save a bit of money on an order, but if you need to have a bloke spend two days cleaning up the edges on material that’s been profile cut for you, you’re not in front. BlueScope Distribution supplies pre-cut plate to specs we send them and it all works very well.” Paul concluded.

“We’ve had a long relationship supplying steel to JDN Monocrane,” said Alex Salins, BlueScope Distribution’s Account Manager. “They are a very important client to us and although we’re not their exclusive supplier we still provide a fair amount of their steel requirements. Of course, they have a core group of suppliers, but when quality and supply assurance really matters we keep coming through for them and meet their stringent requirements. It’s very satisfying. JDN Monocrane is a world-class company with industryleading technology and at BlueScope Distribution we’re pleased to be a part of their success.” Alex said proudly.

THE EDGE | Issue 3

EDGE

Victaulic®, the world leader in mechanical pipe joining systems, has an interesting history. The company was founded in New York City in 1925 to market a radical new concept in the piping industry: a mechanical bolted coupling that would engage into grooves and use a gasket seal. The concept of joining pipe with bolted mechanical couplings originated during World War I, for rapid deployment of fuel and water lines to Allied forces. The company that worked closely with the War Department of England to develop this new method of joining pipe was named the Victory Pipe Joint Company, after the coupling it had engineered for early military uses, known as the Victory Joint. Later, combining the words Victory and Hydraulics, the name was shortened to Victaulic and the company began to shift its focus to commercial piping applications to market its new, innovative method of joining pipe.

BlueScope Steel and employees rally to help disaster victims – both at home and abroad As everyone is well aware, relentless rains across Queensland in December 2010 and January 2011 led to unprecedented flooding and deaths, leaving three quarters of the state declared a disaster zone. To put the scale of the disaster zone into perspective, the affected area was more than five times larger than the whole of the United Kingdom. Then of course Cyclone Yasi followed in February, adding to the situation, while in Victoria and parts of NSW, heavy rains and flooding also took their toll. Australians are used to extremes of weather but this rapid succession of significant meteorological events left the nation reeling. In true Australian fashion, however, it also brought out the best in many people, once again demonstrating the resilience and optimism of the famous Australian spirit.

communities in the wake of natural disasters and in particular, BlueScope’s steel building and solutions products are ideally suited to a range of recovery and rebuilding projects. At present, senior management is evaluating areas where the company can assist flood damaged communities throughout rural, regional and metropolitan Australia. We will work with local authorities and aid agencies to ensure our support helps those most in need and will commit $250,000 in cash or in-kind, for an emergency facility.

As a company, we are guided by Our Bond and believe our communities are our homes. BlueScope Steel has a proud and generous history of supporting

“We’ve been an authorised Victaulic distributor for nearly two years now,” said Bill Inglis, National Product Manager for BlueScope Pipeline Supplies. “We are by far their biggest distributor and our full range of pipes sits perfectly with the Victaulic product range, while our national network gives us unmatched reach and resources.” “One of the biggest advantages for customers using the Victaulic solution is the saving in labour costs, particularly when joining large diameter pipes. For example, welding 90 cm (36 inch) pipes together might take eight or ten hours, whereas using a Victaulic joiner takes about half an hour.

Like people around the country, everyone at BlueScope Steel has been shocked by the severity of this series of disasters and our thoughts and best wishes go out to everyone affected. Thankfully, all our employees are safe and there were no injuries at any of our sites as a result of the floods. In response, the Company has launched the first stage of our response to the floods, enabling employees to donate to the Queensland Premier’s Flood Relief Appeal through our payroll system and company-matched employee contributions.

Fast-forward nearly a century and Victaulic is a global company with an increasingly active Australian presence. The company’s unique joining solutions have found ready acceptance in a variety of applications across Australia, particularly in the mining industry and the heating, ventilation and air-conditioning business (HVAC).

And of course, if you need to dismantle or replace pipes it’s so easy, too.” Bill said.

Global Perspective As a global business, however, we also recognise our obligation to help rebuild communities and lives wherever natural disasters strike. In recent years, for example, the Company has provided shelters and water tanks in Haiti following the massive earthquake that effectively demolished much of the nation. In Sichuan, China, we supplied an entire school after the devastating earthquake of 2008. And in Aceh, Indonesia, we sent rainwater tanks and houses to assist recovery from the catastrophic tsunami. Closer to home, BlueScope Steel contributed significantly to the 2009 Victorian Black Saturday bushfire relief effort. This included community kitchen buildings and a community centre as part of a $1 million Bushfire Recovery Package, centred on the Kinglake, Marysville and Flowerdale communities. We would like to thank staff, contractors and suppliers who have given generously of their time and money to make it all possible.

According to Gennaro Sposato, Victaulic’s Australia and New Zealand Regional Manager, the company has great plans for increasing its Australian presence. “We’re on a huge growth curve, with plans in place to double our workforce and warehousing space as we expand over the next three to five years,” “Working with BlueScope Pipeline Supplies, our aim is very much centred on the mining and industrial markets. We provide solutions for pipe joining systems and they, logistically, get the material to market for us. It’s a good, open relationship that works well for both companies.” Gennaro concluded. There’s no doubt the combination of BlueScope Pipeline Supplies’ product range, size and distribution network sits perfectly with Victaulic’s unique, cost-effective joining solutions. It’s a win-win for both companies and their customers; proving that in business the right connections really do get you ahead.

THE EDGE | Issue 3

THE

60ND

SECOATOR

INNOV

Innovation is the buzzword in the modern business world. In this review of The 60 Second Innovator, author Jeff Davidson outlines strategies for boosting your creative juices: from brainstorming to positive self-talk and from meditation to the Japanese philosophy of Kaizen. The Edge recommends this guide as an introduction to innovation for the business rookie or as a refresher course to anyone feeling creatively stuck in an environment that continually hungers for new ideas.

Creativity in a Challenging World Challenges at work regularly confront you and you make little adjustments and big decisions in response. Finding new and innovative answers to challenge is a desirable, necessary skill in your personal and professional life.

Finding Innovations Explore the Japanese philosophy of Kaizen, which encourages small changes to systems, products and processes to achieve incremental improvements. To improve or alter an existing product, ask yourself if you can make it bigger or smaller, brighter or darker, heavier or lighter, lengthen or shorten it, extend its shelf life, refurbish it or give it greater mobility.

Living a Life that Abets Innovation Most people over-schedule. You need quiet, unstructured moments to nourish creativity. When you give yourself a few minutes to relax and reflect you’ll see previously undiscovered opportunities. Also, try working at a different location and get to know people with different interests.

The Innovator Within

Many people love routine. However, innovators need to live outside their comfort zones and look for new and better strategies. To advance, take a creative approach to every aspect of your job and adopt the mind-set of an innovator:

There’s a great mentor who tells you when you are on track or about to make a blunder. It’s you. Your inner voice is the best guide. When you’re eager and energised, the readiness is your body saying “This is good.” Replace self-doubt with positive messages and believe in your abilities.

• Listen! – Develop hypersensitivity to the needs of your clients.

POINTS TO REMEMBER!

Continually ask yourself what matters to them and how you can help them

• Focus on long-term trends – Distinguish between fads and long-

range movements. Once you identify a trend, anticipate change and build creative solutions

To recognise momentum and foresee shifts, constantly seek new information about your industry, clients and competition. Subscribe to trade publications, check relevant websites, attend industry events and learn from those around you.

Eureka Moments Revelations during quiet times come when you aren’t thinking about anything in particular, usually after extensive effort. The process of searching for answers is as valuable as finding them.

The Perfect Brainstorm Brainstorming opens creative pathways in your mind and spawns ideas. The object is to let innovative thinking flow without censoring or rejecting anything outright. Lively interaction with inventive, imaginative people sparks creativity. Find like-minded colleagues and brainstorm with them, often!

• The ability to find and promote innovative solutions is an essential career skill • Innovators ‘listen to their constituents’ and ‘stay focused on long-term trends’ • The search for answers is as valuable as the discovery of solutions • View challenges as opportunities to update your skills, test your resolve, make improvements and gain experience • Innovations require the right mind-set, hard work, research and adjustments • Try brainstorming – lively interactions with inventive, imaginative people – to spark creativity and generate a multitude of ideas • People resist change, even change for the better, but don’t be deterred by naysayers • Explore the Japanese Kaizen philosophy, which encourages small changes to existing systems, products and processes • Be strategic about innovating within your firm’s existing power structure. A little preparation will go a long way toward getting your new ideas accepted • Listen to your inner voice; that’s your subconscious telling you what feels right or wrong

Whether it’s providing this nation’s first line of defence or just pushing the boundaries on what is generally accepted as possible, people in the northern city of Townsville don’t do things by halves. The supply and installation of 43.9 m lengths of LYSAGHT KLIP-LOK 700 HIGH STRENGTH® steel roofing for the gymnasium building at Lavarack Army Base in Townsville was accomplished with military precision. “This job was not without its challenges,” Trevor Smedley observed wryly. Trevor is the Director of SPD Contracting, a specialist roofing firm of many years standing, based in Townsville and with extensive experience in installation work on the base. “Apart from the long lengths involved, Lavarack is also a working defence facility with an expanding number of army personnel and some special issues involving security protocol and access,” he explained. At first he looked at producing these lengths on site using BlueScope Lysaght’s special on-site rollforming rig. “In the end this proved too difficult due to restrictions imposed on movement of heavy equipment and machinery on the base.” That was when we learned that BlueScope Lysaght also has a rear-steer bogey extendable trailer in Brisbane. It can handle lengths to 45 m and provided the perfect delivery answer.” Trevor said. The project architect, Scott Hardcastle of BVN Architecture in Brisbane, explained the roof design concept. “The roof details throughout Lavarack Stage-4 Redevelopment have a very strong exposed structural steel expression that we were trying to maintain.” This meant no interference from steps due to expansion joints.” The roof runs were in excess of 40 m so the option to use a concealed-fixed metal roof was considered.

At over 8 m high, access for future maintenance was important. “Concealed fixings and a joint-free sheeting solution reduce any chances for leaks in the tropical storms and heavy downpours,” Scott explained. “Further, it provides a very low maintenance solution, with very few fixings exposed on top of the roof that could be expected to reduce the requirements for maintenance access, longer term. We believe that with the collaboration of the builder, roof installer and the supplier in achieving the design aims, we achieved a good outcome for all concerned.” Scott concluded. The Regional Manager of BlueScope Lysaght in Townsville, Matt Hardy, said this was the longest roof sheeting produced so far at his factory. “It’s not that difficult to manufacture such long lengths at our facility but transporting them to site is quite an exercise in logistics.” Off-loading the 11 tonnes of roofing was accomplished on-site using a large crane, spreader bar and slings. The roof fixer had a crew of 40 men and 1 supervisor on site, with up to 25 men per sheet needed to lift them into position. The sheeting went down very quickly and was installed in one day. “I was surprised with how well it all went,” Trevor Smedley said, “it was completed on time and on budget.”

LYSAGHT KLIP-LOK 700 HIGH STRENGTH® roofing was chosen because it is manufactured in Townsville; is fully LHL cyclone rated and due to the concealed clip fixings, can accommodate large amounts of thermal movement without the need for expansion joints.

THE EDGE | Issue 3

THE EDGE

E L I F O R P STAFF

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Andrew Mills

incorporating

Manager SA/NT Location: Ottoway, Adelaide Time in Position: 18 months

Time with BlueScope? I joined Distribution in December 2002 as the Commercial Manager for SA/NT. Responsibilities? To ensure all of our people have the requisite tools to be successful in their roles and to continue to embed the belief within the SA/NT business that we are capable of being the leading Steel Distribution and Processing Company within our chosen markets.

1300 661 156

What satisfies you most about your work? Recognising the wins, especially in difficult trading conditions, as well as the business’s unwavering commitment to the safety and wellbeing of all of our people.

1300 306 204 THE EDGE newsletter has been prepared for information purposes only. BlueScope Steel makes no representation or warranty as to the completeness or accuracy of the information contained in the newsletter. You must make your own assessment of the information contained in the newsletter and rely on it wholly at your own risk. Published by BlueScope Steel Limited. ® are registered trade marks of BlueScope Steel Limited. ™ are trade marks of BlueScope Steel Limited. © 2011 BlueScope Steel Limited ABN 16 000 011 058

What challenges do you see ahead? The key short-to-medium term challenge is navigating the Business through the unprecedented volatility in our industry today. How do you relax? Spending time with my family. I have a 23 month old son, Harry, and a second child due very soon. What are you reading right now? Wayne Bennett: The Man in The Mirror.

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STATE OFFICE CONTACT DETAILS VICTORIA / TASMANIA Westall Ph: 03 8543 3666 NEW SOUTH WALES Auburn Ph: 02 9714 8000 QUEENSLAND Northgate Ph: 07 3622 9222 SOUTH AUSTRALIA / NORTHERN TERRITORY Ottoway Ph: 08 8245 3801 WESTERN AUSTRALIA Kewdale Ph: 08 6250 1000

HAZARDS ARE HA

ZARDOUS!

The first step in ma king the workplace safer is identifying hazards. A hazard is anything that has the potential to harm the health or safety of a person – including work practices or pr ocedures. Some hazards are obvious, like unguar ded machinery or worki ng at heights. Othe rs aren’t, like fatigue.

You should identify hazards before using any premises or pla ce of work; before and during installation, erection, commission ing or alteration of plant; before changes to work practices and systems of work ar e introduced; before hazardous substan ces or dangerous good s are introduced; wh ile work is being carri ed out and when ne w health and safety inf ormation becomes available. Rememb er – hazards are hazardous!