Challenge of US S.201 Impact
BHP Billiton Limited
6 March 2002
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
6th March 2002
BHP STEEL VOWS TO MEET CHALLENGE OF US S. 201 IMPACT
BHP Steel today expressed disappointment at the decision by the Bush
Administration to apply tariffs of 30 per cent to most categories of steel
imports to the United States, while vowing to meet the challenge imposed by the
decision.
President and CEO of BHP Steel Kirby Adams said: 'We share the disappointment of
the Australian Government in this decision. It is an affront to an efficient
Australian steel producer such as BHP Steel.'
BHP Steel's projected 2001/02 level of exports to the US from Australia and New
Zealand is just over 700,000 tonnes, down from the 800,000 tonnes of exports in
the peak 2000/01 year.
The business has been adjusting its international market mix in the lead up to
President Bush's s.201 decision.
Mr Adams said it was significant that relief from tariffs had been provided for
slab imports, which comprised over 40 per cent of BHP Steel exports to the
United States last year.
In addition, BHP Steel stands to benefit through its 50 per cent interest in
North Star BHP Steel, located in Delta, Ohio, which is one of the lowest cost
mini mill operations in the United States and produces 1.5 million tonnes per
annum.
Mr Adams said: 'The decision is likely to lead to a higher steel pricing
environment within the US market, which will advantage US domestic steel
producers, including North Star BHP Steel.
'Today's announcement has at least removed some of the uncertainty around the US
marketplace, and we will now move immediately to implement the action plans
developed over the past six months in anticipation of a US Presidential
decision.
'BHP Steel's Port Kembla and New Zealand steel-making operations are already
among the world's most efficient, with costs among the lowest in the global
steel industry. A range of cost reduction, outsourcing and productivity
improvement initiatives over the past 18 months have further consolidated this
position.
'However, undoubtedly the imposition of tariffs will intensify pressure on these
operations to deliver on cost reduction initiatives.'
Mr Adams added: 'Working with our US customers, we will now need to closely
scrutinise each export transaction to determine its commercial merits.' The
majority of BHP Steel's US customers are West Coast steel producers who import
feedstock.
'Far from assisting these customers, this decision may create substantial
impediments to their future competitiveness and unfairly penalises importers of
hot rolled coil relative to slab importers,' he said.
'The decision will also do little to aid the cause of international
restructuring, other than exacerbating the financial pressure on higher cost
producers around the world. Market opportunities may emerge for BHP Steel, a
relatively low-cost, efficient steel producer, as regional high-cost producers
struggle to remain competitive.'
BHP Billiton CEO and Managing Director Paul Anderson said: 'A decision on
section 201 has already been factored into our planning for the demerger of our
steel business and we remain on-target for public listing of BHP Steel Limited
in mid-2002.
'One of the benefits the public listing will bring to BHP Steel is an enhanced
ability to move swiftly to seize opportunities that may arise in the wake of
today's announcement.'
Mr Adams said: 'BHP Steel is greatly appreciative of the tireless support it has
received from the Australian Federal Government since the Section 201
investigation was announced.
'As steel producers in the region who will be displaced from the US market seek
alternate markets, we welcome indications today by the Australian Government
that it will step up its scrutiny of steel imports and to more actively
administer anti-dumping laws.'
'We now call on trade unions, Governments at all levels and the manufacturing
sectors in Australia and New Zealand to work with BHP Steel and its employees as
we convert today's challenge into tomorrow's opportunity.'
****
Media contact:
Mandy Frostick
BHP Billiton - Media Relations
Tel: +61 3 9609 4157
Mobile: +61 419 546 245
Email: Mandy.J.Frostick@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 600 Bourke Street Melbourne Victoria Registered Office: 1-3 Strand London WC2N 5HA United Kingdom
3000 Telephone +44 20 7747 3800 Facsimile +44 20 7747 3900
Telephone +61 3 9609 3333 Facsimile +61 3 9609 3015
The BHP Billiton Group is headquartered in Australia
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund