Long Products Business,etc
Broken Hill Proprietary Company Limited
25 February 2000
BHP TO SPIN-OUT LONG PRODUCTS BUSINESS
The Broken Hill Proprietary Company Limited (BHP) today announced it intended
to give effect to the decision to divest its Long Products business by
spinning out the new entity to its shareholders in the second half of calendar
2000.
The new company will be led by Bob Every as Managing Director and Chief
Executive Officer, effective from 1 March. Dr Every is currently President
BHP Steel and has a strong track record managing an independent steel
business, having been Managing Director of Tubemakers when that company was
acquired by BHP in 1996, and CEO of Steel and Tube Holdings in New Zealand.
BHP Managing Director and Chief Executive Officer Paul Anderson said:
'Divesting the Long Products business through a spin-out will result in
maximum total value to BHP shareholders. BHP's significantly improved
earnings and cash flow, and Bob Every's decision to lead the business, make
the option of a spin-out attractive.'
'The decision means that the Long Products business, Australia's leading
manufacturer of steel long products, pipe, tube and structural products as
well as the country's leading metal distributor, will remain an integrated,
highly competitive operation.
'Dr Every won strong respect in senior management roles at Tubemakers prior to
the BHP takeover. He has since led the reorganisation of BHP Steel. Dr Every
has a clear vision and purpose and the ability to develop disciplined
management for the new independent long products business. He will be a
strong and experienced leader for that business.'
An interim Board comprising BHP executives will be appointed pending
appointment of an independent Chairman and Directors at the earliest date
possible. Dr Every will be supported in his new role by Bernard Carrasco as
Chief Financial Officer. Mr Carrasco is currently Vice President Business
Development BHP Steel.
BHP intends to spin-out the new entity through a pro-rata distribution to its
shareholders. This would occur through a Scheme of Arrangement and Capital
Reduction following shareholder and court approval. BHP shareholders would be
given the option to either retain the new shares or sell the shares through a
sale facility prior to the shares being listed.
The Long Products business employs about 7 000 people across all Australian
States and New Zealand. It has annual sales of about $2.8 billion and
steelmaking capacity of 1.8 million tonnes per annum.
Mr Anderson acknowledged the work of Lance Hockridge and his management team
who have managed the business very successfully through the due diligence
period.
Kirby Adams has been appointed President BHP Steel to replace Dr Every,
effective from 1 March. Mr Adams is currently President BHP Services. Mr
Anderson said: 'Mr Adams will bring to the position six years experience as
both CEO and Chief Operating Officer of the world's largest integrated
titanium metals company. His strategic and financial skills, his
understanding of the transport and logistics business and the Company's shared
services initiative will contribute real value to BHP's new steel business.'
'Mr Adams will lead BHP Steel into its new era as a customer focused business
leveraging its competitive strengths in the Australian and Asian flat products
markets and its low cost steel making capacity at the highly competitive Port
Kembla steelworks.'
Following the appointment of Mr Adams to his new position, BHP Services will
be reorganised in line with the strategy developed for that organisation over
the past 12 months. The group will focus on sourcing best in class global
scale service solutions for BHP's businesses.
Attachments: CV for Bob Every and Kirby Adams.
Contact:
MEDIA RELATIONS: Mandy Frostick, Manager Media Relations - Melbourne
Ph: +61 3 9609 4157
Mob: + 61 419 546 245
INVESTOR RELATIONS: Rob Porter, Vice President Investor Relations -
Melbourne
Ph: +61 3 9609 3540
Mob: +61 419 587 456
CV's
----
EVERY, Robert Lindsay
---------------------
President BHP Steel 1999
Career
Group General Manager & Chief Executive Officer BHP Steel Products 1997-99;
Group General Manager and Chief Operating Officer Coated Steel Division 1997;
Group General Manager & Chief Operating Officer International Division, BHP
Steel 1996-97; Managing Director Tubemakers of Australia Ltd 1966; Group
General Manager Merchandising 1992-96; Group General Manager Development
Corporate Office 1991-92; Chief Executive Officer Steel & Tube Holdings Ltd
New Zealand 1988-91; General Manager Western Merchandising 1985-88; Manager
Technical and Business Development 1984-85; Marketing Manager BTM Tube
Products 1983; Project Manager Group Strategic Planning Tubemakers 1982-83;
Steelstocks General Manager 1980-82; EMI General Manager Operations 1976-80;
ANI National Forge various production, quality control and management
positions 1972-76; British Motor Corporation part-time cadet 1964-70.
Directorships
Chairman Steel and Tube Holdings Ltd, New Zealand.
Formerly: Chairman North Star BHP Steel Ltd, BHP Investments Inc; Director BHP
Middle East Investments Pty Ltd; Director Tubemakers of Australia Ltd;
Chairman Bundy Asia Pacific.
Committees, industry bodies & professional associations
Member Australian Institute of Company Directors; Fellow The Institution of
Engineers, Australia; Fellow Australian Academy of Technological Sciences and
Engineering.
Personal
Born: 18 June 1945.
Education: Doctor of Philosophy (Metallurgy) 1971; Bachelor of Science (Hons)
1968 University of New South Wales.
Spouse: Sheryl
Children: 2 sons, 2 daughters
Recreation: tennis, golf, jogging.
ADAMS, Kirby C
--------------
President BHP Services, 1999
Career
Group General Manager & Chief Executive Officer BHP Service Companies 1997-99;
Corporate General Manager Planning & Development 1995-97; President and CEO
Titanium Metals Corporation 1988-95; Vice President and Chief Operating
Officer Tremont Corporation 1990-95; Chairman Bentonite Mining Corporation
1990-93; Vice President Business Development NL Industries 1987-88; President
NL ERCO 1984-86; Region Manager NL Sperry Sun 1983-84; Director of Operational
Projects NL Sperry Sun 1982-83; Director of Planning NL Petroleum Services
1981-82; Manager of Planning National Supply Division ARMCO Inc 1979-81.
Committees, industry bodies & professional associations
Former President, Titanium Development Association; Member Young Presidents'
Organisation.
Personal
Born: 19 December 1955.
Education: BS Industrial Engineering Auburn University, USA; MBA Darden
Graduate School of Business University of Virginia, USA.
Recreation: Skiing, swimming, golf.
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