Shared Bus.Services Centre
Broken Hill Proprietary Company Limited
27 March 2000
ADELAIDE LOCATION FOR BHP SHARED BUSINESS SERVICES CENTRE
The Broken Hill Proprietary Company Limited (BHP) today announced Adelaide as
the location of its Australian Shared Business Services Centre.
BHP Managing Director and CEO Paul Anderson said the selection of Adelaide
followed a comprehensive evaluation of sites.
'We went through a transparent tender process in making the choice between a
number of very attractive proposals. The evaluation was based on a number of
factors including relative costs for relocation and office accommodation, and
availability and quality of potential employees,' Mr Anderson said.
'At a time when BHP's strategy is to move towards a portfolio of high quality
assets and we are reorganising the Company to deliver this outcome, a key
element is the provision of common support services from the Shared Business
Services Centre.'
Examples of common support services to be provided by the Centre include
finance and accounting transactions such as payroll, purchasing and account
payments; financial reporting; supply and contract negotiations; and
transactional human resources activities.
BHP already has an evolving Shared Business Services Centre operating in
Houston, which will ultimately support assets in North America, South America
and Europe.
'The two Centres will use leading processes and technology to provide
economies of scale and cost efficiencies across the assets,' Mr Anderson said.
'We expect that Shared Business Services and the roll-out of a standardised
business system will contribute cost savings to BHP in the vicinity of A$500
million (pre tax) over the next five years, primarily due to savings from
consolidation, procurement and maintenance.'
In the first three years this will be offset by operating costs, estimated to
be A$150 million, associated with the establishment of the Shared Business
Services Centre. Capital costs over this time are expected to be an additional
A$120 million.
BHP is aiming for the Adelaide Shared Business Services Centre to begin
operations in November 2000. The transition from current arrangements to the
Centre providing all the targeted transactional services to BHP's Australian,
Asian and Pacific operations will be phased in over the following two years.
Contact:
MEDIA RELATIONS: Michael Buzzard, Senior Media Relations Advisor - Melbourne
Ph: +61 3 9609 3709
Mob: +61 417 914 103
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
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