New Zealand’s steel restructuring puts 200 jobs at stake

By RNZ

New Zealand Steel will restructure its business with the likely loss of up to 200 jobs, but will maintain steel production at its Glenbrook steelworks.

The mill’s Australian owner, Bluescope, said in May that it was reviewing the future of the loss-making business because it wasn’t paying what it wanted.

CEO Gretta Stephens said the mill would continue to make its best-selling Colorsteel, but loss-making products would be cut and other operations would be changed.

“We are proposing to change the product mix and continue our focus on reducing costs to become a more agile and resilient company that is ‘fit for purpose, fit for market’.”

She said 150-200 jobs can come out of the 1,400-person workforce.

Stephens said that all options had been considered during the review, but that he needed to take steps to ensure the survival of the steel industry in this country in the face of difficult conditions.

“Unfavorable public policies on carbon, energy costs and business solutions have compounded financial pressures and the business can no longer continue with its current operating model.”

The plant had an operating loss of $ 6.5 million (AU $ 6 million) last year, and Bluescope had made a business write-off of $ 213.42 million (AU $ 197 million) in its latest results.

The business includes the steel production plant in Glenbrook, south of Auckland, and Pacific Steel, and it had already closed a production unit last year.

Bluescope said last month that the restructuring was expected to cost between $ 32-54 million (Au $ 30-50 million).

– RNZ