BlueScope Steel Corporation acquires strong and reputable Australian brand in global steel industry. In Australia, its core product brands – COLORBOND®, ZINCALUME® and XLERPLATE® steels – are defined as market leaders in the building construction and manufacturing industries. Its LYSAGHT® brand is nearly 100 years old and holds an enviable reputation for quality. BUTLER®, VARCO PRUDEN® and HCI® are leading brands in the pre-engineered building market globally. Moreover, the corporation has added new brands into the portfolio such as WATERPOINT® rainwater tanks and TRUECORE® residential steel framing. More importantly, BlueScope has developed local brands to match with local conditions, clear COLORBOND® steel which is perfect for the tropical conditions of Asia. SMARTRUSS®, roof framing brand is another example of local brand for Thailand and Indonesia. Weakness
The company reported a weak performance since 2009. Its 2011 financial report show a loss of more than $1 billion. Opportunity
In 2011, after the announcement of more than $1 billion loss, the government agreed to give $100 million in financial year 2012-2013 under the government’s Steel Transformation Plan to support BlueScope Steel to overcome its difficulties. Threat
The corporation is dealing with extremely fluctuate economic environment. The high Australian currency makes it really hard for BlueScope compete with other rivals from other countries with lower exchange rate. Relatively, the increase in raw material price boosts the price of BlueScope products even higher. Lastly, a significant drop in domestic demand for steel also cut a large amount of company’s revenue. CSR
The decrease in revenue in recent financial years has caused the company to place itself in a operational restructure plan associated with plant closure in Australia. This resulted in the axe of nearly 1000 jobs across the company as facilities were mothballed.
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