The Edge:

IN THIS ISSUEThe Leading Edge - Steel Supplier Advocate Appointed 3 The Cutting Edge Case Study - G&S Engineering 6Giving You The Edge - Eat that Frog 14

getting australian steel into australian infrastructure projects

giVing custoMers anD inDustrY tHe eDge WitH neWs anD innoVationissue 1 MaY 2010

THE leaDing eDge

WelcoMe

Welcome to the first edition of ‘THE EDGE’, our new regular customer focussed newsletter.

THE EDGE will feature regular economic updates and customer case studies, provide you with information on industry developments, sales and marketing initiatives and introduce new product developments from other BlueScope businesses.

In this edition, we have several case studies showcasing where BlueScope Distribution has worked with our engineering and fabrication customers to help them deliver on a range of projects and end applications. These extend from manufacturing locomotives through to a vast array of BlueScope Distribution products being used by one of the largest gold mining company’s in the Asia Pacific region.

We also profile the innovative design and construction of the Australian pavilion at the World Expo being held in Shanghai, China from 1 May to 31 October. This striking building features special weathering facades panels from BlueScope Buildings.

I hope you enjoy the first edition of THE EDGE. As this is a newsletter developed for you, I welcome your feedback on featured articles and articles you would like to see in future editions to ensure we focus on addressing key issues relevant to our industry.

Please forward any comments or suggestions to: [email protected]

Distribution upDateAs Australia’s largest integrated manufacturer of premium quality steel products that includes steel plate, sheet and coil, building products, as well as structural and engineering steel, BlueScope recognises the many challenges faced by Australian businesses.

At BlueScope Distribution, we are committed to working cooperatively with fabricators and end-users to find solutions that assist in successfully increasing Australian steel and labour being utilised for major project works resulting from future infrastructure investment.

To ensure streamlined delivery of our products, BlueScope Distribution has created many initiatives that provide you with an extensive nationwide service and support network. As an extension of this, our technical service expertise can assist you to take full advantage of the improving economic conditions and new opportunities across all sectors of the steel fabrication and manufacturing industries.

While 2009 is considered by many businesses as the most turbulent and challenging economic year of the past decade, the Australian economy is recognised as one of the world’s best performing economies. At the end of 2009 and the first quarter of 2010 Australia has seen encouraging signs of economic growth due to less than anticipated unemployment figures, a resurgence in the minerals sector and a strong housing market.

Although growth is expected to level off by the second half of the year, BlueScope Distribution will continue to work directly with you to ensure your business and staff have the support needed to enable you to take full advantage of business and project opportunities.

And finally, as part of our ongoing commitment to providing you with useful and relevant information, in subsequent issues of THE EDGE, we will be reporting on the current state of the local and global economy and provide analysis on future trends that are likely to impact our industry.

Dean MehmetDean Mehmet General Manager BlueScope Distribution

Advocate: “one who speaks in favour of. Plead for, defend; recommend; support.” (Source: Dictionary Definition).

Therefore by definition, having an ‘advocate’ working for you sounds like a good idea doesn’t it?

Given that, the Steel Industry can consider itself fortunate to now have its own dedicated ‘advocate’ representing it.

Experienced steel industry executive Mr Cyril Benjamin has been recruited to the newly created Steel Supplier Advocate role, to work with and champion the Australian steel and fabrication industry to win major contracts.

Announcing the appointment late last year, Senator Kim Carr, Minister for Innovation, Industry, Science and Research, said “Mr Benjamin brings expertise, insight and leadership gained from wide-ranging senior executive experience in the domestic and international steel industry, and across the steel value chain.

“His thorough understanding of procurement practices will assist him in working with customers to ensure that these practices don’t discriminate against Australian suppliers.”

Most recently, Mr Benjamin was senior adviser to BlueScope Steel on its merger with US-based Butler Manufacturing. Prior to this, Mr Benjamin was New Zealand Steel managing director.

This pivotal strategic position was created following the recommendation of the recently established Steel Industry Innovation Council, which was formed to improve opportunities for Australian steel and fabrication businesses to win major procurement contracts.

steel supplier AdvocATE AppoinTEd

The Council comprises leaders from a range of stakeholders representing the steel industry, including unions, fabricators, manufacturers and the research and academic sectors. This diversity ensures a whole-of-industry perspective is formed on key issues.

The Advocate’s role will be to better connect the Australian steel value chain with major steel consuming projects, from the major producers to small to medium sized fabricators.

Mr Benjamin’s initial focus will be on contestable major projects and improving opportunities for Australian steel businesses to bid for contracts. His focus will be on delivering practical outcomes within a practical timeframe.

By better connecting the capabilities of the industry with major project proponents, this will ensure project specifications do not discriminate against Australian suppliers.

It will also help to gain the best possible access to billions of dollars worth of public and private sector projects.

For more information about the Steel Supplier Advocate or the Steel Innovation Council, see: www.innovation.gov.au

THE leaDing eDge

THE EDGE | Issue 1 4

Innovation Council, which was formed to improve opportunities for Australian steel and fabrication businesses to win major procurement contracts.

THE leaD

THE EDGE | Issue 1 4

photo courtesy of ASi

THE EDGE | Issue 1 3

agcinnoVates For suCCess

perth based fabrication, construction and integrated services specialist agc has set out to take its business to the next level.

Formerly known as the Ausclad Group of Companies, AGC has been successfully completing significant projects for major companies in the natural resources sector for over two decades.

Building on this success the company’s management team has now put in place programs to help reach new goals and to value-add the services it already provides for industry heavyweights such as BHP Billiton, Woodside and Rio Tinto.

A recently signed partnership agreement with BlueScope Distribution is one of several initiatives AGC is confident will help increase its share of work from a booming resources sector.

“To maintain and enhance our position as an industry leader we have to look at ways to add value for our customers,” said Shane Sherwood, Supply Chain Manager for AGC.

“One way we can achieve this is to identify potential suppliers who can add value to AGC and who have similar corporate principles and goals.”

The move is part of AGC’s strategy to draw closer to suppliers and customers and to increase the exchange of information which benefits all parties.

“The three year partnership agreement we have signed with BlueScope Distribution as a strategic supplier is very different to our previous relationships with suppliers,” Shane Sherwood said.

“Previous arrangements principally revolved around sourcing suitable products such as steel for our fabrication needs simply based on lead-time and price.”

“Now we are thinking more strategically. We now take into account how we can align ourselves with suppliers we can work with collaboratively. We are looking to create relationships where we can identify new opportunities and help one another to grow.”

The usual benchmarks of vendor/customer relationships include surety of supply, competitive pricing and consistent quality, but are merely the starting point for the partnership agreement signed between AGC and BlueScope Distribution.

“It is always easier to manage one supplier than to deal with multiple vendors,” Shane Sherwood said. “There are reduced supply chain costs through management time savings, however there is also more opportunity for collaboration with a strategic partner.”

“With BlueScope Distribution as a strategic partner we can forecast and coordinate for our future requirements. In a shorter time frame we aim to supply fabrication plans so materials can arrive as we need it, JIT (Just in Time), without double handling.”

“The steel BlueScope Distribution delivers can go directly into one end of our workshop, be fabricated and come out the other end ready for delivery to the customer.”

AGC’s success isn’t just based on the projects it is delivering on time and on budget. It is also winning recognition for initiatives it is putting in place, ranging from strategic partnerships through to a peer-leading occupational health and safety program.

Bidding for work from Woodside, Rio Tinto, BHP Billiton and others in a highly competitive fabrication marketplace, AGC sees innovation as a key to keeping fabrication jobs in Australia.

AGC realises that there are many benefits flowing from a partnership agreement with a major steel supplier, which can help achieve its goals.

Firm pricing, project assistance and coordination, JIT deliveries around project work and regular meetings to discuss contract performance and KPI accountability are all part of the new arrangement.

AGC has access through BlueScope Distribution to specialist processing capabilities to supplement its own should the need arise. On the technical front the partnership agreement also provides for mutual exchange and knowledge sharing.

opportunities and help one another to grow.”

steel and concrete may sometimes be rival

materials, but they can also combine to produce

unbeatable results – especially in the construction

industry.One prime example is the enduring success of Australian brand icon

Ramset in the concrete anchoring field.

Today, more than 50 years after being founded, Ramset is part of ITW

Inc., an international industrial corporation of over 875 companies, in 54

countries with 65,000 employees, and a turnover of over $US17.1 billion.

Ramset has a reputation for developing, manufacturing and supplying the

building and construction industry with leading-edge drilling, anchoring

and fixing products.

Uniquely in its industry segment, it develops and manufactures a

significant portion of its product range in Australia for the local, Asian,

North American, Middle Eastern and European markets.

Many of the tools and anchoring systems developed by Ramset have

become icons of the construction industry. In both Australia and New

Zealand contractors and trades people will, in many cases, only use

Ramset branded products.

One such product line, the DynaBoltTM Plus sleeve anchor was developed

at the Victorian head office of Ramset and continues to be manufactured

at the same site on dedicated production lines.

That Mooroolbark plant also produces components for Ramset sister

companies including Reid Construction Systems, another specialist

industry supplier.

The Reid Edgelift anchor manufactured by Ramset is designed to solve

lifting and installation challenges posed by large precast concrete panels.

Its JAWS teeth configuration allows extremely high retention loads

in concrete without the lateral bursting forces that are generated by

traditional wavy leg or hairpin anchors.

“The Edgelift anchor is made from 16mm thick Grade 350 steel which

we plasma cut to the patented shape and is then hot dip galvanised,” said

Ramset’s Jacinta Mackintosh.

“Obviously we could import the steel for the manufacturing process, but

we are firmly committed to local sourcing where that makes sense.”

“Dealing through BlueScope Distribution and using Australian made steel

give us greater lead-time flexibility and assured quality. Because of the

Edgelift anchor’s use that quality is essential because it is linked to safety.”

“Another practical benefit is that BlueScope Distribution carry out a stock

count each month which we confirm before we are invoiced. It is a very

easy way for us to do business.”

“We deal with an account manager, not administrative personnel and

they are very responsive. It’s not just an order taking situation. BlueScope

Distribution are also proactive in reviewing our needs and suggesting

solutions for our other manufacturing requirements.”

steelgivES concreteA lifT

THE EDGE | Issue 1 5

CUTTINGC U S T O M E R P R O F I L E

“ WHEn you look aT THE THousanDs of TonnEs of sTEEl WE HavE orDErED IT Was a cHallEnGE for BluEscopE DIsTrIBuTIon To puT IT THrouGH THEIr facIlITIEs, BuT WE WorkED ToGETHEr WITH THEm To prIorITIsE THE orDErInG procEss”

-Graeme Nash

CUTTING

the scale of australia’s latest round of resources industry infrastructure projects has helped generate new levels of co-operation and partnership in the ranks of contractors and their suppliers.

One such project is the $650 million X50 upgrade of the Abbot Point coal export terminal in Queensland in which leading heavy equipment fabricator and erector, G&S Engineering Services, is playing a major role.

BlueScope Distribution has supplied thousands of tonnes of steel for the X50 upgrade, which will lift Abbot Point’s annual export capacity to 50 million tonnes by mid 2011.

G&S is undertaking the structural and mechanical erection of four new stacker/reclaimers to be installed under a contract with FAM Queensland Pty Ltd, and is responsible for the fabrication of many of the major machine segments.

“We have built ship loaders and been involved in major dragline projects, but this is the largest single project G&S has tackled,” Graeme Nash, the company’s Technical Manager Construction & Manufacturing said.

G&S is fabricating components at its Mackay and Biloela workshops and has also sub-contracted additional fabrication by two workshops in Townsville and three in Mackay.

Given the size and challenges of the task, G&S has left no stone unturned in its quest for efficiency, particularly from its steel supplier.

BlueScope Distribution responded with a proposition to value add, using its unique processing abilities which include saw cutting, profile cutting and plasma cutting.

The company invested in a bevelling machine for its Mackay service centre, to maximise the time and cost savings available to G&S.

“To be able to receive a bevelled product makes our life a lot easier,” Graeme Nash said. “It saves us time, floor space and double handling.”

There were other aspects of the project which also required close co-operation between BlueScope Distribution and G&S.

“For economy and to ensure we would always have the steel on hand when we needed it, we ordered enough for two stacker/reclaimers at a time,” Graeme said. “That meant our steel purchases were at the best possible price and we also maximised component nesting opportunities to minimise waste.”

BlueScope Distribution also co-operated with G&S to supply steel colour-coded yellow, green, blue or red to indicate which of the four stacker/reclaimers it was intended for. Job-specific plate marking based on drawing and part numbers completed the traceability and identification measures.

As well as being the largest project undertaken by G&S, the X50 contract was the first in Australia for FAM, which has previously specialised in the European, South African and Canadian markets.

“Because the stacker/reclaimer design and fabrication processes had different starting points there were delays in ordering steel,” Graeme Nash said. “We began ordering steel in November 2008 and started fabrication in 2009.”

The steel requirements included large quantities of Grade 350 MOD21 XLERPLATE® steel plus large RHS (400x300x16mm and 12mm) sections. The bulk of the material underwent ultrasonic testing.

“When you look at the thousands of tonnes of steel we have ordered it was a challenge for BlueScope Distribution to put it through their facilities, but we worked together with them to prioritise the ordering process,” Graeme said.

Because of the complexity of the project BlueScope Distribution co-ordinated deliveries to three separate fabrication sites.

The four new stacker/reclaimers will be commissioned progressively from 30th April 2010 through to 31st January 2011.

cUSToMER pRofilE:

EnginEERingSERvicESG&S

THE EDGE | Issue 1 7

AS/NZS 1163 was modified to improve product conformance, identification, certification and traceability in response to recent industry concerns over situations where inferior or non-specified product has been substituted in critical applications.

The modifications to the Standard have been driven by concerns from the end market [asset owners, builders, regulators, specifiers, engineers and fabricators, etc] regarding the proliferation of non-conforming product entering the market, thus putting projects at risk.

The revised Standard AS/NZS 1163:2009 is intended to tighten requirements by increasing mandatory compliance measures within the Standard. This means that asset owners, builders, regulators, specifiers, engineers and fabricators can have greater confidence that construction and manufacture is in line with intended design and application.

The Standard covers steel pipe and tube, specifically cold-formed, electric resistance-welded, carbon steel hollow sections suitable for welding and used for structural purposes.

The revised Standard ups the ante on compliance with the most notable change being compulsory conformance and is manifested by the provisions noted below.The revised conformance provisions and other major changes to the Standard include:• Demanding individual length identification required on all ex-mill tube lengths.• Setting minimum information requirements for Test Certificates.• Testing only to be performed by third-party accredited laboratories (eg NATA).• Manufacturers/suppliers to clearly demonstrate compliance.The Standard also holds additional provisions on steelmaking, coil feed, chemistry, mechanical properties and tolerances.The tubular product range and coatings offered by suppliers to the Standard have not changed.

The new edition of AS/NZS 1163 was published and became effective on 9 December 2009.

BlueScope Distribution hold significant stocks of product manufactured in Australia and produced from BlueScope Hot Rolled Coil which complies with the new Standard. To provide greater confidence that the product you purchase complies with the new Standard, BlueScope Distribution recommends that you specify and demand product manufactured in Australia that conforms to the new Standard.Arun Syam from OneSteel Australian Tube Mills and Lester Kirkwood from Orrcon Steel presented the revised Standard in a series of seminars rolled out by the ASI in mainland state capitals throughout March. The seminars focused on the importance of product compliance and on the implications of the new Standard. The seminars were extremely well attended, close to 250 in Brisbane, indicative of the importance attached to compliance with Standards by end users in the engineering, design and specification community.copies of as/nZs 1163 can be purchased from sai global - http://infostore.saiglobal.com/storeArticle provided by Rob Johnson, Australian Tube Mills.

requirements for building construction project managers and participants to specify and order structural steel hollow steel sections conforming to the local standard have been strengthened following revisions to as/nZs 1163.

Article provided by Rob Johnson, Australian Tube Mills.Article provided by Rob Johnson, Australian Tube Mills.

STAndARdS ModifiEdto iMproVe coMpliance

odifiEd

GLobaL econoMic upDatethe last twelve months have seen significant changes in the

global and local economic landscape. the gloom of the global

financial crisis and dramatic potential consequences were

addressed by coordinated global government stimulus actions

that helped alleviate the potential for a more significant downturn.

Although there are still regions that have not fully stabilised, such as

Greece and Spain, the most acute phase of the financial crisis has passed

and a global economic recovery is under way (The World Bank, Global

Economic Prospects 2010, Jan 2010). However, the recovery is fragile

and expected to slow in the second half of 2010 as the positive impact of

government stimulus measures wane (BIS Shrapnel, Economic Outlook

March 2010). This is particularly evident in the EU and the US where a

slower recovery is expected.

In Australia, we have seen a soft landing from the global financial crisis,

cushioned by the federal government’s stimulus packages and stronger

than expected Chinese demand for Australian minerals. Furthermore,

strong consumer spending after one-off government cash bonuses and

a solid housing market has meant that Australia has been more resilient

during the global downturn (BIS Shrapnel, Economic Outlook March 2010).

The Reserve Bank of Australia has recognised the timing and magnitude

of the recovery resulting in a shift in policy, particularly relating to interest

rates. Since October 2009, the Reserve Bank has raised interest rates

five times to 4.25 percent. The recovery in the Australian economy has

prompted a movement away from “emergency” level interest rates to a

return to long-term “average” level rates (The Reserve Bank of Australia –

Statement, April 2010).

In the coming quarters we are likely to see increased pressure to reduce

government spending due to the significant deficit created by the

government stimulus packages, which represents close to 3% of GDP.

(BIS Shrapnel, Economic Outlook April 2010). The expectations are for

business investment cycles in the private sector to fill the void created

by the removal of government stimulus (BIS Shrapnel, Economic Outlook

March 2010).

There has also been a recovery in the mining sector, with investment

being driven by recovering demand. Many of the projects that were placed

on hold during the global financial crisis are beginning to be re-initiated,

which will boost the local economy (BIS Shrapnel, Economic Outlook March

2010). A key reason for the re-initiation of mining investment is the strong

pricing for minerals.

Since the downturn in minerals prices during the peak of the global

financial crisis, there has been a strong recovery in steel-making raw

materials. In recent months, iron ore and coking coal prices - key materials

in the manufacturing of steel - have seen a surge in spot prices and are at

the highest levels in 19-months. Steel Business Brief reports that Brazilian

iron ore supplier, Vale, is seeking increases of up to 130% for iron ore.

This will result in cost pressures in steel-making and therefore higher steel

prices in the medium-term.

In summary, despite broader economic issues, the Australian economy

has proven to be more resilient than global counterparts during the global

economic downturn. Some of the key drivers of Australia’s robust economic

performance are stronger than expected demand for Australian raw

materials, a strong housing market and solid consumer demand locally.

In addition, there have been important developments with raw materials

prices that will likely impact steel users in 2010. Higher steel price

expectations are evident as the costs of the raw materials begin to impact

local and global steel mills.

BlueScope Distribution is committed to keeping you informed on the latest

developments in steel pricing and the local economy.

Disclaimer: This document is made available to you on a strictly confidential and non-reliance basis. While every care

has been taken to ensure the accuracy of the information, BlueScope Distribution Pty Ltd does not warrant the accuracy,

completeness, currency or fitness for purpose of the information. You should verify and check the accuracy, completeness,

reliability and suitability of the information contained in this document for any use to which you intend to put it. Except to the

extent to which liability may not lawfully be excluded or limited, BlueScope Distribution Pty Ltd and its related bodies corporate

will not be liable to you or any third party for any direct, indirect or special loss or damage however caused (including, without

limitation, breach of contract, negligence and breach of statute), which may be suffered or incurred in connection with the

information.

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THE EDGE | Issue 1 9

as directors of albury, nsW company Macfab engineering, Mud (Wayne) and Michelle clarke have established a partnership that has taken their business from strength to strength.

Now in the midst of a major facilities expansion, Macfab Engineering is not just a success story, it’s a company almost unrecognisable from the small vehicle body fabricator Mud and Michelle took on in 2002.

Staff numbers have grown from 15 to 30 in the last three years and Macfab Engineering is a major supplier of metal fabrications and installer of on-site mechanical projects, with an achievement list many much larger competitors envy.

That’s because Macfab Engineering has won respect from industry heavyweights such as John Holland and McConnell Dowell and prospered on repeat business and word of mouth recommendations from satisfied customers. The business uses the convenience of its location in Albury on the NSW/Victorian border to bid for work in both states and into southern Queensland.

It has recently completed major fabrication work for the redevelopment of the North Melbourne Railway Station to cater for two million commuters each year. Other successful projects in which it has played major roles include the Springvale Railway Station upgrade, the Wodonga Rail Bypass, Leighton Ballina Bypass Alliance and the RTA Coonamit Bridge Rehabilitation.

While Michelle Clarke handles administrative challenges, Mud, who began his career as a welder, now concentrates on business development and project management.

“Face to face contact is everything because it gives the clients confidence,” he says. “They know that if I say the steel will be there on a certain day then the only thing which would prevent that would be if I was dead.”

Albury has strong engineering capability, with extra resources usually available to help Macfab Engineering meet business peaks.

Mud and Michelle value the relationship they have built with BlueScope Distribution’s Albury branch – a relationship which has deepened markedly as Macfab Engineering has grown.

“We are in contact with BlueScope Distribution’s local staff every day and they are usually on-site at our workshop once a week,” he said.

“They have been behind us all along,” Michelle Clarke said. “At the beginning of 2009 when times were really tough in the industry they stood by us and showed some flexibility. Now that the industry is in better shape we haven’t forgotten their helpful attitude.”

The daily discussions aren’t all about pricing and delivery times either. They extend into areas which give both sides a more complete insight into how the other’s operations work.

“BlueScope Distribution are always interested in future projects we may be handling,” Mud says. “It might be a bridge refurbishment in Swan Hill which involves LO and L15 grade steel or the Tarcutta bypass project which will involve some 18 tonne beams.”

“When a supplier is talking to you so regularly it is only natural that the relationship deepens and that there are benefits for both sides.”

The new Macfab Engineering fabrication facilities taking shape in Albury are planned to include technology which will allow the company to compete even more successfully in future. It’s a fair bet that there will also be an emphasis on building and maintaining strong relationships.

pARTnERS TAkE

Macfab engineering fRoM STREngTH To STREngTH

red is the symbol of luck in china. in australia, red resembles the country’s red central desert, and on May 1 this year, red will be front and centre for the lucky country at the shanghai World expo when the australian pavilion opens.

Using the iconic landmark of Uluru as the theme, the Australian Pavilion has a unique facade, custom designed to embrace the curvature of the building. Organisers of the World Expo expect the Australian Pavilion to attract more than seven million visitors over the course of the six month event.

Facade Solutions (a BlueScope Steel business) has provided the full package for the design, manufacture and installation of the Australian Pavilion facade. Facade Solutions worked with Wood Marsh Architecture and Bovis Lend Lease on site in Shanghai.

The Australian Pavilion facade is built using weathering steel, which is also known as ‘corten’. Within three months, the steel forms a naturally-weathered appearance, giving an authentic colouring to the building exterior.

The addition of alloy in the composition of the steel enables the development of an oxidised layer, also called ‘patina’, to prevent further corrosion. The weathering steel Azure™ facade will generally last over 50 years, and is effectively maintenance-free. However, the use of weathering steel requires technical expertise, as issues can arise if it is not designed and installed correctly.

“We specifically selected weathering steel for the facade of the Australian Pavilion due to its unique durability, texture, patina and its ability to evoke the Australian landscape. The material is attractive as it acts naturally by changing character over time – evolving through various stages of patina. The Azure™ cassette system enabled perfect alignment between panels, something that is difficult to achieve in the construction industry,” said Antony Martin, Wood Marsh Architecture.

BlueScope’s Facade Solutions business is the first in Australia to provide cassette-style weathering steel panels. The cassettes are formed using fully automatic folding machinery. The automated process allows absolute alignment between the steel panels due to exceptional precision (0.3mm) and provides virtually unlimited customisation.

“Weathering steel is a material that designers and artists are fascinated with. However, it is rarely used due to the technical complexities involved. Fortunately for us, BlueScope has an extensive knowledge of this material,” said Antony.

“With the Australian Pavilion, we were working towards a non-negotiable deadline – there was absolutely no possibility to extend the program, so there was very little room for error. BlueScope provided expertise and guidance from the very start, which proved critical in making this work. Most importantly, they assisted us with non-typical issues such as junctions and parapets. It was one of the most interesting and exciting projects we’ve worked on,” said Antony.

With its Facade Solutions team, BlueScope provides a single point of contact from project design to installation.

“We were very impressed with BlueScope’s professionalism, the efficiencies of their logistics, flexibility of design and the quality of the Azure™ weathering product. The project represents one of the most important buildings that we have been involved with,” said Graeme Woolacott, Bovis Lend Lease.

BlueScope’s Facade Solutions is proud to be a part of the creation of a unique building that showcases Australian architectural vision to the world.

AUSTRALIAN CREATIVITY & INNOVATIONsteel tHe sHoW at 2010 sHangHai WorlD expo

THE EDGE | Issue 1 11

When it comes to building locomotives and railway rolling stock, there are few organisations that can match the expertise of Downer eDi rail.

With more than a century of experience and the DNA of former industry icons Clyde Engineering and Evans Deakin Industries in its corporate bloodlines, the company’s customers expect nothing but industry best practice – preferably in record time.

That requires close co-ordination not just of Downer EDI Rail’s various fabrication units, but also with major suppliers, including BlueScope Distribution.

Les Welbourn, Senior Purchasing Officer - Logistics Manufacturing, Downer EDI Rail, has a unique perspective on his company’s locomotive building activities.

From his Sydney office Les is in constant contact with all parties involved, particularly now, when Downer EDI Rail has orders for more than 60 locomotives on its books.

“We have fabrication under way which will put 48 under frames into Maryborough by April 2011,” he said.

The under frames are being fabricated in Port Augusta, some components in Port Pirie and the major assembly will be completed at Maryborough in Queensland.

As with many major capital equipment projects, customers deliberate at length before committing to purchase, but then expect immediate action on their orders.

It is in this atmosphere over the last two years that the relationship between BlueScope Distribution and Downer EDI Rail has grown increasingly close.

“There has been a relationship between our two organisations for many years, but in the last couple of years it has been enhanced,” Les comments.

“It starts with trust and clear communication. Our hands are tied in the four or five weeks between learning that we’ve won a contract and the letter of intent arriving.”

“We can’t order steel for a project before we get a letter of intent from a customer, but we just know that when the letter arrives we are on a tight deadline to deliver.”

Because of the depth of its relationship with BlueScope Distribution, Downer EDI Rail can provide indications of likely steel requirements ahead of the order.

With a high level of confidence BlueScope Distribution can then source material in advance so that fabrication can begin as soon as possible. This happened recently when a “fast track” contract for 35 locomotives was imminent.

“Once the letter of intent was received, BlueScope Distribution organised the steel and delivered some of it to one of our sub-contractors for profiling in advance of the contract commencing,” Les recalls.

With steel requirements including pipe, web plate, floor plate, equal angles and RHS there’s plenty to co-ordinate.

“BlueScope Distribution always gives us an honest appraisal of what steel we can expect to have available on the scheduled fabrication start-up date, “ Les said. “That can save us weeks.”

“It helps us to program the various parts of the under frame build at Port Augusta because they understand our sequence of fabrication and make sure we have the steel we need to carry out that work.”

“We also appreciate their honesty in being upfront with us if we set a deadline they can’t meet. The communication level is excellent. You need to be able to rely on suppliers absolutely.”

“In the last couple of weeks they have visited our under frame fabrication workshops at Port Augusta and have also been to Port Pirie where S.J. Cheesman Engineering is carrying out work for us.”

Les Welbourn has also encouraged the development of the relationship to the stage where BlueScope Distribution specialists and Downer EDI Rail production executives speak to each other two or three times a week.

“Without the support of good suppliers you can achieve very little,” he said. “I think the relationship with BlueScope Distribution is now at the stage where both companies are benefitting hugely.”

The under frames are being fabricated in Port Augusta, some

Downer eDI raIl on THE fAST TRAck

Downer eDI raIl on THE fAST TRAck

as the gold industry leader with 26 operating mines

and a pipeline of projects across five continents,

barrick gold values efficiency in delivery of service from

its business partners and suppliers.

In the Australia Pacific region, Barrick’s three year national supply

agreement with BlueScope Distribution highlights the positive

outcomes gained from a working relationship committed to

achieving efficiency in meeting business needs.

Covering more than 500 items across the BlueScope Distribution

steel product catalogue, Barrick’s supply agreement with

BlueScope sees the company provide regular consumable steel

needs for daily operations, repair and maintenance, plus project

steel as required.

In Western Australia, BlueScope Distribution meets the needs of

Barrick’s Darlot, Plutonic, Lawlers, Granny Smith and Kanowna

mines which are supplied from Kalgoorlie.

In NSW, Barrick’s Cowal mine is supplied from Wagga Wagga and

in Queensland, the Osborne mine is supplied from BlueScope

Distribution’s Townsville branch.

Further afield the steel requirements of the Porgera Joint Venture

gold mine in Papua New Guinea are managed by BlueScope

Distribution’s Export Team based in Brisbane and shipped from

Townsville.

Each mine’s requirements differ and cover a wide range including

general steels, pipe and specialised fittings.

What started out as a concerted effort at cost control by Barrick in

the face of volatile steel prices around the globe in 2007 has now

evolved into a relationship with many benefits for both parties.

“Implementing a formal supply contract for our steel needs has

ensured that we buy at a competitive price, but there have been

many other benefits,” said Rebecca Chatfield, Forward Purchase

Agreements Officer for Barrick (Australia Pacific) Limited.

“On the price front we have regular three-monthly reviews and

there are rise and fall adjustments which simplify our dealings.”

“We also took the opportunity presented by this agreement to

rationalise the catalogue of steel products from which our mines

were ordering.”

Previously each Barrick Mine ordered from its own catalogue,

resulting in additional complexity and the risk of confusion.

Relationship management is a priority for Barrick and for BlueScope

Distribution, so central co-ordination between Rebecca Chatfield

and BlueScope Distribution’s Manager of Strategic Accounts, Wendy

Lyons has been a key to the success of the agreement.

“We have a relationship with BlueScope Distribution which works

on several levels.” Rebecca Chatfield said.

“At a corporate level Wendy and I work together on issues such as

the catalogue rationalisation, while each of our mine sites and the

BlueScope Distribution branches which serve them have developed

their own close ties.”

Those ties are based on the understanding of Barrick Gold’s mining

operations which BlueScope Distribution people such as Wendy

Lyons, Kalgoorlie Branch Manager, David Johnson and Export

Manager Michael Masters have built up.

“You have to be able to put yourself in the customer’s shoes,” David

Johnson said. “We do our best to anticipate the mines’ needs, so

we make certain we hold appropriate stock in the branch.”

“We are also prepared to respond to urgent orders because we

understand the impact that unplanned downtime can have on a

mine’s productivity.”

“Sometimes that involves opening the branch outside of normal

working hours, but that’s all part of the service.”

To service the steel needs of the Porgera gold mine in Papua New

Guinea, BlueScope Distribution’s Export team plays a co-ordination

role which extends from liaison with Porgera offices in Cairns to the

logistics of shipping the required material.

“As well as speaking to the Porgera people in Cairns we also visit

mine personnel in PNG face to face to get a better understanding of

how we can assist,” Michael Masters said.

Nearly two years into the current supply agreement BlueScope

Distribution and Barrick (Australia Pacific) Limited are working hard

to add to its already considerable success.

golD

barrick lookS foR fRoM iTS SUppliERS Too

THE EDGE | Issue 1 13

EAT THAT FROGWe all have our frogs – important tasks that we’ve put off for whatever reason. the key to success is to eat your frogs quickly, completely and with focused determination. so says brian tracy, the master of hard-nosed time management. the message of this book: action leads to accomplishment. We thought all readers of the edge would gain some benefit even from an abstract of this great book.

amphibian on toast

If you eat a live frog each morning you will know that you have already experienced the worst thing that will happen to you that day. You probably have frogs hidden on your desk and on your to-do lists. Your frogs are the tasks that you know are priorities, but that you’ve put on the back burner for whatever reason. It’s time to learn how to snack on those difficult problems. The good news is – it’s a high-protein diet.

OK, you don’t need to eat real frogs to be a success in business. But you do need to tackle critical projects and problems creatively and effectively. Here’s a plain and simple truth: the ability to focus in a single-minded fashion to accomplish the most important task before you is the prime determinant of your success. It’s that clear. The complication comes in, however, when you lack clarity about your true goals and objectives. Lack of clarity can be a killer, because it impairs action, and action is the secret to success. Like everyone, you probably feel overwhelmed at times with too much to do and not enough time to get it all done. Select the most important challenge – that big, old frog slobbering in your in-basket – and address it effectively.

Successful people launch directly without hesitation into the major task that confronts them at any point in the day. How do you develop this clarity? Well, it’s impossible without developing good work habits. Indeed, about 95% of your success in life will depend on the habits you cultivate. Good habits will be your best friends and bad ones will be your worst enemies.

Winning is a Habit

You require three qualities to develop successful habits. You will need to make choices. You will need discipline and you will need determination. For example, one essential habit is learning to think on paper. Would you be surprised to learn that only about 3% of adults have bothered to put their goals on paper? Here’s how you can get what you want out of life:

• Decide precisely what you want.• Write this goal down.• Set a deadline by which you plan to achieve it.• List what you will need to do to achieve your goal.• Turn the list into a plan. Organise it by priority and sequence.• Take action immediately. Do anything, but don’t hesitate.• Promise yourself to make some small step toward your goal each and

every day.

After that, it’s mostly a matter of continuing to push forward until you attain your goal. While acting is better than procrastinating, action without planning leads to failure and disappointment, so learn to plan daily. Always work from a list.

time-Management, pareto style

In 1895, Italian economist Vilfredo Pareto realised that 20% of people made 80% of the money, while 80% of the people had little money. He soon discovered that this ratio applied to all economic activity. The top 20% of your activities will generate 80% of your profits. 20% of your customers will account for 80% of your sales. This pervasive fact is now known as Pareto’s Rule. The rule means that if you have a to-do list of 10 items, two of those items will generate 80% of the return you get from your entire list. Now, when you look at your list, you will be tempted, of course, to clear up a few small things first so you can check them off and have a sense of accomplishment. However, those items may not be significant to your economic activity. And that’s a problem.

““

an average person who develops the habit of setting clear priorities and getting important tasks completed quickly

will run circles around a genius who talks a lot and makes wonderful plans but gets very little done.

the ability to concentrate single-mindedly on your most important task;

to do it well and to finish it completely, is the key to

great success

“it completely, is the key to

“

What to do? Well, remember that the hardest part of any task is getting started. Time management is really just taking control of the sequence of events that affect your life. Effective people discipline themselves to address the most important task first, always. That is, they discipline themselves to eat that frog.

Long-term thinking

To succeed, think for the long-term. Before you begin a project, ask yourself, “What is the consequence of not doing this task?” Be willing to delay short-term gratification in order to achieve better long-term results. Of course, reconsider if taking on a task causes you more trouble in the long run. As motivational speaker Dennis Waitley puts it, “Failures do what is tension-relieving while winners do what is goal-achieving.”

Key result areas

To become more effective, ask yourself why you’re on the payroll. Most people aren’t sure. Obviously, you have been hired to get results. Most jobs have key results, specific things that must be done. To improve your performance, identify your job’s key result areas and make sure you allocate the appropriate resources to handle them. Then, grade yourself in each key result area. Everyone has weaknesses. Identify yours and strengthen them. Ask yourself, “What is the one skill area I could improve that would have the greatest impact on my career?”

the Law of Forced efficiency

You probably don’t like the idea of forcing things. The Law of Forced Efficiency relates to the idea that any job will expand to fill the time you allow for it. If you have two days, it will take you two days (or perhaps more). However, the flip side is also true: If you have only one day to complete a two-day job, somehow you find the time to do it. One corollary to the Law of Forced Efficiency is the realisation that you will simply never have enough time to do everything you want to do. To cope with this sad circumstance, continually ask yourself:

• What is my highest value activity?• What is it that only I can do, that if done well, will have a significant impact?• What is the highest and best use of my time, right now?

The answers to these questions will help you to manage your time. As Goethe said, “The things that matter most must never be at the mercy of the things that matter least.”

becoming Your own Cheerleader

Change is always a challenge; to meet the challenge of becoming more effective, you need support from the world’s greatest cheerleader – you!

So grab your pom-poms and remember:

• Become an eternal optimist – when you really rely on yourself, you no longer have the luxury of moping, feeling sorry for yourself or copping an attitude.

• Resolve to remain cheerful and upbeat – optimists look for the good in any situation, search for the lesson and believe difficulties come not to obstruct, but to instruct.

• Visualise your goals – imagine yourself sitting in that corner office.

Eating the frog means having the positive attitude and the will to do the most difficult task first. Because you can’t do everything, indulge in creative procrastination – put off the things that do not carry a consequence. Break large tasks down into a series of simple ones. Work with a sense of urgency. And remember that all you have to do to succeed in business and in life is learn to eat that frog every day.

THE EDGE | Issue 1 15

At BlueScope Distribution we have assembled an experienced team of industry professionals who understand the marketplace, are responsive to customer needs and know what it takes to drive a successful business.

The team is committed to the ongoing development of innovative solutions that add true value to our customers’ businesses.

Striving for excellence and holding themselves to the highest ethical and professional standards is the hallmark of the BlueScope Distribution Leadership Team.Standing L–R: Paul Day (Mgr VIC/TAS), Jason Smith (Mgr QLD), Bob Gaydon (GM Laser Dynamics), Andrew Mills (Mgr SA/NT), Scott Beasley (Sales Devt Mgr), Terry Wilson (Mgr NSW).

Front L–R: Stuart Cross (Mgr WA), Dean Mehmet (General Mgr), Joanne Whitehead (HR Mgr), John Costa (Commercial Mgr).

VICTORIA / TASMANIAWestall Ph: 03 8543 3666

NEW SOUTH WALES

Heatherbrae Ph: 02 4980 7411

QUEENSLAND

Northgate Ph: 07 3622 9222

SOUTH AUSTRALIA /NORTHERN TERRITORYOttowayPh: 08 8245 3801

WESTERN AUSTRALIAKewdalePh: 08 6250 1000

MEET OUR LEADERSHIP TEAM

S

B g / ),Scott Beasley (Sales Devt Mgr), Terry Wilson (Mgr NSW).

Front L–R: Stuart Cross (Mgr WA), Dean Mehmet (General Mgr), Joanne Whitehead (HR Mgr), John Costa (Commercial Mgr).

NORTHERN TERRITORYOttowayPh: 08 8245 3801

WESTERN AUSTRALIAKewdale

S

F

J

THE SAFE

HARD HATS - DO THEY LAST FOREVER?No they don’t: hard hats, or safety helmets, have a ‘use-by date’ or a ‘working life’. The Australian Standard specifi es a three year replacement date. Each helmet, when manufactured, has the year and month of manufacture stamped on the inside of the shell near the peak for easy reading. If the helmet has been used regularly, it should be replaced after

three years from the date of issue as exposure to the natural elements can cause deterioration and compromise its effectiveness.

The date of issue should be marked on an additional sticker on the inside of the helmet at the back of the shell. The date of issue may not be the same as the date of manufacture. If a helmet has been damaged in any way it should be replaced immediately.

THE EDGE newsletter has been prepared for information purposes only. BlueScope Steel makes

no representation or warranty as to the completeness or accuracy of the information

contained in the newsletter. You must make your own assessment of the information contained in

the newsletter and rely on it wholly at your own risk.

Published by BlueScope Steel Limited.

® are registered trade marks of BlueScope Steel Limited.™ are trade marks of BlueScope Steel Limited.

© 2010 BlueScope Steel Limited ABN 16 000 011 058

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