The ACCC-approved merger of Smorgon Steel Group and OneSteel is designed to create a strong and competitive steel long products company, ensuring the continuation of an Australian presence in that industry.
Smorgon Steel Executive General Manager Corporate & Investor Relations, Bruce Loveday said the Group’s due diligence on the transaction was very thorough so that the new entity that emerged would be a high-quality manufacturer with strong investment value. “The economies of scale that can flow from the merger will allow OneSteel to compete effectively against imported steel products well into the future. OneSteel will be able to offer its customers a wider product range, solutions and enhanced services.” Mr Loveday said. “OneSteel will be self-sufficient in its key raw materials, iron ore and ferrous scrap and will have plenty of production flexibility. It will operate one integrated mill with the capacity to cast billet, bloom and slab and three electric arc furnaces with billet casting capability. It will be flexible in production scheduling through its multiple rolling mills and will possess a sophisticated tube making capability, and retains its current downstream distribution capability to focus on the needs of end-customers. Smorgon Steel shareholders will own 34 percent of OneSteel after their ACCC-approved merger is completed to form stronger, more diversified steel entity, pending the approval of Smorgon’s shareholders on 31 July.