Steel Mills
February 25, 2020
BlueScope: North Star Expands, Coronavirus a Concern
Written by Sandy Williams
North Star BlueScope reported weaker earnings in the first half of FY 2020 due to softer prices and margin spreads and normal seasonality. Sales revenue of $592 million was down 32 percent from the first half of 2019. Weaker hot rolled coil prices were partly offset by lower raw material costs. Shipments for the half declined 1 percent year-over-year to 1,028,000 metric tons from 1,074,000 tons in the previous half year. The mill has been operating at 100 percent capacity. Second half results are expected to be relatively unchanged from the first half.
The North Star BlueScope expansion is progressing well. The foundation and erection of the melt shop building is under way along with the tunnel furnace car foundations. The new administration building and warehouse are nearly completed. Mark Vassella, CEO of Australian parent BlueScope, notes that major OEM contracts have been negotiated and orders placed. Full ramp up is expected to take 18 months once the mill is commissioned in 2022. The 850,000 metric ton per year expansion will increase production in Delta, Ohio, to 3.0 million tons annually.
