Source: Scrap Monster
Australia-headquartered BlueScope Steel has announced pre-emptive steps to bolster defences against uncertainties caused by COVID-19 outbreak.
The construction and installation programs as part of the North Star expansion project have been rescheduled for the next six months. The 2H FY20202 project spend is expected to decline to nearly $90-100 million, as compared with 1H FY2020 spend of around $180 million.
The company has reduced all non-essential capital expenditure. The total capital expenditure during 2H FY20202 is estimated at around $200 million, down by $40 million from February 2020 guidance. The FY 2021 capital expenditure is anticipated to be in the range of $200 million to $250 million.
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Furthermore, BlueScope has ceased all non-essential operational spend. Also, it has stopped the on-market share buy-back program.
The company has temporarily closed operations in Malaysia and India, in line with national lockdowns. The New Zealand operations too have been shut for a period of four weeks, effective March 25th.
Mark Vassella, Managing Director and CEO noted that it has implemented comprehensive hygiene measures at all operating sites. The high degree of automation at its sites allows for operation with limited number of employees.