BlueScope agrees to buy New Zealand-based Pacific Steel

Australian flat steel producer BlueScope has announced that it has agreed to acquire the downstream long product rolling and marketing operations of Fletcher Building's Pacific Steel Group (Pacific Steel), based in Auckland, New Zealand. BlueScope will be acquiring the rolling mill and wire drawing facilities located at Otahuhu in Auckland as well as the rolling mill in Fiji, currently operated by Pacific Steel, for NZ$120 million ($99.8 million). The acquisition is expected to be completed in mid-2014.
 
According to the statement from New Zealand-based Fletcher Building, Pacific Steel's operations will continue under BlueScope's ownership with the exception of the steel mill in Otahuhu, South Auckland. Fletcher Building will continue to own and operate the Otahuhu steel mill and will supply BlueScope with billet on commercial terms until BlueScope commissions the new billet caster.
 
Pacific Steel is a producer and marketer of long products such as reinforcing steel, rod and wire, and in the financial year 2012-13 sold approximately 240,000 mt to domestic and overseas customers.