BlueScope to reduce steel output at its Australian operations

Australian flat steel producer BlueScope has announced that it plans to readjust its Australian cold rolling, metal coated and painted steel production, starting from mid-March 2013. Accordingly, the company will reduce production levels at its Western Port facility and provide significant cost savings, resulting in the loss of 170 jobs at the plant.  
 
BlueScope indicated that, although domestic coated steel demand has not declined materially, the company has chosen to reduce production to remain a cost-effective producer.
 
All the currently operating lines and assets will remain open at Western Port to provide flexibility and allow for additional throughput when demand improves. The company will continue to produce the same portfolio of products and retain the capability to meet current and future demand.
 
BlueScope stated that the cost to implement the changes in production is estimated to be around $17 million, but will be recovered within one year through ongoing improvements to the operating cost base.