OneSteel achieves stronger financial stance

OneSteel achieves stronger financial stance

Australian producer OneSteel officials state that the company has now better financial stance compared to three years ago and is now in a position to pursue growth opportunities. According to a statement by Australian producer OneSteel Chief executive Bob Every, during the American Chamber of Commerce luncheon in Sydney, the company currently has a market capitalization of A$1.1 billion from a A$350 million level back in 2001, and has reduced its initial debts of A$1.2 billion under A$500 million. The company also announced last month a net profit of A$94 million for 2002-03 period, doubled compared to last year's figures. OneSteel has a production capacity of 3 million mts iron ore, 2 million mt part of which is used to supply the company's Wyhalla works. The balance iron ore supply is utilized by the BlueScope Ltd. ,i.e. forme BHP Steel Ltd. Meanwhile, the company executive pointed out to the importance of China, in the world steel market balances with a demand constituting almost 22% of the entire world consumption, and mentioned a possibility of China playing a crucial role in converting the global overcapacity problem into that of an undersupply if an unexpected downturn of demand is not experienced.