connect issue 3
DESCRIPTION
Connect Issue 3TRANSCRIPT
OneSteel Steel & Tube’s Customer NewsletterVolume 3, March 2010
BUILDING AUSTRALIA WITH YOU
In this editionCLEM7 Canopies
QLD State Equestrian CentreInnovations in sustainable steelmaking
and more...
c nnect
Connect - Volume 3, March 2010OneSteel Steel & Tube, Issued March 2010
This publication has been prepared by OneSteel Steel & Tube, an operating business group of OneSteel Distribution, OneSteel Trading Pty Limited ABN 50 007 519 646. Please note that any specifications or technical data referred to in this publication are subject to change and/or variation or improvement without notice and no warranty as to their suitability for any use is made. The views and opinions of third parties published herein are not necessarily the views and opinions of OneSteel Steel & Tube and no warranty or guarantee is provided in relation to the truth or accuracy of any such content. Users of this publication – to ensure accuracy and adequacy for their purposes – are requested to check the information provided in this publication to satisfy themselves as to its appropriateness and not to rely on the information without first doing so. Unless required by law, the company does not accept any responsibility for any loss, damage or consequence resulting from the use of or reliance upon this publication. This publication is not an offer to trade and shall not form any part of the trading terms in any transaction. OneSteel Steel & Tube
is a registered trademark of OneSteel Trading Pty Ltd ACN 007519646
LWOSST001 © Copyright 2010 OneSteel Trading Pty Limited. Not to be reproduced in any form. www.onesteel.com/steelandtube
QuarTerly MarkeT updaTeSWant to keep up to date with information about the Australian steel market and the global steel industry? We can email you our quarterly Market Updates, so you can continue to be informed.
GeT INVITed TO CuSTOMer eVeNTS aNd reCeIVe NewS aNd SerVICe INfOrMaTIONWe like to regularly update all of our customers with new product information and invitations to upcoming customer and industry events. So if you don’t want to be the last person to find out, sign up to receive our Customer Events, News and Service information today.
SubSCrIbe TO Our e-SerVICeS!If you don’t already receive our e-services, visit our website to subscribe. Alternatively, ask your account representative to subscribe you.
Front Cover image: CLEM7 Canopies See Project Feature, pg 6Courtesy of LBBJV.
Volume 3, March 2010
OneSteel Steel & Tube Market Update December 2008 Page 3
BUILDING AUSTRALIA WITH YOU
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
$/To
nne
(c&
f int
o C
hina
) ex
Non
-CIS
Structurals (USD/t)Structurals (AUD/t)
Mebar (USD/t)Mebar (AUD/t)
ASIAN STRUCTURAL & MEBAR PRICES
JAN 2004 - MID DECEMBER 2008
Source: CRU, 2008
Asian Steel Prices
Global Steel Industry
-40
-20
0
20
40
60
80
100
120
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Mt
19961998
20002002
20042006
20082010
20122014
2016
NET FERROUS SCRAP - FORMATION LESS DEMAND
Source: World Steel Organisation, Consultant Report, 2008
Asian News: Pricing & Production
Taiwan’s largest steelmaker China Steel will reduce its
• production volume by “at least 1 million tonnes next year”,
coupled with the reconditioning of another blast furnace
and a planned shutdown brought forward to 1Q09. 1
Despite current production cuts, China Steel will be
• progressing with its NT 200 billion five-year expansion plan
to raise annual production capacity to 20 million metric
tonnes (from a base of 11 million) of crude steel by 2012.
Chairman, Chang Chia-Juch believes that steel prices will
rebound in 2Q09 as the infrastructure spending packages
initiated by Taiwan and China boost demand. 1
On the back of increased world benchmark prices for ingot
• steel, Vietnamese domestic producers have raised sale
prices by VND 500,000 to VND 700,000 per tonne, despite
their large stock holdings. According to the Vietnamese
Steel Corporation, the demand for steel is increasing. The
volume of steel sold in November 2008 was a 225 per cent
increase on the volume sold in October 2008. 2
Steel consumption in Vietnam also rose sharply in
• November 2008, tripling the domestic market consumption
figures of both September and October. 3
Chinese hot dipped gavanised coil prices continue to
• increase. Although sources report that export enquiries
continue to rise, transactions remain weak. 4
Baosteel Group Corporation, China’s biggest steelmaker,
• said that the global economic slowdown would not deter its
plans for a CNY 60 billion steel plant project. The planned
development would increase its capacity by a third. 5
South Korean custom statistics show that scrap imports
• in the last 10 months is up 18.9 per cent year on
year. Analysts predict that scrap prices, one of the key
steelmaking inputs, will rise again in 2009 when demand for
steel picks up. 6 See the box below for a long term outlook on
scrap.1.Pevzner, A. 2008. “Taiwan China Steel Chmn: Prices may rebound in 2Q09”, Dow Jones, November 25, 2008, page 2.
2.Steel Guru. 2008. “Vietnamese steel majors increase price by VND700,000”, December 3, 2008, retrieved from www.steelguru.
com3.Steel Guru. 2008. “Vietnam Steel Consumption Sharply Increases in November”, December 1, 2008 retrieved from www.steelguru.com/news
4. My Steel. 2008. “ Chinese HDG export price continue to go up” December 5, 2008, 2008 retrieved from www.mysteel.net
5. Steel Guru. 2008. “Baosteel to proceed with USD 8.7 billion steel plant project”, December 4, 2008 retrieved from www.steelguru.com/news
6. Steel Guru. 2008. “South Korean scrap imports in 10 months up by 18.9% YoY”, December 8, 2008 retrieved from www.steelguru.com/news
7. World Steel Organization. 2008. Consultant report to World Steel Organization (formerly International Iron & Steel Institute)
Scrap Formation & DemandFundamentally the rate of scrap arisings has not increased to meet
rising demand. The quality of scrap has reduced as obsolete scrap as a
percentage of total scrap also declines. The long term supply/demand
fundamentals and outlook for global supply of ferrous scrap (a major
input for Electric Arc Furnace steelmaking facilities) support prices for the
material remaining well above historic averages.
World Steel Dynamics estimate that scrap collected in the last 12 months
exceeded the theoretical scrap arisings by more than 30 per cent. This
implies that “future” scrap has been consumed which will cause a scarcity
of scrap.Compounding this, the
rapid increase in steel production post 2000
will not show in scrap arisings for another
15 to 20 years. Scrap shortage is therefore
likely for another 10 years or more. International steel benchmark prices
remain at historic highs which is reflective
of steelmakers still absorbing rising raw
material costs.Asian finished steel prices (pictured) have
fallen as a result of weak demand and de-
stocking of high inventories. AUD depreciation, falling to as low as
US$0.63c has offset the price falls in
Australian dollar terms.Source: CRU 2008
Source: World Steel Organization.
2008. Consultant report to World Steel
Organization (formerly International Iron &
Steel Institute)
OneSteel Steel & Tube Market Update December 2008 Page 4BUILDING AUSTRALIA WITH YOU
This information is provided as a service to those interested in steel. Since the information is provided for general guidance only, and in no way replaces the services of professional consultants on particular subjects, no legal liability can be accepted by OneSteel Trading Pty Limited for its use. Information is deemed correct at the time of publication. © 2008 OneSteel Trading Pty Limited ABN 50 007 519 646. Issued 15th December, 2008 CAOSST08 OSSTPU8
OneSteel Steel & Tube Locked Bag 3050 Artarmon NSW 1570 Australia [email protected]
Global Steel Production CutsRestricted supply will eventually drive increase in demandMarket analysts site reduced global steel demand is owing partly to seasonal reasons. The Middle East slows during the Ramadan season, while Asian activity decelerates to accommodate for the onset of the monsoon season. All up Mediterranean and Far East steel billet contracts have both plunged more than 70 per cent from June to mid-October.
Broker Citigroup notes that inventory de-stocking continues to accelerate and prices are currently below the production cost floor. Compounding this problem is a level of excess inventory held by most steel makers which is higher than the normal average. Whilst production costs are coming into play, the effects of these wont be seen until early 2009.
Barclays Capital also predicts that these production cuts, following a period of de-stocking, will support price rises once demand growth returns. With governments globally attempting to stimulate economies by massive fiscal
packages including infrastructure spending, this demand, whilst not equaling the recent high levels, will drive an increase in prices again, particularly on top of the decreased supply.
Below is just a snapshot of some of the production cuts that have occurred globally since September 2008, many more companies have cut production in this recent period.Source: Nelson, A. 2008. “Softening Steel Prices Poised to Harden”, FN Arena News November 14, 2008, retrieved from http://www.fnarena.com
GLOBAL STEEL PRODUCTION COSTS - SNAPSHOT OF RECENTLY REPORTED
Date in Press Company Location Detail Product Annualised (kt)Dec 8 2008 CSN US & Europe Cut 40% off production in US and 60% off
production in PortugalFlat
Sep 30 2008 US Steel Nth America No specifics given FlatSep 30 2008 Severstal Wheeling Nth America Laying off staff and cutting production FlatSep 30 2008 JSW Steel India Down 2,000 tpd to 7,000 tpd in past two weeks Flat 730Sep 30 2008 Ispat India At least 1,000 tpd cut Flat 365Sep 30 2008 Essar Steel India At least 1,000 tpd cut Flat 365Sep 30 2008 Arcelor Mittal USA Nth America No specifics given FlatSep 29 2008 Sahrq Sohar Steel Oman Complete production halved, no specifics given LongSep 29 2008 Metinvest Ukraine Cut back from 350-370kt pm to 100-150kt pm. Long 2,820Sep 29 2008 Gulf Steel Saudi Arabia Output cut from 450kt sections rolling mills- no
details givenLong
Sep 29 2008 Emirates Steel United Arab Emirates Reduced rebar output - no details given LongSep 28 2008 Arcelor Mittal Kryvy Rih Ukraine Plans to cut back production 20% in 4Q08 LongSep 28 2008 Rizhao Iron & Steel China Planning H-beam cut back in October LongSep 28 2008 Magang Group China H-beam cut backs Long 300Sep 26 2008 Laiwu Iron & Steel China Planning H-beam cut back in October LongSep 18 2008 Tullacharmet Industrial
Union ofRussia 12 to 15-mth blast furnace shut down Pig Iron 1,000
Sep 8 2008 Donbass CIS Demand Long
Source: Metal Bulletin 2008, Credit Suisse Estimates
550
600
650
700
750
800
850
Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08
USD
$/to
nne
Production Cost Shipment Price Domestic
Shipment Price Export Source: Metal Bulletin, UBS Estimates
CHINESE STEEL MILLS SHIPMENT PRICE & PRODUCTION COSTS
OneSteel Steel & Tube Market Update December 2008 Page 1
BUILDING AUSTRALIA WITH YOU
Welcome to our seventh newsletter, the last for 2008, a year
that has been marked by incredible volatility and uncertainty
of pricing and supply in the domestic and international steel
markets.
Current pricing volatility continues to be exacerbated by the
global credit crunch and slowdown in the world’s financial
markets. Globally, Government’s have implemented economic
stimulus packages to boost economies and limit the effects
of recession. Analysts predict that many of these packages
will increase demand for steel, including Australia’s focus on
infrastructure spending1 .
In the existing market, issues around price, relationships and
delivery continue to affect your business. While our Sales Teams
and Management around the country are committed to fostering
relationships, it is also important that we share our perspective
on prices in general with our business partners.
Earlier this year the steel industry consisted of rising prices,
demand allocations, the Australian dollar exchange rate
reaching US$0.98 and a strong increasing global demand for
steel. Within the last four months, however, this has transformed
to level or declining global prices for flat steel products, the
exchange rate for the Australian dollar falling below USD$0.64,
commentaries around weakening global demand and
dramatically reduced interest rates.
Recent media reports on falling commodity prices, cheaper
international shipping, reduced global demand and declining
overseas steel prices have led to speculation of a decrease
in the price of steel in Australia. It is important to note that
Australian steel prices are dependent on a number of factors,
and it is therefore risky to predict a decline in domestic prices
without having a comprehensive view of all short to medium
term dynamics.
Australia has higher steel production costs than its Asian
neighbours, and the many infrastructure, resources and
commercial construction projects planned and underway in
Australia will drive domestic steel demand at a different rate to
that of other markets. In addition, World Steel Dynamics reports
that while spot prices have fallen recently, the prices remain
below estimated steel production costs and are unsustainable2 .
We have included information around this issue in this market
update. It is also difficult to effectively access declining overseas
steel prices because of the plummeting AUD exchange rate.
We are keen and committed to providing you with more
information around pricing issues as we get a clearer view.
In existing market and credit conditions, the value of a local
manufacturer and supplier cannot be underestimated. At
OneSteel Steel & Tube, our value proposition includes our
multiple distribution and processing centres nationally which
hold strong inventories enabling us to service the local market,
with next day delivery of floor stock. Our aim is to continue to
service the steel requirements of the domestic market, whilst
continually improving our service offerings and adding value to
your business.
If you require any further information, please contact your
OneSteel Steel & Tube representative. We hope that you find
this information useful.
Regards,
Vik Bansal
General Manager
OneSteel Steel & Tube
Steel & Tube
Market Update DECEMBER 2008
onesteel.com/steelandtube
BUILDING
AUSTRALIA
WITH YOU
OneSteel Steel & Tube’s Market Update:
a look at factors affecting the domestic and international steel industries
1. Nelson, A. 2008. “Softening Steel Prices Poised to Harden”, FN Arena News November 14,
2008, retrieved from http://www.fnarena.com
2. Wolrd Steel Dynamics. 2008. Consultant report
3 readING THe SIGNSA message from Vik Bansal
4 SafeTyLoad Restraint
5 CuSTOMer CONNeCTIONWetherill Park on show for Analyst Visit
6 prOjeCT feaTureClem 7 Canopies
9 prOduCT updaTeAS1163: Setting the Standards
10 prOjeCT feaTureQueensland State Equestrian Centre
12 SuSTaINable fuTureInnovations in sustainable steelmaking
Connect with..All Metal Solutions
14 Supply CHaIN INNOVaTIONSImprovements in movements
Connect with...Maitland Fabrications
16 STrIVING fOr exCelleNCeWhatever the goal
Welcome to the third issue of Connect,OneSteel Steel & Tube’s customer newsletter.
To create the various forms of printed and electronic communication published by OneSteel Steel & Tube we rely heavily upon our customers to become engaged with our programs. Connect is no exception and it is only through the contribution of our customers and industry partners that we are able to publish regularly. Connect provides a great opportunity for customers to not only tell us about their success with specific projects, but also profile their business to potential industry partners. The ‘Connect With’ articles, just like the project stories are available to all of our customers.
It’s easy to get involved and become a part of the next edition of Connect. To contribute simply contact our Editor, Lisa Wilson:
OneSteel Steel & Tube distributes over 4,000 copies of Connect around the country bi-annually, and through email and the web reaches an even larger audience.
Regards,
Warren StewartNational Marketing [email protected]
3www.onesteel.com/steelandtube
QuarTerly MarkeT updaTeSWant to keep up to date with information about the Australian steel market and the global steel industry? We can email you our quarterly Market Updates, so you can continue to be informed.
reading the signs
”fabricators form a key plank in our
strategy and I am proud to remind
our fabricator communities that we
remain committed to building australia with you and
not around you”
Dear Customers, Welcome to Edition 3 of the OneSteel Steel & Tube Connect newsletter.
We often hear that the world is in a volatile state, but I wonder if the commentators understand the extent of volatility in specific industries. Who would have guessed 18 months ago we would see the record peaks and troughs of steel pricing and availability that we have witnessed. No doubt we have seen tough times, but the perseverance of the steel industry has been truly inspiring. At Steel & Tube we have increased our efforts manifold during these times to ensure we have the best market offer available for our customers by focusing on improving our systems and processes. This is matched by a substantial increase in our stock levels to ensure we can service the changing demands of our customers. While stock levels have lowered in the market, we have intentionally increased ours’ to ensure supply in an environment where our customers have been cash pressed.
This initiative has paid dividends which are visible in the return of many of our old friends who value the consistent service offer more than the few dollars per tonne from opportunistic suppliers. A recent win for Steel & Tube has been working in partnership with fabricators and free issuing steel to them for the Victoria Desalination Plant. This is an indication of our ability to match our service offer and stock with project capability.
Our relationships within the fabricator community have been built on trust and personal bonds which run deep. Our strategy to service the Australian industry with fabricators and not around them has been integral to the way we do business here at OneSteel Steel & Tube. Fabricators form a key plank in our strategy and I am proud to remind our fabricator communities that “we remain committed to building Australia with you and not around you”.
Moving forward we will endeavor to increase our efforts to ensure the local market remains an attractive proposition for all projects, to avoid losses like the recent Gorgon Project. Though we do live in a global world, it should not deter us in doing whatever legally and ethically possible to ensure the projects are awarded and fabricated locally.
In this edition, you will read about innovations in sustainable steel making, Australian Standards, customer profiles, as well as some exciting projects we are working on around the country. We remain passionate to service you and make the journey a winning one through these interesting times.
Regards,
Vik BansalGeneral Manager, OneSteel Steel & [email protected]
4
Safety load restraints
Everyday, somewhere near you, there is a chance that something has fallen off a vehicle and possibly injured someone. Road transport statistics reveal that these incidents are a direct cause of many road accidents. Keeping loads securely tied down, is a very important part of being a responsible road user.
Some years ago Federal Parliament passed laws called ‘Chain of Responsibility’. Put simply this means that any party having something to do with the loading, transport or delivery of product is a link in the chain. Here at OneSteel Steel & Tube we take our responsibility very seriously. The steel we transport comes in all shapes and sizes, and keeping product on our trucks until it is safely delivered is crucial. Load restraint affects not only every OneSteel employee but also many others’ including suppliers, contractors and our customers.
National Transport laws and regulations give us specific guidelines on correct procedures for restraining our loads and delivering them safely to our customer. In recent months Steel &
Tube have rolled out training packages to help our employees and contractors understand how correct loading can be accomplished.
Much of OneSteel’s training material has been developed in conjunction with BlueScope Steel, and together with them, OneSteel is now recognised as a National Leader in steel transport and load restraint.
Load Restraint Guidelines are freely available, and cover a wide range of transport information such as: -types of delivery vehicles -how to load product on a truck safely -types of restraint {eg. chains, binders etc} -correct number of chains to be used
For a copy of the Load Restraint Guidelines please contact your account manager.
The next time you see a load of OneSteel Steel & Tube product being transported via road, appreciate the fact that comprehensive employee training has gone into arranging the load as we care for your safety.
kNOw yOur STeel 2010The updated Know Your Steel book (KYS), brought to you by OneSteel Steel & Tube, is available now. This easy to use steel reference guide has a long history in the Australian steel industry, dating back to when it was released by Tubemakers and Packer Bros. As well as a thorough update of all of the technical data in the reference guide, many new sections have been added.
To download your copy of Know Your Steel please visit www.onesteel.com or talk to your local Sales Account Manager to request a printed copy
5
OneSteel Steel & Tube Wetherill Park proudly hosted annual analyst visit.
OneSteel Steel & Tube has a national footprint with 11 sites spread around the country. With around 300,000 tonnes per annum they are a major material supplier of Hot Rolled Structural, Merchant bar, Tubular and Plate as well as a National Processing provider to around 10,000 industrial customers.
During September 2009 OneSteel Wetherill Park proudly hosted the annual visit of analysts from various investment houses.
Investment and portfolio managers participated in a tour and presentation at OneSteel Sydney Steel Mill (Rooty Hill) before arriving at Wetherill Park for a visit of the Steel & Tube facilities.
Steve Hamer (Chief Executive, OneSteel Distribution) and Vik Bansal (General Manager, Steel & Tube), along with Wetherill Park’s Lead Team hosted the visitors for the afternoon.
During the visit the analysts interests were mainly focussed on Steel & Tube’s ability to execute objectives. They found the “Lean”
information boards very informative, along with Wetherill Park’s processing capacity and ability to successfully manage projects. One major project highlighted to the visitors was Latitude Building (World Square) in Sydney, and how our processing facilities, including two beam lines, helped Steel & Tube achieve such success.
Ultimately the analyst visit was a great success and a great opportunity to highlight Steel & Tube’s functional and operational processes.
Steel & Tube focuses on several major markets including the Construction Market in which Steel & Tube works with fabricators on availability, delivery schedules and processed material to meet site and project deadlines. This ensures projects such as, high-rise buildings, sports stadiums and warehouses, are delivered on time and on budget. Within the Mining Industry Steel & Tube work with project stakeholders, engineers, utility providers and fabricators to deliver on new projects in the mining and exploration industry. And in the Manufacturing Market Steel & Tube employ specialised processes to ensure the best possible supply of material for manufacturing customers’ finished components such as fencing, shop fittings and mining equipment.
On Showwetherill park analysts Visit
Main Top: Wetherill Park WarehouseAbove Top: Oxy ProfilerAbove Middle: Wetherill Park at sunsetAbove: OneSteel employee
6
OneSteel Steel & Tube Geelong key customer GFab has been involved in one of Brisbane’s largest ever road infrastructure projects.
South East Queensland’s new Clem Jones Tunnel (CLEM7), formerly know as the North-South Bypass Tunnel, is 6.8 km long connecting Woolloongabba in the South to Bowen Hills in Brisbane’s North with two parallel twin-lane tunnels 4.8km each. Once completed, motorists will be able to use the CLEM7 to bypass the CBD, the Brisbane River and 24 sets of traffic lights. The tunnel, which is being constructed by a joint venture between Leighton Contractors and Baulderstone Hornibrook Bilfinger Berger (LBB JV), will be the longest road tunnel in Australia.
When complete, the CLEM7 tunnel will be a unique feature in Brisbane’s road grid, with three architecturally designed steelwork portal canopies covering the entrances and exits of the tunnel. Well renowned for their work on the Southern Cross Station Roof Trusses and the Montague Street Overpass in Melbourne, Geelong based GFab (Geelong Fabrications P/L) demonstrated they had the capacity and capability to fabricate the almost 400 tonne of plate and beams into the intricate design to create these elaborate canopies.
Across all three canopies, GFab fabricated a total of 4,300 pieces of unique steelwork, with barely one straight piece among them. The largest piece is in the northern canopy which spans 45 metres and weighs 5 tonne. OneSteel Steel & Tube Geelong
supplied the steel to GFab, and Key Account Manager Simon Anderson was not surprised by the quality of the fabrication that GFab provided. “I was very familiar with the quality and standard of architectural fabrication GFab were able to achieve” Simon states. “They are well regarded within Victoria, and specialise in really interesting projects”. Both Geoff Blick, GFab’s Operations Manager, and Peter Kirby, Managing Director, were pleased to be involved in the CLEM7 portal canopy project, as they relished the opportunity to demonstrate GFab’s unique capabilities on a grand scale which relied on such intricate detail.
Every piece of steelwork, roof and ceiling of the canopies is unique, so GFab, who specialise in architectural design fabrication, had their work cut out to create the structures. Each portal has a canopy which consists of curved steel, beautiful elliptical pods and curved voids. Russell Haywood, GFab’s Site Supervisor believes the “canopies were the most interesting and challenging steelwork structures to erect in [his] 30 years on the job, but it went together beautifully”.
CleM7 canopies
Almost every piece of steel required a three coat paint system which of course had to be packaged to go from Geelong to Brisbane by truck and needed to arrive in pristine condition for erection.
7
Geoff Blick knows that GFab has a unique advantage in the steel fabrication industry as they “have tradespeople who have been with the company for over 40 years”. “These people are the backbone of GFab, many of them completed their apprenticeships here, which is experience you cannot buy”, Geoff states. It is this level of experience that contributes to GFab’s ability to undertake complex projects which an average fabricator would ignore.
GFab applied a great deal of the knowledge that they acquired working on Spencer Street Station, but still faced challenges on the project due to the complexity of the twists and turns in the steel. “There were issues with shop detailing where cleats attached to the pipes”, Geoff states, which GFab overcame by “finding software to cope with the degree of difficulty so we could relate it to the workshop personnel and give them a clear picture.”
“The first canopy required the nose section to be completely trial assembled in the workshop. This was an enormous task on its own, but by the time we got to the other canopies we were able to position the cleats on the pipes without a trial assembly”.
Contributing to the challenges was a tight delivery and erection program. “In order to meet the critical timelines, we ramped up production and had an extra shift working for the duration of the project”, Geoff states. “We also rented another large workshop locally and had a separate full time crew working mainly on the pods for the canopies. This freed up our workshop enormously and enabled us to employ several new employees to assist with the welding and assembly”.
EDAW AECOM, urban design consultants on the CLEM7, based the design concept on “South East Queensland’s expansive shade tress and the dappled light they create”. The dappled effect comes from the way the louvered blinds filter the light, demonstrating that the canopies are a stunning example of synergy between fabrication craftsmanship and functionality. The panel blinds within the pods filter sunlight to assist motorists as they enter and leave the tunnel.
RiverCity Motorway Group CEO Flan Cleary said the canopies were an example of urban design and safety coming together. “The entrance canopies provide a transition between the light
Above: One of the pods during construction at GFabMain Left: Up close and personal with one of the tunnel entrances Main Middle: The northern entrance during construction, demonstrating the complexity of the inner framework of the canopy & the elliptical pods Main Right: The blinds filter light to allow motorists eyes to adjust.
Imag
es re
prod
uced
with
perm
ission
© LB
BJV
& GF
ab
8
inside and outside the tunnel, allowing the eyes of drivers to adjust to the driving environment,” Cleary said.
The end result is a stunning architectural feat, which will greet motorists as they enter the tunnel for the first time. Kevin Anderson, GFab’s Leading Hand on the project sums it up beautifully, “it certainly was a huge challenge, but we are all pretty proud of what we achieved”. The CLEM7 tunnel is still on schedule to open before April 2010.
Clem 7 Canopies.
Continued
Main Top: One of the tunnel entrancesLeft: From just inside the tunnel. The blinds filter light to allow motorists eyes to adjust.Above top: The north end of the tunnel nearing completion.Above: Inner framework of the canopy.
Setting the Standard .New aS1163
Images reproduced with permission © LBBJV & GFab
9
Standards Australia have just released a new revision of AS/NZS 1163 on Structural Steel Hollow Sections. These revisions were triggered by industry and asset owner concerns on compliance of specified tubular products. The Australian Steel Institute (ASI) is also aware of situations of inferior or non-specified product substitution being used for critical applications resulting in product qualities not compliant with the Standard’s expectations and generating potentially significant safety risks. The changes in the Standard provides customers and specifiers with a higher degree of confidence that they will get the product they need to comply with all relevant codes. Products compliant with AS/NZS 1163, which are referenced by regulations, contract documents and via the steel design, fabrication and erection Standards listed in the Building Code of Australia (BCA), are used in many and various structural applications.
The major changes to the Standard include:
- In Australia, the mandatory individual length identification required on all ex-mill tube lengths
- Mandatory minimum information required on test certificates
- Mandatory requirement for testing to be performed by third- party accredited laboratories (e.g. NATA)
- Mandatory ‘Product Conformity’ provisions to demonstrate compliance with the Standard by the manufacturer/supplier
- Additional provisions on steelmaking, coil feed, chemistry, mechanical properties and tolerances.
OneSteel Australian Tube Mills (ATM) have been a leader in the development and adoption of the new Standard and manufacture product complying with it . For further confidence that the product you purchase complies with the new Standard look for “AUSTRALIAN TUBE MILLS” and related traceability identifiers on your ex-mill lengths of tube.
It should also be noted that the tubular product range and coatings offered by ATM to the Standard have not changed. The new edition of AS/NZS 1163 was published on 9 December 2009.
The revisions to the Standard provide further confidence in product conformance of tubular products to AS/NZS 1163. The ASI strongly urges structural project delivery participants to specify and order AS/NZS 1163-2009 product to get the confidence that new Standard provides in mandating that the construction is in line with intended design. For further information e-mail [email protected] or view the ATM website www.austubemills.com.
Setting the Standard .
Spiros Dallas VIC, TAS, SA, WA & NT - [email protected] or 0419 587 951
David Bell NSW, ACT & QLD- [email protected] or 0407 357 120
OneSteel offers several services free of charge to our customers to assist building owners, developers, builders, architects, engineers and fabricators with the development of economical steel framing solutions for multi-storey building projects. These services include:
New aS1163
Preliminary Steel Design
Our design team has been successfully used by major builders and engineers to assist with the conceptual design of medium and high rise steel framed buildings throughout Australia. This service assists with the preliminary design phase. Full design & documentation is still undertaken by the respective Consulting Engineer appointed to the project.
Advice on Fire Protection Requirements for Structural Steelwork
Using OneSteel’s fire engineers at CESARE, Victoria University, we are able to provide a review of the deemed-to-satisfy requirements for fire protection of the building frame as well as advice on an alternative solution as allowed under the Building Code of Australia that may reduce or eliminate the need for passive fire protection on some or all elements of the steel frame. The purpose of this advice would be to provide assistance to the project Fire Engineer in the preparation of their Fire Engineering Assessment Report.
ONeSTeel deSIGN SerVICeS
OneSteel Market Mills’ Business Development Managers
Images reproduced with permission © LBBJV & GFab
Standards Australia moves to tighten steel specifications such as AS/NZS 1163 - 2009 Structural Steel Hollow Sections in response to industry concerns.
10
An international standard Equestrian Centre is under development in Caboolture, South East Queensland, in what will eventually be a comprehensive complex with state-of-the art facilities for equestrian events. Three large sports fields, support buildings and permanent sand dressage arenas will accompany the new structure. Located on a 50 hectare site, the State Equestrian Centre will be completed in stages over a ten year period and is being built on existing facilities within the Caboolture Showgrounds.
Stage 1 of the new development has seen the construction of the 4,000 seat capacity indoor main arena, which will take centre stage at the new complex. OneSteel Steel & Tube customer, idec, a leading Brisbane based supplier of custom engineered buildings, designed, fabricated, painted and erected the structural steel for the main arena.
The steel structure was specifically designed by idec engineers in conjunction with the client’s architectural input. The huge open web truss with its clear span of 70 metres may have proved difficult for other building fabricators, but not for idec. idec’s Pre-Construction Manager, Colin Bourne, states that idec “were able to achieve the span providing the requested curved truss and following [their] trademark tapered look”.
idec were involved in the development of the main arena from the beginning, with the majority of the builders tendering using idec’s custom design. Colin attributes this to the unique service that idec can provide, as they have “the in-house skills to take the project efficiently and cost effectively from design to fabrication and ease of erection”.
idec certainly delivered on their promise of easy erection on site, with the time on site to erect taking less than three weeks,
completing in early September 2009. Their ability to custom engineer each building allows idec to analyse the size of the sections and the style of connections maximising efficient manufacture and erection. idec’s Project Manager for the State Equestrian Centre, Justin Leitz, points out that “often engineers don’t consider the fabrication and erection process in their designs” whereas the design and manufacturing expertise of idec has allowed for standing structures quickly and easily, cutting down on time and site impact. In fact, the 15 metre high arena is so high, and idec’s footprint on site during erection was so light, that the grass is still growing under the structure!
OneSteel Steel & Tube Brisbane supplied all of the steel, fully processed, to idec. The 130 tonnes was made up of 250 x 150 x 9 RHS for the bottom cord of the truss, 250 x 150 x 6 RHS for the top cord and 100 x 100 x 4 SHS for the web. The majority of the steel required mitre cuts and it was supplied fully processed to idec’s fabrication workshop within a five week lead time. The horizontal members all had to be rolled precisely to maintain the curve. idec manufactured specific fabrication templates for each section to enable consistency in shape.
Although there were challenges on the project, idec were able to overcome many design issues that other steel fabricators may have struggled with due to their in-house design capabilities. “One of the areas we added the most value was our capacity to work with the architects to change the parameters as the design progressed,” Colin states. This included a rather important change to the eave heights which would have seen unfortunate spectators jostling for head space. Amendments were also made to bay spacing, both of which altered the structural design. “The importance of us having in-house drafting and engineering expertise is that we are able to move quickly with a project, and progress the changes that both
Qld State equestrian Centre
11
clients and architects require – which are so common with projects requiring input from diverse stake holders”, Justin states, “Lots of things change, but for us that is never an issue.”
The open web truss, pictured above, is the first building to be custom engineered, fabricated and erected by idec for Murphy Builders. The remaining developments included in Stage 1 are still currently under tender. By the time construction concludes, the recessed main equestrian arena will be surrounded by a variety of smaller warm up areas and stables of a similar profile and design.
Although this is idec’s largest open truss design to date, Colin believes that idec’s designs using their tapered beam system could result in much wider clear spans. idec, who have provided custom engineered buildings for everything from schools and hospitals, to warehouses and towers, have their own engineering, drafting, fabricating, protective coating and erection teams. It is worthy to note that unlike some others in the industry, idec do not compete with their builder clients but provide conforming, and when appropriate, alternative economic and steel efficient designs for the structural steel to assist the builders in winning the job. They can do everything from complete design and supply to only structural steel supply and erection based on engineering by other parties.
With Stage 1 of the landmark main arena now completed, the curved roof and clear span of the open trussed building are already drawing attention. The Moreton Bay Regional Council have big plans for the rest of the site, with horse trails and walking tracks likely to make it a drawcard for visitors from the greater Brisbane area and both the Gold and Sunshine Coasts.
Main and above: The 70 metre open web truss being erected on the Caboolture site. idec had quite a gallery of onlookers during erection due to the sheer size of clear span.
Above: Still green and growing. The building with its roof completed is now just awaiting inside fit out to finally turn it into the 4,000 seat strong main arena.
Imag
es re
prod
uced
with
perm
ission
© id
ec
12
Innovations in sustainable steelmakingInnovative Polymer Injection Technology is an exciting new patented process, which partially substitutes the use of coke with polymers, including rubber from car tyres, as an alternate carbon injectant to produce foaming slag in Electric Arc Furnace (EAF) steel making.
This concept was invented by Professor Veena Sahajwalla at the University of New South Wales and resulted in a three–year technology development and testing program conducted in partnership with OneSteel at its Sydney EAF facility. Substituting a proportion of coke used for EAF slag foaming with polymers, received regulatory approvals allowing its application at the Sydney Steel Mill in November 2008 and Laverton Steel Mill in July 2008.
Implementation of this technology at OneSteel’s Sydney and Melbourne based EAF facilities achieved a number of benefits including improved slag foaming resulting in reduced energy consumption and therefore lower greenhouse gas emissions produced by coal–fired power stations; reduced quantity of injectant required; increased furnace productivity resulting from reduced power–on time; and reduced emission levels for NOx, CO and SO2.
Inventor of the technology, Professor Veena Sahajwalla of the University of New South Wales (UNSW), Australia, first developed the idea that polymers, including rubber, contain an essential source of carbon required for slag foaming in EAF steelmaking.
This idea resulted in a three-year technology development and testing program conducted in partnership with OneSteel at its Sydney-based EAF facility.
The technology involves replacing a proportion of coke traditionally used as a slag-foaming agent in EAF steel making with polymers, including rubber. This results in improved slag foaming, which is the driving force behind the benefits this technology can deliver.
NewSouth Innovations Pty Ltd (NSi) Australia, a commercial arm of UNSW, holds a patent in the United States of America (USA) (and other countries) for the technology. NSi has granted OneSteel the exclusive right to sub-license this technology in key EAF steel making regions around the globe. This is just one of the many steps and technologies OneSteel is looking at to ensure it continues to improve the sustainability of steelmaking, and lessen its environmental footprint.
Exciting innovations by Professor Veena Sahajwalla of UNSW have seen wastestream materials used in EAF steelmaking which reduce energy consumption and emissions levels. OneSteel now uses the technology at its Sydney and Melbourne EAFs as standard operating procedure and holds the exclusive right to sub-license this technology in key EAF steel making regions around the globe.
13
Left: Professor Veena Sahajwalla, FTSE, FIE Aust, CPEng, Director - Centre for Sustainable Materials Research & Technology (SMaRT) Faculty of Science, The University of New South Wales (UNSW)
Providing everything from the kitchen sink to systems for heavy industry, All Metal Solutions is well equipped with over 30 years of service to the local industry. Living up to their name, they deal with every type of job from sheet metal to large fabrication, All Metal Solutions, formerly Rollpress-Wrights, service the Mining, Marine & Sugar industries as well as supplying general jobbing to the public. All Metal Solutions moto is: no job is too small.
All Metal Solutions have developed CNC plate & pipe cutting, plate rolling , bending of steel plate and section rolling to the stage of being leaders in the field, and supply specialist services to many other engineering fabricators.
Most recently, All Metal Solutions have been fabricating all of the steelwork and stainless steel for the Mackay Sewerage upgrade. Currently, the Mackay fabrication and engineering company has been busy producing two new TLO (Train Load Out) bins for the Oakey Creek Coking coal mine. Each bin is 35 tonnes in weight.
Directly servicing the North Queensland region, All Metal Solutions service all markets nationally through relationships with key partners. Utilising this effective network, All Metal Solutions have delivered products into Australia’s largest mines, and port authorities, utilised their expertise for sewerage upgrades in Wollongong, Brisbane Mackay and Townsville and have delivered floculant systems all over Australia and into New Zealand.
With their modified design for sugar mill scrubbers, All Metal Solutions have also had success internationally, supplying their product into mills in India, Nicaragua and France. All Metal Solutions modified scrubbers minimise waste in both the sugar dust Scrubbers and Vaccum pans, increasing efficiency in the sugar refining process.
All Metal Solution’s 40 staff and their cutting, bending and rolling technology and skills allow their clients to more efficiently manage projects without the capital layout and allowing them to benefit from All Metal Solutions expertise.
c nnectwith...all Metal Solutions
Innovations in sustainable steelmaking
Contact:All Metal Solutions
T: +61 7 4952 2255 F: +61 7 4952 3864
E: [email protected] W: www.allmetal.com.au
“We have seen an improvement in our cost efficiency whilst making a positive impact on the environment. This technology is a win for steelmakers and a win for the environment”. David Knights, General Manager EAF & Casting, OneSteel
“Connect With” is free so please contact us if you would like to be profiled in the next edition!
14
OneSteel Steel & Tube and Kings Transport are forging ahead with a partnership that has overhauled OneSteel Steel & Tube’s logistics reporting and delivery system to their western region customers.
A process to improve OneSteel Steel & Tube’s delivery performance and efficiency of their supply chain began in July 2008, when the contract for freight supply for South Australia, Western Australia and Northern Territory was due for review.
“OneSteel decided to use an end of contract period as an opportunity to go to market, as traditionally we have always had difficulty working collaboratively with freight providers to meet our diverse requirements within these markets”, Steve McIntyre, National Freight and Logistics Manager for OneSteel Distribution.
“We have never had a level of detail around how much real time the product spent in our supply chain once the loading process began in our warehouses”. OneSteel Steel & Tube were looking for a freight provider who would partner with them to work towards a step change in supply chain performance, through better data analysis.
“What we needed was an increase in the accuracy of the data available so we could begin finding the areas for improvement and begin delivering a more efficient supply chain”, Steve McIntyre said.
“Instead of choosing to go with freight providers who have traditionally serviced the steel industry, we decided to partner with Kings because they came with a customer service focus
and knew the importance of meeting our customer demands.
“Kings also proved they were a business which understood a multi-drop distribution market. They were able to offer unique technology system that would enable us to determine where an opportunity for efficiency gain was and allow for more cost effective distribution for our products”.
“Kings Transport implemented a GPS tracking and job capturing system known as NetTrack which has been fully developed in house. It is a permanant vehicle tracking verification and audit system that allows compelete visibility of OneSteel Steel & Tube’s active jobs” states Aaron Cole, National General Manager for Kings Transport.
“PDA handsets are used in all vehicles to update real time data capture including on-site loading time, arrive / depart time at customer sites, travel time, delivery / pickup quantities and proof of delivery,” National General Manager for Kings Transport, Aaron Cole said. NetTrack provides OneSteel Steel & Tube visibility of KPI reporting that includes the total job value, cost per drop and demurrage costs in dollar and percentage amounts.
The GPS tracking feature adds transparency to the OneSteel fleet. Each vehicle can be individually or collectively tracked and isolated via Kings’ online system. NetTrack’s key features have allowed Kings to assist OneSteel Steel & Tube in achieving crucial efficiencies by reducing time on site, capturing off site delays and increasing vehicle productivity.
LCD screens have been fitted in the dispatch offices in WA,
Improvements in movements
15
SA and NT to optimise utilisation of Kings’ technology and enhance transparency. Kings Transport is currently merging its NetTrack technology with OneSteel’s SAP software. This will add depth to the current system allowing for added features which will result in a reduction in costs, paperwork handling and administrative requirements.
The integration will include direct links between both Kings and OneSteel’s current systems allowing for SAP shipments to be uploaded live to the PDA’s, real-time vehicle checks/safety audits, live meal fatigue break capture, OneSteel specific automated KPI’s and load restraint verifications. “Kings see this as a significant advancement in regards to Chain of Responsibility as the transparent nature will ensure accountability”, states Aaron Cole.
Most importantly, the partnership and introduction of the technology has already allowed OneSteel Steel & Tube to make improvements in their supply chain. “Before we began using Kings as our freight provider, we could only assume our success rate against many of our metrics”, Steve McIntyre said.
“For example, we were under the assumption that at some sites the vehicles spent approximately 19 per cent of every day at our locations. After we began measuring it with Kings, we found the accurate figure was closer to 30 per cent”.
“You can only manage what you can measure, so now we are able to analyse ways to overhaul our approach to our delivery system to improve our performance to the customer”.
Both OneSteel Steel & Tube and Kings see the improvement thus far as only the beginning to long term efficiency improvements in the steel supply chain.
Information provided by Kings Transport
Maitland Fabrications is a private company providing structural steel fabrication and onsite installation services. The company has been operating since 1983, servicing the greater Sydney and Hunter Region. In August 2007 Maitland Fabrications was purchased by two engineers – Caven and Champika. Caven started his career in Ship Repair/Ship building then moved on to McDermott Inc – a large offshore construction company.
Prior to the purchase of Maitland Fabrications Cavan was Engineering Manager for the capital works and Maintenance of a bulk liquid storage facility at Port Botany for over ten years, where he handled major capital work projects to fabricate and erect vertical storage tanks/pumping stations and associated works.
Champika comes from a project management background having managed infrastructure projects exceeding $50 million in the field of Telecommunications.
Together they plan to expand the company further including the building of a state of the art workshop with CNC machinery, painting booths etc.
Maitland Fabrications provide steel fabrication and installation services for a range of clients, from SME’s to large construction companies. They have their own fully equipped workshop and an on site installation team equipped with their own cranes.
A team of Engineering Project Managers work with their clients from start to completion. Maitland Fabrications have their own drafting and 3D modelling software which is used extensively for 3D modelling for preparation of shop drawings. The models are then used in workshop and in site installations. The availability of the 3D models minimises fabrication errors and results in a shorter erection phase. This software is also beneficial in coordinating with engineers and architects to facilitate drawing approvals. The company places emphasis on project planning and has made all tools such as Microsoft Project available to the project managers.
A recent project that Maitland Fabrications have been involved in is the Aircraft Rinse Facility in RAAF Base in Williamstown, which included a structure with a 54m span consisting of CHS of approximately 350mm diameter and weight of around 17 tonnes, that was supported on two end columns.
c nnectwith...Maitland fabrications ltd
Contact:Maitland Fabrications
T: +61 2 4932 2500F: +61 2 4932 4227
E: [email protected] W: www.maitlandfabrications.com.au
Striving for excellencewhatever the goal.With steel playing such an important role in the everyday lives of all Australians, its important to OneSteel Steel & Tube to be actively involved in supporting the local communities in which it operates.
In January Steel & Tube proudly sponsored the “Hottest 7s” world Rugby tournament held in Darwin and supported the players striving for excellence!
Sydney’s randwick taking on darwin’s Mozzies in the Hottest 7s rugby Competition in darwin.
Photo
grap
her: T
am N
guye
n
Adelaide 13 Webb St, Port Adelaide SA T+61 8 8300 3333
Brisbane 692 Boundary Road, Coopers Plains QLD T+61 1300 302 317
Darwin Lot 889 Stuart Highway, Berrimah NT T+61 8 8935 0350
Geelong Cnr. Broderick & Heales Roads, Corio VIC T+61 3 5274 1414
Mackay Cnr. Harbour Road & Spiller Avenue, Mackay QLD T+61 7 4955 1555
Melbourne 1257-1259 Ferntree Gully Road, Scoresby VIC T+61 3 9212 7800
Newcastle Industrial Drive, Mayfield NSW T+61 2 4967 0900
Perth Lot 302 Spearwood Avenue, Bibra Lake WA T+61 8 9418 9877
Sydney 372-374 Victoria Street, Wetherill Park NSW T+61 2 9203 2233
Townsville 387 Bayswater Road, Townsville QLD T+61 7 4775 6111
Wollongong Five Islands Road, Unanderra NSW T+61 2 4271 1788
onesteel.com/steelandtube [email protected]