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Australian Steelmaker Seeking AUD100 Million in Cost Cuts
10/01/2015 - Australia’s Arrium Ltd. is planning to cut jobs and overhaul operating practices at its Whyalla steel works in South Australia to save AUD 100 million as the company moves forward with the sale of its mining consumables business, reports The Sydney Morning Herald.
According to the newspaper, the company is seeking the 100 million in cost savings on top of 60 million it had already sought.
The company didn’t say how many jobs might be impacted. It told the newspaper it was looking for "broad-based cost reductions and efficiency improvements" in areas such as "labor and overheads, sourcing and procurement, production conversion costs, site rationalizations and corporate costs."
According to The Herald, the Whyalla steel works produces about 1.2 million metric tons of raw steel every year, accounting for nearly half of the 2.5 million metric tons of production capacity at Arrium’s steel division.
Meanwhile, a short list of potential buyers for the company's mining consumables business are now undertaking their due diligence. The business makes steel grinding balls.
The company didn’t say how many jobs might be impacted. It told the newspaper it was looking for "broad-based cost reductions and efficiency improvements" in areas such as "labor and overheads, sourcing and procurement, production conversion costs, site rationalizations and corporate costs."
According to The Herald, the Whyalla steel works produces about 1.2 million metric tons of raw steel every year, accounting for nearly half of the 2.5 million metric tons of production capacity at Arrium’s steel division.
Meanwhile, a short list of potential buyers for the company's mining consumables business are now undertaking their due diligence. The business makes steel grinding balls.
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