BlueScope Steel Names New Chief Executive
08/21/2017 - Australia’s BlueScope Steel Ltd. has a named a company veteran to succeed chief executive Paul O’Malley, who is set to retire at the end of the year.
In an announcement Monday, BlueScope said it has named Mark Vassella to the helm. Vassella, who has been with BlueScope since 2007, leads its operations in Australia and New Zealand. His appointment takes effect 1 January 2018.
“The company is noted for the strength of its management team, and after a rigorous international and domestic selection process, the board was very pleased to be able to select Mark from a very strong internal pool,” BlueScope chairman John Bevan said.
“Mark will lead from the front, and his priority now is to keep delivering on the strategy, and to build on our recent performance and successes,” he said.
Prior to BlueScope, Vassella worked for Smorgon Steel. He holds a bachelor’s degree in commerce from the University of Newcastle and an MBA from the University of Queensland.
“I’m delighted and honored to have been chosen to lead the BlueScope team. I’m fully committed to building further on the great success we have achieved in recent years. I thank the board for giving me the opportunity, and congratulate Paul for the outstanding achievements realized under his leadership,” Vassella said.
He, however, will have his work cut out for him.
On Monday, BlueScope shares lost about 20% of their value, wiping out AU$1.7 billion in market capitalization on word that it expects margins to tighten at its North Star unit and that sharp increases in Australian energy costs could undermine productivity gains and cost reductions at operations there.
“We are very concerned about tightening of supply in the gas and electricity markets, and have highlighted our concerns to government and regulators, including our views about the need for greater supply of gas to domestic customers and incentives to ensure baseload generation is maintained at least at existing levels,” O’Malley said in a statement.
Moreover, the Australian Competition and Consumer Commission (ACCC) is investigating several employees for “potential cartel conduct” that may have occurred between late 2013 and mid-2014, O’Malley told investors on Monday.
“BlueScope has cooperated and continues to cooperate with the ACCC's investigation," he said.
“The company is noted for the strength of its management team, and after a rigorous international and domestic selection process, the board was very pleased to be able to select Mark from a very strong internal pool,” BlueScope chairman John Bevan said.
“Mark will lead from the front, and his priority now is to keep delivering on the strategy, and to build on our recent performance and successes,” he said.
Prior to BlueScope, Vassella worked for Smorgon Steel. He holds a bachelor’s degree in commerce from the University of Newcastle and an MBA from the University of Queensland.
“I’m delighted and honored to have been chosen to lead the BlueScope team. I’m fully committed to building further on the great success we have achieved in recent years. I thank the board for giving me the opportunity, and congratulate Paul for the outstanding achievements realized under his leadership,” Vassella said.
He, however, will have his work cut out for him.
On Monday, BlueScope shares lost about 20% of their value, wiping out AU$1.7 billion in market capitalization on word that it expects margins to tighten at its North Star unit and that sharp increases in Australian energy costs could undermine productivity gains and cost reductions at operations there.
“We are very concerned about tightening of supply in the gas and electricity markets, and have highlighted our concerns to government and regulators, including our views about the need for greater supply of gas to domestic customers and incentives to ensure baseload generation is maintained at least at existing levels,” O’Malley said in a statement.
Moreover, the Australian Competition and Consumer Commission (ACCC) is investigating several employees for “potential cartel conduct” that may have occurred between late 2013 and mid-2014, O’Malley told investors on Monday.
“BlueScope has cooperated and continues to cooperate with the ACCC's investigation," he said.
