It was a spring clean on a large scale, but BlueScope insists an auction of surplus workshop equipment on Wednesday wasn’t a fire sale – or part of its plan to save the Port Kembla steelworks.
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From welders, grinders and drills, to brooms, shovels and even office furniture; hundreds of items were put under the hammer by South Coast Auctions at BlueScope’s Clyde Building, off Five Islands Road in Port Kembla.
The auction comes amid uncertain times for a region that awaits answers about the future of its steelmaking.
It was a case of “going, going, gone” as the hammer crashed down on each item and the word “sold” echoed through the building. “Gone” is a word the region hopes won’t be uttered in the context of the region’s steel industry when a decision is made in a matter of weeks.
The steelworks could shut if BlueScope can’t find $200 million in annual permanent cost savings in its Australian operations over the next two years.
On August 24, BlueScope chief executive Paul O’Malley revealed 500 jobs would go as part of the company’s preferred cost-saving plan.
The other option on the table would see the Port Kembla steelworks mothballed and the loss of about 5000 direct and indirect jobs.
The company will provide an update on the success of its cost cuts by its annual general meeting, which will be held on November 19.
The Mercury asked BlueScope if the community should be concerned about the auction and the message it might send about the future of the steelworks.
“Today’s [Wednesday’s] auction is aimed at cleaning out surplus spares and machinery in order to free up space and to make equipment available to others who may have a need for it,” a spokesman said.
“It is an exercise we have conducted a number of times in the past.
“Whilst any money raised is helpful to our bottom line, it is not a measure taken as part of our plans to ensure the ongoing viability of the steelworks.”
Cutting 500 jobs is expected to save BlueScope about $50 million, while Federal Government decisions have already seen $30 million of costs come out of the business, the company has said.
A similar amount would be cut through NSW Government help to reduce costs associated with payroll tax, workers’ compensation and the Environment Protection Authority.
