Thread: The Whyalla steel works must be saved, at any cost

Originally Posted by frantic

Your halfway there, pay rates in terms of the steel industry are a minor factor. 5%
The big issues as you said are govt not supporting local industry by various measures such as exchange rates, that China peg, export bonuses , that China give not us, write off debts to the tune of 25billion in 10 months by Chinese steel companies, pay for discount shipping, etc.
This results in price differences of about 15-20% and over 40% in some cases.

Don't forget cheap finance costs for Chinese government owned entities, which are an unfair advantage.
In Germany its free land and waived government charges which underpin their car industry.

Originally Posted by cuppabillytea

That's the Maritime industry for you. Streets ahead in the race to the bottom.

Led from the front by the MUA .


Cheers Ean

We can't compare the car industry in Australia.

All manufacturers had indicated their intent to "pull out" of Australia in the shorter term.

Holden harassed the Government and received short term cash injection - and then designed the current Commodore platform and a global platform for the US market - a case of a cash strapped company (GM) using clever manipulation to fund ongoing development.

Ford had already announced its intent to cease in Australia.

Toyota then announced that it was becoming less viable to remain here, as did many suppliers to all 3 - as once they were down to single customer base it wasn't a viable model.

The bigger difference - Arrium - doesn't want to cease trading in Australia. It's just made some bad choices in prior years and chasing its tail.

My opinion - there is a fantastic opportunity for an investor if they're clever..

Originally Posted by Ean Austral

Led from the front by the MUA .


Cheers Ean

Unfortunately the MUA has been the main target of a certain side of govt, with the CFMEU occasionally taking the sights off them.
With the new changes to the rules for shipping, slave labour, (ok $2/hour is huge in ???), is becoming the norm rather than the exception.
MUA Seeks Reasons Behind Alcoa’s Temporary Licence | World Maritime News
Or hell just don't pay the crew at all.
http://bmuc.blogspot.com.au/2016/01/...ves-owing.html

Originally Posted by Tombie

We can't compare the car industry in Australia.


My opinion - there is a fantastic opportunity for an investor if they're clever..

i disagree
the car industry faced the same challenges hence why they pulled out

holden has the additional issue of GM stringing along the taxpayer, and not being allowed effectively export.


an investor will face the same issues. the market is the same, supply n demand hasnt changed, wages have not changed

what can a new investor do to sell more steel?

Originally Posted by frantic

Unfortunately the MUA has been the main target of a certain side of govt, with the CFMEU occasionally taking the sights off them.
With the new changes to the rules for shipping, slave labour, (ok $2/hour is huge in ???), is becoming the norm rather than the exception.
MUA Seeks Reasons Behind Alcoa's Temporary Licence | World Maritime News
Or hell just don't pay the crew at all.
Blue Mountains Union News: MUA: Third Alcoa Ship Arrives Owing Foreign Crew $190,000

Sadly Frantic you and me wont see eye to eye on this topic , and I still am a paid up member of the MUA . I left a job because of the attitude of this union, they are an embarasment in my eye's.


As for a investor into Arium, most investors will just split the company, flog off the bad operating side of it and keep the core money earning side, whatever that part is. That usually just results in streamlining and job losses. The other side it could be a oversea's investor with usually a similar outcome.
The best chance is if they can trade their way out of trouble.. We can only hope.


Cheers Ean

Originally Posted by Ean Austral

Sadly Frantic you and me wont see eye to eye on this topic , and I still am a paid up member of the MUA . I left a job because of the attitude of this union, they are an embarasment in my eye's.


As for a investor into Arium, most investors will just split the company, flog off the bad operating side of it and keep the core money earning side, whatever that part is. That usually just results in streamlining and job losses. The other side it could be a oversea's investor with usually a similar outcome.
The best chance is if they can trade their way out of trouble.. We can only hope.


Cheers Ean

Thanks Ean, seriously would you mind PMing me what happened as in the past there are issues with union Reps etc.

Originally Posted by Ean Austral

Led from the front by the MUA .


Cheers Ean

I have experience of the MUA. My Uncle, and his son, were members of the MUA, on the Brisbane waterfront. I can't say much, except from the stories I heard, it was unionism by thuggery. Same as certain sections of the CFMEU. However, they do not represent the majority of unions in Aus. Thankfully. But the gangster element must be brought to account. Unions have an important role in our society, but they must be regulated, or they will become irrelevant.

On a totally different subject , a report I just read is the reason we must be vigilant our strategic industries are not controlled by foreign interests. As follows;

"Work on the U.K.'s Trident nuclear deterrent force may run into trouble following the mothballing of the Dalzell site' Indian owned Tata has announced it would be moth balling steel plate mills in Scunthorpe, Dalzell, & clydebridge as well as one of two coke ovens in Scunthorpe as part of its Europe steel Business. UK steel is the only mill in the country capable of producing the steel required for the UK's Trident submarine program, as swell as armour plating for a range of armoured vehicles used by the British Army. " There is more, but that's enough to make me stop & think.