BlueScope Steel chief Paul O’Malley says the changes afoot at the company’s Port Kembla steelworks are the Illawarra’s business, and he will keep the community informed.
Mr O’Malley was at the company’s CRM Innovation Laboratories in Port Kembla on Wednesday for a business update meeting with community leaders.
The visit was his first to the region since BlueScope announced on Monday that it intended to cut 500 jobs as part of a move to save $200million a year. If the company can’t do so, the Port Kembla steelworks could close and take 5000 direct and indirect jobs with it.
Mr O’Malley said it was important the community could hear directly from him about the challenges facing the Illawarra steel industry and what was happening overseas.
‘‘These are challenges not of our making here, but of a global scale,’’ he said.
‘‘So I’m keen to answer all of the questions, be as open as possible, and demonstrate that we absolutely want to deliver a lower cost reduction that sees the business being sustainable into the future. We’ll do whatever it takes to deliver that.
‘‘This is the Illawarra’s business as much as BlueScope’s business. Being part of the community is key.’’
Mr O’Malley stressed that there would be job reductions, saying the company ‘‘can’t get the costs out without doing that’’.
‘‘Who, and how, and where, that’s all to be worked out. But we’ve got to deliver the cost reductions,’’ he said. ‘‘We’re keen to get as much of the savings without job losses as is possible.’’
Mr O’Malley reiterated the company needed to know within seven to eight weeks that the proposed cost-savings would work.
‘‘That doesn’t mean that is when people will be leaving, but we do have to move quickly; we need to make sure we’ve got a substantive plan and then come November, with our AGM, we’ll be talking more with everyone as to how we’re travelling,’’ he said.
Federal Industry Minister Ian Macfarlane confirmed on Tuesday he would visit Wollongong on September 7 for crisis talks about the future of the steel operations, a move Mr O’Malley welcomed.
‘‘The fact that Minister Macfarlane’s coming down here to talk to the appropriate stakeholders just demonstrates how important BlueScope Steel, the steelworks, is to the Illawarra community and to the national community.
‘‘Engagement with politicians is excellent, we’ve had great support from the local federal members here as well. So we’ll talk to everyone, we’ll take everyone’s help. I think it’ll be good for the business.’’
