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BlueScope Plans Restart of Western Port Pickle Line
05/26/2009 - BlueScope Steel reports on plans to repair damage from the recent fire at its Western Port Pickle Line facility, which was limited primarily to four pickle tanks and the building’s roof.
BlueScope Steel reports that damage from the recent fire at its Western Port Pickle Line facility was limited primarily to the four pickle tanks and the building’s roof. Most of the other equipment in the Pickle Line building was largely untouched by the fire.
The company has removed the debris from the fire and made the building’s roof safe. Repair work has been initiated, and investigations into the cause of the fire are ongoing.
BlueScope is planning to transport four replacement pickle tanks from BlueScope's Packaging Products facility at Port Kembla to Western Port for installation on the Pickle Line. Originally installed at Port Kembla in 2006, these recently decommissioned tanks have a life expectancy of at least 15 years.
BlueScope expects to return the plant to operation within six weeks at a capital cost of $20 to $25 million. An (approximately $7 to $10 million) impairment charge will be taken on assets destroyed or damaged by the fire. The company is expecting a one-off pre-tax cash earnings impact of $7 to $11 million, principally related to foregone sales and additional transport costs associated with alternative production sourcing.
