Shut Port Kembla for shareholders: investment firm to BlueScope

Sandon Capital has stepped up pressure on BlueScope, urging it close its Port Kembla steelmaking facility for the benefit of shareholders.

Fairfax reports that the activist investment company believes closing the blast furnace – which would cost an estimated 1,000 direct jobs, according to the Australian Workers Union – would unlock value for shareholders.

"Ours is not an aggressive stance,” Sandon founder Gabriel Radzyminski told Fairfax.

“We are not being hostile or critical. We just think there needs to be a discussion around the future of Port Kembla. The overriding thing is this [BlueScope] is the cheapest steel company in the world."

Last week the AWU said that workers at BlueScope had been told the company wanted to save $50 per tonne of steel produced.

The company shed 1,000 jobs when shut its No 6 blast furnace at Port Kembla IN 2011.

 

Image: http://hsc.csu.edu.au/