BlueScope Steel Limited announced its intention to reconfigure its Australian cold rolling, metal coated and painted steel production. This change will reduce production levels at its Western Port facility and provide significant cost savings. This change will mean a reduction in the number of employees require to operate lines at Western Port, with around 110 employees and 60 contractors expected to leave the business over the coming months.

The company expects the new production configuration to commence around mid-March 2013. The cost to implement this change is estimated to be around $17 million, but will be recovered within one year through ongoing improvements to the operating cost base. The company will now enter a consultation phase with employees and with union representatives to best manage the transition.

To assist employees in affected areas, a range of flexible options will be provided, including: the offer of voluntary redundancy; a job substitution process; and Outplacement Services through a dedicated Job Centre.