Australia’s OneSteel has decided to exit the production of oil and gas pipe as it continues the restructuring of its long products business.
Closing the pipe business will result in a write down of assets of A$13M (US$13.7M) and a restructuring charge of A$5M (US$5.3M).
Earlier this year OneSteel sold its piping systems business to MRC Global Inc of Houston, Texas for A$67M.
OneSteel lost $A74M (US$78M) in the six months to December 2011 when it produces 1.21Mt of steel, but it hopes for improved profit through raising the sale of iron ore to 6Mt this year and 11Mt next. OneSteel has re-entered the upstream ore market it originally being the long product steel arm of BHP, along with BlueScope which was the flat products division. OneSteel acquired the Peculiar Knob direct shipping ore and Hawkes Nest magnetite projects and renamed its new mining Division, Arrium, which ships ore via Whyalla.
BlueScope also reported a loss for the final six-months of 2011 of A$568M (US$598.7M).