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| Company type | Public company |
|---|---|
| ASX: ARI | |
| Industry | Mining, mining consumables, manufacturing,recycling, anddistribution |
| Founded | Spun off on 23 October 2000 as OneSteel fromBHP Billiton. The company then changed its name on 2 July 2012 to Arrium Limited. |
| Fate | Acquired byLiberty House Group in September 2017 and renamed Liberty OneSteel |
| Headquarters | Suncorp Place,Sydney, Australia |
Number of locations | New Zealand,Indonesia,Chile,Mexico, USA,Canada,Peru |
| Products | Iron ore, steel products |
| Revenue |  A$6.085 billion (2015)[1] |
| (A$-1.9 billion) (2015) | |
Number of employees | ~10,000 |
Arrium was an Australian mining and materials company, employing nearly 10,000 workers before going intovoluntary administration in 2016 with debts of more than $2 billion. In 2017 it was acquired by British-ownedLiberty House Group.
The company wasspun off fromBHP[2] in 2000 as an almost entirely domestically focused steel manufacturer and distributor branded as OneSteel. Among its principal assets were theWhyalla Steelworks, Whyalla harbour and iron ore mining operations along theMiddleback Range, about 50 km (31 mi) west ofWhyalla.
The company subsequently expanded its businesses in mining, mining consumables, steel, and recycling.
In 2006, an agreement was announced under which OneSteel would buy outscrap metal companySmorgon Steel for US$1.2 billion.[3] However, concerns by competition regulator, theAustralian Competition & Consumer Commission (ACCC), delayed the process, as did concerns by construction industry trade unions about possible job losses.[4] The merger was completed in 2007.[5]
In 2008, the company announced that one of the bar mills in theHunter Valley and the mill inMelbourne would be closed.[5]
In 2010, OneSteel acquired two companies,Chile-based forged steel grinding balls producer Moly-Cop, and Canada-based AltaSteel, a producer of ball stock for forged grinding balls, for a total of $932 million.[6]
In 2011, OneSteel acquired the iron ore assets ofWPG Resources for an estimated A$320 million.[7] In the same year, OneSteel sold its Piping Systems business and associated property investments to US-based McJunkin Red Man Holding for a total of $100 million.[8]
In 2012, OneSteel was renamed Arrium.[9]
The company had three primary reporting segments:
The company employed nearly 10,000 workers.[14][15]
The company, as Arrium Limited, accumulated huge debts and in 2015 it announced a full-year loss ofAUD1.9 billion[16] In April 2016, Arrium's directors placed the company intovoluntary administration.[17] Soon after that, to reduce Arrium's total debt of $2.8 billion, administrators signed a sale agreement for AUD1.6 billion to sell the Moly-Cop grinding media business – the company's only profitable division, which was not under administration.[18]
In September 2017, British-ownedGFG Alliance acquired the Arrium Mining and Arrium Steel businesses, including Australia's main steel manufacturer and distributor, OneSteel.[19][20] The OneSteel brand was changed to Liberty OneSteel and Arrium Mining was renamedSIMEC Mining.[19] The acquisition also included the Australian reinforcing company, Austube Mills; the Australian rail stockist Emrails; and product brands such as Waratah and Cyclone.[19]
OneSteel lost A$120m in the 2017 financial year, and $195m in the following year. Gupta said that he had invested money in the company, including plans to upgrade the plant at Whyalla[21] which included a A$700m solar, battery, andpumped hydro project to power the steelworks, via Zen Energy, another GFG Alliance subsidiary.[22]
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In 2007, OneSteel commenced iron ore export from the port of Whyalla viatransshipment. In October 2012, a newdual gauge railwayballoon loop was commissioned at Whyalla with the purpose of increasing Arrium's iron ore export capacity to 12 million tonnes per annum.[23]
Arrium's iron ore export volumes from Whyalla peaked at 12.5 million tonnes per annum in 2013–14 and 2014–15. In March 2015, Arrium's Southern Iron project, which includes thePeculiar Knob mine, was mothballed. Export volumes were expected to drop to between 9 and 10 million tonnes in 2015–16 and again to between 6 and 8 million tonnes from 2017.[24] In October 2015, the company announced that it was working with the South Australian government to facilitatethird party use of the Whyalla harbour to make use of its excess capacity.[25]
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