Monday, May 11, 2009

Steel deal shows Australian firms competitive, PM says

CANBERRA, May 11 (Xinhua) -- Australian Prime Minister Kevin Rudd said on Monday that the awarding of a 20 million Australian dollars (14.6 million U.S. dollars) destroyer contract to BlueScope Steel showed Australian companies can win defense contracts against the world's best.

"This is a great achievement. It shows not only can Australian companies compete on defense projects with the best in the world, they can win and win on their merits," Rudd said in a statement.

Asked if the planned emissions trading scheme would affect BlueScope, Rudd said the company had indicated it welcomed the government's announcement of a slower start to the scheme, which was now due to start in July 2011 instead of a year earlier.

"The government has great confidence in the industry's future and the company's future," Rudd was quoted by the Australian Associated Press as saying.

Rudd said he was confident Australian companies would be heavily involved in the 8 billion Australian dollars (6.13 billion U.S. dollars) destroyer project.

"I'm confident there's going to be maximum delivery of Australian project content," Rudd said.

Rudd announced on Monday morning that Bluescope Steel had won the contract to supply steel for the Australian navy's three new air warfare destroyers.

The contract will run over six years with BlueScope Steel to produce around 3,000 tonnes of steel per ship.

BlueScope Steel is a flat product steel producer with operations in Australia, New Zealand, Asia, the Pacific and North America.


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