Update from InfraBuild

The  demand for steel continues to be subdued with manufacturers internationally adjusting or halting production levels as capacity far exceeds global  demand.  

Here in Australia, we have not been immune to this adjustment in steel demand with the residential building sector remaining softer than it has been in previous years. The non-residential construction sector has also moderated, however, it continues to trend well.  

To ensure we are set up well now and when the market improves, InfraBuild is focused on a range of transformation initiatives to manage through this downturn. We are working to ensure  great service to customers while maintaining disciplined financial performance and looking to unlock productivity, cost, cashflow and working capital improvements. 

These projects are not just about reducing costs – which is very important – but also about improving our productivity, creating digital experiences and helping us work better to serve our customers.    

While InfraBuild serves the Australian market and does not export steel to the USA, we are closely monitoring the potential implications of the USA announcement on tariffs for steel as we are not immune to global markets. 

Despite the market conditions and soft volumes in residential construction, InfraBuild sales volumes to the non-residential and engineering construction sectors remain robust. This along with other transformation initiatives is allowing InfraBuild to have sufficient liquidity on hand and measures in place that we can maintain sufficient liquidity throughout this period while market conditions remain muted through our focus on executing these transformation initiatives.   

The teams at the Whyalla Steelworks, which is a separate company as well as a supplier to InfraBuild, are expending enormous effort to bring the blast furnace back to full operation and those efforts continue as teams stabilise and accelerate production. This is vital foundational work, especially as the blast furnace must be managed carefully to ensure its stability in the ramp up phase. InfraBuild continues to closely monitor the events at the Whyalla Steelworks so we can maintain our robust supply chain to keep our mills producing steel. 

With all that is happening, at InfraBuild, our electric arc furnaces and rolling mills continue operating, and we are manufacturing and delivering for our customers day in and day out.