sovereign capabilities among governments, policy makers and manufacturers who are looking to reduce their dependence on Communist superpower. Accordingly, many companies are wanting to shift their manufacturing to Australia and New Zealand and some of the major players involved in the sector across the Trans-Tasman nations are eagerly waiting to cash in on this attractive opportunity.
Vulcan Steel is a steel distribution and processing company currently eyeing a potential dual listing on the Australian and New Zealand stock exchanges. Established in 1995 in Auckland, the company is estimated to be retaining about 4 per cent of the Australian steel distribution market, according to stockbroker UBS. This leaves Vulcan’s equity value between $1 billion and $1.4 billion.
According to the company’s chief executive Rhys Jones, having doubled its size over the past seven years, with 12,000 customers and a workforce of 840, Vulcan Steel is in a strong position to meet the demand of the increasing number of companies who are looking to be less reliant on China. “The DNA we have in our organisation is to always look for new opportunities,” he noted.
The steelmaker currently operates in 29 warehousing, manufacturing, and processing facilities throughout Australia and New Zealand. 60 per cent of its revenue comes from operations in Australia, while the rest is originated from its home market in New Zealand.
During the 12 months ended June 30, a total of 270,000 tonnes in steel products was delivered by Vulcan to its customers. According to Jones, the steelmaker has an extra edge in “just-in-time” deliveries to host of industries, including construction, engineering and agriculture, as the group operates its own fleet of 92 delivery trucks.
The company’s chief financial officer Kar Yue Yeo said the steel market in Australia is between 6 million to 6.3 million tonnes a year, and therefore, with strong infrastructure spending outlined by Federal and state governments, the market is expected to grow by at least 2 per cent a year.
