Structural, armour and wear-resistant steel manufacturer Bisalloy increased market share and margin per tonne sold in the Australian market in the first half of the 2019 financial year.
The Unanderra, NSW company today reported EBIT for the half of $4.7 million on revenue up 12.7 per cent over the previous corresponding period to $56.4 million.
The company told investors: “Bisalloy expects the second half to be even better as the positive result from the increased anti-dumping measures which came into effect on 6 November, 2019 flow through.”
During the half the company progressed its plans to supply speciality steels for the Attack Class submarines to be built by the French Naval Group in Adelaide.
The company supplied its first trial batch or ‘qualification heat’ of steel for the future submarine programme.
A further two qualification heats will be supplied before mid-2020.
The company continues to invest in the defence market, where it supplies armour steels for vehicles such as Thales’ Hawkei vehicle (pictured)
“While sales of armour grade steels were down in HY20, strong returns are projected over the next five years.”
Weaker demand in Indonesia and China crimped international sales.
The company’s Chinese joint venture partner, Shandong Steel began the commissioning of a state of the art steel making plant at Rizhao in Shandong province.
“The overall result from the plant will be positive in the long term, but has been compressed in the short term.”
Subscribe to our free @AuManufacturing newsletter here.