BHP Billiton PLC
News Release
6 March 2002
BHP Steel today expressed disappointment at the decision by the Bush
Administration to apply tariffs of 30 per cent to most categories of steel
imports to the United States, while vowing to meet the challenge imposed by
the decision.
President and CEO of BHP Steel Kirby Adams said: "We share the
disappointment of the Australian Government in this decision.  It is an
affront to an efficient Australian steel producer such as BHP Steel."
BHP Steel's projected 2001/02 level of exports to the US from Australia and
New Zealand is just over 700,000 tonnes, down from the 800,000 tonnes of
exports in the peak 2000/01 year.
The business has been adjusting its international market mix in the lead up
to President Bush's s.201 decision.
Mr Adams said it was significant that relief from tariffs had been provided
for slab imports, which comprised over 40 per cent of BHP Steel exports to
the United States last year.
In addition, BHP Steel stands to benefit through its 50 per cent interest in
North Star BHP Steel, located in Delta, Ohio, which is one of the lowest
cost mini mill operations in the United States and produces 1.5 million
tonnes per annum.
Mr Adams said: "The decision is likely to lead to a higher steel pricing
environment within the US market, which will advantage US domestic steel
producers, including North Star BHP Steel.
"Today's announcement has at least removed some of the uncertainty around
the US marketplace, and we will now move immediately to implement the action
plans developed over the past six months in anticipation of a US
Presidential decision.
"BHP Steel's Port Kembla and New Zealand steel-making operations are already
among the world's most efficient, with costs among the lowest in the global
steel industry. A range of cost reduction, outsourcing and productivity
improvement initiatives over the past 18 months have further consolidated
this position.
"However, undoubtedly the imposition of tariffs will intensify pressure on
these operations to deliver on cost reduction initiatives."
Mr Adams added: "Working with our US customers, we will now need to closely
scrutinise each export transaction to determine its commercial merits." The
majority of BHP Steel's US customers are West Coast steel producers who
import feedstock.
"Far from assisting these customers, this decision may create substantial
impediments to their future competitiveness and unfairly penalises importers
of hot rolled coil relative to slab importers," he said.
"The decision will also do little to aid the cause of international
restructuring, other than exacerbating the financial pressure on higher cost
producers around the world. Market opportunities may emerge for BHP Steel, a
relatively low-cost, efficient steel producer, as regional high-cost
producers struggle to remain competitive."
BHP Billiton CEO and Managing Director Paul Anderson said: "A decision on
section 201 has already been factored into our planning for the demerger of
our steel business and we remain on-target for public listing of BHP Steel
Limited in mid-2002.
"One of the benefits the public listing will bring to BHP Steel is an
enhanced ability to move swiftly to seize opportunities that may arise in
the wake of today's announcement."
Mr Adams said: "BHP Steel is greatly appreciative of the tireless support it
has received from the Australian Federal Government since the Section 201
investigation was announced.
"As steel producers in the region who will be displaced from the US market
seek alternate markets, we welcome indications today by the Australian
Government that it will step up its scrutiny of steel imports and to more
actively administer anti-dumping laws."
 "We now call on trade unions, Governments at all levels and the
manufacturing sectors in Australia and New Zealand to work with BHP Steel
and its employees as we convert today's challenge into tomorrow's
opportunity."
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Media contact:
Mandy Frostick
BHP Billiton - Media
Relations
Tel: +61  3 9609 4157
Mobile: +61  419 546 245
Email:
Mandy.J.Frostick@bhpbilliton.
com