Vulcan Steel to forge a strong growth path
- Reading on The Australian Financial Review
On September 27th, Vulcan Steel, a steel distribution and processing company, is poised to benefit as its customers have extra demand on steel products with shifting manufacturing to AUS & NZ to reduce dependency on China and reassessing the supply chain. In the AUS total steel usage market with 6 million to 6.3 million tonnes a year, the CFO expects the need to be a 2% increase due to a strong pipeline of infrastructure spending outlined by the AUS government.
Vulcan Steel, established in 1995 in Auckland and with an enterprise value of $1.1 billion to $1.5 billion, owns 4% of the AUS steel distributed market. The company buys and distributes from BlueScope, an ASX-listed with the highest annual profit in 19 years announced in mid-Aug, and Infrabuild, an eastern states-based steel business. Its customers are across a broad range of industries, including engineering, construction, water infrastructure, agriculture and wine.
Vulcan Steel told its investors to expect increases in revenue to $NZ809 million and gross profit in $NZ291 million in the 2022 financial year after it doubled size in the past seven years.
