Industry is slowly dying

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Quote:
BlueScope Steel Ltd., Australia’s biggest steelmaker, said the government’s planned carbon tax will reduce its competiveness as it battles high raw-material costs and the stronger Australian dollar. “That is clearly economic vandalism,” Chief Executive Officer Paul O’Malley said on Australian Broadcasting Corp.’s Inside Business program yesterday. “It clearly says we don’t want manufacturing in Australia.” Imports must also be taxed if the carbon tax is introduced to ensure Australian steel producers can compete, he said.
And:
Quote:
“More costs being thrown at us by the government just really do put a bit more pressure on the business than we’d like to have,” O’Malley said. The policy would cost BlueScope A$300 million ($304 million) a year if there was no assistance provided, he said. The Melbourne-based steelmaker last week reported a widening of its first-half loss because of higher costs and lower domestic demand.
http://www.bloomberg.com/news/2011-02-27...chief-says.html Looks like the BlueScope people are looking into the future and seeing the writing on the wall. Their government is intentionally making them less competitive in the export market so why dump more money there when they are already seeing losses.
 
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I doubt Australian gov would subsidize the US steel industry. It would be much easier to sell them all to China to evade the carbon tax, pollution, labor cost, tariff, Chinese trade balance, currency disadvantage, etc. Once China get the iron, they can keep their massive labor employed and subsidize the export to other nations. Even if US have import tariff or embargo, they can sell the final products as non steel material to get around that, or just sell them to other nations and compete with the US export. Sadly we are seeing this effect and IMO the shutting of this furnace is not due to outsourcing but to loss of businesses to the international competitions.
 
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