Next Capital invested A$35 million to acquire a 55.6% stake in Brisbane-based steel manufacturer and distributor Steelforce in July 2006.
Steelforce currently owns and operates a 80,000 tonne per annum steel pipe and tube manufacturing plant mill in Dalian,China.The company also imports product from other South East Asian mills for distribution in the Australian market. Since July 2006, the business has:
- established a second heavier gauge manufacturing line in Dalian
- established a trading division, sourcing imported product mainly from China
- opened three greenfield branches creating a national distribution network
- expanded the product lines to distribute a full range of structural, merchant bar and pipe and tube steel products
- Investment highlights include:
- a business model integrating manufacturing trading and distribution
- internationally competitive supply channel providing access to Australian
Standard pipe and tube
- a rapidly evolving competitive landscape placing the company in a strong position
to capitalise on opportunities
- capable managers with strong relationships and expertise within the steel industry
- sophisticated stock management and ordering systems.