Strong result as we head into changing market

InfraBuild’s results for FY22 were encouraging and testament to the team’s ability to manage supply chain challenges while striking a good balance between managing customer expectations and servicing the market.

The disruption to global supply chains on dual fronts, with ongoing COVID impacts and geopolitical turmoil in Europe, created a unique trading environment during a period of sustained domestic demand and robust construction activity.

Those in the steel industry who responded with agility were able to move on this short and intense boom in the market, and as Australia’s largest vertically-integrated steel maker and recycler we were uniquely positioned to do so.

While economic activity in Australia thankfully remains strong, we are moving to more normal market conditions against a global backdrop of softening steel prices and continued high energy costs.

Government measures announced in the mini-budget to cool the economy, including deferred infrastructure spending, are a clear sign we are entering a more challenging phase. Businesses across all sectors will need to be measured and responsive to these changed settings.

In these conditions, the InfraBuild management team is working hard to maintain a strong operating cadence with a focus on workplace safety and wellbeing, operating productivity and a disciplined approach to working capital management.

Our improved safety result through the past year is a very pleasing trend and the culmination of a concerted effort made a few years ago to reset and renew our safety culture. Full kudos must be given to our Head of Health and Safety Fran Nores, and his team, for the continued leadership in this area.

Along with safety, at all levels of the business, our people’s focus is to continue to deliver upon and meet customer expectations and wherever possible, improve our product and service offering.

One area where there is no change is our commitment to making steel that meets Australian standards.

The quality of our products is an important differentiator in the market and one all customers should consider carefully against other alternative products.

Our continuous improvement value is at work each and every day with the team’s work in research and development and innovation moving us closer to the launch of a new suite of lower-embodied carbon steel products. You will hear more about this exciting development in coming months.

Stay safe,

Dak Patel
Interim InfraBuild CEO and Executive Director