Steel & Tube Holdings Limited is ranked in the top 50 by market capitalisation on the New Zealand Stock Exchange. The Company has approximately 8000 shareholders with OneSteel Limited, Australia, owning 50.30%.
Steel & Tube has a total of 50 distribution and service centres throughout New Zealand, 880 employees and annual sales exceeding $500 million.
Historical Background
Steel & Tube was formed 9 December 1953 merging the interests of:
- Stewarts and Lloyds of New Zealand Limited;
- The Iron and Steel Company of New Zealand Limited; and
- McLean & Todd Limited.
The core business of the newly formed entity was to supply steel and allied products to New Zealand industry and in particular to the construction, engineering, and, manufacturing sectors.
In 1967, Steel & Tube became a public company, and listed on the New Zealand Stock Exchange.
During the 1970’s the Company embarked on a business growth strategy expanding the Company’s field of activities, leading to the creation of Steel & Tube Holdings Limited.
Key businesses acquired during this period were;
- PKR, a manufacturer of wire products such as nails & reinforcing mesh
- Web Grating a manufacture of steel grating for walkways
- A & T Burt, a wholesale plumbing distributor
- A & T Burt mechanical services, a manufacturer and installer of fire protection and air conditioning ducting
- Kings Stainless, a manufacturer of stainless steel products such as shower trays, and kitchen sinks,etc.
- Robt Stone, mechanical engineering & contracting operation
- Steel Tanks and Structures, a manufacturer of petrol storage tanks, petrol and milk tankers
Fletcher Metals Ltd became the largest shareholder in 1980 when it acquired 24.92% of the Company from British Steel Corporation. Tubemakers of Australia first entered the Company’s share registry when it acquired 8.8% of the Company in 1985. It then acquired the shares held by Fletcher Metal, in 1986 and by 1987 it owned 45.2%.
During the mid to late 80's, Steel & Tube embarked on a major growth strategy that significantly moved the Company’s activities away from its core business activities.
These investments were made in such diverse businesses as;
- New Zealand Motor Corporation Ltd, a retailer, importer, and assembler of motor vehicles
- Domtrac Equipment, a company specialising in the sales of heavy machinery and trucks
- Healing Industries, a manufacturer of, paint, chemicals, cycles and rubber tyres, and,
- A 25% ownership of New Zealand Steel Limited.
By the late eighties, Steel & Tube Holdings had become one of the largest industrial businesses in New Zealand, employing approximately 4,400 people with annual sales in the vicinity of $NZ670 million.
However, the economic downturn in the New Zealand economy, in the late eighties, coupled with the government of the time, dismantling tariffs, and, allowing the importation of second hand vehicles from Japan, resulted in the Company making a financial loss in 1988.
The Board re-evaluated the strategic direction of the Company and a decision was made to return the Company to its core business, defined as being, the distribution of steel and allied products and base metal manufacturing.
In practical terms, this required management to restructure the Company and to either, sell or close, over time, all non core businesses, and, at the same time to look for new opportunities to strengthen the Company’s position in its core business activities.
The first key, core business acquisition occurred in 1989, starting with
- Cable Price Steel, a national distributor of steel products.
This was quickly followed with a number of other key acquisitions, namely;
- Acorn Pacific Corporation, a Lower Hutt based company which consisted of, Wellington Steel, Fastening Supplies and Metal Sales in 1990;
- Stewart Steel, a Christchurch based steel distributor, in 1992;
- GW Taylor Industries, a Tauranga based manufacturer and distributor of longrun roofing and rainwater products, in 1992;
In 1995, Steel & Tube embarked on an overseas expansion plan resulting in the Company buying a Canadian based steel distribution business, jointly with its major shareholder, Tubemakers, (now Onesteel) however, this was sold in 2001 following a change in strategic direction.
Further core businesses were acquired beginning with,
- BHP Steel Building Products, the second largest manufacturer and distributor of roofing and rainwater products in NZ, in 1999.
- DJ Agencies, an Auckland based, coil processing business in 2001.
- Pipeline Supplies, a national distributor of pipe and associated products in 2002.
- Hurricane Wire Products, the largest manufacturer of fencing products, reinforcing mesh and nail products in New Zealand, with production facilities in Auckland and Christchurch in 2003, and
- NZF Stainless, a distributor of stainless steel products with 8 branches nationwide in 2006.
In addition to the previously mentioned acquisition and divestment activity the Company was, very much focused on improving its performance in its core activities.
This was achieved by investing heavily in upgrading, and, in some cases building new warehouse facilities, improving the efficiency in materials handling techniques, and upgrading the coil and plate processing equipment.
The Company restructure which commenced in 1988 was finally completed in 1999 when the Engineering businesses of Robt Stone and Southern Cross Engineering were sold.
OVERVIEW OF EACH DIVISION
Steel & Tube Distribution - Is the largest distributor of steel and allied products to New Zealand industry with 16 service centres nationwide. It has coil processing facilities in Auckland and Christchurch and plate processing equipment in Auckland, Wellington and Christchurch.
Steel & Tube Piping Systems - Is a specialist supplier of pipe, valves and fittings to the petrochemical, energy, mining and construction industries. It has 3 locations in the North Island and 1 in the South Island.
Steel & Tube Fastening Systems - Supplies a large range of metal fasteners to industry, which is marketed through the Fastening Supplies name, with 5 locations nationwide.
NZF Stainless – A distributor of stainless steel products, such as, sheet and coil, sections, fasteners and tube. It has 8 locations nationwide.
Steel & Tube Roofing Products - Is New Zealand’s second largest manufacturer of steel roofing, cladding and rainwater accessories and has 7 manufacturing sites throughout the country.
Steel & Tube Reinforcing - Has 8 operations nationwide and provides fabricated reinforcing steel to the construction industry.
Hurricane Wire Products - Has manufacturing operations in Auckland and Christchurch. It manufactures and / or imports a range of mesh fencing, farm gates, nails and staples and reinforcing mesh which is sold through distributors to the rural and building sectors.