In 2010, BlueScope Steel, parent company of New Zealand Steel, renewed an IT services agreement with CSC valued at more than $300 million. The deal is for eight years.
New Zealand Steel is the country’s sole producer of flat rolled steel products for the building, construction, manufacturing and agricultural industries. Approximately 60 per cent of the company’s steel output is exported.
The organisation has been in financial difficulty for some time, and there has been much reporting by the Australian media about possible takeover interest from several directions. Deutsche Bank has stated that the sale of BlueScope’s Taharoa Iron Sands business in New Zealand could offset its $210 million of Australian debt, which is thought to be most at risk.
An article in the Australian Financial Review, however, said a deal such as this would require New Zealand government approvals, which were not forthcoming when it attempted a sale a few years ago. BlueScope reported in November 2011 that it will look to sell non-core assets to repay debt and further reinforce its stretched balance sheet.
The steel manufacturer runs a complex ICT environment. Its server operating system is spread across Unisys, RedHat Enterprise Linux, Solaris / SunOS and Windows Server 2003/2008. Its PCs operate on a mix of Windows 7 and XP. Database management is controlled through SQL Server, IBM, Unisys and Oracle software. Enterprise storage needs are met by Restrospect (EMC) and Tivoli (IBM) solutions.