K&S nails major contract extension with Arrium


Companies cement closer ties in challenging times for steel industry

K&S nails major contract extension with Arrium
Paul Sarant hails the extended steel transport deal.

 

K&S Corporation says it has gained a transport contract extension from Arrium worth about $33 million.

The move comes at a time when miner and steel producer is doing it tough and extends the relationship to the end of June 2019.

K&S has also retained several existing parcels of work in the Melbourne metropolitan region, as well as being awarded several new parcels of work for revenue of approximately $9 million per annum.

"The award of the Melbourne metropolitan region work follows a rigorous review process by Arrium of a number of market options and is an acknowledgement of K&S Corporation’s ability to provide industry leading safety standards, innovative logistics solutions, outstanding customer service and value adding IT solutions," K&S says.

The extension comes as Arrium aims for a $100 million steel unit cost reduction strategy centred on it Whyalla Steelworks, due to a worldwide steel glut.

"Arrium has been engaging with its key stakeholders regarding the challenging external environment, initiatives and desired outcomes for the Whyalla Steelworks," the firm said last week.

"These include our employees, unions, contractors, suppliers, the local community and the South Australian and Federal Governments."

Part of this effort led to moves towards the opening of Whyalla port to third parties.

Despite difficulties in the steel sector, K&S is bullish about its position there.

"These recent contract wins reinforce K&S’ position as the preeminent supplier of transport and logistics solutions to the steel industry in Australia and New Zealand," K&S managing director Paul Sarant says.

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