22/06/2004 - 22:00

Kosters sells Metaland

22/06/2004 - 22:00

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Albany steel maker Kosters Steel Construction has sold its Metaland arm to Midalia Steel.

Kosters sells Metaland

Kosters sells Metaland

 

Albany steel maker Kosters Steel Construction has sold its Metaland arm to Midalia Steel.

However, Kosters will continue to sell its range of manufactured and fabricated steel products.

Kosters manager Jim Dijkstra told WA Business News the Metaland move had been largely driven by Onesteel’s purchase of the Midalia Steel business earlier this year and a desire to build the manufactured and fabricated steel side of its business.

Metaland is a Onesteel franchise that Kosters bought into about 10 years ago.

Mr Dijkstra said there had also been a change in the steel products business.

“The big suppliers are also going more direct to their customers,” he said.

Steel industry insiders say that direct approach to customers has been happening for a number of years.

Smorgon Steel’s Bruce Loveday said the Australian steel industry’s propensity towards vertical integration was an anachronism.

“In other countries steel makers concentrate on making steel and then there is a layer of retailers,” he said.

Onesteel marketing services manager Mark Scholen said the company had made a commitment to not compete with its Metaland franchise arm – which is largely based in rural areas.

Kosters has been operating in the Albany region for 37 years.

It has been a major player in the expansion of the wine industry, supplying steel to projects around Denmark and Margaret River.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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