The Australian Iron and Steel Industry as a Functional Unit

Abstract

ALTHOUGH the nations of Western Europe and the United States manufacture the bulk of the world's iron and steel, the appearance of other important producers is one of the notable recent developments in the industry. Before the World War of I9I4-I9I8 about nine-tenths of the world's crude steel was produced in Western Europe and the United States; by 1937 this had been reduced to about three-quarters. During the war supplies of iron and steel from the older centers proved inadequate. Many governments have since fostered steel industries by subsidies of various kinds, trade restrictions on imports and exports, financial participation, and other means. The war also caused significant changes in productive capacity and in control of iron ore and coal and thus gave impetus to iron and steel manufacture in countries that had not produced large amounts in earlier years. Great distances from competitors have tended to ensure home markets for newly created steel industries in countries remote from the primary manufacturing centers of the world. Before 1915 the iron and steel industry of Australia was wholly inadequate to supply the needs of that continent, which were chiefly met by import of the relatively cheap products of British steel plants. In that year a large modern steel plant was put into operation at Newcastle. The plant expanded rapidly until 1921, when it was threatened with the competition of imported products. The growing feeling of nationalism led to the passage of the Tariff Act of 1921 in order to ensure the continuance of many secondary industries that had arisen during the war years. In 1928 a modern steel plant began operating at Port Kembla, with an annual capacity of 150,000 tons of steel, or about half the capacity of the plant at Newcastle. In 1935 control of the Newcastle and Port Kembla steel industries was merged, and by 1937 the combined output of steel ingots was more than a million tons. Although the Australian iron and steel industry is concerned primarily with supplying Australian needs, increasing amounts of its products are being exported, especially to New Zealand. Since 1939 contracts have been made for the delivery of large quantities of materials to Great Britain, an illustration of the manner in which the productive facilities of the outermost parts of the Empire may be placed at the disposal of Britain in times of emergency. It is the purpose of this account to discuss briefly the rise of the 649