sold to BTR Nylex, an Australian Consolidated Industries subsidiary. In the 1995 company breakup, the remaining plastic containers business was sold to industrial conglomerate, Southcorp. Steel The Smorgon family saw an opportunity to capitalise on the monopoly industry of steel. BHP controlled Australia’s steel market in the 1980s. Since 1930, BHP had been Australia’s largest industrial company and by the 1980s, it was producing 2% of Australia’s GDP and 9% of its exports. However, BHP had fluctuating profits as it was yet to adopt the new and efficient steel technology of electric-arc furnaces, also known as the mini-mill. The mini-mill used electricity to melt scrap metals into steel billets. This process increased product quality and factory productivity compared to traditional blast furnace production methods. Victor Smorgon partnered with David Holckner and began researching this new manufacturing method by visiting steel mills in the US. They originally had plans to export steel to South-East Asia but, when the foreign steel market collapsed, the family decided to compete with BHP’s domestic market instead. They began constructing the electric mini-mill in Laverton, Melbourne in 1981. The Smorgons started steel production in the first quarter of 1983. In January 1984, they diversified their product by purchasing a used rolling mill and rolling steel billets into reinforced bar. The Smorgons offered lower prices, distributed directly to customers and adapted their production schedules to suit their client’s needs. Through this strategy, they secured major building materials manufacturers such as ARC, Aquila and Boral, as clients. To vertically integrate their steel business, the Smorgons sold their steel operations to Humes Ltd in 1987. Humes Ltd was a client of the Smorgons and ran a steel product production and distribution operation under the name ARC. The Smorgons sold their steel operations for a 46% stake in Humes Ltd, valued at $346 million at the time. In 1988, the Smorgons then purchased Humes Ltd outright for $2.90 a share, paying approximately $375 million. They sold off the company’s building products operations and produced steel under the names of ARC and Australian Tube Mills. In 1995, Smorgon Consolidated Industries divested itself of all assets except for their steel business. The company was renamed Smorgon Steel. On 3 February 1999, the company listed on the Australian Securities Exchange and 33% was sold to new investors. The family retained 67% and still had members on the board and Graham Smorgon as the