Wesfarmers Limited’s (ASX:WES) subsidiary Wesfarmers Industrial and Safety says its Coregas arm will make a writedown of up to $190 million, after BlueScope Steel Limited (ASX:BSL) restructures its Port Kembla operations and shuts down a blast furnace.
BlueScope’s demand for industrial gases will now be softer, forcing the company and supplier Coregas to amend their existing contract.
Wesfarmers says the negotiations on the contract are likely to be completed in the first quarter of 2012.
Wesfarmers reported a profit of $1.9 billion for the 2011 financial year.
