After the merger with BHP
The board of AI&S was altered to reflect the new ownership of the company, and Harold Darling became its chairman.[10] It was this new board, who delivered the bad news, in March 1936 of AI&S's 33% fall in half-year profit,[11] and in November 1936, of its half-year loss.[12] AI&S preference shareholders, at least, received some of their deferred distributions,[13] but the outlook for these investors still appeared shaky.[12] In time it would improve, and the preference shares remained a problem for BHP, for many years, due to the high rate these shares paid.[14]
Howard Smith Ltd retained the BHP ordinary shares it obtained in the merger and quickly benefitted as a result;[15] it continued to be BHP's partner in Southern Portland Cement Ltd, until 1974.[16]
The troublesome AI&S sheet mill was transferred to John Lysaght, in April 1936; it was expected to add about 20% to the 100,000 tons of galvanised sheet that Lysaght was already making at Newcastle each year.[17][18][19] Within a relatively short time, John Lysaght had the mill working properly.[20]
In the early years of the Port Kembla plant, during the worst of the Great Depression, there had been a relative absence of union activity and industrial disputes.[21] The dismissal of a mill hand, Norman Annable, for refusing to work overtime on 24 January 1936, precipitated a strike. However, the issue was broader. The workers were seeking improved conditions as well. Soon, over 3000 men were on strike at Port Kembla.[22] The strike would continue until the very end of March 1936.[23]
By 1937, a global shortage of steel, encouraged BHP to raise more capital and to expand Port Kembla. A second modern merchant mill, second blast furnace and third steel furnace were added,[24] then a billet mill.[25] The expansions effectively doubled the pre-merger capacity of the works.
After World War II
Preference shares of AI&S remained trading on the stock exchange, until 1959 when BHP's offer was accepted and the AIS preference shares were converted to ordinary BHP shares.[29]
Under its name, the subsidiary company, AI&S, operated the integrated steelworks at Port Kembla, New South Wales, (now BlueScope) and a blast furnace at Kwinana, in Western Australia (from 1968 to 1982).[30][31]
