The Australian reported that OneSteel technology chief Mr Michael Dines will leave the company as the struggling steelmaker takes a razor to its IT department, slashing around 80 jobs.

Sources told The Australian that the cuts will affect around 45% of its 180 person strong IT division.

Mr Dines joined OneSteel from BHP where since 1990 his career spanned many operational and management areas focusing on the IT aspects of manufacturing and distribution functions.

Prior to BHP, Mr Dines was with the Royal Australian Air Force working in airborne avionics support and logistics.

Mr Dines led the technology integration team following the completion of the OneSteel and Smorgon Steel merger in August 2007.

An OneSteel spokeswoman could not comment on the job losses or Mr Dines's exit. She said that "Unfortunately we have no one appropriate available to comment at this time."

Sources said that the restructuring comes as no surprise considering the local steel industry's sorry state of affairs.

Mr Geoff Plummer CEO of OneSteel warned in August 2011 to expect more job cuts after announcing 400 workers would be retrenched, bringing the total to around 1500 since the 2008 global financial crisis.

OneSteel is set to receive AUD 64 million from the federal government's carbon tax compensation package for steelmakers, which will be used to fund some retrenchment programs.

Poor domestic demand coupled with the high dollar has hurt OneSteel and rival BlueScope Steel, which also restructured its IT division earlier last month.

As reported in The Australian, that move resulted in the departure of BlueScope chief information officer Mr Andrew Baker. Both OneSteel and BlueScope count CSC as a key IT supplier.

(Sourced from www.theaustralian.com.au)