BlueScope playing a part in China's boom

By Ben Langford
Updated November 6 2012 - 3:15am, first published January 18 2012 - 11:07am
BlueScope Steel representatives  signing an agreement  to set up a factory in the   Xi’an Hi-Tech Industries Development Zone.  Picture: RIGHTSITE.ASIA
BlueScope Steel representatives signing an agreement to set up a factory in the Xi’an Hi-Tech Industries Development Zone. Picture: RIGHTSITE.ASIA

BlueScope Steel has started work on building its new factory in China, which is expected to employ 400 people when it reaches full production.A ground-breaking ceremony was held last month in the Xi’an High-Tech Industries Development Zone, where BlueScope will invest about $60million to establish a building materials production base, a new posting on the development zone’s website said.BlueScope says it employs about 2000 people in China, with 57 sales and marketing offices, a metallic coating and painting facility at Suzhou, 80km west of Shanghai, and several building systems manufacturing facilities.The new plant at Xi’an, in central western China, will cover an area of almost 13ha, with 50,000sqm of floor space, and will be positioned to capitalise on the booming construction industry in that country.BlueScope describes itself as ‘‘Australia’s leading manufacturing investor in China’’.A year ago the president of BlueScope China, Bob Moore, signed an agreement with the Xi’an administration to set up operations in the city, which is in Shaanxi province and about 950km south-west of Beijing.BlueScope’s Asian operations have been profitable while the Australian arm has been hurt by tough export conditions and high raw materials prices. Last financial year BlueScope China’s $50million underlying earnings compared with with a $292million underlying loss for the company’s Australian business.Last August, soon after announcing BlueScope had made a $1billion loss and would cut 1000 workers, BlueScope chief executive Paul O’Malley pointed to the company’s success in China and forecast further expansion there.‘‘We have a business in China that’s going from strength to strength,’’ Mr O’Malley told Bloomberg.‘‘We’re building a new facility in Xi’an so that we can actually participate in the growth in western China. I would say over the next few years we will look to add another facility.’’The Xi’an Hi-Tech Industries Development Zone (XHTZ) was set up in 1991. It offers preferential business conditions, including discounted tax rates for foreign firms, and income tax exemptions for ‘‘high-tech’’ companies that intend to stay more than 10 years.Local authorities boast it is home to 1800 companies.The XHTZ has its own human resources department to find suitable labour for industries. It says it has access to more than 10 vocational skills training schools and almost 100 HR and personnel agencies to help source workers.The HR section advises that it can offer pre-selected job candidates according to skills, and provide pre-prepared work contracts.

Subscribe now for unlimited access.

$0/

(min cost $0)

or signup to continue reading

See subscription options

Get the latest Wollongong news in your inbox

Sign up for our newsletter to stay up to date.

We care about the protection of your data. Read our Privacy Policy.