Australian Companies Expand in China

Trade Minister Mark Vaile today attended ceremonies in Shanghai to mark the expansion of Australian companies BlueScope Steel and Elders Livestock in China.

“Companies like BlueScope Steel and Elders Livestock are showing the way for other Australian companies looking to build their presence in China, demonstrating that partnership and cooperation can deliver significant mutual benefit,” Mr Vaile said.

BlueScope Steel (formerly BHP Steel) has begun construction of a $280 million flat steel, metallic coating and painting plant in the Suzhou Industrial Park, 80 km west of Shanghai. The plant will produce steel solutions, including pre-engineered buildings and other high-quality steel building materials to support the burgeoning building and construction markets in China, and should be completed in early 2006.

“Australia and China have a broadly-based complementary trade in resources with iron ore exports, worth more than $1.7 billion last year, our largest export,” Mr Vaile said.

“BlueScope Steel’s Suzhou plant will enable Australia to take a stake in the higher end of the value adding process in China – a great result.”

Elders Livestock today signed a contract for the sale of dairy cattle worth more than $6.5 million with the Xuzhou VV Group, as well as a Memorandum of Understanding for broader co-operation. Elders also received its business licence from the Shanghai Municipal Government to trade in a range of agricultural products and associated services.

“Australian exports of dairy cattle to China substantially increased from 9,000 in 2002 to 44,000 last year. Most were exported by Elders and this contract should accelerate this trend,” Mr Vaile said.

“Strengthening and deepening the trade and economic relationship with China is an enduring priority for the Government. We enjoy strong and wide-ranging economic complementarities with China which bolster economic and trade ties. The Government has set an ambitious agenda to maximise those complementarities and strengthen the relationship.”

Mr Vaile will participate in the Boao Forum on Asia in Hainan Island on 24 April, and visit Hong Kong. His visit culminates in Beijing on 27 April, where he will meet senior leaders and co-chair the 10^th Joint Ministerial Economic Commission with China’s Commerce Minister Bo Xilai.

Contact: Ursula Carolyn (travelling with the Minister 21-28 April 2004) - Matthew Doman (in Australia) on 02 6277 7420 - Zhang Hong, Australian Embassy Beijing on (010) 6532 2331 ext 246 - Li Hongwei Australian Consulate General Shanghai on 5292 5500 x221