NZCBIA news

Frank Xu: New Zealand’s construction industry needs overseas help to deliver infrastructure

“The New Zealand Government plans to substantially increase its budget for infrastructure projects over the coming years. New Zealand’s construction industry will need overseas help to complete this extensive infrastructure work,” New Zealand Chinese Building Industry Association (NZCBIA) president Frank Xu said recently.

Frank believes that although the details of the Government’s recently announced budget plans are not yet clear, forecasts in the latest industry reports indicate a budget that could already be described as a ‘quantum leap’ by New Zealand standards.

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“Infometrics’ latest forecast of confirmed infrastructure projects puts New Zealand’s infrastructure budget for this programme at NZ$138,000,000,000.

Taking the Government’s announcements and the National Construction Pipeline Report into account, the total annual value of construction over the next 10 years will reach between NZ$3,500,000,000 and NZ$4,000,000,000.

These are staggering sums, and we will be unable to deliver if we rely solely on resources within New Zealand. Auckland’s housing shortage in recent years is clear evidence of that.”

Speaking at an event on Chinese investment in New Zealand organised by the China Council for the Promotion of International Trade, Frank said past experience, including New Zealand’s housing shortage, showed that the local construction industry lacked the capacity to meet these needs.

“Building constructive partnerships with other countries can help us meet the challenge. For example, after more than 30 years of sustained investment and extensive infrastructure construction, China has everything we need: not only capital, but also experience, skills, people and technology.

“The Chinese and New Zealand economies are highly complementary, and the recently completed free trade agreement (FTA) upgrade makes them even more so.

In 2008, the original FTA helped New Zealand’s economy make a swift and strong recovery from the global financial crisis. Bilateral trade has grown from NZ$8,200,000,000 in June 2007 to more than NZ$32,000,000,000 today.

I believe the upgraded FTA will also help New Zealand address its infrastructure and housing challenges.”

Frank added that the dairy industry offered a constructive and productive model for development.

“The dairy industry is an excellent example for the infrastructure sector to follow.

Comprehensive bilateral engagement in dairy between China and New Zealand is driving investment in both directions, from New Zealand into China and from China into New Zealand, supporting New Zealand’s strongest goods trade;

it has also encouraged scientific and technological exchanges within and between the public and private sectors, as well as wider bilateral agreements, including government agreements, student exchanges and exchanges between the countries on food safety and quality improvements.”

“If dairy cooperation can achieve this, why can’t our infrastructure and construction industries do the same?” Frank asked.

NZCBIA and its members are already encouraging closer cooperation between New Zealand and China.

For example, NZCBIA and China Construction Bank (New Zealand) Limited (CCBNZ) are actively promoting advanced Chinese-made construction machinery for New Zealand infrastructure projects, with CCBNZ able to provide loans to buyers.

NZCBIA has advanced apprentice training through cooperation between Unitec and Sichuan College of Architectural Technology (SCAT). SCAT has many excellent training facilities that replicate real construction environments, including curtain wall installation, bricklaying, and lift and escalator installation.

These facilities can help New Zealand train urgently needed apprentices more quickly. NZCBIA member Changda International has worked with local consultancy CADENZA to introduce Chinese prefabricated products to several Auckland projects.

As part of the quality inspection process, Auckland Council visited Chinese prefabricated product manufacturer CIMC to ensure its products complied with the New Zealand Building Code.

Frank said: “Cooperation is happening at the project and business level. Now it is time for central and local government to act in New Zealand’s best interests, securing the urgently needed capital, skills, labour and technology to meet this major challenge.”

 

2020 ‘Cross-industry alliance: cooperation for mutual success’ strategy meeting concludes successfully

Taking the opportunity presented by the ‘Assets and Investment and ROBAM 40th Anniversary Appreciation Event’, ROBAM’s New Zealand general agent, Mr Hong Bin, and NZCBIA president Frank Xu signed a strategic cooperation agreement. Calling on Chinese construction industry colleagues to ‘deliver excellent service and create mutual success’, the agreement aims to build a more cohesive and collaborative Chinese construction industry.

The main provisions of the ‘Deliver excellent service and create mutual success’ strategic cooperation agreement include commitments by participating businesses to ensure safe production, prevent accidents of all kinds and improve product and service quality, creating brands of their own for Chinese businesses in New Zealand;

to provide after-sales service as promptly as possible, with the best attitude and greatest efficiency, raising awareness of Chinese business brands; to protect their reputation, uphold their brands’ good name, speak up for Chinese brands and promote them together.

The strategic cooperation initiative received the approval and support of representatives from ROBAM New Zealand and other businesses present.

“The Great Wall will never fall; Chinese-made products must grow strong!” ROBAM’s New Zealand general agent, Mr Hong Bin, spoke passionately. William Song proposed a new model for future cooperation to the guests: “a cross-industry alliance, cooperating for mutual success”.

Participants expressed their hope that more Chinese business brands would distinguish themselves in New Zealand.