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Aussie firms ink investment deals
By Zou Huilin (China Daily)
Updated: 2004-04-26 08:56

Two investment deals with Australian firms were inked over the weekend, a sign investors from down under are paying increasing attention to China's growing investment environment, said a senior Australian official.

Mark Vaile, the Australian Minister for Trade, made the comment in Shanghai, while attending the signing ceremony for the projects.

The projects included  the largest sum of investment capital from Australia to China ever, which will be used to build a new flat steel metallic coating and painting facility.

The facility will be solely invested in by Australia's leading steel company BlueScope Steel Co Ltd and will be located in the Suzhou Industrial Park in Jiangsu Province.

The investment will amount to 280 million Australian dollars (US$202 million).

The new facility will be completed by the middle of 2006 and will have a metallic coating capacity of 250,000 tons and a paint line capacity of 150,000 tons per year.

The premium quality steel products to be produced by the new facility are mainly targeted at the rapidly growing building and construction market in China.

Kirby Adams, the managing director and chief executive officer  of BlueScope Steel, said the infrastructure and service offered by the Suzhou Industrial Park is excellent.

This is the reason BlueScope Steel secured a 50 hectare site in the industrial park less than two hours from Shanghai.

BlueScope was not the only company showing great confidence in investing in the East China region.

Elders, one of the largest Australian agricultural businesses with a history of over 160 years, among others, is also conducting business in China.

Elders has just reached a deal with VV Group, one of China's largest agricultural groups, in which the latter will purchase 3000 live dairy heifers valued at 6.5 million Australian dollars (US$4.7 million) from Elders, the largest Australian exporter of dairy products to China.

Nicholas Hunt, the chief representative of Elders in China, said the investment environment in China is very good and business opportunities here are huge.

Elders is expected to increase its presence here by the end of the year by expanding its offices.

 
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