Steel fabricators fight back against overseas competition
AUSTRALIAN engineering and steel fabrication companies
Ausclad and
United Industries say they are holding their own, despite increased competition from Asia.
According to United, it undertook an expansion of its Henderson factory base which cost $15m. Another $15m will be spent on upgrades over the next three years.
In 2006, United and Ausclad entered into a joint venture with
Park Engineers and
Fremantle Steel so they could bid for major projects and stop them from being outsourced to cheap labour in China.
According to the companies, this has allowed them to win a lot of work. For example, United recently won
a $100m contract for rail cars.
However, many big contracts continue to go offshore. They have urged government intervention to prevent the contract drainage.
United says its Henderson expansion means it can now engage in large scale projects such as pipe works, tank fabrication, structural steel work and pressure vessel creation for the mining, oil and gas industries.
Its facility is located at the Australian Marine Complex, allowing it to serve the petroleum, marine and defence industries.
4-Jul-2008
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