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N E W S Rob Gendall: A life dedicated to engineering MasterBond’s Max hitches a ride 6 October 2016 Is ‘protecting’ our FTAs more important than supporting remaining local manufacturers? Industry comment by Heavy Engineering Research Association member Ullrich Aluminium ceo Gilbert Ullrich. Around mid-July 2016, Fairfax Media raised the spectre of New Zealand ‘steel dumping’ claims on imports from China. The response from our Prime Minister was to play it down, whilst MBIE (Ministry of Business, Innovation and Employment) would not even confirm or deny whether it had received two complaints from Kiwi producers. Trade minister Todd McClay, whilst in Indonesia, said it was not appropriate for him to comment politically. Such reluctance from our government and its officials to clarify what the true situation is has been further clouded by an ‘out of left field’ rejection of very recent exports of Zespri kiwifruit by China, because of phyto-sanitary concerns causing Zespri to further tighten its already stringent handling protocols. Comments from Wellington quickly denied that the rumoured steel dumping claims had any connection with a somewhat coincidental non-tariff barrier for New Zealand kiwifruit. All parties, including Zespri, have been very circumspect in their response, seemingly to avoid any ramping-up of retaliation from Beijing, or the prospects of compromising the planned re-negotiation by MFAT (Ministry of Foreign Affairs and Trade) officials of the existing FTA (Free Trade Agreement) with China - originally commencing from October 2008. Such apparent reluctance by our nation’s political representatives to be transparent to its own business sector makes for less confidence, and the absence of clarity compromises sound forward planning. You may ask why does an aluminium manufacturer and fabricator enter a debate on New Zealand steel dumping claims? Well, it’s quite simple. As the ceo of an Australasian company with a chain of 46 branches, I am in a position to observe the different approaches by our respective governments (and in Australia, by their states too), and the Australian aluminium industry has taken on and won several anti-dumping cases on extruded aluminium and aluminium products (such as ladders and platforms). However, in New Zealand, while the highest standards of design and strength are applied to our products, the same standards (or even border inspection) do not appear to be applied to say imported aluminium ladders. And failures with imported ladders have been a common problem as have rock bottom prices, because of cheap substandard materials. We are also well aware of substandard steel pile casings not meeting standards on bridges and overpasses on the road construction south to Hamilton, and serious concerns about the strength and flexibility of reinforcing mesh. So, as someone who started work serving in the steel and manufacturing industries, including fabrication, welding and erection work in steel buildings, and now running an Australasian-wide company, I can relate to such challenges from firsthand experience. Where has the importance, prestige and benefits of local manufacturing, ie ‘manufactured in New Zealand”, to NZ Inc gone? Not to mention the value-added benefits of our exports for jobs, taxes, local economy, education, career development, etc? And if trade commentators often mention that New Zealand needs to ‘export more value-added products’, then to achieve that expectation local exporters of Kiwi-made goods need to have a reasonable-sized home market as a ‘springboard’, from which to support the initial costs of exporting to new markets. Therefore, substandard imports are an impediment to creating that very crucial local market as a ‘beachhead’ to export markets. This, of course, brings me to the next point and that is, in a country prone to ‘seismic activity’ (like Christchurch recently, and Napier and Murchison much earlier), such factors as robust ties, bolts, rivets, and fastenings must be totally compliant, with independent stringent testing along with the pillars, beams, claddings, and glass (and of course the foundations, where steel piles are involved). And on the point of claddings (these must be fire-proof, as not all metals are), and glass (where toughened safety glass is essential for balconies, and certain doors and windows). Finally, environmental factors are increasingly entering into large buildings and other structures, like bridges. In the case of aluminium from New Zealand, the Bluff smelter is totally powered by carbon-neutral hydro-electricity, as are our own extrusion presses in Hamilton and the relative lightness of aluminium makes for lower fuel use in transport per kilogram of product. It is also more resistant to the elements. And carbon footprints are being increasingly considered by society, with more and more commercial buildings being described as 'Green Buildings' equipped with even roof-top gardens along with solar power panels. So, with the large building boom ahead of us here, but particularly in Auckland, can the New Zealand government and the local councils and authorities make a conscious effort to not only consider the economies of cost, but the social benefit of jobs for New Zealanders, and of course meet our environmental commitments that our government has signed up to in Paris? Enlightened accountants and companies refer to it as the ‘triple bottom line’ in annual reporting. And, like so many developed countries do, the government talks and acts free trade, but at the same time actively supports retaining contracts within their borders for the local companies based on the balanced decision making criteria – it’s pragmatic politics within the rules. ABOUT HERA HERA represents the interests of the metals manufacturing and engineering industry with the focus on being the catalyst for change, innovation and growth by seeking out opportunities and connecting them to its members through research, networking, training and advocacy. Visit www.hera.org.nz for more information. It’s with great sadness that Engineering News heard of the passing of Rob Gendall, who worked at Lyttelton Engineering for almost four decades. Mr Gendall took up the role of manager director in 1995 and passed away August 21 this year after a brief battle with cancer. General manager of the marine and industrial engineering company, Doug Cockerall, described Mr Gendall as a “real visionary” who knew what risks to take and when to take them which contributed immensely to becoming one of the largest engineering companies in the South Island. Mr Gendall worked his way up from the workshop floor. More than 300 people gathered for his funeral and Mr Gendall is survived by his wife, Julia, and children Sam, Tom, Isaac and Nia. Engineering News would like to express our condolences to the Gendall family, friends, Lyttelton Engineering and all those that knew the man who was dedicated to the engineering industry for so long. MasterBond’s representative for sealants and adhesives, Max (Maximus Bond), travels back in time to review the progress of the transportation industry from the past to today. From trains to cars to planes, Max takes you on an exciting journey showing how Master Bond’s advanced adhesive systems can help this ever evolving industry move forward http://tinyurl.com/jjbtz47


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