Sanjeev Gupta’s InfraBuild steel business accuses Chinese rivals of bending the rules in Australia

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The British industrialist’s Australian steel business wants regulators to curb Chinese suppliers of steel mesh used here in residential concrete foundations.

has complained to regulators that Chinese rivals are bending the rules when it comes to selling steel mesh grids commonly used in Australian housing construction.on a $530 million bond issue demanding a punishing 14.5 per cent rate, asked the Anti-Dumping Commission to investigate what it claims is unfair behaviour from large Chinese companies doing business in Australia.

InfraBuild is alleging “circumvention activity” by Chinese companies unfairly modifying steel mesh in China. By modifying the rods into steel mesh in China, rather than by metal fabricators in Australia, the Chinese companies are gaining an apparent unfair advantage.InfraBuild states in its complaint that labour rates in China are one quarter of the Australian equivalent.

But it, too, is suffering: net profit tumbled 75 per cent to $40 million in the six months to December 31, from $160.2 million a year ago. Mr Gupta is also using InfraBuild to help fund other parts of his global empire spanning businesses in Poland and the United States.

 

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