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<\/p>\nNew Zealand\u2019s aluminium sector is sounding the alarm over cheap imports from China, saying it risks putting local producers out of business.<\/p>\n
According to the Aluminium Extruders Association (ALENZ), import volumes of finished aluminium products \u2013 that\u2019s parts used for scaffolding, fences and boats \u2013 are already running 40% higher than last year.<\/p>\n
And over the past 10 years, they\u2019ve risen by more than 150%.<\/p>\n
\u201cThese imports are state subsidised, mainly by China,” an association spokesperson said.<\/p>\n
“China built 7000 extrusion presses on cheap state loans, energy and land for a construction boom that has since halved.”<\/p>\n
The impact of the cheaper finished metal product was being acutely felt in Hamilton\u2019s INEX factory.<\/p>\n
“Hamilton is the second biggest city in the southern hemisphere outside Brisbane, which is number one for aluminium extrusion,” chief executive John Lynch told 1News.<\/p>\n
\u201cThe New Zealand market is currently around about 35,000 tonnes annually.\u201d<\/p>\n
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New Zealand\u2019s aluminium sector is sounding the alarm over cheap imports from China, saying it risks putting local producers out of business. (Source: 1News)<\/p>\n
But he said it was difficult to compete with imports coming in at such low prices.<\/p>\n
\u201cEven if we had no additional costs of manufacturing, it would still be difficult for us to compete in the market with underpriced metal.\u201d<\/p>\n
Lynch said he was worried about the long-term impact of the overall manufacturing sector, should the situation continue.<\/p>\n
\u201cRight now, we’ve got the worst unemployment statistics that we’ve seen for many year … if we reduce manufacturing what are our young people going to do for work?\u201d<\/p>\n
There were similar concerns down the road at Extec \u2013 a family-owned company which makes the moulds used to create the finished aluminium products.<\/p>\n
“We all need competition and there’s nothing wrong with competition,\u201d said Extec co-founder Gil Harte.<\/p>\n
\u201cBut what we’re all asking for is a level playing field. What we don’t want is people selling a product that’s below cost; that’s what’s happening to New Zealand.”<\/p>\n
Regional Development Minister Shane Jones wanted to know “what the hell is going on?\u201d<\/p>\n
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Associate Energy Minister Shane Jones. (Source: Getty)<\/p>\n
\u201cGiven that I’m the regional minister, I’m appalled that jobs are under threat. That these firms that continue to developed value added product are being undermined by what I view as inferior products and it’s not consistent with the threshold that ought to be observed in the various trade deals,\u201d he tells 1News.<\/p>\n
\u201cThe law clearly enables our Government and the officials, to stand up for Kiwi firms; and Kiwi employees. We’re in the midst of a cost-of-living crisis; we want value added. <\/p>\n
“But value added should not be undermined by a flow of product that is not consistent with what we should be demanding in terms of trade thresholds.\u201d<\/p>\n
The Extruders Association said other countries, such as Australia, the US, Canada, the UK and the EU all have anti-competitive important laws in place, to prevent cheap imports of products, like aluminium, flooding the market.<\/p>\n