Christchurch Rebuild to Benefit From Partnership

Embargoed until 6am Wednesday 17 July 2013

Christchurch Rebuild to Benefit From International Partnership

Arrow International, one of New Zealand’s largest construction companies, and global construction giant China State Construction Engineering Corporation Ltd, have signed an MOU to enter into a joint venture.

Listed in the Fortune Global 500, China State Construction Engineering Corporation Ltd (CSCEC) is today the second largest construction company in the world. CSCEC’s total annual construction turnover exceeds $NZ100 billion, with $NZ15 billion outside of China, while Arrow turns over more than $250 million in construction projects.

Discussions between the two construction entities about partnering to assist in the commercial rebuild of Christchurch began more than six months ago. The signing of the Memorandum of Understanding and associated commitment of resource is confirmation that this partnership is committed to delivering world-class facilities to Christchurch.

“Arrow’s partnership with CSCEC brings significant benefits to Christchurch”, says Hugh Morrison, Group CEO of Arrow International.

“Both companies have a philosophy of delivering far beyond the brief, getting involved in projects upfront in order to deliver the client’s vision. Both CSCES and Arrow have a reputation for working through the complexities inherent in big scale projects without compromising the end result or pushing out timelines, which in the end can have major cost implications for the client,” he said.

CSCEC is globally recognised for super scale and cutting-edge construction projects such as the Shanghai World Trade Centre, Hong Kong International Airport, Beijing’s CCTV Center, the Beijing Olympic Aquatic Centre and a number of other Olympic specified Stadiums throughout China.

Arrow International is well recognised in its own right for its state-of-the-art design and construction technologies and capabilities and was the construction mastermind behind New Zealand’s internationally acclaimed Forsyth Barr Stadium in Dunedin – the world’s first fixed roof turf stadium. The company is also recognised for delivering world firsts in seismically resilient timber builds, education facilities and environmental sustainability.

The partnership between Arrow International and CSCEC will not only offer some of the world’s best design and construction expertise to the Christchurch rebuild, it will also provide access to a highly cost effective supply chain. CSCEC owns steel mills and fabrication factories and as a result of its purchasing power has direct access to the best aspects of the China supply chain.

“Escalation in construction costs is already exceeding 10% per annum in the residential market, as a direct result of resource shortages. This is likely to spill over to the commercial sector. It is critical that access to alternate resources are opened up to deliver genuine cost savings”, says Morrison. “The ability to take some of the pressure off the local supply chain will be of enormous benefit, particularly to Christchurch as the recovery process ramps up. Access to an international supply chain also enhances the ability to complete projects on, if not ahead of, time”, he said.

Arrow International has invested heavily in its Christchurch operation over the past 18 months, with staff in the commercial division of the company now exceeding more than 230.

Established in 1984, by the Chinese Government, CSCEC is now a publicly traded company with Chinese Government shareholding.

-ENDS-

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