Case Studies of Australian Businesses in China
CSR is one of the world's largest construction and building products manufacturers, employing over 16 000 people globally through a presence in Australia, the United States, Asia and New Zealand. Annual global revenues exceed $6 billion.
CSR entered China in 1994, undertaking negotiations to establish a variety of construction and building materials manufacturing plants. Initially, CSR formed a readymix concrete and quarrying manufacturing joint venture with the Tianjin Building Material General Supply Company. By 2002, CSR owned 70 per cent of the Tianjin plant and was the major supplier of premix concrete and quarry products to the Tianjin region.
In the mid-1990s, CSR also established two insulation products factories in Guangdong province. These profitable CSR-majority owned factories supply local and joint venture businesses and also export around one-quarter of their production to south-east Asian markets. CSR also is establishing a distribution network in the region, recently opening offices in Hong Kong and the Philippines and is soon to establish an office in Shanghai. In all, CSR now employs around 900 people in China.
CSR strongly emphasises the importance of researching the market and understanding China's complex bureaucratic processes. It is critical to appreciate how partner expectations and capabilities can affect joint venture operations. The structure and operation of the local firm dominated building industry also makes it challenging to build a market presence. Despite these challenges, CSR's operations in China are increasingly successful and provide an excellent platform for expanding their presence in China's strongly growing construction industries.
Source: CSR, 2002.
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