Japanese tower firms ‘cheaper’

Press, 10 November 1983, Page 7

Japanese tower firms ‘cheaper’

The New Zealand Electricity Division confirmed yesterday that Japanese engineering firms tendered successfully for $2.5 million worth of work supplying steel transmission towers because they were cheaper. The stores manager of the New Zealand Electricity Department, Mr A. A.

Roper, declined to reveal the successful bids.

“We regard them as confidential, but normally if approached by an unsuccessful tenderer we will supply some information on ranking and general reasons for the lack of success,” he said. When asked why the Japanese bids were successful, Mr Roper said that in general terms the decision was made on cost Sources in the engineering industry said that Japanese

companies were able to bid successfully in spite of having to pay a 40 per cent duty because they were geared to a high-volume market.

They had access to raw steel at minimal costs, whereas New Zealand companies had to import their steel, usually from Japan. The Japanese companies have a high degree of sophistication of plant and tooling. They are believed to be the world’s biggest producers and exporters of transmission towers.