In recent years much Chinese steel has been imported for projects in Melbourne despite local steel being available at comparable pricing and made by local jobs. One recent issue has been the court findings over the use of Chinese made steel in a public building at Kew.
Several major infrastructure contracts under Victoria’s Big Build have sourced fabricated steel from Chinese suppliers, prompting industry outcry over local content and jobs. The most notable examples include:
North East Link – Bulleen Flyovers
- Approximately 11,000 tonnes of steel for the Bulleen Flyovers were fabricated overseas by a Chinese company, despite assurances that local fabricators could meet timelines and specifications.
Other Offshored Steel Fabrication
- Across multiple Big Build projects, an estimated 28,000 tonnes of steel have been offshored over the past 12 months.
- While the North East Link is the only project publicly identified by name, this figure suggests additional (unnamed) road, bridge and rail works have similarly sourced steel from mainland China.
Industry Concerns
- Weld Australia reports these contracts breach the spirit of the Local Jobs First Policy and undermine local manufacturers, leading to reduced hours, job losses and shelved apprenticeship programs.
- Questions have been raised over whether imported steel meets AS/NZS 5131 CC3 certification and Department of Transport and Planning quality standards.
There are some weighty policy questions hiding behind those steel shipments. 🚢 Let’s unpack a few implications:
Local Jobs and Economic Impact
- Local Jobs First Policy aims to prioritize Victorian suppliers, yet these imports suggest a gap between policy and practice.
- When contracts go overseas, local fabrication shops often suffer—job losses, fewer apprenticeships, and economic ripple effects in regional communities.
Certification and Compliance Risks
- Imported steel may not always meet Australian standards (like AS/NZS 5131 CC3 for structural safety).
- This raises concerns about long-term durability, maintenance costs, and potential liability issues if something fails.
Procurement Transparency
- These decisions suggest a lack of transparency in procurement processes.
- Critics argue for stronger requirements around public disclosure of offshore sourcing and justifications tied to cost, quality, or timelines.
Long-Term Policy Rethink
- Might be time to revisit enforcement mechanisms for the Local Jobs First Policy or explore incentives for domestic manufacturing.
- Some recommend mandating a minimum local fabrication quota or introducing penalties for non-compliance.
Australia has a rigorous framework to ensure imported steel meets safety, quality, and structural integrity standards. Here’s a breakdown of the key ones:
Structural Design Standards
- AS 4100: Steel Structures – The primary design standard for structural steel in buildings. It sets out requirements for strength, stability, and durability.
- AS/NZS 5131: Structural Steelwork – Fabrication and Erection – Covers fabrication, welding, and erection practices. For critical infrastructure like bridges and flyovers, steel must meet Construction Category 3 (CC3)under this standard.
Material and Product Standards
Imported steel must align with these product-specific standards:
- AS/NZS 3678 – Hot-rolled plates and slabs
- AS/NZS 3679.1 & 3679.2 – Structural steel sections
- AS/NZS 1163 – Cold-formed structural steel hollow sections
- AS/NZS 1594 – Hot-rolled steel flat products
These standards ensure consistency in chemical composition, mechanical properties, and dimensional tolerances.
Certification and Compliance
- Imported steel that doesn’t comply with the above standards must be treated as a Performance Solution under the National Construction Code (NCC), requiring rigorous verification and documentation.
- Acceptable evidence includes test certificates, CodeMark certificates, or reports from accredited testing labs.
Risks of Non-Conformance
- Steel that lacks proper certification may not be accepted as a “Deemed-to-Satisfy” solution under the NCC.
- This can lead to project delays, legal liability, and safety concerns, especially in public infrastructure.
