The Victorian government’s recent decision to offshore steel production for major infrastructure projects has ignited a firestorm of criticism from the local manufacturing sector.
Weld Australia, representing thousands of local welders and fabricators, is leading the charge against what it calls a decimation of the local steel manufacturing industry.
Over the past six to 12 months, Victoria has seen a massive increase in imported fabricated steel. Since the beginning of the year, an estimated 28,000 tonnes of steel has been offshored.
A prime example is the North East Link project, where 11,000 tonnes of steel for the Bullen Flyovers were awarded to an overseas fabricator.
Geoff Crittenden, CEO of Weld Australia, expressed deep concern over this trend, stating: “Despite earlier reassurances to our members, these contracts were awarded to a Chinese company — banned from operating in the US — to meet project timelines that allegedly could not be met by a single local fabricator. This rationale is deeply concerning because it is simply untrue.”
The offshoring decision raises serious questions about adherence to the Victorian government’s own Local Jobs First Policy.
Crittenden highlighted the economic impact: “Our local industry is being held to ransom by duplicitous politicians.”
He also raised safety concerns: “How can an imported fabricated steel structure meet the quality compliance requirements imposed by the Victorian Department of Transport and Planning?”
Victorian steel fabricators are struggling against the influx of imported steel, which is up to 40 per cent cheaper than locally fabricated steel.
This has led to:
- Sharp downturns in available work
- Redundancies and reduced work hours
- Operational cutbacks
- Reconsideration of apprenticeship programs
- Shelving of capital investments
Weld Australia is demanding urgent action from the Victorian Government, calling for:
- Adherence to the Local Jobs First Policy
- Clear local content requirements
- Protection of local steel jobs
Crittenden concluded: “The Victorian government needs to stand up for our manufacturing sector. These cheap imports are undermining local industry standards, taking away jobs, and compromising the quality of our nation’s infrastructure.”
As this situation unfolds, the future of Victoria’s steel manufacturing industry hangs in the balance, with potentially far-reaching implications for the state’s economy and infrastructure quality.
