Arrow International and global construction giant China State Construction Engineering Corporation (CSCEC) have signed a memorandum of understanding to enter into a joint venture. Discussions between the two entities about partnering to assist in the commercial rebuild of Christchurch began last year.

“Arrow’s partnership with CSCEC brings significant benefits to Christchurch,” says Arrow International group CEO Hugh Morrison. “Not only in terms of design and construction expertise, 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 costs is already exceeding 10 per cent per annum in the residential market as a direct result of resource shortages. This is likely to spill over into the commercial sector. It is critical that access to alternate resources are opened up to deliver genuine cost savings.

“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.”

CSCEC is the second largest construction company in the world, with its annual construction turnover exceeding $NZ100 billion, with $NZ15 billion outside of China; Arrow turns over more than $250 million in construction projects.