Speaking at a press conference in London last October, Vale CEO Roger Agnelli announced Asia will be “the engine for growth” in the mining industry sector. To prepare for the change, the Head of the Brazilian mining company projected that the majority of its revenue (i.e. over 80%) will derive from Asia and therefore, intended to shift its market focus towards Asia within the next five years.
The rapid and relatively recent urbanisation process in China was cited as the main causation of the market shift. Hence, the supplies of raw materials for construction and raw materials for consumer goods were expected to continue in strong demand.
Agnelli further explained, “[w]e already have a strong presence in Asia but we would like to set up an iron ore facility in China. The mayor of Shanghai told me that he would like to bring big international companies over there to compete with Hong Kong…China is not a bubble. There’s no alternative to dependence on China”.
Along with Vale, many international mining companies are expected to accept the mayor of Shanghai’s invitation and shift its market focus onto Australia’s traditional trading partner. Likewise, peripheral industries and other industry sectors (including OHS specialist industries) will undoubtedly be required to meet corresponding increases in regional demand and expertise.
CMM Technology’s well-managed Australasian distribution networks are at the forefront of these industry trends: by building its regional relationships and meeting the increased regional specific service, product and training demands, CMM Technology is leading the way to local, national and regional industry growth which aims to enhance national and global safety standards as well as improve sustainability practices.