1200 tonnes of imported steel needed for $142 million Kardinia Park redevelopment

Geelong companies tried but failed to provide the majority of steel for the Kardinia Park redevelopment, forcing the builder to bring in 70 per cent from overseas.

About 1200 tonnes of imported steel will be used for the $142m redevelopment of Kardinia Park amid rising construction costs as the price of locally fabricated steel has risen almost 45 per cent in a year.

Watpac, the project’s builder, is expected to import about 70 per cent of the 1760 tonnes of steel needed for the redevelopment from Qatar.

The project, due to be completed late next year, will lift the capacity of GMHBA Stadium to more than 40,000 people by adding a two-tier 14,000-seat stand in place of the former Ford Stand.

Watpac’s procurement strategy has prompted the Australian Manufacturing Workers’ Union to call for stronger regulations on major government projects to ensure more materials are sourced locally.

According to the Master Builders Association Of Victoria the price of steel rose 44.6 per cent in the year to March.

AMWU Victorian Secretary Tony Mavromatis said Watpac would bring in steel from Qatar which flew in the face of the state government’s local jobs first policy that applied to the project and required 91 per cent local content to be used.

“The Local Jobs First Act doesn’t have enough teeth in it, there needs to be penalties (for missing targets). We know local companies tendered for the job,” Mr Mavromatis said.

A State Government spokesman said it was on track to meet its 91 per cent local content target for the project.

Concept images of the stage five Kardinia Park redevelopment.

“Stage five of the Kardinia Park redevelopment is on track to exceed its 91 per cent local content requirement,” the spokesman said.

“Up to 560 tonnes of locally fabricated steel will be used on Stage 5 of the project.”

The Geelong Advertiser is aware of Geelong-based and Melbourne-based companies who tendered to provide the steel for the project but have missed out.

Watpac was asked to explain its procurement strategy but did not respond “due to confidentially restrictions” on its contract with the state government.

Kardinia Park stadium redevelopment showing construction progress. Picture: David Smith.

The state government spokesman said 14 sub-contractors were appointed to the redevelopment and more than 90 per cent were local companies supplying material including Victorian-made stadium seating, concrete structures, masonry and roofing.

Mr Mavromatis said Watpac had changed its mind about using steel fabricated in Victoria.

“Our biggest concern is that we’ve got a Local Jobs First Act, that is a good act. It promotes local industry and gives industry confidence but when things like this happen it brings down that confidence.

“We need to do something to pick up the confidence. We’d like to see changes to the Local Jobs First Act.”

The government’s Local Jobs First website states: “The Minister for Industry Support and Recovery sets minimum local content requirements for all strategic projects and other requirements such as maximising the use of local industry for steel products and/or uniforms and personal protective equipment.”

The $142 million redevelopment of Kardinia Park.

The redevelopment of Kardinia Park will also establish a northern entry plaza, sports museum, a regional cricket hub and function room.

When the state government appointed Watpac in August last year it said: “Local workers and suppliers will be big winners under the Labor government’s Local Jobs First policy, which requires minimum 91 per cent local content for declared strategic projects such as Kardinia Park Stage Five.”

The state government spokesman said the Kardinia Park redevelopment project was overseen by the Local Jobs First Commissioner, outlined in the Local Jobs First Act 2003, which meant the commissioner had power to act on suspected breaches or failures to meet local content requirements.

Watpac is also building the City of Greater Geelong’s Civic Administration Building on Mercer St.

Originally published as 1200 tonnes of imported steel needed for $142 million Kardinia Park redevelopment