CSR Train Cars, Parts Shipped to Australia Tainted with Asbestos; Products produced by China’s biggest train maker found to contain carcinogenic material, and company working to keep news from spreading

01.09.2014 19:54

CSR Train Cars, Parts Shipped to Australia Tainted with Asbestos

Products produced by China’s biggest train maker found to contain carcinogenic material, and company working to keep news from spreading

By Staff reporters Wu jing and Lu Bingyang

(Beijing) – Train cars and parts exported by CSR Corp. Ltd., China’s biggest train maker, to Australia have been found to contain hazardous materials, and CSR is working to make sure the news is contained.The exports were sent to Bradken Ltd., an Australian mining products group.

The Australian customs officials have isolated the cars and equipment containing asbestos, which can cause cancer and other diseases if exposure is prolonged. They are continuing to investigate.

It is unclear how many cars are involved.

The Economic and Commercial Section of China’s consulate in Melbourne announced a probe was underway on January 7. The website of China’s Ministry of Commerce posted the news a day later.

However, information regarding the episode has been removed from both websites. A source close to CSR said the company negotiated with relevant departments immediately after the incident to limit publicity.

CSR said the news release by the Ministry of Commerce was removed from the website because some aspects were not entirely accurate, but declined to say what exactly was inaccurate.

This is not the first time that a CSR export has been found to contain asbestos, the source at the company said.

Australia banned the use of asbestos in 2004 and importers are required to ensure and declare on import documents that their goods do not contain the material.

Sources in the railway industry say that Chinese manufacturers sometimes use banned materials to keep costs low and make their exports more competitive.

The report on the Ministry of Commerce website that was removed said that a spokesman at Bradken said this was the first time the company had imported CSR products.  He added that although an examination showed train cars contained white asbestos, employees faced no health hazards and the episode would not affect future cooperation with Chinese companies.

A spokesman for Australian customs said Bradken is likely to be fined AU$ 850,000 or up to three times the value of the locomotive.

A CSR spokesman said earlier that the subway cars it sells domestically are better quality than the ones its exports.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment