Flow of building materials into NZ disrupted by China's electricity crisis

October 8, 2021

The hold-up will add further pressure to construction and is expected to delay council sign off on new builds. (Source: Other)

First it was shipping delays, and now China's electricity crisis is disrupting the flow of building materials into New Zealand.

Parts of China have resorted to more old-fashioned methods as planned power cuts crippled the industrial north-east.

It follows the country's shift from coal for environmental reasons, leading to low supplies and higher prices.

New Zealand's building industry imports most of its supplies from China, and it's feared the disruption will have a knock-on effect in the country.

"It plays a massive, massive part in the logistics chain," the Building Industry Federation's Julien Leyes told 1News.

He said it creates a "cascading effect into what is essentially now a mega crisis".

China is scrambling to import coal amid power cuts to parts of the country.

David Mahon, an investment advisor in China, says the world's largest polluter attempted to "move away from fossil fuels too swiftly".

"The good thing and the encouraging thing is environmentally, there's no sign they're going to change the policy," he said.

Leyes expects the delays to continue into next year.

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