Understanding China, One Blog at a Time

An American in China

Crash of Chi-Tanic-Leading Chinese Developers quality Woes

Posted by w_thames_the_d on April 30, 2012


China has been around for as long as cockroaches, and one thing they have not figured out is quality.

They cannot get milk form the teat of a cow to the table without poisoning it, nor rice from the husks without adding toxins.

One of their biggest problems, however, is that they build stuff that goes fast and other things that house real humans, like foreigners.

In terms of building quality, those of us who live here cannot be shocked, but those of you in civilization may be. The following describes the shoddy quality of the projects by one of chinas premier building developers…

Excerpt
“The Dalian Wanda Group, a leading Chinese developer of commercial property, is currently plagued with problems such as poor construction quality, tight cash flow and a shortage of talent due to its rapid expansion, the Guangdong-based Time Weekly reports.

In just 11 years, Wanda has built projects in nearly 70 cities in China and earned annual revenue of 100 billion yuan (US$15.9 billion) for the first time in 2011. As a result, the “Wanda model” has been adopted as a case study in commercial property development in China.

However, rumors that group chairman Wang Jianlin has been under investigation since March and construction quality issues involving Wanda’s projects across the country have brought the group’s problems to the public’s attention.

Following the “three-quick” model — quick buy, quick construction and quick completion — announced by Wang during the group’s 2012 annual meeting, Wanda completed 18 new projects across China in 2011

Local government support, observers said, also helped Wanda’s rapid expansion, since such projects were completed in a short time and could benefit authorities in terms of tax revenue, employment and the image of the city.

In a recent interview with the Guangzhou-based Southern Weekly, Wang said all of the group’s projects were for local governments, since Wanda could build a new business complex from scratch in 18 months.

Despite the group’s plans to open 18 new complexes and 12 high-end hotels in 2012 and become a world-class enterprise with 300 billion yuan (US$47.6 billion) in assets in 2015, reports about the poor quality of its projects have been surfacing on several websites in China.

In addition to water leakage and elevator accidents at a project in Tianjin, cracks up to three meters long were reported in residential projects in Tangshan and Zhengzhou, along with a lack of fire equipment and crooked walls at a complex in Jinan.

Moreover, since the group’s rapid expansion began in 2006, several accidents have been reported at its construction sites, with rumors circulating about the use of substandard steel bars in projects in Mianyang, Sichuan and Zhengzhou.

Responding to the quality issues, the group’s former spokesperson Shi Xueching said the lack of supervision was unavoidable since Wanda’s projects spanned 3 to 4 million square meters every year.”

The only thing worse than paying 500,000 u$ for a 100 meter hovel, is paying $500 000 for a piece of crap that will crumble in a decade…

China, so old and so little value

Story
http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1502&MainCatID=&id=20120429000085

[delat +13 hours]

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