In 2012, China International Marine Containers (Group) Co Ltd plans to build about 10.000 dormitories for BHP Billiton in Western Australia.[Photo/China Daily]

SHANGHAI - The Australian resources giant BHP Billiton Ltd plans to double its expenditures in China in the next five years while working with Chinese suppliers to further its global expansion.

Dirk Van De Putte, chief procurement officer for BHP Billiton, said the company "plans to spend $6 billion in China to purchase infrastructure facilities and consumables in the next five years".

He said the money will go to support the company's global expansion, helping it develop its businesses in copper, uranium, iron ore, petroleum and potash.

"China supply is pivotal to the delivery of BHP Billiton's growth projects," Van De Putte said.

He said the company's purchasing budget in China has gone from being nonexistent 10 years ago to $800 million this past year. He also said the company is working more closely with Chinese suppliers.

For example, China International Marine Containers (Group) Co Ltd (CIMC), the country's leading manufacturing group of cargo containers, is a supplier of BHP's and, in 2008, finished building the first batch of rooms in a workers-residence camp for the company.

"We managed to deliver 400 rooms in 60 days, which stunned our client," said Liu Xiaokui, a senior executive with CIMC. "They keep asking us how we did it."

"Our cooperation with BHP Billiton has raised our building standards," Liu said. "We've significantly improved our operations on all fronts and laid a solid foundation for our business expansion overseas."

At the same time, CIMC is helping BHP Billiton gain a better understanding of Chinese companies and giving it experience in working with Chinese suppliers.

In 2012, the company plans to build about 10,000 dormitories for BHP Billiton in Western Australia. The company now builds most of its residences for businesses in Australia and Europe.

Last year, China International Marine Containers acquired the British pre-fabricated housing supplier Verbus Systems, and is now expanding into Africa, the Middle East, Japan and North America.

Van De Putte said Chinese manufacturers have supplied BHP Billiton with accommodations for mining-camps, material-handling machines, transformers and other products.

"Chinese manufacturers are willing to listen to clients and can adapt to local requirements very quickly," Van De Putte said. "More importantly, they invest a lot in research and innovation, which enables them not only to provide us with products but also solutions to complicated situations."

Even so, he said few Chinese companies are qualified to be general contractors.

"Some of them do a fairly good job as subcontractors, but we have not entrusted Chinese suppliers to take charge of the whole project," he said.

"Chinese supply takes up a significant portion in our global procurement plan. We are spending (a) large amount of money, ... buying things that we cannot get elsewhere."