Recession prompts

a Saipan switch

THE exodus of recession-hit Austra lian firms could be a boost to some foreign dollar-desperate Island countries.

Papua New Guinea for years has attracted Australian mining and pet roleum companies, while Fiji has drawn garment- and furniture makers.

Now Australia’s largest building and management company is closing its SUS6I.6 million construction arm from this year to move to its principal offshore area, Micronesia. Turner Corporation Ltd has an office base in Saipan and Guam, and has worked on local projects there since 1989.

Managing director and company founder, lan Turner, said it would concentrate on Micronesia. The new

Saipan developments include a

SUSS.BS million international airport terminal expansion and a SUS23.I million contract to build 185 condo miniums for tourist use.

Saipan is the region’s second most popular destination for foreign tour ists, especially Japanese and Ameri cans. It attracts about 300,000 tourists a year, behind Guam’s 500,000. Sai pan is also attractive to Japanese

property investors.

Turner said most of his company’s Saipan work will be conducted through a joint venture with Japanese property development company, Dia Nippon Corporation. He expects to buy materials for overseas construc tion from Japan because of soaring costs in Australia.

Turner said the decision to move out into offshore business was “fraught with difficulty” based on the lack of government support for the local

Australian building industry.

Local government authorities in Saipan also have mooted a SUSIS.4 million commercial and building de velopment, and a 5U59.24 million order for government offices but con tracts have not yet been signed. □