Royal Dutch Shell has said it will deploy more Chinese equipment at its struggling US shale business – becoming the latest natural resources company to try to reduce costs by switching to cheaper Asian suppliers.
Miners such as Rio Tinto and Antofagasta have already been encouraged by improvements in the reliability of Chinese machinery, which they say can now be integrated into their existing operations without compromising efficiency or safety standards.
But the oil company’s shift to lower-cost Chinese makers underscores the potential threat to western industrial equipment groups, such as Caterpillar and Joy Global, from their competitors in emerging markets.
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