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Investment Success Story

SGS is invested in Australia’s success

October 2011

For Swiss-based organisation, SGS, Australia’s diverse and thriving economy means decades of opportunity and unlimited space to grow.

Since establishing its Australian operations in 1949, SGS has developed a wide range of testing, verification and certification services. Today, SGS Australia continues to evolve to help Australian companies meet requirements and standards overseas.

SGS Australia General Manager, Mr Phil Hocking describes the company’s role as helping Australian businesses to succeed in international markets, and enabling foreign investors to meet international standards across their Australia operations. “Our work helps to facilitate trade, so our success comes on the back of our customers’ success,” Mr Hocking says.

And according to Mr Hocking, the company’s burgeoning customer base, Australia’s proximity to Asia and the ease of doing business in the Australian market means SGS Australia is poised for further growth.

Doing business in Australia

Image courtesy of SGS
Image courtesy of SGS

SGS Australia has over 60 offices and laboratories across the country, with a head office in Perth and major facilities in Sydney, Melbourne, Adelaide and Brisbane. Within Australia, the company’s operations are evenly spread across three core business functions: laboratory testing, inspection services, and certification and compliance.

From agricultural produce to mining resources, from consumer goods to business management systems, SGS Australia tests products to global standards; conducts pre-shipment quality assurance inspections; and advises Australian companies on global labelling, sustainability, social compliance and environmental management requirements.

“The challenge for SGS is to stay on top of regulations that are constantly evolving,” says Hocking. “We have to know every global market and its import requirements inside out and that’s the service we pride ourselves on.”

Leveraging Australian expertise and innovation

The SGS Group has established a number of global competency centres to service the research and development needs of the Group’s global operations across 127 countries.

With its highly-skilled workforce, Australia houses SGS’s global competency centre for coal sampling, traffic technology and energy efficiency in whitegoods. And with the expertise developed in Australia, the SGS Group is offering new services to its clients the world over.

From its environmental laboratory in Sydney, SGS offers a range of services in soil, water and plant testing to ensure that future mine sites meet their environmental requirements.

“Mining technology is a big growth area for us and there’s a great deal of expertise in Australia,” says Hocking. “SGS Australia leads the Group in coal sampling systems so we’re currently working with our China office to share that expertise.

“And companies from around the world are sending their products to SGS laboratories in Melbourne where we test the design and energy efficiency of whitegoods. We are currently testing refrigerators for some major manufacturers in Korea, Japan and China.”

Over the past five years, SGS Australia has also invested significantly in the testing and certification of speed cameras. Phil Hocking believes this is an area where SGS Australia is leading the global group, helping international SGS affiliates to use technology from Australia in overseas markets.

And just as the SGS Group at large will work to replicate services developed in Australia, Australian companies continue to benefit from innovation and knowledge-exchange across the global network of SGS affiliates.

Staying on top of demand

Over the past five years, SGS Australia has acquired a number of laboratory facilities spanning the resources, construction, geotechnical and environmental management sectors. And in the five years ahead, SGS will seek to expand its Australian services further, exploring future technologies and increasing the geographical spread of the organisation.

“Australian exports are no longer concentrated in just Sydney and Melbourne,” says Hocking. “New ports are setting up all along the east and west coasts of Australia. We’re now working in places like Darwin, Gladstone, Karratha and Mackay and our customers are increasingly asking for services in these new ports.”

Looking ahead, Phil Hocking sees agricultural, environmental and food services at the forefront of the company’s growth in Australia.

Already, SGS has expanded its Australian exporter customer base by providing testing for products like pasta, pastry, dairy and wine. Over the coming years, services relating to precision agriculture, biofuels, green buildings and wind farms look set to drive further growth.

“The nature of Australia’s agricultural exports has changed – we’re not dealing with just wheat and wool anymore,” says Hocking. “For instance, Australian canola producers are now looking for biofuel opportunities particularly stemming from the European Renewable Energy Directive.”

And as clean and renewable energy markets grow in Australia, so too do SGS Australia’s services.

“There’s a great deal of opportunity around green building and clean energy services in Australia so we’re committing resources to these areas,” says Hocking.

“Today, sustainability is recognised as an important part of doing business. We’ve established a Green Buildings Team to work with companies setting up operations here. The team helps these organisations ensure that their Australian facilities meet with their group’s global sustainability requirements; at the same time we’re also helping companies to upgrade buildings.

“We’ve also set up a Clean Energy Team that will help foreignowned companies set up in Australia and will enable Australian companies to develop new clean energy products and technologies to export overseas.”

Finding room to grow

Though now well established in the Australian market, SGS still looks to Austrade to facilitate new opportunities.

“Wherever possible, we network through our connections with Austrade,” says Hocking. “We have a lot of relationships with European-based companies that have set up or are looking to set up in Australia so we’ve particularly benefited from our relationship with Austrade representatives in Europe.”

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