The boss of engineering group Downer EDI says he will consider sourcing more products from China.
This is despite the problems found in Chinese-built Waratah trains destined for NSW commuters under its troubled rolling stock contract.
"The issues in China around our train build are complex and not necessarily specifically related to Chinese manufacturing processes," Downer EDI chief executive Grant Fenn said.
"With the Chinese we've been working very hard to get those processes and quality position to the point now where it's improved significantly, Mr Fenn said after an address to an American Chamber of Commerce lunch in Sydney.
"We would certainly consider doing other projects in China, if it made sense."
Delivery of Waratah trains is running a year behind schedule.
Of the 78 trains meant to be delivered originally by 2013, only four have made it on to NSW tracks to date, with two more due by the end of the year.
Downer has recorded $440 million in writedowns on the project.
Mr Fenn said quality had risen since the first Waratah train, which suffered software and interior fitout problems, was delivered from the Changchun facility in China to Downer's Cardiff, NSW, factory.
"We've had significant improvements in the last number of months and the latest trains to come off the line in Changchun are significantly better and requiring very little adjustment in Cardiff," he said.
Downer EDI provides engineering and construction services across the mining, energy, infrastructure and transport industries around the world.
The company holds its annual general meeting in Sydney on Wednesday, November 9.
