■ Memory chips
Elpida sells line to Cension
Elpida Memory Inc, Japan's sole memory chipmaker, will sell its 200mm wafer production line to a partner of China's Semiconductor Manufacturing International Corp (SMIC, 中芯) to focus on more advanced technology. Cension Semiconductor Manufacturing Corp, which is based in Sichuan, China, will buy the line in Japan for an undisclosed amount and make chips for Shanghai-based SMIC, Elpida said on Monday in a filing. "We are moving our resources from 200mm wafer lines to reinforce the 300mm wafer production line," Elpida said. "It's important for us to aggressively offer faster, less energy-consuming memory chips."
■ Petrochemicals
Firms fined for price rigging
South Korea's antitrust watchdog said yesterday that it had fined 10 local petrochemical companies a total of US$111 million for rigging the prices of plastic products. The Fair Trade Commission accused the companies of having held monthly price-fixing meetings since 1994 on their polypropylene and high-density polyethylene products, mostly used for plastic containers and bottles. The 10 companies were fined a total of 105.1 billion won (US$111.8 million), it said.
■ Aviation
Airbus to cut 10,000 jobs
Airbus' major restructuring strategy includes 10,000 job cuts, French Prime Minister Dominique de Villepin announced yesterday, adding that his government would oppose any cutbacks in the form of layoffs. A day earlier, Airbus said an announcement on its long-awaited restructuring plan -- called the "Power8" turnaround strategy -- had been delayed. The European aircraft maker called off a works council meeting and news conference at which the strategy would have been unveiled yesterday. Villepin told RTL radio that French President Jacques Chirac would discuss the issue with German Chancellor Angela Merkel during a meeting on Friday.
■ Insurance
Rates pressure Prudential
Prudential Plc, the UK's second-biggest insurer, is coming under pressure to slash the value of its Taiwanese life business by as much as ?700 million (US$1.31 billion, NT$43.23 billion) when it reports full-year results next month, the Independent newspaper reported yesterday, without citing sources. The paper said Prudential would likely follow the lead set by Dutch rival ING in cutting the value of its business in Taiwan, where the UK firm has a large number of life insurance policies offering guaranteed returns of up to 7 percent. With local interest rates running at 2.75 percent, Prudential can no longer cover those guarantees by investing in government and local corporate bonds, the paper said.
■ State firms
Indonesia to cut holdings
Indonesia will reduce the number of state-owned companies from 139 to 69 by 2009 through privatization or liquidation, Vice President Jusuf Kalla said. "The target in 2009 is set at 69 state-owned companies. Some of them should be merged, privatised or liquidated," the official Antara news agency quoted him as saying late on Monday. Kalla said that number could be further cut to 25 by 2015. He said state firms' profit before tax was projected to grow 22.50 percent this year to reach 88.75 trillion rupiah (US$980 million), against a projected 72.44 trillion last year.
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