NT dollar allowed for OBUs
The nation's central bank has allowed commercial banks' offshore banking units (OBUs) to take New Taiwan dollar-denominated assets as collateral, the Chinese-language Commercial Times reported yesterday. Effective immediately, commercial banks' OBUs can take NT dollar-denominated securities, property or other assets as collateral to their foreign currency lending, the newspaper said, without citing sources. Previously, the OBUs of Taiwanese banks could only take foreign currency-denominated assets as collateral to their foreign currency lending. The bank hopes the new measure could further develop local capital markets while helping OBUs become more competitive, the newspaper said.
Glitch slows Formosa plant
Formosa Petrochemical Corp (台塑石化), the nation's only publicly traded oil refiner, cut the operating rate at one of its three ethylene plants to 90 percent because of mechanical problems. The plant, which has a capacity to make 700,000 tonnes of ethylene a year from naphtha, started running at a lower rate this week, Lin Keh-yen (林克彥), director of the president's office, said in a phone interview on Friday. Formosa is maintaining its ethylene and propylene output by boosting operations at another unit. "We are investigating the problem before taking further action, which may include shutting down the plant to carry out thorough repairs," Lin said.
China bars US meat firms
China has suspended imports from several major US meat processors in the latest indication the government may be retaliating as its products are turned back from overseas because of safety concerns. Frozen poultry products from Tyson Foods Inc were found to be contaminated with salmonella, the General Administration of Quality Supervision, Inspection and Quarantine said on its Web site on Friday. Imports from other firms barred by China included frozen chicken feet tainted with residue of an anti-parasite drug, the agency said.
Hon Hai eyeing LCD stake
Hon Hai Precision Industry Co (鴻海精密), the nation's top manufacturer of electronics parts, may buy part of the stake Royal Philips Electronics NV wants to sell in South Korea's LG.Philips LCD Co, the Chinese-language Economic Daily News reported yesterday. The newspaper said the move could help Innolux DisplayCorp (群創光電), a Hon Hai affiliate which is also the nation's smallest liquid-crystal-display (LCD) panel maker, secure more panels. Philips owns about a one-third stake in LG.Philips LCD, the world's No. 2 LCD maker. The Dutch company has said it planned to sell at least part of its stake in LG.Philips LCD once its ownership lock-up expires this month.
Nissan to ramp up minivans
Nissan Motor Co will double annual production in Indonesia of a minivan targeted at developing countries, the Nikkei newspaper reported, without saying where it obtained the information. Nissan, which introduced the Grand Livina minivan in China last year and in Indonesia in April, will from this summer increase annual production to 36,000 units, the report said. The carmaker hopes to make cars in Indonesia to export to other Asian countries, the Nikkei reported, citing an unidentified official at Nissan.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees