China set up a new management company to speed up the restructuring of smaller and uncompetitive state-owned enterprises, the State-owned Assets Supervision and Administration Commission (SASAC) said yesterday.
China Reform Holdings Corp Ltd (中國國新控股) will own weaker companies in industries that are not key to national and economic security, according to a statement on the Web site of the commission, which supervises the biggest state-owned enterprises, including the parent companies of China Mobile Ltd (中國移動), the world’s biggest mobile-phone company by users, and PetroChina Co (中石油).
China injected 22 smaller enterprises into 14 state-owned companies ranked among the world’s top 500 since SASAC was set up in 2003, boosting their competitiveness, the statement said.
The combined net profit at companies owned by the central government surged 53.1 percent in the first 10 months of this year from a year earlier, as the nation’s economy recovered from the financial crisis, SASAC data shows.
China Reform Holdings, which will have an initial registered capital of 4.5 billion yuan (US$676.5 million), will support companies with market potential by providing capital and helping with share sales, the commission said.
The new company will ensure the “smooth” closure of unsustainable units by shouldering the costs of reform and protecting employees’ rights, the statement said.
Former Baosteel Group Corp (寶鋼集團) chairwoman Xie Qihua (謝企華), 67, will be chairwoman of the new company.
Xie, who was chairwoman and general manager of Baosteel Group between 2003 and 2006, retired in January 2007 to head the China Iron & Steel Industry Association.
SHORING UP STEEL
China is backing mergers among steelmakers and metals producers to create companies better able to compete with overseas rivals and that have more power in talks with material suppliers.
Baosteel acquired smaller rival Xinjiang Bayi Iron & Steel Group (新疆八一鋼鐵集團) in January 2007, its first purchase since it was formed in 1998.
SASAC administers 122 companies owned by Beijing, Xinhua news agency reported on Oct. 21.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to