Aid packages eyed for SOEs
The nation is considering providing about 10 of its state-owned enterprises (SOE) with an aid package, people familiar with the matter said. Sinosteel Corp (中國中鋼) is among those that might receive help, one of the people said. The government is considering options such as asset or equity transfers, takeovers and preferential policies, the people said. Should the plan be approved, it would mark the government’s latest effort to provide relief to its state firms, many of which are struggling with overcapacity and slumping demand.
CBS Radio files for IPO
CBS Radio Inc, a division of CBS Corp, on Friday filed for an initial public offering (IPO) as one of the nation’s oldest broadcasters prepares to leave the shrinking AM/FM radio business. The company filed for an initial offering of US$100 million, a placeholder amount that is used to calculate fees and will probably change. CBS Radio plans to take on debt before the stock sale to give to its parent, the filing shows, as well as distribute some of the IPO proceeds to CBS. The rest is to fund general corporate purposes and cash needs.
Germany targets VW: reports
A German newspaper and two broadcasters are reporting that prosecutors have opened proceedings that could result in Volkswagen AG (VW) being fined in Germany over its diesel emissions scandal. The Munich daily Sueddeutsche Zeitung, which reported together with public broadcasters NDR and WDR, quoted Braunschweig prosecutor Klaus Ziehe as saying on Friday: “We have opened fine proceedings against VW.” He said that could include “recovering the economic advantage” VW might have gained by selling cars with software designed to cheat on emissions tests, according to the report.
DuPont to pay damages
A US federal jury said DuPont Co should pay US$500,000 in punitive damages to an Ohio man in a chemical illness lawsuit. Earlier this week, the same jury said DuPont Co acted with malice by dumping chemical-tainted water from its West Virginia plant into the Ohio River. Jurors awarded US$5.1 million in compensatory damages to the Washington County man, who developed cancer. A DuPont spokesman on Friday said the firm plans to appeal the verdict, and jurors were misled about the risk of the chemical exposure. The man, David Freeman, said he got testicular cancer because of C8 used to make Teflon.
Russia sells Alrosa PJSC
Russia raised 52.2 billion rubles (US$817.62 million) from the sale of Alrosa PJSC, the world’s largest diamond miner, according to a person with knowledge of the deal, the country’s biggest privatization in three years marred by economic uncertainty. Shares were priced at 65 rubles each, the person said, a 3.8 percent decline from the stock’s Friday closing price. Formal pricing and allocation announcement are planned for tomorrow morning, two people familiar with the process said. Officials had been looking to sell the Alrosa stake at 71 rubles per share, Kommersant reported on Monday. Alrosa’s shares closed down 0.1 percent at 67.55 rubles in Moscow, valuing the company at 498 billion rubles.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,
‘SWARM TECH’: Joint venture FARobot is to develop autonomous mobile robots that would first be deployed in Hon Hai’s factories to optimize production efficiency Hon Hai Precision Industry Co (鴻海精密) and Adlink Technology Inc (凌華科技) have formed a robotic venture that aims to use “swarm technology” to create robots that can communicate with one another on the factory floor to optimize production efficiency. Hon Hai is Apple Inc’s leading iPhone assembler and the world’s largest contract electronics maker, while Adlink supplies industrial computers and Internet of Things solutions. Through a subsidiary, Hyield Venture Capital Co (鴻揚創投), Hon Hai holds a 51 percent stake in autonomous mobile robot (AMR) developer FARobot (法博智能移動), while Adlink owns the remaining 49 percent. Together, the two companies put up NT$200