AUTOMAKERS
Tesla China plant nears
Tesla Inc is close to an agreement to produce vehicles in China for the first time, giving the electric-car maker better access to the world’s largest auto market, people familiar with the matter said. The agreement with the city of Shanghai would allow Tesla to build facilities in its Lingang development zone and could come as soon as this week, said the people, who asked not to be identified because the negotiations are private. Tesla would need to set up a joint venture with at least one local partner under existing rules and it was not immediately clear who that would be. Setting up local production is key for chief executive officer Elon Musk to continue growing in China, where Tesla’s revenue tripled to more than US$1 billion last year. Assembling vehicles locally would allow the company to avoid a 25 percent tax that renders Model S sedans and Model X sport utility vehicles more expensive than in the US.
CONGLOMERATES
Hutchison chief to retire
Billionaire Li Ka-shing (李嘉誠) has told associates that he plans to retire by next year as chairman of his flagship CK Hutchison Holdings Ltd (長和集團), the Wall Street Journal reported, citing people familiar with the matter. Li has not specified a date, but is likely to step down by his 90th birthday in July next year, the newspaper reported. The tycoon plans to remain as senior adviser and keep his office atop CK Hutchison’s headquarters building in downtown Hong Kong, the report said.
ENERGY
Libya boosting output
Libya is pumping the most oil in four years after a deal with Wintershall AG enabled at least two fields to resume production, adding to the challenge that OPEC and allied producers face in trying to pare global crude inventories. The North African nation is producing about 900,000 barrels a day, said a person with direct knowledge of the matter, who asked not to be identified for lack of authority to speak to the media. Output has risen on the resumption of fields developed with Wintershall and from a boost at Sharara, Libya’s biggest deposit, which is pumping 270,000 barrels a day, the person said on Monday.
RESTAURANTS
Chipotle expenses rising
Chipotle Mexican Grill Inc told investors that it is spending more on marketing and promotions as it tries to bounce back from a food-safety crisis. The burrito chain expects the expenses to rise by as much as 0.3 percentage point from the previous three months, according to a filing on Monday. The Denver-based company does not anticipate that food costs will change, accounting for about 34 percent of sales. The outlook sent Chipotle shares down as much as 3 percent to US$445 in extended trading. They had been up 22 percent this year through Monday’s close, lifted by optimism that the firm could execute a comeback. For the full year, Chipotle reiterated a forecast for same-store sales in the high single digits. It expects to open as many as 210 new restaurants.
ENERGY
Natural gas futures drop
US natural gas futures slid the most in four months on forecasts of milder weather that would curtail demand for the power-plant fuel after a hot spell last week. Temperatures may be mostly below normal in the central US and average on the east and gulf coasts from Saturday to Wednesday next week, the Commodity Weather Group LLC said.
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
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