IN BRIEF (Page 24)

Drone market set to soar to $11b

The value of China's drone industry could rise as high as 75 billion yuan ($11.4 billion; 10 billion euros) in the next decade, according to an iResearch report. At the end of 2025, the unmanned aerial vehicles will be used largely for aerial photography, farm chemical spraying, forest protection and security, it said, adding that the civilian drone market has grown more than 50 percent in recent years.

Stora Enso to close Suzhou paper mill

Finnish paper maker Stora Enso is to close its paper mill in Suzhou, Jiangsu province, and divest key assets. Due to the location and size of the mill, it will no longer be competitive after the emergence of larger mills in the Chinese market, the company said. The total net gain from the sale to Suzhou National New and High-tech Industrial Development Area, part of the Suzhou city government, is about 150 million euros ($170 million), but the divestment will reduce Stora's annual sales by 126 million euros.

Nestle and Alibaba join forces on campaign

Nestle SA and Alibaba Group Holding Ltd have launched a digital commerce and marketing campaign, a move the Swiss food giant hopes will boost its disappointing business in China through innovation in products and digital distribution channels. The six-month campaign will leverage Alibaba's online and mobile marketplaces, media platform and rural services. According to Nestle, it will feature 154 products from 30 brands, 67 of which will be introduced to Chinese consumers for the first time.

Xinchao pursues $1b oil deals in Permian Basin

China's Yantai Xinchao Industry Co is pursuing US oil acquisitions worth as much as $1 billion in the Permian Basin, and it won't be satisfied letting others run the show, according to the head of the company's US subsidiary. Xinchao is seeking operated positions, deals that give it primary authority over everything from how deep to drill to how intensively to frack each well, said Curtis Newstrom, chief executive of Blue Whale Energy North America Corp, the US arm of the Shanghai-listed company.

AIIB prepares to reveal first projects

The first investments by the Asian Infrastructure Investment Bank will be announced on June 24 during its third board meeting, Jin Liqun, the bank's president, said on June 7. These will include solely financed projects and those co-financed with the World Bank and the Asian Development Bank. With authorized capital of $100 billion, the AIIB will invest in infrastructure, energy, transportation, urban construction, water supply and logistics as well as education, healthcare and environmental projects. The World Bank said the AIIB expects to approve about $1.2 billion in financing this year.

Continental to cash in on auto market

German auto supplier Continental AG aims to more than double its China sales from last year's 4.5 billion euros ($5.1 billion) to 10 billion euros by 2020, it said on June 6. "As the largest auto market in the world, China's auto industry is moving from volume to value," said Ralf Cramer, president and CEO of Continental China. He said with its broad product portfolio, Continental brings to vehicles innovative technologies, which will sustain the company's double-digit growth in China over the next few years. Cramer said the company also plans to raise Asia's share of its global business from 20 percent last year to 30 percent in 2020.

S. Korean firms top LCD TV shipments list

South Korean and Chinese TV manufacturers dominate the top-10 list of global LCD television shipments, while their Japanese counterparts have been kicked out of the top five for the first time. According to market consulting institute IHS Inc, Korean tech giant Samsung Electronics Co Ltd is expected to ship 48.1 million LCD TVs globally this year, retaining its dominant position, followed by LG Electronics Inc with 28.4 million units. The global LCD TV shipments of Chinese home appliances maker Hisense Group will reach 15 million this year, ranking third. TCL Corp and Skyworth Group are expected to ship 13.5 million and 12 million units respectively. The total shipments of the top five Chinese TV brands will surpass 50 million units.

Pengxin eyes Brazil bank BI&P

Shanghai Pengxin Group Co is in talks to buy control of Brazilian mid-sized lender Banco Indusval & Partners SA. The Chinese conglomerate wants to expand beyond commodities into Latin America's largest economy, sources with direct knowledge of the matter said. Representatives of Pengxin and partners of BI&P, a specialist in agricultural lending, have discussed tie-up scenarios, the sources said. Pengxin's search for financial, logistics and commodities firms in Brazil is gaining steam following its $200 million purchase in April of a controlling stake in grain processor Fiagril Participacoes SA.

CCCC looks to operate African railway

China Communications Construction Co Ltd is seeking to operate the China-funded Mombasa-Nairobi Standard Gauge Railway for five years, business magazine Caixin has reported. A study team from Kenya is scheduled to visit China soon, and state-owned CCCC is confident of passing the inspection and obtaining the operating rights. The railway, backed by a Chinese firm, will connect Mombassa, the largest port in East Africa, and Nairobi, the capital of Kenya.

Haier acquires GE Appliances

Shanghai-listed Qingdao Haier Co Ltd has announced it has signed the documents for its acquisition of GE Appliances. Qingdao Haier is 41 percent owned by Haier and General Electric. GE Appliances will continue to be headquartered in Louisville, Kentucky, and operate independently under the current management team. A board of directors, with representatives from Qingdao Haier and GE Appliances, will help guide the strategy and business operations.

Yiqian swoops for major stake in Hahn airport

Shanghai Yiqian Trading Co is preparing to buy an 82.5 percent stake in Germany's Hahn Airport for an undisclosed amount, Reuters reported. The airport, which is 120 kilometers from Frankfurt, is currently owned by the state of Rhineland-Palatinate. The state will provide about 70 million euros ($79.4 million) in subsidies for the airport over the next 10 years, according to Germany's interior ministry, although that still awaits approval from the European Commission. The new owners will be expected to cover at least 50 percent of the investment costs. A former military base, Hahn airport ranks fifth in terms of freight volume in Germany.

( China Daily Africa Weekly 06/10/2016 page24)