Media Focus on Multinational Corporations[2021.11.29]






China General Nuclear's wind power sector attracts major investment

China General Nuclear Power Group said its wind power subsidiary will attract 14 strategic investors, with total capital of 30.53 billion yuan ($4.78 billion) raised for the company's future expansion of solar and wind, according to a contract signed at China Beijing Equity Exchange on Friday.

This is the biggest equity financing project in the country's new energy and power sector. The company's increase of capital leads to a release of equity of 33 percent, it said.

As the biggest nuclear enterprise in China and the third-largest worldwide, CGN's attempt to increase strategic capital has been favored by the market, with investors including State Grid Corp of China, the largest power provider in the country, and China Southern Power Grid.


Metro China to open more membership stores

Metro China, the membership store owned by Beijing-based Wumart Group, has plans to open more membership stores for a total of 101 by the end of this year.

On Nov 24 Metro China unveiled its newly upgraded brand strategy and brand image, announcing it will open more stores focusing on end consumers across the country. The retailer said it is upgrading its business model from mainly serving B2B customers to serving both business clients and end customers.


Unilever to further ramp up innovation in country

Consumer product giant Unilever will begin to build a 'net zero 'plant in China from the end of this year, as the company bets big on the country as a source of innovation, a senior executive said.

Unilever is allocating some 130 million euros ($146.3 million) to the first phase of the full-category plant in Guangzhou, Guangdong province, and make it an industry-wide benchmark facility for zero emissions, said Zeng Xiwen, vice-president for Unilever. To be operational by 2023, the facility is designed to manufacture personal care, household and food products.


CNOOC now operating large-scale oil fields in South China Sea

China National Offshore Oil Corp, the country's top offshore oil and gas driller, said its Lufeng oil fields regional development project was put into operation on Tuesday, the first time that China has carried out large-scale development of 3000-meters-deep oilfields and below in the South China Sea.

The project will also safeguard energy supply throughout the Guangdong-Hong Kong-Macao Greater Bay Area, said Xia Qinglong, president of CNOOC Limited.

The Lufeng oil fields are located in Eastern South China Sea and mainly include Lufeng 14-4 oil field, Lufeng 14-8 oil field, Lufeng 15-1 oil field and Lufeng 22-1 oil field, with an average water depth of about 140-330 meters.

The main production facilities include two drilling production platforms and one subsea production system. As many as 35 development wells are planned to be put into production, including 26 production wells and nine water injection wells.

The project is expected to achieve its peak production of approximately 46,000 barrels of crude oil per day in 2023, said CNOOC.


Sinopec pumping more natural gas to northern China

Chinese oil giant China Petroleum and Chemical Corp has been pumping more natural gas to northern parts of China, as large parts of the country are bracing for a new cold front that will send temperature plunging.

The company has been supplying an additional 10 million cubic meters of natural gas to northern parts of China, while nationwide gas supply has also risen to 180 million cubic meters to further meet residential and industrial demand, it said.

Its daily natural gas output nationwide has been ratcheted up to 99.79 million cubic meters, a record set on Sunday.

The company has booked 27.2 bcm of natural gas for the heating season this year from domestic and abroad, while its liquefied natural gas (LNG) terminals are also working at full throttle to ensure a warm winter for residents in northern parts of the country.

Sinopec Star Petroleum Co Ltd, a subsidiary of Sinopec, has also been pushing forward the geothermal heating service for Hebei, Shaanxi and Shandong provinces.

Geothermal heating regions in the northern parts of China has reached 68 million square meters so far, up 18.2 percent year-on-year. It has benefited more than 800,000 households, up 19.8 percent year-on-year, it said.


Baidu, Sanofi team up to optimize mRNA vaccine, therapy designs

Chinese tech giant Baidu announced on Monday that it has inked an agreement with Sanofi, a leading biopharmaceutical company focused on human health, to integrate Baidu's messenger ribonucleic acid (mRNA) design optimization platform, LinearDesign, into Sanofi's product design pipeline.

Under the agreement, Sanofi will leverage the LinearDesign platform to contribute to the optimization of mRNA sequences for human therapeutic and preventive uses. This agreement marks a milestone for Baidu to use its strengths in computational biology to optimize mRNA vaccine and therapy designs in real-world pharmaceutical practice beyond COVID-19.


China State Construction builds schools in Gabon near the equator

China State Construction is building schools near the equator, improving educational conditions in Gabon, a country in central and western Africa.

Covering areas of 60,000 and 24,000 square meters, the two construction projects, Alibandeng and Cap Estérias, are located in Greater Libreville, Gabon.

The Alibandeng comprehensive school project can accommodate about 2,000 primary and middle school students, making it easier for students living nearby to go to school.

The Cap Esterias Middle School program can accommodate about 700 middle school students, making education possible for students in remote forest areas.

Both projects started on Oct 1, 2020. The Alibandeng project is expected to be completed in 2021 and the Cap Estérias project has completed in November and is expected to come into service soon.

Africa is an important market for Chinese companies, and more than 3,500 companies have been established in Africa, with private companies accounting for over 70 percent, said Qian Keming, vice-minister of commerce , at a news conference on Nov 17.

Chinese companies have helped African countries build and upgrade over 10,000 kilometers of railways and nearly 100,000 kilometers of roads, establish over 1,200 educational institutions and set up more than 400 medical equipment, creating an estimated 4.5 million jobs, Qian said.


Danaher Corp's China sales revenue over $3b in 2020

Danaher Corp, a United States-based science and technology company, gained over $3 billion in sales revenue in China last year, and is expected to grow even stronger in 2021, thanks to the country's increasing demand for healthcare-related innovation, manufacturing and services, as well as its dual-circulation development paradigm, said a senior executive.

The health awareness of Chinese citizens is much higher today as many of them grow older. They are willing to spend on healthcare products and services, and this trend would significantly benefit Danaher's life sciences, biotech and diagnostics businesses in China for the long run, said Shen Yi, the group's vice-president and head of mergers and acquisitions for Asia.


Samsung plans to build a $17 billion chip plant in Texas

Samsung is planning to build a $17 billion semiconductor factory in Taylor near Austin, Texas, over the next three years as part of an effort to increase its manufacturing capacity and alleviate the global chip shortage.

The South Korean tech giant announced the 5 million square meter facility Tuesday, a day after The Wall Street Journal broke the news.

The factory will aim to help boost production of advanced logic semiconductors, which are used in phones and computers.

Like other chipmakers, Samsung badly needs more capacity,Glenn ODonnell, vice president and research director at analyst firm Forrester, told CNBC Tuesday. It is following Intel, TSMC and others to build more production.

Samsung said it expects building work to commence in the first half of 2022 and it hopes to have the site in operation by the second half of 2024.

The total expected investment of $17 billion will be the largest investment Samsung has ever made in the U.S. The figure includes buildings, property improvements, machinery and equipment.



Boeing, airline stocks tumble as new Covid variant spurs travel curbs

Boeing, airlines and other travel stocks tumbled on Friday after several European and Asian countries announced new travel restrictions from southern Africa because of a new Covid variant.

European Union member nations on Friday agreed to suspend travel from the region, a day after the U.K. said it would temporarily suspend flights from South Africa, Namibia, Lesotho, Eswatini, Zimbabwe and Botswana.

The U.S. starting Monday will bar entry to visitors from South Africa, Botswana, Zimbabwe, Namibia, Lesotho, Eswatini, Mozambique and Malawi. The Biden administration announced that decision after the stock market closed on Friday.


Reliance made structural changes, giving Syngas project to its subsidiary company

New Delhi:Reliance Industries Limited (RIL) will transfer its Jamnagar Syngas project to one of its wholly-owned subsidiaries.

Reliance said in a statement issued on Thursday that this transfer of the Syngas project will help in achieving better value for business.

Apart from this, it will also be easier for Reliance to move towards renewable energy as a primary source of energy.

Syngas used in energy production is made up of a mixture of hydrogen, carbon monoxide and carbon dioxide.

It is produced by gasification of solid hydrocarbon fuels.

According to RIL, syngas creates reliability in fuel supply and also helps in reducing energy cost fluctuations.

Syngas is used for the production of hydrogen at Reliance's Jamnagar refinery.


Worlds largest Ikea store opens in Philippines

The Swedish ready-to-take furniture giant has made its first appearance in Manila, Philippines by opening its largest store in the world, with a new 730,000-square-foot facility that includes a 2-story, 270,000-square-foot store, dining area, and showroom, as well as warehouses, an e-commerce centre, and a call centre.

The opening ceremony of Ikea Pasay City was held at the stores restaurant yesterday, and the Philippine Trade Secretary Ramon Lopez and Foreign Minister Teodoro Locsin attended.

Mass lay-offs at Thai AirAsia as aviation sector continues to struggle

Thai AirAsia

Thailand may have re-opened to international travellers, but the aviation sector continues to struggle as a result of the pandemic. The Bangkok Post reports that Thai AirAsia has announced mass redundancies and extended furlough arrangements for many of its staff. Asia Aviation, the largest shareholder in TAA, says the outlook for the aviation sector remains unstable and the company has had no choice but to reduce both its workforce and its fleet. Executive chairman Tassapon Bijleveld says the fact that re-opening policies differ from country to country means revenue on international routes is limited.


Tesla Giga Shanghai aims to increase production capacity with RMB 1.2B expansion project

Tesla invested RMB ¥1.2 billion (about $180 million) into Giga Shanghais latest expansion project. Tesla Chinas expansion project is expected to increase the gigafactorys production capacity, making Giga Shanghai even more formidable than it is now.

Tesla plans to invest RMB ¥85 million ($13 million) of its RMB ¥1.2 billion investment in environmental protection. The project is expected to start in December 2021 and be completed by April 2022.

In a public EIA report, Tesla stated it has completed the carbon footprint and carbon emission accounting for Giga Shanghais expansion. The report also stated that the project will mainly focus on Giga Shanghais Phase 1and Phase Bproduction area to increase the production capacity of existing models, as per a report from China News Network.



Xiaomi says chip crunch can affect as many as 20m units

Chinese tech heavyweight Xiaomi Corp expects that the global chip crunch will crinkle its smartphone shipments this year by between 10 to 20 million units, and it will continue optimizing its product portfolios to cope with the prolonged supply shortage.

The comments came after Xiaomi said on Tuesday night that it generated 8.2 percent year-on-year growth in revenue to 78.1 billion yuan ($12.2 billion) in the September quarter, and its net profit after adjustment increased 25.4 percent year-on-year to 5.2 billion yuan.

Wang Xiang, president of Xiaomi, said the supply shortage will continue in the final quarter of 2021 and will likely extend to the first half of 2022. But the situation is likely to improve significantly in the second half of next year.

In the September quarter, Xiaomi's global smartphone shipments still reached 43.9 million units, despite the global shortage of key components.

According to market research company Canalys, Xiaomi's market share of smartphone shipments in the third quarter ranked No 1 in 11 countries and regions and among the top five in 59 countries and regions globally.

Meanwhile, Xiaomi said the global 30-day active users of its MIUI operating system has exceeded 500 million as of November 22, 2021, marking another milestone for the company.

In the third quarter, Xiaomi's profitability continued to strengthen as internet services revenue hit 7.3 billion yuan, reaching a new quarterly high and representing an increase of 27.1 percent year-over-year.