In Monday's Asia Papers

22 July 2002 03:02  [Source: ICIS news]

A summary of political, economic, trade, business and product news affecting the chemical and related industries.

International Economics & Politics

Japan to expand economic ties with Russia

Japan should expand its cooperation with Russia on political, economic and cultural levels with a view to encouraging Moscow to ease its stance on the Northern Territories, which are currently occupied by Russia but also claimed by Japan, according to a new policy report drawn up by the Japanese Foreign Ministry. The report said there were signs of improvement in the Russo-Japanese relationship, including the agreement between Prime Minister Junichiro Koizumi and Russian President Vladimir Putin at the June G-8 summit in Canada to raise bilateral political dialogue. The report stressed that the leaders were the only ones who could break the current deadlock over the bilateral negotiations for a peace treaty, which has remained unsigned since the end of World War II.

Nihon Keizai Shimbun, Japan (online edition)

 

China plans slew of world-class airports by '05

No more long queues at check-in counters, no more cramped passenger lounges and no more overcrowding of planes on the taxiways. That is the promise of an ambitious Rmb110.0bn ($13.3bn/Euro13.2bn) five-year programme by China to bring its aviation service and airport network up to world-class standard, including adding more than 30 airports across the country within three years. China now has 141 civil airports - one quarter of the number in the US which has 565 airports. China's airports are unevenly distributed, with most of them in the eastern and coastal areas. The central government has decided to increase the number of airports from the current 141 to 173 by 2005. The number will rise further to 237 by 2010.

Straits Times, Singapore (online edition)

China Daily (online edition)

South China Morning Post, Hong Kong (online edition)

 

Shanghai targets six key industries
The Shanghai Economic Commission on 19 July released a policy package that outlines the major development strategies for local industry over the coming years. Under the city's plan, Shanghai will focus on the development of six pillar industries -- electronics and information technology (IT), cars, power and large-scale electromechanical equipment, petrochemicals, high-grade steel and biopharmaceutical products. Four major industrial bases -- for IT, cars, petrochemicals and high-grade steel -- are expected to take shape by 2005. These pillar industries are likely to power the future growth of local industry, which saw overall profits of nearly Rmb22.8bn ($2.75bn/Euro2.72bn) from January to June - a 5.2% year-on-year increase.

China Daily (online edition)

 

Seoul preparing against US instability

The South Korean government is preparing a contingency plan to protect its economy from the growing instability in the US financial system, a senior official of the Ministry of Finance and Economy said on 21 July. Under the plan, the government would keep interest rates low and increase its fiscal spending in order to stimulate a recovery, the ministry official said. It would also promote trade with China and Southeast Asian countries to reduce the local economy's reliance on the US economy and take the necessary measures to support domestic demand, the official added. The ministry official warned that the US stock market could fall into a panic if the Dow Jones Industrial Average continues to decline to 7500 or even 7000.

Korea Herald (online edition)

 

Korean investors eye Asean markets

Among South Korean companies currently investing in foreign markets, over one-third have put capital into China, as domestic firms start preparing for China's predicted emergence as a global economic giant. But future investors are likely to turn their eyes to countries such as Indonesia, Malaysia, Thailand and Singapore as 37% of the respondents planning overseas investments said they were interested in Asean (Association of Southeast Asian Nations) over North America (19.3%), Japan (18.9%) and Latin America (7.6%). These facts were revealed in a joint study compiled by the Ministry of Commerce, Industry and Commerce and the Korea Institute for Industrial Economics and Trade based on a survey of 1000 companies in May.

Korea Herald (online edition)

 

Chemicals

Giants are perfect chemistry
China's dangerous chemical management authorities on 21 July signed agreements with major members of the Association of International Chemical Manufacturers (AICM) to improve safety in the usage of hazardous substances. According to the Emergency Response Service Protocol, more than 10 leading chemical producers -- including Air Products, Akzo Nobel, AtoFina, Bayer and DuPont -- have agreed to provide safety data on their products to China's National Registration Centre for Chemicals. AICM Director Liu Hongwu said producers who signed the agreements would annually provide funds for the centre to operate in order to guarantee quality service to chemical users, distributors and other people who deal with hazardous substances. The amount to be paid was not revealed.

China Daily (online edition)

 

Health 

Japan expects more slimming pill casualties

Japanese health authorities are bracing for higher casualties from tainted China-made slimming pills when final figures are tallied, as reports trickling in from prefectures have pushed the number of deaths nationwide to four, with 160 people affected with organ problems. The Japanese market for slimming aids is huge and respondents to a television survey indicated they were willing to take 'some risks' if the pills were effective. Despite massive publicity following the Health Ministry's disclosure last week of the first fatality, websites are still selling two brands which authorities have linked to liver disorders. Such sites are achieving fair sales of pills by Yuzhitang Health Products, which manufactured the Slim10 product banned in Singapore, and Xianzhisu capsules, another Chinese product, even after website managers posted warnings saying the pills might cause liver disorder.

Straits Times, Singapore (online edition)

Nihon Keizai Shimbun, Japan (online edition)

 

Oil & Gas

Japan Energy to make low-sulphur diesel oil by '06

Japan Energy plans to start producing diesel oil with a sulphur content of only 10 ppm by 2006, one-fiftieth the current maximum permitted limit for diesel oil. The Tokyo-based major oil distributor will spend Yen20bn ($172m/Euro170m)-Yen30bn to beef up desulphurisation equipment at its main refinery plants in Mizushima in Okayama Prefecture and the Kashima, Ibaraki Prefecture plant. Japan Energy said it would also develop new catalysts to more effectively remove sulphur content. Japan's major oil distributors are scrambling to reduce sulphur content in gas oil, the major culprit responsible for nitrogen oxide and soot emitted from diesel vehicles. Japanese authorities plan to reduce the maximum sulfur content in diesel oil to less than 50 ppm at the end of 2004, from the current 500 ppm.

Nihon Keizai Shimbun, Japan (online edition)

 

Petrochemicals

Japan to levy tariffs on polyester imports

Japan will impose anti-dumping tariffs on polyester staple imports from South Korea and Taiwan as early as this month, sources at the Finance and Trade ministries said 19 July. The tax rates are expected to range from 6% to 13.5%, depending on the manufacturer. This will be the third time Japan has imposed antidumping tariffs on imports and the first since 1995, when levies were slapped on cotton imported from Pakistan. Domestic demand for polyester staple, which comes mainly from the bedding and automotive industries, totals about 200 000 tonne/year.

Nihon Keizai Shimbun, Japan (online edition)

Taiwan Economic News (online edition)

Korea Herald (online edition)

 

Pharmaceuticals

Guangzhou plans largest dog-breeding centre

A pharmaceutical institute in south China's Guangzhou city plans to turn its beagle breeding centre into the country's largest next year, capable of breeding 8 000 dogs annually for experiments. A spokesman for the Guangzhou Institute of Pharmaceutical Industry said the centre, which breeds 800 beagles/year, would then become biggest animal breeding centre for pharmaceutical experiments in China. Most of the animals would be for overseas experiments. The centre also plans to open a laboratory for pharmaceutical companies at home and abroad to test new drugs.

China Daily (online edition)

 

Company News

Japanese gas turbines for LNG plant in Egypt

Japanese trading firm Itochu and electrical machinery producer Hitachi have won a contract to supply power-generating gas turbines to a major liquefied natural gas (LNG) plant in Egypt. The value of the deal is estimated at about Yen5bn ($43m/Euro42m). The partners will supply five turbines, each with a power output of some 27 000kw, by June 2003. Itochu and Hitachi won the contract from JGC, a major Japanese plant engineering firm, Kellogg Brown & Root of the US and Spain's Techcicas Reunidas. The consortium will build a major LNG plant in the Damietta area along the Mediterranean coast for a joint company held by Union Fenosa from Spain, and an Egyptian concern.

Nihon Keizai Shimbun, Japan (online edition)

 

Mitsui, Agro-Kanesho in biopesticide venture

Mitsui and midsize agrochemical maker Agro-Kanesho will establish a joint venture to market biopesticides. The two firms will transfer their divisions handling microbial and other pesticides for use on fruits and vegetables to the new company. The new 50:50 venture, called Certis Japan, will be capitalised at Yen50m ($431 034/Euro426 724). Besides taking over existing operations from its founders, the company will also try to acquire sales rights to new products. Annual sales are projected to reach Yen800m in three to five years.

Nihon Keizai Shimbun, Japan (online edition)

 

Sekisui Chem, M'bishi Plastics in China PE jv

Sekisui Chemical and Mitsubishi Plastics will jointly set up a plant for polyethylene (PE) joints in Jiangsu Province, China, with the aim of launching operations in May 2003. The partners have just received approval from the Chinese government to set up a firm which will be capitalised at Yen500.0m ($4.3m/Euro4.2m). Sekisui will hold a 51% stake and Mitsubishi will own the rest. The partners target Yen1bn in sales in the second year, when the plant becomes fully operational. They aim eventually to transfer all domestic production of PE joints to China.

Nihon Keizai Shimbun, Japan (online edition)

 

Shell, Sinopec in Rmb1.6bn venture

Royal Dutch/Shell and Chinese state oil company Sinopec will invest Rmb1.55bn ($187m/Euro187m) in a joint venture to build 500 gas stations in eastern China's booming Jiangsu province. The deal, details of which have yet to be finalised, matches earlier agreements signed between Sinopec and Britain's BP Amoco and Irving, Texas-based ExxonMobil to each operate 500 filling stations in the eastern provinces of Zhejiang and Fujian, China Daily reported. The agreements, to be realised within three years, came as a result of the three international oil giants' purchase of substantial stakes in Sinopec's 2000 overseas stock market listing, the paper said.

Business Times, Singapore (online edition)

China Daily (online edition)

 

Printing giant Pura plans listing soon

Indonesian printing and packaging company, the Pura Group, intends to list 15% of the company in the near future. With an annual turnover of $170m (Euro168m) and no debts to service. The industrial giant, headquartered in central Java, has been growing at over 20% per annum for the past five years. Jacobus Busono, group founder, owner and president director of Pura, said the cash raised from the listing will fund its expansion into the region and help professionalise the company. Pura is seeking a listing on the Jakarta Stock Exchange later this year or early 2003.

Business Times, Singapore (online edition)

(Some stories may not appear in all editions of the cited news media.)

By: James Dallmeyer
+65 6780 4359

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