DLA Piper appoints partner to Shanghai office

Henry Wang joined DLA Piper in July of this year. Wang, an expert in foreign direct investment, mergers and acquisitions and dispute resolution, has more than 14 years experience representing multinational companies expanding in China. He has particular expertise in China's automotive industry from his previous position at Shanghai GM Automotive Company Ltd. DLA Piper has more than 100 lawyers in China and following the official opening of its Beijing office in June 2006, is one of the largest international law firms in the country. It identifies foreign direct investment as a key priority based on the growing demand of foreign companies searching for investment opportunities in China.

Accor launches Accentiv' China

Accor Services, a global leader in HR and marketing solutions, announced the launch of its relationship marketing agency in China, Accentiv' China. The new company, which has offices in Beijing and Shanghai, will be led by teams of mixed foreign and local relationship management professionals and aims to improve its clients' business results by creating valuable relationships with their customers. Services offered by Accentiv' include loyalty and incentive campaign consulting, design and management which are all tailored to Chinese market requirements.

Fiat to open new plant in Chongqing

Fiat announced plans to establish a new plant in Chongqing as part of a joint venture between its Iveco truck unit, China's SAIC Motor Corporation Ltd and Chongqing Heavy Vehicle Group Co Ltd. Fiat will invest EUR120 million in the plant, of which EUR40 million will come from Iveco. Iveco considers China "a priority market because of its size, its rate of growth and competitive costs". Production volume of heavy vehicles is expected to rise from 15,000 to 40,000 in the medium term. The plant will assemble vehicles based on Iveco's heavy truck model Stralis, with improvements aimed at the local Chinese market. "Products will be developed that will have a better mix of technology and Chinese and European local components," Fiat said.

Aviva-COFCO approved for Hunan branch

Aviva announced it has been granted regulatory approval for its joint venture company, to set up a branch in Changsha, Hunan province. Aviva-COFCO, which is a partnership between Aviva, the world's sixth-largest insurance group, and Chinese food trader COFCO, already has branches in 12 cities in China. It plans to achieve an "average 10 percent market share in 10 provinces or municipal cities by 2010". The JV was established in Guangzhou in 2003 with a registered capital of RMB500 million. Charles Anderson, regional managing director of Aviva Asia, said the approval for the Changsha branch was in line with the company's "longer-term strategic growth ambitions for China" and "further extended their reach into China's growing market".

Autoliv increases stake in NHA

Autoliv increased its stake in Nanjing Honggouang -Autoliv Safety Systems Co Ltd (NHA) from 50 percent to 70 percent. The Swedish auto safety systems maker took management control over NHA in 2004, but the ownership interest did not change. The company operates seatbelt, airbag, steering wheel and safety electronics plants in Shanghai (which largely exports to Australia and Korea), Changchun and Guangzhou. Major customers include Peugot/Citro?n, Volkswagen, General Motors, Ford and Mazda. NHA is one of Autoliv's nine operations in the country. China's passenger vehicle production is expected to almost double by 2008 to exceed 5 million vehicles.

Nokia wins deal for Hunan

Nokia won an order contract from Hunan Mobile Communication Co Ltd to upgrade Hunan's GSM network, improving the province's network coverage. The deal includes Nokia's supply of its MSC Server mobile softswitch to four cities in Hunan and a full range of services including network integration, commissioning and training. General Manager of Hunan MCC Zhang Baowei said Nokia's advanced GSM network would enable it to "better utilize network resources, reduce costs and bring state-of-the-art services" to its customers. Nokia reported that the system had already been installed and was operational. The global telecommunications company supplies over 20 provincial customers in China and has installed 20 million lines nationwide, making it a leading GSM network provider to the Chinese market.

Metro opens first store in Beijing

A decade after first entering the mainland Chinese market, Metro has opened its first store in the capital as part of its cooperative venture, Metro Jinjiang Cash & Carry Co Ltd. The German retailer will invest US$75 million in setting up four stores in Beijing and plans to build a logistics and distribution centre in Beijing to serve as its logistic centre in north China. Metro will speed up its business expansion in China in the next five years, with the opening of six to 10 new stores each year. So far, it has set up 31 stores in 27 Chinese cities, (11 are in Shanghai) with four sales regions in north, east, south and central China. Du Sizhe, president of Metro Jinjiang Cash & Carry, said that China will become a key destination of Metro's global investment in the future.

BP builds China's largest PTA plant

BP has begun construction of China's biggest purified terephthalic acid plant in Zhuhai, Guangdong province, as part of its JV with Fu Hua Group. The plant, expected to be completed by the end of 2007, will have a capacity of 900,000 tonnes a year, increasing the combined capacity from the Zhuhai site to 1.4 million tonnes per year. "Zhuhai #2 will provide competitive feedstock for the Chinese polyester and textile industry, particularly those located in south and central China," said Paul Lo, president of BP Zhuhai. In China, 90 percent of PTA production is used in the textile industry. The plant needs less energy to operate thereby reducing green-house gas emissions and liquid waste discharges. Over 50 percent of material and equipment for its construction will be sourced within China.

Air Liquide signs Tianjin Joint Venture

Air Liquide, a supplier of industrial gases to industries, has created a joint venture with Tianjin Soda Plant, a subsidiary of the Tianjin Bohai Chemical Industry Group, in July. The French company will initially invest US$100.7 million in the new company to hold a 55 percent stake, while Tianjin Soda Plant will hold the remaining 45 percent. The joint venture company will install two large air separation units (ASUs) each with an oxygen capacity of 2,000 tons per day which will begin operating by the end of 2008. The units will supply Tianjin Soda, a producer of soda ash and fertilizers, and other customers in the Lingang Industry Park in Tianjin. Air Liquide will market the liquid oxygen, nitrogen and argon produced by the new ASUs. Jean-Pierre Duprieu, member of the Executive Committee of Air Liquid, said the venture was "another major step in Air Liquide's commitment to develop in the fast growing Tianjin basin".