Deal

Schenker official partner of Beijing Olympics

Schenker was named by the Beijing Organising Committee for the Olympic Games (BOCOG) as the official forwarding and customs clearance supplier of the Beijing 2008 Olympics. Schenker has worked for previous Olympic Games including Athens 2004 and Torino 2006 Winter Olympics, and has been the official supplier to the International Olympic Committee since 2003. "We are pleased to welcome Schenker to join the elite sponsor group of the Beijing Olympic Games," commented Yuan Bin, director of BOCOG's marketing department. "We recognize the rich experience that Schenker has developed over previous Olympic Games events, and we look forward to that knowledge and experience contributing to the success of the Beijing Olympic Games." Matthew Clarke, project director for the Schenker Beijing 2008 Olympic team, said, "With the 2008 Olympic Games fast approaching, we are ready to take on the challenges of what will be the world's greatest sporting event and a great success for Schenker in China. We have the infrastructure and the experienced personnel to step up to the challenge."

Schneider signs JV agreement

Schneider Electric and Delixi Group signed an agreement to form a joint venture in Wenzhou, Zhejiang province, that will manufacture, market and distribute low-voltage products. The products will be manufactured and sold under the Delixi brand and distributed by its network of 1,500 dealerships across China. The JV will be split equally between the two companies, and is expected to generate revenues of about ?220 million in 2007. According to Jean-Pascal Tricoire, chairman and chief executive officer of Schneider Electric global, China is the company's third-largest market. "I believe in two years China will be our second-biggest market, surpassing France, and only behind the United States," he said. The China market currently contributes 8 percent of Schneider Electric's total global turnover. Delixi Group is a major electrical distributor in China and employs approximately 14,000 people across the country.

BASF acquires China's Hi Con

BASF's wholly owned unit BASF Construction Chemicals (Sichuan) Co Ltd has acquired Hi Con Concrete Admixture Ltd, a major producer of concrete admixtures in China. "By acquiring Hi Con in China, BASF will be able to provide the most recent technologies from a local production site close to our customers in a rapidly developing market," said Dr Boris Gorella, head of the Regional Business Unit Construction Chemicals Asia Pacific. "This step also increases our ability to react quickly to local market demands." BASF operates six production plants for construction chemicals and 12 branch offices in China. The acquisition is part of BASF's continuing growth strategy in China. In 2005, it acquired the assets of Beijing Xinzhuang Huiqiang Admixture Company. Dr Karsten Eller, Vice President responsible for acquisitions, said, "We use selected acquisitions as well as investments into new production plants to improve our geographical coverage of the whole Chinese admixture market. This strategy has made us the only true national player in China."

Tesco raises stake in China

Tesco announced it has increased its share in its Chinese joint venture with Ting Hsin, the operator of Hymall supermarket chain, to 90 percent. It spent US$351 million on the deal. Tesco took a 50 percent share in Ting Cao, the wholly owned subsidiary of Ting Hsin, two years ago. Terry Leahy, Tesco's chief executive, said "We have seen exciting growth in China since announcing the joint venture two years ago and are looking forward to the partnership entering a new phase."

Launch

Deutsche Bank agrees to coal mining JV

Deutsche Bank AG has agreed to set up a coal mining joint venture with Korea Electric Power Corp (KEPCO) and Shanxi International Electricity Group. The JV will be worth US$1.28 billion, 19 percent of which will be contributed by the German bank. KEPCO will invest 34 percent of the money and Shanxi International the remaining 47 percent. The JV will develop nine mines in Shanxi province over the next 50 years and will buy 24 Chinese power plants with a total capacity of 9,330 megawatts.

Aker Kvaerner completes major PTA plant

Norwegian petrochemical firm Aker Kvaerner has completed a purified terephthalic acid (PTA) plant for Zhejiang Hualian Sunshine Petro-Chemical. Aker Kvaerner provided the engineering design and offshore material and equipment for the plant which is currently operational in Shaoxing, Zhejiang province. PTA is the raw material used to make polyester fibres, tyre cord, resins and film, and Aker Kvaerner has worked on more than 20 PTA plants over 20 years. "Aker Kvaerner is the most experienced contractor in the execution of PTA projects using the INVISTA technology, and we are proud of yet another successful achievement in China,' said Wim van der Zande, President of AK Process. "Combined with Aker Kvaerner's Project Execution Model, our extensive technical expertise and local knowledge allowed us to address the project challenges to ensure a successful project for Zhejiang Hualian Sunshine." Dong Binggen, president of Zhejiang Hualian Sunshine, commented "Having increased our PET (polyethylene terephthalate) capacity in 2005, we see this successful PTA project as a platform for further developments."

Standard Chartered approved to launch RMB services

Standard Chartered was one of nine foreign banks to receive approval from the China Banking Regulatory Commission to provide RMB services to local customers. The eight other lenders are Bank of East Asia, HSBC, Hang Seng Bank, Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ Ltd, DBS Bank, Citigroup and ABN AMRO. Under the agreement announced at the end of December last year, all nine banks must register their operations in Shanghai. Katherine Tsang, CEO of Standard Chartered Bank, China, said: "Successful local incorporation will enable Standard Chartered to provide its clients with a larger product suite as well as a wider array of financial services. We are delighted with this progress as we are keen to become a local entity formally in China." Rules introduced in early December 2006 encouraged foreign banks to incorporate locally when doing RMB retail business to minimise risks for Chinese customers. The banks' combined assets account for 55 percent of the total foreign banks in China, and they contribute 58 percent of the total profits for foreign banks in China.

Danone, Mengniu form dairy JV

Danone signed an agreement with China Mengniu Dairy Company to set up a JV for the production and distribution of fresh dairy products in China. Danone will hold a 49 percent stake in the venture and Mengniu 51 percent. The two firms said low per capita consumption in China means that the market for dairy products still has considerable room for growth. Mengniu, which develops liquid milk, ice cream, milk powder and milk tablets, is the market leader in milk production in China and has an extensive distribution and sales network, with 20 plants in 15 provinces.

Opening

Re-branded Sheraton opens in Ningbo

The newly re-branded Sheraton Ningbo Hotel has opened in the capital of Zhejiang province. Formerly known as the Portman Plaza Ningbo Hotel, the new hotel has 380 rooms, seven food and beverage outlets, a Zenses Spa and 11 convention and meeting rooms - the largest of which can hold 400 people. The glass pyramid roof, inspired by the Grand Louvre Museum, overlooks a fountain-centred plaza below which is home to the widest indoor water cascade in China. It is the first upscale international hotel to open in the city. "We are very excited about the opening of Sheraton Ningbo Hotel and are delighted to have the Sheraton flag grace this stunning property," commented Mr Qian Jin, Area Managing Director for Starwood hotels in Greater China. "Sheraton will bring to this re-branded hotel the renowned hospitality that the Sheraton brand is known for. We are eager to extend our warm Sheraton welcome to guests travelling to Ningbo." Ningbo is a major business hub in China and its fourth-largest port. It is soon to be connected to Shanghai by the Hangzhou Bay Bridge which will have the longest sea-crossing span in the world.