Business in Asia Today

Johnson & Johnson sets up HQ in Sydney
SYDNEY - US pharmaceuticals giant Johnson & Johnson will set up its Asia-Pacific information technology (IT) headquarters in Sydney. The New South Wales government said that the company had chosen Sydney over Singapore, and that the move will create 82 high-tech jobs over the next five years and inject A$10 million (US$5.14 million) into the site's Sydney neighborhood.

Korea's Lotte Chilsung to enter wine market
SEOUL - South Korea's Lotte Chilsung Beverage Co has announced plans to advance into the domestic wine market with the launch of three wine varieties in March under the "Song Blue" brand name. The wines were produced in France on an original equipment manufacturing (OEM) basis and will be sold via Lotte Group's retailing networks, including Lotte Hotel and Lotte Magnet. The move is timed to correspond with the upcoming 2002 FIFA World Cup finals and signals the company's intention to become a comprehensive liquor company.

Northwest Airlines ties up with CITIC Industrial Bank
BEIJING - Northwest Airlines, the world's fourth-largest carrier and CITIC Industrial Bank have announced the formation of a marketing alliance for the benefit and convenience of travelers from China to the United States. Northwest Airlines will offer bonus miles in its award-winning frequent flyer program to US visa holders who use CITIC Industrial Bank's visa application service and fly Northwest between March 1 and December 31. The program is the first of its kind in China.

Japan's Kirin to buy brewer of Chinese liquor
TOKYO - Kirin Brewery Co (TSE:2503) plans to acquire a 99 percent stake in Ei Sho Gen Co, a brewer of Chinese liquor, from Oji Paper Co (TSE:3861) in April for an estimated 6 billion yen (US$45.54 million). The deal will enable Kirin to widen its product line beyond its mainline products - beer and low malt beer. The company, which also makes and markets health foods, has equity capital of 90 million yen and posted 5.1 billion yen in sales for the year ended March 2001. Kirin will own major production and sales rights and facilities, including a plant that holds a liquor production license in Fukaya, Saitama prefecture.

Australia's Xenome teams up with Ionix Pharmaceuticals
MELBOURNE - Australian biotech company Xenome Ltd, whose major shareholders include Medica Holdings Ltd (ASX:MCA) and Biotech Capital Ltd, will team up with European analgesic drug group Ionix Pharmaceuticals on the design, synthesis and screening of toxins and derivatives. Ionix will screen Xenome's synthesised libraries of toxin peptides to identify compounds that may allow for the construction and modelling of new forms of drugs for chronic pain. The two companies will also collaborate on the use of their computational chemistry, medicinal chemistry and pharmacology resources to design a series of peptide and non-peptide drugs.

Taiwan's TSMC to ally with Philips, STMicroelectronics
TAIPEI - The Taiwan Semiconductor Manufacturing Corp (TSMC) (TAIEX:2330) will cooperate with Royal Philips Electronics NV and STMicroelectronics to develop and produce system-on-chip products based on the 0.065-micro process. The Geneva-based STMicroelectronics plans to set up a research and development center in Italy to advance the 0.1-micro process technology, while TSMC will move its 12-inch wafer foundries in the Hsinchu Science-based Industrial Park to 0.1-micro processes in the fourth quarter of this year. The three electronics giants hope to share the capital risk involved in developing 0.1-micro and below processes.

India's Wipro to set up global center for Corona Networks
BANGALORE - Wipro Technologies, the global information technology (IT) services division of Wipro Ltd (BSE:WIPR), will set up a Global Development Center for US-based Corona Networks under a new agreement. Wipro will help the Corona engineering team implement features for their new network-based edge aggregation Internet provider (IP) service platform, as well as providing support for future product development.

Philippines' Digitel to launch mobile phone services
MANILA - Digital Telecommunications Philippines Inc (Digitel) has announced plans to launch mobile phone services in the last quarter of calendar 2002 with the rollout of its cellular sites. Digitel plans to have at least 1 million subscribers within three years of operation.

Korea's KTF signs roaming contract with China Mobile
SEOUL - KTF, Korea's second biggest mobile telecom carrier, has signed a contract with China Mobile, the largest mobile phone operator in China, to provide an international automatic roaming service from next month. Under the arrangement, subscribers from the two mobile telecom carriers can use their current numbers in both countries just by inserting a subscriber identity module (SIM) card into their handsets or renting roaming-enabled mobile phones.

Australia's Kaz wins Xantic outsourcing contract
SYDNEY - Australia's Kaz Computer Services has been granted its first international outsourcing contract by broadband satellite communications giant Xantic. Under the three-year contract, it will roll out Xantic's global Standard Operating Environment in 16 countries, after which it will provide around-the-clock support desk, procurement, asset management and technical services.

Japan's Sharp to launch new Zaurus PDA
TOKYO - Sharp Corp (TSE:6753) plans to launch on March 15 a new version of its popular Zaurus PDA (personal digital assistant) that includes a digital camera to appeal to users in their 20s and 30s. The 310,000-pixel camera can take, store and display about 80 full-screen still shots or about 20 seconds of full-motion video. Memory can be expanded with SD or CompactFlash memory cards. Users can also transmit the photos from the PDA via the Internet using a card-shaped PHS (personal handyphone system) device.

India's NIIT in agreements with German firms
NEW DELHI - Information technology (IT) company NIIT (BSE:NIIT) has entered into agreements with various software companies in Germany for the design of the next version of "Robopop". NIIT will co-develop the next version of the flagship product of Europop AG, a middleware tool for the rapidly growing Application Software Providers (ASPs) and Internet Service Providers (ISPs).

Fairchild Semiconductor builds facility in China
SUZHOU, China - Fairchild Semiconductor International announced that it has begun construction of a new 800,000 square foot manufacturing and automated warehouse facility here. The plant will be a state-of-the-art assembly and test facility to manufacture a broad range of logic, discrete and analog products. It will produce products for both the local China market and for export to the rest of Asia, Europe and the Americas.

Jupiter subsidiary to build Bluestar hotels in China
BEIJING - Jupiter Enterprises Inc announced that its subsidiary MingHe-Han S & T Co of Beijing has been contracted by National Bluestar Corp of China to build the first location of a new national hotel chain. The Bluestar hotel chain, launching with an eye to the 2008 Olympics, will be targeted at budget-minded travelers in China. The first construction will break ground April 1 in central Beijing.

Taiwan's high-speed railway on schedule
TAIPEI - Taiwan High-Speed Rail Corp (THSRC) said that the island's first high-speed railway will open to traffic in October 2005 as scheduled, although construction is presently behind schedule.

Australia's Downer EDI beefs up services
SYDNEY - Infrastructure and engineering company Downer EDI Ltd (ASX:DOW) has beefed up its mine drilling and blasting services through a deal with a South African company. Downer EDI, Australia's second largest listed engineering, infrastructure and resource services company, announced that Sasol Chemical Industries Ltd of South Africa had acquired a 50 percent share of its Roche Blasting Services Pty Ltd for an undisclosed sum.

Philippines' Dumaguete port project on hold
MANILA - The Philippine Ports Authority (PPA) recently disclosed that it is not pushing the implementation of the Dumaguete port project, including the construction of a fast ferry terminal and reclamation of 1.3 hectares. The project, costing some P130 million (US$2.55 million), is part of the Dumaguete Port Development Plan (DPDP).

BHP Billiton sees room for coal consolidation
CANBERRA - Miner BHP Billiton Ltd (ASX:BHP) said that there are still opportunities for further consolidation of the coal industry. Asked if there is a likelihood of further merger activity, BHP Billiton carbon steel materials president Bob Kirkby said: "We think the iron ore industry is just about there, the coking coal industry may undergo some further consolidation and the manganese business ... is pretty consolidated."

Korea's KEPCO to spin off power distribution sector
SEOUL - The power distribution sector of the Korea Electric Power Corp (KEPCO) will be spun off into six new companies, while restructuring will continue to be pushed on a number of other key industries including petrochemicals, electric furnaces and synthetic textiles. Commerce, Industry and Energy Minister Shin Kook-hwan said that the ministry will do all it can to spur economic growth as early as possible in alliance with business organizations. The ministry will especially focus on expanding exports and facility investments.

China's CCB grants Huaneng Power credit facility
BEIJING - Huaneng Power International Inc (SSE: 600011) has signed an agreement with the China Construction Bank (CCB) granting the company a 5 billion yuan (US$604 million) credit facility that will provide strong financial support to the company for its future development, Huaneng said.

Australia's Tap Oil to propose merger with ARC Energy
SYDNEY - Tap Oil Ltd (ASX:TAP) has announced plans to make an offer for all the shares in ARC Energy Ltd as the first step in a merger deal. Tap intends to offer one Tap share for every four ARC shares.

Taiwan's nuclear waste to be shipped via third port
TAIPEI - If Taiwan Power Co (Taipower) wants to transport its nuclear waste to mainland China for permanent disposal, the waste has to be shipped via a third area, Mainland Affairs Council (MAC) Chairwoman Tsai Ing-wen said. She noted that direct shipping links with mainland China are not yet permissible and that there will be no exception for Taipower, even though the power company is owned by the state.

India's Essar in deal with rival Reliance
NEW DELHI - Essar Shipping (BSE:ESRS) has grabbed a contract for freighting crude oil from Iran to Jamnagar in Gujarat for the group's refining rival Reliance Petroleum (BSE:RLPT), a deal that would help the shippers earn US$600,000 a month. Essar Shipping, a part of Essar group that is coming up with a 10.5-million-tonne refinery in Gujarat adjacent to Reliance's 27-million-tonne refinery, has been given a charter to freight 1 million tonne of crude from the Iranain coast.

Singapore's Federal wins US$3 m contract
SINGAPORE - Federal International (2000) Ltd (Federal) (SGX:FEDERAL) announced that its subsidiary, Federal Hardware Engineering Co Pte Ltd, has secured a contract worth US$3 million from PT Gunanusa Utama Fabricators. Federal, an established regional flowline control products distributor and service provider in the oil and gas and related industries, said that under the deal it will act as a procurement agent for Gunanusa with regard to its Tunu North Oily Water Treatment project for Totalfinaelf E&P Indonesie.

Australia's EDL posts 7.2% rise in profit
PERTH - Renewable energy company Energy Developments Ltd (EDL) (ASX:ENE) has said that it is considering suspending future dividend payouts in favor of new investment opportunities. EDL reported a 7.2 percent increase in after-tax profit to A$9.5 million (US$4.93 million) for the six months to December 31, compared to A$8.8 million for the corresponding period the previous year.

Seoul steps up efforts to privatize banks
SEOUL - The Korean government has decided to sell 51 percent of Cheju Bank's equity to Shinhan Financial Holding Co by the end of March, in an effort to expedite the privatization of state-held banks. The state-run Korea Deposit Insurance Corp (KDIC) will finalize the ongoing negotiations on the sales terms for the Cheju Bank shares before the end of March when an annual Cheju Bank shareholders meeting is scheduled.

Bank Negara Malaysia releases figures
KUALA LUMPUR - Bank Negara Malaysia's international reserves at the end of January 2002 amounted to US$30.9 billion, comprising official reserve assets of $29.98 billion and other foreign currency assets of $951.99 million. The central bank said that the predetermined short-term net inflow of foreign currency loans, securities and deposits projected for the next 12 months is $165 million.

Australian union calls for investigation into Tesna
MELBOURNE - The Australian Council of Trade Unions (ACTU) has called on leading barristers to investigate a class action against the Tesna syndicate after it withdrew its bid to buy Ansett at the 11th hour. ACTU boss Greg Combet has met with barrister Josh Bernstein, who assisted unions during the 1998 waterfront docks dispute, and Jonathan Beach, QC, to discuss legal options against Tesna bosses Lindsay Fox and Solomon Lew.

Manila Airport approach radar to be completed
MANILA - The rehabilitation approach radar facility of the Ninoy Aquino International Airport, the country's major international and domestic gateway, will be completed by the end of March. The Japanese Grant-Aid project, amounting to 1.9 billion yen (US$14.25 million) will rehabilitate NAIA's aging approach radar control system, which lacks spare parts and has experienced frequent problems.

Japan's Mitsubishi Motors sets up German unit
TOKYO - Mitsubishi Motors Corp (TSE:7211) announced plans on April 2 to establish a new sales subsidiary in Germany. The company will dissolve its existing sales operations in Germany, which it manages together with a local partner, and the new subsidiary will take over the 380 employees and sales rights. Mitsubishi had only a 15 percent stake in the old firm. Performance has been slumping in Europe and Mitsubishi itself aims to take charge of sales in Germany, a key market.

Philippines' TRM endorses AICO-Honda deal
MANILA - The Tariff and Related Matters (TRM) technical committee has endorsed the granting of preferential tariffs for the ASEAN (Association of Southeast Asian Nations) Industrial Cooperation (AICO) projects of Honda Cars Philippines Inc (HCPI) with their sister companies in Thailand, Malaysia and Indonesia, which are expected to generate US$45.46 million in total annual trade. Trade and Industry Secretary Manuel A Roxas, who is chairman of the TRM technical committee, said that the body has approved the drafts of three executive orders for cabinet approval.

(Asia Pulse)