Big Deal

Big Deal

Jan 11, 2017

Damac Holdings recently announced that it plans to invest US$2.7 billion to establish a presence in China.

The Dubai-based company plans to build towers, offices, a hotel and a marina on a plot overlooking Tianjin Port, near the city's Tanggu district. It will be the first of several projects Damac Holdings is planning in China. Its business covers manufacturing, securities brokerages, catering and education.

Share purchase

Taiwan's High-Tech Computer Co said last week on its website it had signed a memorandum to buy at least 50 per cent of Wuhan-based Dopod Communications Co.

High-Tech Computer, the biggest smartphone manufacturer in the world, will pay up to US$150 million for the shares in Dopod, which mainly produces high-end smartphones. Exact details and the proportion of the stake have not yet been determined, however.

New plant

Sweden-based ESAB, a world leading welding and cutting equipment manufacturer, said last week it will invest US$30 million to build its first welding wire plant in China.

Located in Zhangjiagang, East China's Jiangsu Province, the plant is expected to annually produce 40,000 tons of solid wires for welding processes from its opening next month. ESAB wants to increase its market share in China from the current 1 per cent to 10 per cent in the next five to ten years.

3G collaboration

Leading domestic integrated circuit firm Vimicro and top mobile phone manufacturer Ningbo Bird have agreed to collaborate with each other on the technological development of third generation (3G) multimedia information terminals.

The 60 million yuan (US$7.5 million) investment will be the largest of its kind in China, with 40 million (US$5 million) being directed at chip design for mobile phones. Sales volume is expected to eventually account for 20 per cent of the domestic market.

Brewery sale

Foster's Group Ltd, Australia's biggest beer and winemaker, said last week it would sell its Shanghai brewery to Japan's Suntory Ltd, as part of the company's withdrawal from global production to focus on its more profitable domestic beer and global wine units.

Its Shanghai brewery is its last brewery on the mainland. Foster's will also sell its local Chinese brands to Suntory, for an undisclosed amount. Under the deal, Foster's will retain ownership and distribution rights for its namesake beer and other international brands in China.

TV series

Shanghai Media Group said recently it would launch an interactive TV project with Beijing Jingdu Century Culture Development Co, to explore potential opportunities in the interactive TV market.

Beijing Zhongbei TV Art Centre Co, the programme's production house, believes the project will be the first of its kind on the Chinese mainland, but refused to reveal the title or other details, except that it would be "a modern-day drama". The pilot episodes are expected to begin production in August.

Stake increase

TCL Corp said last week it plans to increase its stake in its TV assembly joint venture in the Philippines, as part of a strategy to become the dominant brand in the country.

It hopes to enlarge its stake share in the venture from 50 per cent to as much as 80 per cent within the year. The venture, TCL Sun Inc, imports semi-knocked down appliance kits from China, Thailand, Malaysia and Viet Nam and assembles them for the Filipino market.