IN BRIEF

Chemicals

Henkel aims to stick with adhesives

Henkel AG of Germany has begun building the world's largest adhesives factory in Shanghai.

The project is part of a strategy to handle rapidly growing demand for adhesives in China. When the factory is completed and working at full capacity it is expected to produce 428,000 tons of adhesives annually.

Located in the Fengxian district of Shanghai, the plant covers 150,000 square meters and will require a total fixed-asset investment of 50 million euros.

The first batch of finished products is due to be shipped from the plant late next year.

Automation

ABB sets up production plant in Shanghai

ABB Group, the power and automation technology group, has opened a global manufacturing base in Shanghai.

It will produce the company's advanced "green" marine-propulsion system, in response to surging demand in the world's biggest shipbuilding country.

The base is one of four dedicated to making electrical propellers that deliver thrust in any direction and help reduce the fuel consumption of vessels by as much as 25 percent.

Healthcare

Philips aims to expand in China

Royal Philips Electronics NV plans to expand its healthcare business in China's rural areas, a market seen as a new driver of growth for the Dutch multinational group.

"We will increase efforts to deepen our presence in the countryside markets to maintain sustainable development in China, a huge market where we have achieved good performances in the high-end field," said Lu Yiqi, strategic marketing director at Philips Healthcare Greater China.

Philips and two other foreign companies, Siemens AG and General Electric Co, now hold a combined share of more than 70 percent of China's premium healthcare market, according to the news website Yicai.com.

Trade

Weak world conditions to curb growth

China's foreign trade is unlikely to grow as fast this year as it did last year because of weakening global demand and rising costs, Vice-Minister of Commerce Jiang Yaoping said on Aug 23.

The country's trade grew by 34.7 percent last year.

"China's imports and exports will be seriously influenced, as the global economy's growth momentum is weakening under various pressures, including the spreading debt crises and increasing inflationary pressure," Jiang told a news conference.

German group drawn by vehicle ambitions

The German logistics service provider BLG Logistics Group has entered the Chinese market by setting up a local joint venture with CINKO Supply Chain Management Co Ltd of Beijing. It says it sees a promising future in the world's largest vehicle market.

The 50-50 venture, BLG CINKO Autotec, will provide services for Chinese vehicle exports as well as imports of foreign cars.

Securities

Firms look to Europe for money

Chinese companies are turning to the European market to raise funds as the door to the US market for initial public offerings is almost blocked to them, China Securities Journal reported.

Four Chinese businesses were listed on Prime Standard of the Deutsche Boerse exchange in the first seven months of this year, bringing the total to eight.

Chinese companies, despite possessing little knowledge about IPOs in Europe, are still turning to Germany and Britain, Zhang Lan, an analyst with Zero2IPO Research Center, said.

The two countries are considered pillar economies in Europe with stable environments and strong economic resilience.

Survey

Chinese consumer confidence slips

Chinese consumer confidence slipped 3 points to 105 in the second quarter. It is the first decline this year and comes amid concern over growing inflation, according to a report by The Nielsen Co issued on Aug 23.

Despite the decline, China continues to enjoy solid consumer confidence compared with other countries.

Consumer confidence levels above and below a baseline of 100 indicate varying degrees of optimism and pessimism.

Global consumer confidence declined to its lowest level in six quarters as the economic recovery hit a block and with fears of recession worldwide.

Data

Manufacturing set to shrink in August

China's manufacturing may contract in August as the world's second-biggest economy weathers slumping global confidence.

A preliminary reading of 49.8 for a manufacturing index issued by HSBC Holdings PLC and Markit Economics on Aug 24 compares with a final reading of 49.3 for July. The final August number is due on Sept 1. A reading below 50 indicates a contraction.

The data suggest that growth in China is moderating rather than collapsing and the slide in the index in July may have been a blip, HSBC said. Investors are focused on the outlook for the nation as US growth falters and European officials grapple with a debt crisis.

China Daily-Agencies