IN BRIEF (Page 24)

Zambia, Chinese firm seal railway deal

Zambia signed a deal with a Chinese company on Nov 2 for the construction of a new railway that will enhance transportation in the southern Africa nation. The 388-kilometer line, to run from the eastern town of Chipata to the central town of Serenje via Petauke, will be constructed by state-owned China Civil Engineering Construction Co at a cost of $2.3 billion within a four-year period. "This project aims at enhancing regional trade and transport competitiveness by providing an alternative trade route to the East Coast of Africa via the Port of Nacala in Mozambique," Minister of Transport and Communications Brian Mushimba said at a signing ceremony in Lusaka, the country's capital.

Fruit trade with South Africa boosted

The China Entry-Exit Inspection and Quarantine Association and Fruit South Africa signed a memorandum of understanding on Oct 31 to broaden the fruit trade between two countries. The memorandum covers a wide variety of products, including apples, pears, grapes, citrus and subtropical fruits, according to Mashudu Silimela, agriculture counselor at the South African embassy in Beijing. Willem Bestbier, chairman of FruitSA, says signing the memorandum will create a favorable environment for the development of the fruit trade between the two countries, and establish an effective cooperative mechanism between FruitSA and the association.

Huawei signs two deals with Cambodia

Chinese technology giant Huawei signed two memorandums of understanding with Cambodia on Nov 2 to support information and communications technology education in the country. "Under the MoU called 'Seeds for the Future', outstanding students will have an opportunity to pursue their studies in China," says Xiong Bo, Chinese ambassador to Cambodia, who presided at the signing ceremony. "The two deals will significantly contribute to developing human resources in ICT in Cambodia."

Evergrande in talks to buy British Cala

China Evergrande Group, the country's second-largest property developer, is in "early stage" talks to buy Cala Homes, a person familiar with the upmarket British residential builder says. Cala Homes, based in Edinburgh, Scotland and owned by insurer Legal & General and real estate manager Patron Capital, was being advised on the offer by investment bank Lazard, its long-term adviser, the person said. Sky News, which first reported on the approach, says Evergrande's offer could be worth close to 700 million ($856 million; 772 million euros).

Stamp exhibition set to open in Nanning

The China State Post Bureau announced on Nov 2 in Beijing that the China 2016 Asian international stamp exhibition will kick off in December in Nanning, Guangxi Zhuang autonomous region. The exhibition includes a stamp competition as well as cultural and economic exchange events between countries. Organizers say that dozens of countries and regions will take part. Guangxi is a hub that links China with Southeast Asia. Experts say the event was part of wider efforts to promote the Belt and Road Initiative.

CCB acquires banking license in Malaysia

China Construction Bank acquired a commercial banking license from the Malaysian Ministry of Finance, the country's central bank, Bank Negara Malaysia, says in a statement on Nov 1. The newly established bank, called China Construction Bank (Malaysia) Berhad, or CCB Malaysia, will be operated as a wholly owned subsidiary of CCB Corp, the statement says. The granting of the license was based on CCB's prudential strength and ability to bring in propositions that were in the best interest of Malaysia, the central bank says.

Volvo, Geely team up on automobile factory

Swedish carmaker Volvo announced on Nov 2 a series of moves to deepen cooperation with its Chinese parent Zhejiang Geely Holding Group - a tie-up that's shaping up to show that China can make a success of buying consumer brands. The two companies will soon start producing cars at a joint assembly plant in Taizhou, Zhejiang province, Volvo says in a statement. The Taizhou plant, operated by Volvo and expected to be up and running in fourth quarter, will produce compact cars based on an "advanced" vehicle architecture the two companies jointly developed in Sweden. Both Volvo and Geely are expected to produce small cars at the plant based on that compact modular architecture platform - for both domestic and export markets.

Chinese delivery company eyes Europe

STO Express became the first major Chinese delivery company to set up its own dedicated fleet of planes and trucks for deliveries across Europe, with the first flight landing in Prague on Nov 2. The company said it wants to grab a quarter of the China-related marketshare from big global delivery firms like DHL, UPS, TNT and FedEx in the next year or two, as its fees are only half theirs. STO Express will now send three cargo flights between Hong Kong and Prague weekly, and its own truck fleet will carry items from Prague to all countries in Europe, including the UK.

Rubber, plastics R&D coming to Qingdao

The world's leading specialist in rubber and plastics technology, ContiTech AG, is joining with Sino-German Ecopark to build a new rubber and plastics R&D and production center in Qingdao, Shandong province. A groundbreaking ceremony was held on Nov 1. With an investment of $75 million, the center is expected to be completed in November 2018 and become the largest rubber and plastics manufacturer in the Asia-Pacific region. Qingdao-based Sino-German Ecopark is the only strategic cooperation park in China supported by the Chinese and German governments.

Deadline extended on offer for Syngenta

China National Chemical Corp said on Nov 1 that it will extend the term of validity of its acquisition offer for Syngenta, the Swiss agribusiness, to Jan 5. In February, ChemChina offered to purchase Syngenta for $43 billion in cash, and the transaction was expected to be closed by the end of this year. According to an EU official, Syngenta and ChemChina had not submitted proposed remedies to resolve potential antitrust concerns related to this acquisition by the deadline. Erik Fyrwald, chief executive of Syngenta, says the materials were late because European regulators were not ready to provide feedback on the types of remedies they might seek. Both companies say they are confident the transaction will close successfully.

Universal Studios park breaks ground

Construction has begun on a $7 billion Universal Studios theme park in Beijing, China state media Xinhua said on Nov 1, as the studio looks to challenge Disney in China's booming leisure market. The complex is expected to open in 2020 and has secured an investment of 50 billion yuan ($7.4 billion; 6.7 billion euros; 6 billion).

(China Daily Africa Weekly 11/04/2016 page24)