IN BRIEF (Page 24)

BYD opens Hungarian electric bus plant

Chinese electric vehicle manufacturer BYD Co unveiled its first European electric bus factory in the northern Hungarian city of Komarom on April 4. Production at the 20 million euro ($21 million; 17.1 million) facility is set to begin within days, according to BYD. The plant will employ 32 people, but BYD plans to expand that to 300. Isbrand Ho, managing director of BYD Europe, said the company was looking to buy more land to expand the production base and eventually increase the number of employees to 600, mostly Hungarians. The factory will produce 200 buses per year at first, with plans to increase output to 400.

China aircraft company buys Airbus planes

China Aircraft Leasing Group Holdings said it would buy two planes from Airbus for $216.8 million (203 million euros; 173.6 million), to meet customer demand in dynamic market conditions. Its leasing company unit, CALC, agreed to buy two Airbus A320-200 Neo Series aircraft, in a deal to be funded by commercial bank loans and working capital, the company said in a filing with the Hong Kong bourse late on April 3. China Aircraft, which now owns and manages 83 aircraft, said the actual purchase price would be lower than the listed price, as Airbus would grant price concessions as per industry practice. The aircraft will be delivered in the fourth quarter of this year.

Gazprom: Chinese will help build plant

Russian gas giant Gazprom said on April 4 that a subsidiary of China Petroleum Engineering & Construction Corp would take part in the construction of a gas processing plant at Russia. It said it would take part in the design and procurement of equipment for the Amur gas processing plant. The plant's capacity is planned at 42 billion cubic meters of gas per year. The gas will be supplied to China.

VW recalls Audis over faulty airbags

FAW-Volkswagen is recalling 23 imported Audi vehicles in China due to a problems in the airbag system, China's quality supervisor said. The recall, starting from April 10, will include 2017 models of the Audi A7, A8L and A4 Allroad, according to a statement by China's General Administration of Quality Supervision, Inspection and Quarantine. Faulty components in the gas generator could lead to malfunctions of the airbag system, the statement said. The company said it would replace the airbags without charge after conducting inspections.

Huawei to support Kenya's ICT Summit

Chinese giant Huawei donated $20,000 (18,700 euros; 16,000) worth of equipment on April 4 to support the ICT Connected Summit 2017, set to take place from April 9 to 13 in the coastal county of Kwale. Huawei Kenya Senior Director for Public Affairs Adam Lane told a media briefing in Nairobi that the funds will be used to sponsor the corporate social responsibility activities of the summit. The beneficiaries of the equipment will also receive scholarships for six weeks' training in ICT skills so that they can find careers in the lucrative sector. The ICT Connected Summit is an annual conference that brings together industry players, key government decision-makers, academia, innovators and other stakeholders to exchange knowledge to help Kenya's social and economic development.

Sinochem planning pre-IPO sale

Sinochem Group, a state-owned oil and chemical producer, has hired investment banks to arrange a stake sale to outside investors ahead of a potential initial public offering, according to sources. The Beijing-based company is seeking to raise funds and to diversify its investor base, the sources said. Sinochem is planning a stock market listing of the entire group in the medium to long term. Sinochem's move is in line with the government's goal of introducing private investors to state-owned enterprises, a process known as mixed-ownership reform, the sources said.

Slovenia, HK sign MOU on wine

Slovenia and Hong Kong signeda memorandum of understanding on April 2 to cooperate in the wide trade. The MOU was signed by Slovenian Agriculture Minister Dejan Zidan and visiting Hong Kong Secretary of Commerce and Economic Development Gregory So, who was hosted by the minister with Slovenian Teran wine, according to a report by the Slovenian Press Agency. Under the MOU, the report said, Slovenia and Hong Kong will work toward facilitating wine trade and enhancing cooperation in that sector. The Hong Kong secretary expressed hope that his visit would result in increased bilateral cooperation, not only in the wine business but other economic investments. His visit comes after Zidan visited China and Hong Kong in November, when Slovenia's wines were presented at the Hong Kong International Wine & Spirits Fair. Hong Kong is the second most important center for wine auctions in the world, after New York.

CICC says Q1 GDP growth might hit 6.9%

China's GDP growth is likely to accelerate to 6.9 percent in the first quarter of the year following a pickup in industrial activity and improving domestic demand, according to a Chinese investment bank. China International Capital Corp said in a research report that GDP growth could quicken from the 6.8 percent reported in the fourth quarter of 2016. CICC expects China's retail sales of consumer goods to increase 10.2 percent year-on-year in March, accelerating from the 9.5 percent rise registered for January-February. Industrial output growth might slow slightly from 6.3 percent in the first two months of the year to 6.1 percent in March, because of a higher comparative base from last year, according to CICC.

Top train-maker scoops up order from India

An affiliated company under China's top train-maker CRRC Corp has acquired a subway train order from Nagpur, India, the company said on April 2. A total of 69 coaches will be produced by CRRC Dalian for subway operations in Nagpur, the largest city in central India, according to an agreement it signed with a local subway company. The trains are for two urban railways in the city with a total length of 38 kilometers. The agreement, signed on March 27, also includes a 10-year train maintenance project. CRRC Dalian received its first train order in May 2015, for 112 coaches for the Calcutta subway. With more cities planning to build urban rail systems, India has become an important potential market for Chinese train-makers.

Volvo reports 7% global growth in first quarter

Volvo Cars reported over 7 percent year-on-year sales growth in the first quarter of 2017, according to a company news release on April 3. The growth puts the company firmly on course for a fourth consecutive record year in retail sales. Strong demand for the new 90 Series cars remains an important factor in Volvo's positive sales performance, while the soon-to-be-replaced XC60 remains the best-selling model overall. An all new XC60 was unveiled at the Geneva Motor Show in March and will start production at the Torslanda plant in Sweden in April. The company's Asia-Pacific region reported sales growth of 16.7 percent in March, boosted by strong performance in China, Volvo's largest market. Sales rose by 20.6 percent in the nation, driven by strong demand for the locally produced XC60 and S60L models, as well as the XC90 and S90.

(China Daily Africa Weekly 04/07/2017 page24)