Companies at a glance

Media alliance proposed

Japan's telecommunication and media group Softbank Corp said recently it has agreed in principle to form a comprehensive business alliance with Shanghai Media Group Inc (SMG), China's second-largest media company, to become partners in video distribution and entertainment businesses. Softbank is considering distributing SMG's television programs through its Internet and mobile phone networks in Japan and other countries, Kyodo News reported.

The company reported it also wants to air Japanese cartoons and other television programs on SMG's satellite digital broadcasts.

Cross-straits partnership

Carmakers based on the mainland are ready to do business in Taiwan. Geely Automobile Holdings Ltd, a private carmaker based in Zhejiang province, became partners with Yulon Motor in Taiwan to launch its mini-sedan model called the Panda. The Panda will be sold in Taiwan through CKD exports and via localized production by Geely's partner, Yulon Motor. Chery Automobile, another leading private automaker on the mainland, plans to enter the Taiwanese market before the end of 2009, the company said.

Chery A3, a sedan that has sold well on the mainland, will be the first Chery make to debut in Taiwan.

Help for ailing airline

East Star Airline, a debt-laden private carrier based in Wuhan, Hubei province, is expected to receive more than 500 million yuan to help the airline resume operations, local authorities said. The carrier was shut down more than three months ago. Shanghai Yu Field Industrial Co, Ltd will lead a group of investors with its 85 percent stake in the East Star funding. East Star began bankruptcy proceedings on March 30 after six creditors sent applications for its bankruptcy, according to the Communications Commission of Wuhan.

The funding deal is pending approval from the local court and creditors, said commission spokesman Qin Shizhang,

Major ship building order

China's largest private shipbuilder, Jiangsu Rongsheng Heavy Industries Co, won a $484 million order to build four vessels for Oman Shipping Co. The deal was the biggest foreign order received by a Chinese shipyard this year. The largest domestic shipbuilding order this year was the $2 billion order won by Zhoushan Jinhaiwan Shipyard Co Ltd from a Chinese shipping company.

The vessels being built for Oman Shipping Co will be delivered by early 2012. Despite the large orders, industry analysts said the deals are not a sign of a recovery in the country's shipbuilding industry.

Crossover cooperation

China National Heavy Duty Truck Group Co, also known as Sinotruk, and Sinopec Group signed a strategic partnership agreement recently in Beijing to jointly promote technology development and overseas market expansion strategies.

According to the agreement, a joint laboratory will be established to research and develop clean gasoline, diesel and lubricants, as well as special vehicle applications for the chemical industry. The two companies will also share their distribution networks to further expand in domestic and international markets. "As a fuel provider, Sinopec will maintain close cooperation with the automobile industry in technology upgrades and emission regulations," Su Shulin, general manager of Sinopec, said.

(China Daily 07/06/2009 page7)