The Weekly News Update is a weekly roundup of business news from around the Asia-Pacific region, covering Fusion Consulting's core industry practices: chemicals, consumer & retail, financial services, industrial & logistics, information & communication technology, life science and media & leisure. If you have colleagues or friends who may be interested in subscribing, please forward this email to them and copy knowledge@fusionc.com


 
 China's water and wastewater treatment sector
 
 Huge demand exists in China for clean water with ample opportunities for
 investors, water companies or water technology suppliers in the municipal and
 industrial water supply and wastewater treatment market. Market-oriented
 regulatory changes have lowered pricing risk, and opened up the sector.  
 Find out what the needs, solutions and opportunities are.

Industrial & logistics 


India - India auto part makers in China rush
Source: Business Standard, 9 March 2008

India's leading auto component makers such as Talbros, Ashahi Glass, ZF Steering Wheels, GNA Axles, Luxite and Sundaram Brake Linings are exploring the possibility of setting up manufacturing plants in China. Others have also taken their first tentative steps in this direction. Bharat Forge acquired a 52% stake in China's largest foundry unit, FAW Corporation, while Tata Autocomp GY Batteries plans to set up a manufacturing facility in Nanjing.

Apart from reliable infrastructure, a managed yuan that makes exports competitive and a flexible hire & fire labour policy, China also has a huge stockpile of commodities available at competitive rates to companies operating in China. And to encourage domestic production of components, the Chinese government stipulates that a vehicle with more than 40% localisation will attract the MFN general duty of between 8% and 12%. Else they attract as much as 25% duty.


Japan - Honda plans new minicar plant
Source: Bloomberg, 9 March 2008

Honda Motor will spend US$485 million to build a new factory complex in Japan to produce small vehicles as consumers are shifting to less fuel-hungry models. Honda plans to start operating an engine factory in 2009 and assembly lines around 2010 with an annual output capacity of 240,000 vehicles.

Honda is Japan's third-largest maker of small vehicles with an engine capacity of 660 cc or less, after Daihatsu Motor of the Toyota group and Suzuki Motor. Demand for smaller vehicles, which account for more than one third of Japan's automobile sales, is rising due to higher fuel prices. Honda also aims to use the new facilities to build up expertise in producing low-cost, high-quality small vehicles to sell in emerging markets in the future.


Thailand - SUS makes long-term investment plan for Thailand
Source: Thai News Service, 11 March 2008

SUS Corporation, Japan's top factory automation equipment supplier, plans to invest Bt2 billion (US$63 million) within 10 years to build seven more factories in Thailand as its sole manufacturing base outside Japan. Thailand is the only overseas production base of SUS but it has sales and warehouse facilities in China, Singapore, Taiwan and Korea.

In January, its first factory, worth Bt330 million (US$10 million), began producing parts used to connect and fasten aluminium frames. By November 2008, the company would begin building a second factory to make aluminium extrusions.
   


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This Weekly News Update is a free newsletter, providing a round-up of the week's Asia-Pacific news from our core industry practices. If you have colleagues or friends who may be interested in subscribing, please forward this email to them and copy knowledge@fusionc.com.

Fusion Consulting is a business intelligence consultancy providing clear strategic advice on Asia-Pacific markets. With offices in Shanghai, Singapore and Hong Kong and 400 industry consultants in 16 countries, we conduct custom research and consulting to help companies understand their markets, compete more effectively and grow into new areas of opportunity. Email
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