Archive for ‘Manufacturing’

21/11/2014

China Plans to Move Factories Abroad to Cut Smog – Businessweek

Even as northern China, including Beijing, Tianjin, and Hebei province, continues to suffer from hazardous air—“people with respiratory issues are advised to stay indoors or wear protective masks,” the official English language China Daily advised earlier today, Nov.20—some relief may be on the longer-term horizon.

The Baosteel Group Corp. facilities in Shanghai, China

Chinese authorities in Hebei province, one of China’s largest steel-producing regions, announced they plan to relocate steel, cement, and glass factories overseas over the next decade. The many industrial factories that surround Beijing and Tianjin are known to be a major source of the lung-choking smog that periodically smothers much of northern China. Hebei province alone produces 200 million tons of steel annually, or about one-quarter of China’s total production.

“The initiative comes at a time when local steel, cement, and glass producers are struggling, with sluggish growth in the world’s second-largest economy crippling demand for their products. In many cases, it has led to severe overcapacity,” the official Xinhua News Agency reported Nov. 19.

By 2017, according to Hebei authorities, Hebei plans to move 5 million tons of steel production capacity, the same amount for cement, and 3 million “weight boxes” of glass production (a weight box is roughly 50 kg, the paper explained). Much more will be moved in the following six years, through 2023, including 20 million tons of steel, 30 million of cement, and 10 million weight boxes of glass production, Xinhua reported.

While steel manufacturers will be encouraged through unspecified preferential policies to relocate some production in Africa and Asia, cement and glass producers will go to those two regions, as well as South America and Central and East Europe.

“Hebei is a major source of industrial pollutants blamed for the notorious choking smog that often spreads to neighboring regions like Beijing,” Xinhua reported.

via China Plans to Move Factories Abroad to Cut Smog – Businessweek.

11/11/2014

Modi’s Make in India Push to Take on China Faces Red Tape – Businessweek

Prime Minister Narendra Modi is seeking to turn India into a global manufacturing hub by curbing red tape. Tell that to Tata Steel Ltd. (TATA), which closed one of its largest iron-ore mines in September over permit delays.

Close up - Clothes marker - Made in India

India’s largest maker of the alloy isn’t alone. Steel Authority of India Ltd. (SAIL) shut one of its top-yielding quarries the same month pending renewal of its lease. JSW Steel Ltd. (JSTL)’s plan to start mining in eastern Jharkhand state has been hampered by a probe begun last month into mine allocations.

Modi is set to trumpet his “Make in India” initiative at the Group of 20 summit in Australia this week as he vies with China to woo manufacturers. The mine closures show lingering bureaucratic obstacles to his push, stemming from court rulings and officials in India’s 29 states that lie beyond Modi’s direct control. India slid two places to 142nd out of 189 economies in the World Bank’s latest ease of doing business rankings.

via Modi’s Make in India Push to Take on China Faces Red Tape – Businessweek.

11/11/2014

Airbus aims to double China component sourcing value to $1 billion by 2020 | Reuters

European jet maker Airbus Group NV (AIR.PA) aims to double the annual value of aircraft components it sources from China to $1 billion by 2020, the firm’s China Chief Operating Officer, Rafael Gonzalez-Ripoll-Garzon, said on Tuesday.

A flight test engineer holds an Airbus Group flag after the first flight of the Airbus A320neo (New Engine Option) in Colomiers near Toulouse, southwestern France, September 25, 2014.  REUTERS/Regis Duvignau

The Airbus executive’s comment, made on the sidelines of China’s premier airshow in Zhuhai, came as the European firm’s chief rival Boeing (BA.N) said it’s also seeking to ramp up China component sourcing.

Kent Fisher, Boeing Commercial Airplane’s vice-president and general manager of supplier management, said that over the next few years his company is looking to double the $2 billion worth of aircraft parts it has sourced from China in total over the last 30 years. Fisher was speaking at a separate press briefing at the air show and didn’t provide further details.

Boeing also said it had signed a deal with Aviation Industry Corporation of China to produce composite tail parts for the Boeing 777 program, beginning in 2017.

Airbus and Boeing have been competing fiercely in China, which will need over 6,020 new planes worth $870 million the next 20 years, according to Boeing’s latest forecast.

Both have been increasing their sourcing in China, using locally made composite materials and parts like emergency doors in aircraft like the Airbus A330 and Boeing B787 jets.

via Airbus aims to double China component sourcing value to $1 billion by 2020 | Reuters.

11/11/2014

China unveils sophisticated stealth fighter aircraft | Reuters

China unveiled a sophisticated new stealth fighter jet at an air show on Tuesday, a show of muscle during a visit by U.S. President Barack Obama for an Asia-Pacific summit.

A J-31 stealth fighter of the Chinese People's Liberation Army Air Force is seen during a test flight ahead of the 10th China International Aviation and Aerospace Exhibition in Zhuhai, Guangdong province, November 10, 2014. REUTERS/Alex Lee

China hopes the much-anticipated J-31 stealth aircraft, developed by the Aviation Industry Corp of China (Avic), the country’s top aircraft maker, will compete with U.S.-made hardware in export markets.

The twin-engine fighter jet was unveiled at the China International Aviation and Aerospace Exhibition in the southern city of Zhuhai, an annual event at which China shows off its military technology, a Reuters witness said.

The J-31 conducted a demonstration but was not put on display afterwards although a mock-up version was on show.

via China unveils sophisticated stealth fighter aircraft | Reuters.

07/11/2014

India vs. China: The Battle for Global Manufacturing – Businessweek

With its chronic blackouts, crumbling roads, and other infrastructure woes, India should have no appeal for John Ginascol. A vice president at Abbott Laboratories (ABT), Ginascol is responsible for ensuring that the company’s food-products factories run smoothly worldwide. He can’t afford surprises when it comes to electricity, water, and other essentials. “People like me,” he says, “dream of having existing, good, reliable infrastructure.”

Yet Abbott has just opened its first plant in India, and Ginascol says there haven’t been any nightmares so far. In October the company began production at a $75 million factory in an industrial park in the western state of Gujarat. The factory is producing Similac baby formula and nutritional supplement PediaSure, which Abbott plans to sell to the growing Indian middle class. The plant will employ about 400 workers by the time it’s fully up and running next year. As for India’s infrastructure, Ginascol has no complaints. The officials in charge of the park “were able to deliver very good, very reliable power, water, natural gas, and roads,” he says. “Fundamentally, the infrastructure was in place.”

Indian Prime Minister Narendra Modi is hoping other executives will be similarly impressed with the ease of manufacturing in his country. Before Modi took charge in New Delhi, he headed the state government in Gujarat, and during his 13 years in power there he made the state an industrial leader. Manufacturing accounts for 28 percent of Gujarat’s economy, compared with 13 percent for the country as a whole, and a touch less than the 30 percent figure for manufacturing titan China.

via India vs. China: The Battle for Global Manufacturing – Businessweek.

05/11/2014

Poetry of a Former Foxconn Worker in China Evokes Images of Factory Life – Businessweek

Before he took his life in late September, 24-year-old Xu Lizhi was a regular contributor of poetry to Foxconn People, the internal newspaper at his sprawling factory complex in Shenzhen. Only after he died did his writing find a wider audience, as factory friends collected his poems for publication in the Shenzhen News.

Safety netting posted around a building in Foxconn City in Shenzhen, China

Like millions of other young Chinese, Xu left his home in rural Guangdong province in 2010 to find work in the big city; he had been working intermittently on Foxconn (2317:TT)’s electronics assembly line for four years.

Following a series of 14 suicides in 2010, the Taiwanese manufacturing giant installed safety nets to prevent workers from jumping off dormitory roofs at its Shenzhen plant. It tried to improve life for its workers: The company raised basic wages and installed basketball courts and Olympic-size swimming pools for recreation. Worker suicides declined but did not disappear.

Xu’s poetry gives voice to the alienation he and many others of his generation feel on the assembly line: “I swallowed a moon made of iron/ They refer to it as a nail/ I swallowed this industrial sewage, these unemployment documents/ Youth stooped at machines die before their time/ I swallowed the hustle and the destitution/ Swallowed pedestrian bridges, life covered in rust / I can’t swallow any more/ All that I’ve swallowed is now gushing out of my throat/ Unfurling on the land of my ancestors/ Into a disgraceful poem.”

A frequent theme is how he felt the monotony of factory life sapping away “the last graveyard of our youth.” In one poem, Xu wrote: “With no time for expression, emotion crumbles into dust/ They have stomachs forged of iron/ Full of thick acid, sulfuric and nitric/ Industry captures their tears before they have the chance to fall.”

Xu also described the desolate conditions of his rented room: “A space of ten square meters/ Cramped and damp, no sunlight all year/ Here I eat, sleep, sh–, and think/ Cough, get headaches, grow old, get sick but still fail to die/ Under the dull yellow light again I stare blankly, chuckling like an idiot.”

via Poetry of a Former Foxconn Worker in China Evokes Images of Factory Life – Businessweek.

05/11/2014

China Service and Manufacturing Sectors Slowing, Reports Beijing – Businessweek

In another sign that China’s economy is downshifting, an index released on Monday showed China’s service sector growth slowing in October to a nine-month low. The bad news followed Saturday’s poor showing for manufacturing, which grew at its slowest pace in five months.

Manufacturing in China expanded at its slowest pace in five months

The service reading, issued by the National Bureau of Statistics and China Federation of Logistics and Purchasing in Beijing, fell to 53.8, from 54 in September. Manufacturing came in at 50.8, down from 51.1 the month before. (Above 50 shows expansion.) The economy “still faces some headwinds,” Beijing said in a statement on Saturday.

In October, China’s statistics bureau announced that gross domestic product grew 7.3 percent in the third quarter, its slowest pace since the global financial crisis. “The momentum looks weak,” warned Hua Changchun, a China economist at Nomura Holdings in Hong Kong, reported Bloomberg News on Nov. 3.

via China Service and Manufacturing Sectors Slowing, Reports Beijing – Businessweek.

28/10/2014

China trainmakers CSR, CNR in talks to merge – state media | Reuters

China’s top trainmakers, China CNR and CSR Corp, are in merger talks to create a giant able to compete globally with the likes of Siemens and Bombardier, state media reported on Tuesday.

A handrail hangs in one of the 45 new train wagons that were bought from China's CNR, in a Buenos Aires' subway station February 14, 2013. REUTERS/Enrique Marcarian

China built the world’s longest high-speed train network in less than a decade and has expressed its desire to export its technology. The two state-owned firms however have fiercely competed against each other while trying to sell trains abroad.

The official China Securities Journal, citing unidentified sources, said the firms had set up working groups to discuss the integration, and that investment bank China International Capital Corp had been appointed to oversee the reorganisation.

“The heads of CNR and CSR are in agreement on the companies’ integration,” the newspaper quoted an industry source as saying.

“As the State Council is in charge of this, it can be done at great speed and at the moment the biggest concern is related to their projects and personnel changes.”

CNR and CSR halted trading on Monday and subsequently issued statements saying they would resolve “major issues” as soon as possible. Trading would resume within five working days, they added.

The companies did not respond to requests for comment on the Journal report.

Last month, CNR and CSR dismissed a report by financial news magazine Caixin that the government was looking to merge the firms to create a giant that can better compete with foreign rivals such as Germany’s Siemens and Canada’s Bombardier.

A merged CNR-CSR would have combined annual revenue of about 200 billion yuan (20.28 billion pounds) based on 2013 company data, compared with Siemens’ 75.9 billion euros ($96.5 billion) revenue last year and Bombadier’s $18.2 billion (11.28 billion pounds).

Zhuzhou CSR Times Electric, a CSR subsidiary, also suspended trading. CNR is due to report third-quarter results on Wednesday, while CSR is scheduled to report on Friday, according to the Shanghai Stock Exchange.

via China trainmakers CSR, CNR in talks to merge – state media | Reuters.

19/10/2014

India’s big manufacturing push: Time to make in India? | The Economist

NO ONE doubts that Narendra Modi, India’s prime minister (pictured), is a capable speaker. On September 25th he called together hundreds of diplomats, business leaders, journalists, ministers and others to a swanky hall in Delhi to launch his latest marketing push. The event was broadcast live across India and to diplomatic missions abroad. A remarkable cast of industrial heavyweights were called on to show support, including Cyrus Mistry of Tata Sons, Reliance’s nervy-sounding boss, Mukesh Ambani, the chairman of Wipro, Azim Premji, the chairman of Aditya Birla Group, Kumar Mangalam Birla, and the chairman of ITC Limited, Yogesh Chander Deveshwar.

Over the course of two hours these business cheerleaders, along with ministers and then Mr Modi himself, took turns to explain why it would be a great thing if industrial production, in particular labour-intensive manufacturing, could blossom in India. They are absolutely right. India needs to create lots of jobs—perhaps 1m additional ones a month—if it is to employ its booming population. One speaker suggested 90m manufacturing jobs could be created in India over the next decade. Mr Premji set out how Wipro—better known for IT—has five manufacturing units in India (they make hydraulic cylinders) and overall relied on a broad network of 1,200 Indian suppliers, meaning lots  of jobs created indirectly.

Mr Birla spoke of a new high-end aluminium manufacturing site in Odisha (formerly Orissa) which now does quality work for the firm that used to be done in a British factory. A representative from Lockheed Martin, an American defence firm, explained how its factory near to Hyderabad makes component parts for its global production of the massive C130-J Hercules plane. A stronger manufacturing sector could help in a host of other ways, suggested speakers, linking India into global supply chains, boosting exports, helping to reduce the current-account deficit and so on. Mr Ambani concluded that India’s economy could boom in the long run, at a sustained rate of 8-10%, growing quicker than China, if only the right conditions were created.

All this looks and sounds attractive. So, too, do a flash new website that Mr Modi inaugurated, a new symbol—a lion made up of cog-wheels—and some new brochures that set out how India is a bit more welcoming to manufacturers. But was the exercise anything more than a PR event? As one cynical member of the audience grumbled, it seemed to be a big palaver for the launch of a few marketing tools.

What has actually changed in India as Mr Modi pushes manufacturing? First, discount the worst gush from business leaders. The likes of Mr Ambani and Mr Deveshwar may be embarrassed to be reminded of how sycophantic they were in Mr Modi’s presence. Mr Ambani waffled on about being “blessed with a leader”, the “unique leadership quality of a prime minister, a man who dreams and he does”, who has apparently motivated a billion Indians to “dream and do”. Mr Deveshwar was even more craven, thanking “the Almighty” for the leadership “given to us” in Mr Modi, for “your astuteness, your wisdom…Sir, I’m profoundly inspired by the boldness of your vision and the simplicity with which you have communicated.” Mr Modi sat stony-faced as they fawned. But he probably agrees with the implied message: that most of what it takes to boost manufacturing in India is strong leadership from him, as he showed when he was chief minister of Gujarat. Indeed, when he spoke, he referred back to his success in Gujarat, saying that with the same civil servants and resources as the rest of the country, he had produced striking industrial successes. He expects more of the same in the country as a whole.

Sadly, leadership alone will not do it. Matters are more complicated than that. Mr Modi, endearingly, admitted in his speech “I am not a big economist” while urging investors not to think of India only as a big emerging market, but also as a place for production. As he suggests, achieving that requires progress in a host of areas. He spoke of an urgent need for skills development as far too many of India’s youngsters are poorly prepared for globally competitive work (though that is a huge mission, since it means fixing a rotten school and university system) and identifying 21 clusters for industrial development. He spelt out how infrastructure would improve (but not where massive capital to fund that will come from). Laudably, he emphasised the need to make India a far easier place to do business by scrapping red-tape and oppressive rules, mentioning a recent meeting he had with the World Bank to discuss India’s awful ranking—134th—on its annual “ease of doing business” assessment. Mr Modi thinks India should aim to be ranked much higher, quickly, in the top 50 countries.

via India’s big manufacturing push: Time to make in India? | The Economist.

02/10/2014

India launches campaign to boost manufacturing – Businessweek

India’s prime minister has launched a campaign to entice investment and promote the country as the world’s next cheap labor economy.

The “Make in India” campaign is as much a slick marketing campaign as it is a promise to streamline bureaucracy and make India investor friendly.

Prime Minister Narendra Modi said at a launch event Thursday that “the whole world is ready to come here.”

India’s 1.2 billion people are anxious to see the economy expand and create more jobs. Some 13 million Indians become old enough each year to join the workforce.

Modi has been promoting India as the next manufacturing powerhouse. That’s a title long held by China, which is now growing wealthier and pushing toward becoming a consumer economy.

via India launches campaign to boost manufacturing – Businessweek.

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