Machinery

Sinomach buys McCormick France

China National Machinery Industry Corp (Sinomach), the biggest machinery manufacturer in China, has acquired the agricultural machinery-parts maker, McCormick France SAS. The deal - worth 8 million euros - was made through a Sinomach subsidiary, as the company aims to strengthen its dominant position in the domestic high-end tractor market.

The deal may also provide an important inroad into the profitable European market, as Sinomach will manufacture tractors under its "Dongfang Hong" brand in France, according to a company statement.

Those tractors will be distributed directly to the European market, which will bypass some trade barriers, according to the announcement.

R&D

Alstom opens technology center

Alstom Grid, a division of Alstom SA of France, opened its China Technology Center in Shanghai on March 18 to focus on the provision of strong and smart electrical grids.

Alstom is one of the largest global companies in power generation, transmission and railway infrastructure.

The move underlines the company's desire to increase its presence in the Chinese market, which is likely to have great potential for infrastructure-equipment makers during the next five years.

The facility, located in Shanghai's Caohejing Pujiang High-tech Park, will focus on the development of ultra-high-voltage alternating current (UHVAC) and ultra-high-voltage direct current (UHVDC) transmission equipment and energy management.

Aviation

For Dassault Falcon, the sky's the limit

Having delivered three airplanes to China last year and another eight so far this year, the French business aircraft maker Dassault Falcon Jet Corp sees the country's burgeoning private sector as a new focus point.

"There are many private enterprises with big interests in developing their business abroad," said Jean-Michel Jacob, vice-president of international sales at Dassault Falcon. "They need big jets that can travel a long distance and can be flexible with their business schedules."

The French business-jet manufacturer set up a sales and marketing office in Beijing in December, in addition to its existing offices in Hong Kong and Kuala Lumpur, Malaysia, to promote its wares in China.

Shipping

Maersk to open new gateway

Maersk Line International Ltd, the world's largest carrier of shipping containers by volume, will open its third gateway in China at Nansha port in Guangdong province, said Soren Karas, head of the company's South China cluster.

The company will also add five shipping routes to Nansha port, including three between China and Europe and one to the Middle East, Karas said.

Karas also said the decision was prompted by China's booming trade volume and mounting demand from customers in the western area of the Pearl River Delta.

Chemical

Lanxess drives ahead in China

Lanxess AG, the world's biggest producer of synthetic rubber, said on March 18 that curbs on the use of vehicles in Chinese cities will not harm its business in the country, despite a gearing down of the growth rate in the country's car sales.

Government restrictions on car purchases and use are expected to slow the growth rate of the domestic auto market by between 10 and 15 percent from the current figure of 30 percent. However, Lanxess is still confident about its business, as the demand for premium car components is still growing, said Martin Kraemer, CEO of Lanxess Greater China.

Retail

Zara owner targets China after profits soar

Inditex, the world's largest clothing retailer, is to accelerate its opening program in China this year after the group grew annual profits by nearly a third in 2010.

The Spanish fashion group, which owns the Zara brand and now operates in 77 countries, opened 75 stores in China for the year to Jan 31, including 45 Bershka, Pull and Bear and Stradivarius shops. The fashion group also opened a flagship Massimo Dutti shop in Shanghai, and plans to have stores in 42 Chinese cities by the end of this year, up from 30 in 2010.

Pablo Isla, the chief executive of Inditex, which plans to open the doors on 120 Chinese stores this year, said: "2011 will be a year of strong acceleration in China."

China Daily-Agencies