■METALS
POSCO cuts production
South Korea’s POSCO, the world’s fourth largest steelmaker, announced yesterday its first-ever production cut to reduce rising inventory caused by a sharp fall in local demand. POSCO, which produces 2.78 million tonnes of crude steel a month, said it would reduce output by 200,000 tonnes this month and 370,000 tonnes next month. “We are cutting production for the first time since the start of our operations” in response to a sharp fall in demand from local auto and home appliance makers, it said in a statement. It said the downturn in local demand was deeper than expected, leading to a sharp increase in inventory.
■ELECTRONICS
Panasonic to buy Sanyo
Japanese electronics giant Panasonic Corp has secured the takeover of competitor Sanyo Electric Co with deals to buy stakes in the smaller firm held by the US investment bank Goldman Sachs and two Japanese investment firms, the Nikkei Shimbun reported yesterday. Sanyo’s management threw its support last month behind the takeover, which would create one of the world’s largest consumer electronics companies. Goldman Sachs had originally refused Panasonic’s ¥130 (US$1.47) per share offer as too low, but Panasonic president Fumio Ohtsubo reached an agreement with Goldman Sachs late on Wednesday. Sumitomo Mitsui Banking Co and Daiwa Securities SMBC Co, Sanyo’s two other major shareholders, already agreed to the deal.
■METALS
Wuhan to buy into Centrex
Australia’s Centrex Metals said yesterday that Chinese steelmaker Wuhan had agreed to pay up to A$180 million (US$126 million) for a half share in its iron ore projects. “This is a landmark, high integrity agreement with a top three steel group in China and is a company-maker for us in every sense,” Centrex chairman David Lindh said in a statement. Wuhan will also pay an additional A$9.7 million for a direct 15 percent stake in Centrex and will work with the miner on its plans for the development of a new deep water export port.
■SOUTH KOREA
Seoul plans injection
The country plans to set up a 20 trillion won (US$15.4 billion) fund to help banks raise their capital base and access cash during the credit crisis, the financial watchdog said yesterday. The move will ensure banks “will be prepared for possible losses that they could incur from a prolonged economic slowdown and restructuring [of businesses],” the Financial Services Commission said. It said the central Bank of Korea is expected to contribute up to 10 trillion won through loans, while the state-run Korea Development Bank will add 2 trillion won and the rest would come from institutional and other investors.
■AVIATION
EADS plans to protect cash
The head of the European aerospace group European Aeronautic Defense Space Company (EADS), Louis Gallois, said yesterday that “in the coming months our highest priority is to protect our cash reserves” of 9 billion euros (US$13 billion). “We will have to push back acquisitions that we might have made. We must also define priorities for our investments,” Gallois told the Frankfurter Allgemeine Zeitung newspaper in an interview. He also said his group was ready to “help some airlines with the financing of their aircraft orders” to avoid cancelations and suspensions. If necessary, it would reduce output at plane-making unit Airbus.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
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