China Direct

GKN and partner Huayu auto to expand Shanghai joint venture

CBI member GKN and HUAYU Automotive Systems Co. Ltd. (HASCO) recently announced a major expansion of their Chinese joint venture—Shanghai GKN Driveshaft Co. Ltd. (SDS).

This development will make SDS a leading supplier of all-wheel drive (AWD) and electric-drive (eDrive) systems to these fast-growing segments of the Chinese car market.

SDS is the largest driveshaft manufacturer in China, and the expansion extends the scope of the joint venture to cover the complete GKN Driveline capability, including AWD and eDrive components and systems.

As a result of this development, GKN Driveline's wholly-owned facility in Shanghai will become part of the expanded joint venture.

Andrew Reynolds Smith, Chief Executive, GKN Automotive, said, "China is the world's largest car market, and, together with our partner HASCO, GKN has built a fantastic market leading position for SDS over the last 25 years.

Today's announcement provides the platform to accelerate our business in the fast growing Chinese SUV and all-wheel drive market. This is a very important step as we continue to grow by leveraging GKN's leading technology and global footprint."

Please click here to read the full press release by GKN.

Coming to a screen near you - Pinewood Studios announces major China expansion

CBI member Pinewood Shepperton recently announced that it has entered into a 50:50 joint venture agreement with Seven Stars Media Ltd., one of the largest and fastest growing media conglomerates in China.

The joint venture, to be called "Song Lin", initially will assess a number of business proposals in China's growing entertainment market. Under the terms of the joint venture, Pinewood will provide its expertise with limited capital investment.

The proposals include:

• Providing co-production opportunities for film and television producers

• The creation of film and television diploma courses to be delivered by U.K. educational institutions in Beijing, Tianjin, and four other cities

• Developing production financing and related services for Chinese film and television productions

• A series of film themed entertainment venues in Shanghai and regionally

• Creating film themed projects in Beijing, Shanghai, and Wuhan

U.K. Prime Minister David Cameron said, "It's great to see Pinewood Studios expanding its business with the announcement of its joint venture with Seven Stars Media. The creative industries are a rapidly growing area of China's economy and will increasingly provide huge opportunities for U.K. companies
competing in the global race.

Pinewood is leading the way, taking advantage of China's thriving entertainment and media sector and building on Britain and China's growing trade relationship."

Ivan Dunleavy, CEO of Pinewood, said, "The Chinese market for content is the fastest growing in the world and taking Pinewood's experience and skills to that market in partnership with such an established and successful local partner is a truly exciting prospect. The joint venture brings together two companies with significant experience and will provide a conduit for film and television productions to maximise their impact in China. The partnership with Seven Stars, under Bruno Wu's direction, represents a strategic step forward for Pinewood's international development. If successful, the joint venture could provide significant opportunities for U.K. film and television producers."

Bruno Wu, Chairman and CEO of Seven Stars, said, "Together with Pinewood, we have identified a significant number of business opportunities for the short, medium, and long term. The joint venture will aim to improve the standard of media production, create co-production opportunities for Chinese
producers, and export Chinese film and television content overseas.

Our local knowledge and scale combined with Pinewood's unique operational skills and
international reputation will enable our joint venture to participate in China's content explosion."

Please click here to read the full press release by Pinewood.

Another record month for JLR in China

CBI member Jaguar Land Rover (JLR) recently released its results for March and the first quarter of 2013, reporting sales of 53,772 units in March and 115,504 units in the first quarter, up 16% and 17%, respectively, compared to the previous year.

The results marked the U.K. luxury automaker’s strongest ever monthly and quarterly sales performance.

In China, JLR delivered its best month ever in March, retailing 8,487 units collectively, which represented an increase of 22%. Jaguar sold a record 1,592 vehicles, up 91%. Land Rover continued its strong sales performance with 6,895 vehicles sold in March, up 13%.

Phil Popham, Group Sales Operations Director for JLR, said, "Jaguar Land Rover has had a record breaking start to the year reflecting the continued interest in our two great brands and our commitment to delivering desirable products that resonate with customers across the globe.

"Jaguar Land Rover is seeing continued year on year growth following the introduction of new models, engines and drivetrains with the Jaguar XF Sportbrake, new Range Rover, and Range Rover Evoque amongst our top selling models."

Please click here to read the full results for JLR.

JCB announces record 2012 profit - highest in its 67-year history

 

CBI member JCB recently announced that it achieved the highest profit in its 67-year history in 2012, with profits reaching £365 million last year.

JCB performed particularly well in emerging markets, seeing its business in Africa double and registering growth of 12% in the Middle East. JCB also opened a new factory in São Paulo in Brazil and announced plans for a new £62 million plant in Jaipur in India, which is scheduled to open next year.

Sir Anthony Bamford, Chairman of JCB, said, "In view of the continued fragility of the global economy, which has led to renewed slowdowns in emerging and developed markets, JCB's results in 2012 are extremely encouraging.

"They not only demonstrate the resilience of our business, but highlight the importance of continued investment in products, facilities, and customer service.

"While construction equipment markets in many parts of the world remained weak, that has been more than offset by strong growth for our agricultural products, particularly in materials handling."

GSK reports strong China performance for 2012

 

CBI member GlaxoSmithKline (GSK) recently released its results for the fourth quarter, reporting a strong performance in China.

GSK's Emerging Markets and Asia Pacific (EMAP) Pharmaceuticals and Vaccines sales rose 16%, with growth generated across a number of markets, primarily Latin America (+23% to £321 million), the Middle East and Africa (+12% to £385 million), and China (+14% to £210 million). Pharmaceuticals grew 11%, while Vaccines grew 39%. GSK's Respiratory sales in EMAP grew 16% in the fourth quarter. Seretide sales grew 18% to £118 million, with strong growth in China, Saudi Arabia, and Latin America, while Ventolin sales increased 9% to £47 million.

For GSK's Consumer Healthcare business, skin health sales grew 5%, with growth in the quarter driven by a strong performance of Bactroban in China and innovation on lip care (including Abreva), which grew 7%.

Please click here to read the full results for GSK.

 

CBI publishes "The Only Way is Exports" Report: 'mid-sized businesses must be at heart of export-led recovery'

 

 

The CBI recently released its report "The Only Way is Exports: renewing the U.K.'s role as a trading nation", which says that growing mid-sized companies with the potential to enter new markets must be at the forefront of any export-led recovery.

However, the CBI warns that too many businesses are impeded by the perceived risks and costs of exploring new overseas markets, with only one fifth of the U.K.'s SMEs exporting, compared with a quarter across the E.U.

The report includes 11 CBI recommendations, which are organised under the following three categories:

• Businesses must match capabilities to changing demand

• Putting exports at the heart of industrial strategy

• Setting the right resourcing framework

John Cridland, CBI Director-General, said, "Global trade has been one of the bedrocks of U.K. economic strength but to cement our position as a leading exporting nation in the future we need more active Government support.

"While we are making progress in some fast-growing markets, weaker than expected economic growth in our major trading partners has held us back. We also have a heavy dependence on imports: ships are arriving in U.K. ports bringing in more goods than they take back.

"The growing middle classes of Asia and Latin America want to purchase leading U.K. branded goods and services, so there is every reason for the U.K. to be confident as long as businesses continue to make headway."

Please click here to access the full press release and report.

CBI's Intelligence First launches Cyber Security Guide for business

 

The CBI recently released a report on cyber security, which includes insights on why cyber security matters to business and how to become cyber secure.

Please click here to access the full report or contact the CBI's Beijing office directly for a hard copy.

Thank you.

Pearson's International Education business announces strong China growth

 

CBI member Pearson recently released its results for 2012, reporting that its International Education business continued to perform strongly in China.

Student enrolments at Wall Street English in China increased 15% to almost 61,000, boosted by good underlying demand and the launch of ten new centres taking the total to 66. The students continued to rapidly acquire high-level English skills, with average grade levels achieved rising by 8% during 2012.

Enrolments at Global Education, Pearson's test preparation services for English language qualifications, increased 16% to more than one million through 73 owned and 372 franchised learning centres.

Please click here to read the full results for Pearson.

Shell's 2012 Annual Review highlights strong China performance

 

CBI member Shell recently released its 2012 Annual Review, "Building an Energy Future", which highlighted Shell's continued strong performance in China.

Shell's 2012 China highlights included:

• Shell formed Sirius Well Manufacturing Services, an international well services company, in partnership with China National Petroleum Corporation. The 50:50 joint venture will use advanced techniques to drill multiple wells for tight, shale, and coalbed gas extraction in an efficient, repeatable way.

• Shell continued to fine-tune its global network of technology centres to support future business opportunities, which included increasing its capabilities in China.

• Shell broke ground on its seventh lubricants blending plant in mainland China to meet rising demand there.

• Shell added a new development phase to its Changbei tight-gas operation in China, adding nearly 1,700 square kilometres as well as agreeing with its partner, China National Petroleum Corporation, to potentially develop the main reservoir.

Please click here to read Shell's full annual report.

Philip Clarke gives speech at World Retail Congress in Singapore

 

Philip Clarke, Chief Executive Officer of CBI member Tesco, recently spoke at the World Retail Congress in Singapore.

His speech included a key focus on Tesco's strong presence in emerging markets in Asia, with highlights including:

• Tesco's businesses in South Korea, Thailand, Malaysia, India, and China together employ more than 120,000 people. In 2012, they reported sales of over US$16 billion.

• The Tesco Lotus business in Thailand already has 1,200 stores, a floor space of over 13 million square feet, and a market share of 13%.

The Tesco Lotus App was one of the most popular downloads in Thailand when it was launched.

• In Asia, Tesco has sourcing hubs in Sri Lanka, India, Bangladesh, China, and Cambodia. Tesco sources a range of products from over 15 countries in the region.

• Mobile commerce is growing rapidly, and Asia is at the epicentre of this transformation.Tesco is expanding its digital presence in all of its markets this year.

For example, Tesco will launch its  dotcom service in Bangkok and Kuala Lumpur over the coming weeks and in Shanghai this summer. The service is already live in Seoul.

In addition, Tesco is leapfrogging the establishment of a modern mail system by launching digital Clubcard in China over the coming year.

Please click here to read the full speech by Mr. Clarke.