Wuhan Iron Steel Group, China's fifth biggest steelmaker, has won regulatory approval from the central government to start preparation work on a 10 million ton plant in the Guangxi Zhuang autonomous region, a partner in the venture said.

The Fangcheng Port project was given the go-ahead by the National Development and Reform Commission, Liuzhou Iron Steel Co said in a statement to the Shanghai Stock Exchange.

The government has been reining in expansion of steel capacity since 2004, and won't approve new plants unless older ones are closed. Guangxi and Wuhan Steel must shut 9.1 million tons of capacity to be permitted to build the new plant.

Bond sale

Shenzhen Development Bank sold 6.5 billion yuan in 10-year bonds, sole underwriter UBS said yesterday, as Asian issuers continue to borrow money locally amid difficult global market conditions.

The bank, which is nearly 18 percent owned by US private equity firm Newbridge Capital, sold lower Tier 2 fixed-rate bonds with a 10-year maturity and not callable for five years at a 6.1 percent coupon, UBS said.

The lender also sold a floating-rate tranche at 140 basis points over SHIBOR. Both coupons will increase by 300 basis points if the instruments are not called, UBS said.

Profit doubles

Shanghai-based Dazhong Transportation (Group) Co Ltd said yesterday its revenue last year increased 9.07 percent year-on-year to reach 5.43 billion yuan.

Its net profit totaled 466.1 million yuan, a year-on-year growth of 102.93 percent.

The company also said it plans to pay 140.9 million yuan to buy a 29.99 percent stake of Shanghai Hong-kou Dazhong Taxi Co Ltd to consolidate its taxi business. After the deal, it will hold a 99.84 percent stake in Hong-kou Dazhong Taxi.

BIZ UNUSUAL

Nice rice

Qu Lei's freshly milled rice is ending up on plates across Changchun, Jilin province.

Qu sells the fresh rice directly to customers, priced above the going rate at 4.4 yuan per kg.

It's proving popular with locals, who buy 5 kg at a time of the freshly milled product.

Bran from the rice is given to customers free of charge to make pillows.

Hop to it

Ke Yongbin has found his niche. Ke set up the first grasshopper farm in Laiwu, Shandong province, supplying the fried delicacy - a high-protein, low-fat food - to Shandong, Guangdong, Chongqing and Shanghai.

The grasshoppers have a two-month gestation period after which he sells them for 80 yuan per kg.

He estimates his income for last year was 300,000 yuan.

Wacky weddings

It seems unconventional weddings, where anything goes, are the norm these days.

Wedding ceremonies are held underwater, in mid-air, on yachts and beneath carnival masks - particularly in metropolises like Shanghai and Hangzhou.

"Many young lovers want to get married this year, the Olympic year. Ten thousand new couples are expected to register in Hangzhou in the second half of the year," Zhu Jianjun, head of Hangzhou Wedding Cultural Communications Ltd, said.

"And with more people wanting unique and creative wedding ceremonies, the potential market is huge."

GRAPEVINE

Bank deal

The Industrial and Commercial Bank of China signed an agreement with Vietnam's Housing Bank for the Mekong Delta to provide banking services in the two countries, Dau Tu newspaper reported, without citing the source.

The two banks will cooperate to provide transaction and Internet banking services to Vietnamese and Chinese companies, the report said.

Joint venture

Toshiba Corp will tie up with GD Midea Electric Appliances Co to make refrigerator parts to capitalize on growing demand in China, the Nikkei newspaper said.

The companies agreed to form a venture in Anhui province to produce compressors used in refrigerators, the Nikkei reported over the weekend, without citing the source.

The venture, 95 percent owned by GD Midea, will invest 490 million yuan to build a factory, with commercial production scheduled to begin by October.

The new company, which expects to make 5 million compressors annually by 2010, will supply 60 percent of its output to GD Midea and the remainder to Chinese plants owned by Japanese home electronics makers including Toshiba, the report said.

LOCAL

Public bikes

Free bicycles will be available for loan from May1 in Hangzhou, capital of Zhejiang province. The government will provide 2,000 bicycles in three trial areas, including 350 at West Lake.

The service will be free for 30 minutes' use.

The government aims to bring in a wider system after the trial, covering eight districts from October 1, with 50,000 bicycles on offer in 18 months.

Culture center

Jilin province is building a technology and culture center in Northeast China comprising six landmark projects including a science museum, art gallery, five-star hotel and theater.

The project's total investment is 6.8 billion yuan and the main buildings will be completed in September 2009, Jiang Hui, director of the Jilin technology and culture office, said.

"It will be built as the center of science, technology, culture, art and tourism in China's northeast," Jiang said.

Fast track

Qingdao, in Shandong province, plans to set up a manufacturing center for high-speed trains in the next five years, the Qingdao science and technology bureau said.

Qingdao plans to capitalize on the existing industrial park in its Chengyang district by adding a cluster of train manufacturers over five years. Multiple-unit (MU) trains with speeds of 300 km per hour (kph) will be produced and the plan is to develop MU trains with speeds of up to of 350 kph.

Qingdao has already developed 200-kph and 300-kph MU trains. Most current MU trains in China run at 200 kph, while the faster trains will be used on the Beijing-Tianjin railway in time for the Olympic Games.

BIZ MOVES

Baidu CFO

Chinese Internet search engine Baidu.com has appointed Jennifer Li as the company's new chief financial officer, effective from March 31. The company's previous CFO, Shawn Wang, died unexpectedly in December.

Li joins Baidu from General Motors Acceptance Corp, where she served as controller of the company's North American operations. Prior to that, Li was chief financial officer of General Motors China, where she was responsible for overseeing the finance functions of GM's wholly owned and joint venture businesses.

Management reshuffle

US carmaker Ford Motor Co has reshuffled its China management team.

Cheng Meiwei (above), chairman and CEO of Ford Motor China, will become a Ford Motor Co group vice-president and executive chairman of Ford Motor China. Robert Graziano, executive vice-president of Ford affiliate Mazda Motor Corp, will be president and CEO of Ford Motor China. The new titles will be effective April 1. Ford now runs a joint venture with China's Chang'an Motor Corp to produce Ford, Mazda and Volvo models.

(China Daily 03/25/2008 page15)