Posted on 09/09/2022 8:28:21 PM PDT by FarCenter
Blaring headlines such as “US bans ‘advanced tech’ firms from building facilities in China for a decade” and “China’s zero-Covid policies are crippling its economic outlook” distract from more mundane but arguably more important corporate news coming out of China.
Those new developments include the start of production at BASF’s new industrial complex in Zhanjiang and the final commissioning of ABB’s state-of-the-art robotics factory in Shanghai, big new European investments that buck the trend of US “decoupling” with China.
On September 6, BASF announced the inauguration of the first manufacturing plant at its Zhanjiang Verbund industrial complex in China’s southern Guangdong province. The plant is designed to produce 60,000 metric tons of engineering plastics per year, primarily for supply to the Chinese automotive and electronics industries.
It will raise BASF’s annual engineering plastics capacity in the Asia-Pacific region to 420,000 metric tons. Headquartered in Germany, BASF is the world’s largest producer of chemicals.
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On September 2, China Daily reported that ABB’s new robotics factory in Shanghai is in the final stage of commissioning and should be operational within the next few months. Built at a cost of about 150 million euros, it will be “a center where robots make robots,” according to Sami Atiya, head of ABB’s Robotics & Discrete Automation business.
A multinational enterprise headquartered in Zurich, ABB is also a leader in process automation, motors power transmission products and electrification.
When ground was broken on the facility in 2019, ABB announced that it would be “the most advanced, automated and flexible factory in the robotics industry worldwide, utilizing the latest manufacturing processes and [having] the largest R&D, production and application base of robotics in China.”
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In July, French aerospace giant Airbus announced that it had received orders for 292 A320 passenger aircraft from Air China, China Eastern, China Southern and Shenzhen Airlines, “demonstrating the positive recovery momentum and prosperous outlook for the Chinese aviation market.”
China Southern Airlines – which canceled orders for more than 100 Boeing 737 MAX aircraft in May – ordered 96 new units. The Boeing orders were reportedly canceled due to safety concerns and an uncertain delivery schedule, but in the eyes of many observers the main reason was politics
What decoupling?
Does Inflation make the Dollar larger or smaller?
Explain.
The Europeans can go buck themselves.
“Those new developments include the start of production at BASF’s new industrial complex in Zhanjiang”
Can’t blame the German industrial giant, BASF, for wanting to move to China, as the German government won’t give them the Russian energy that they need to run their operations.
At least in China, they can get all of the Russian energy they want.
Great point.
BASF isn’t “moving to China “.
Read the article “primarily for supply to the Chinese automotive and electronics industries.”.
It’s setting ul s plant in China to supply Chinese customers
“Read the article “primarily for supply to the Chinese automotive and electronics industries.”.”
Considering that BASF in German can’t do jack due to their idiotic energy policies, I’d stand by saying that most of BASF will soon be in China.
By they way, I hear the first whisps of autumn are on the way - better bundle up.
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