Norelco

Published December 5, 2006

Norelco to invest US$20m in new Changi plant

Aerospace parts factory expected to generate US$100m revenue in 5 years

By CONRAD TAN

NORELCO UMS Holdings, an equipment manufacturer for the disk-drive and electronics industries, is to invest US$20 million in a new plant at Changi to make parts for the aerospace industry.

The 80,000 sq ft factory is expected to generate US$100 million in annual revenue in five years. Construction of the new facility is scheduled to be completed in the second half of next year, with operations expected to start in January 2008.

It will initially employ 30 people, and eventually expand to 180 by 2012, comprising mainly technical staff. Norelco will lease the factory for an initial period of eight years from Boustead Projects Pte Ltd, a unit of engineering group Boustead Singapore, which is building the facility.

'This investment is part of our concerted effort to extend our core competencies in precision machining into the aerospace industry, which has robust growth potential,' said Norelco UMS chairman and chief executive Andy Luong at the groundbreaking for the plant yesterday.

'It is also part of our group's strategy to expand into higher margin, value-added businesses. We are not new to the aerospace industry as we are already working with first-tier aerospace suppliers such as Hamilton Sundstrand and Honeywell Aerospace.

'We expect the new plant to contribute to our bottomline in 2008. Together with the semiconductor industry, the aerospace business will be a key growth driver going forward. The current worldwide supply shortage of aerospace parts and components coupled with Asia expecting to double its fleet of aircraft by 2015, means the aerospace industry is set to fly even higher,' he said.

The expansion into aerospace manufacturing is also expected to make the company less vulnerable to downturns in any one industry, he added. 'Aerospace contracts last from one to five years and earnings from the aerospace business are more predictable. Our company will enjoy a more stable income stream.'

Last month, the company reported a 15 per cent increase in revenue for the third quarter, to $43.9 million. Excluding a $7.9 million gain from disposal of its recycling business, its core earnings grew 70 per cent to $5.2 million. The company was formed in 2004 through a merger of listed Norelco Centreline and privately-owned UMS Semiconductor.

Its share price closed unchanged at 45 cents yesterday.

Intel + Ericsson

December 1, 2006, 5.37 pm (Singapore time)

Ericsson to work with Intel on mobile broadband

STOCKHOLMN - Swedish telecoms equipment maker Ericsson will work with computer chip giant Intel Corp on applications for mobile computers that will increase their attractiveness in the market, Ericsson said on Friday.

Ericsson said the joint effort with Intel would aim to enhance the appeal of mobile broadband and multimedia for consumers and corporations.

Both companies will work together on integrating solutions for mobile operators, so they can offer mobile broadband service packages for both enterprises and consumers using the mobile PC.

These solutions will be based on Ericsson's HSPA platform for mobile broadband and IMS platform for convergence with Intel's Mobile technology, Ericsson said. -- REUTERS

AMD

December 1, 2006, 8.37 am (Singapore time)

AMD says four-core chip on track for mid 2007

SEATTLE - Advanced Micro Devices said on Thursday that it had made prototypes of a computer chip with four processing cores and that it was on track to put it on the market by mid-2007.

AMD is trying to fend off resurgent rival Intel, which has already launched a processor with four cores. Each core acts like a separate processor, allowing a computer to handle more tasks at the same time.

'What we really wanted to do is let everyone know that the product is right on schedule,' John Fruhe, AMD's business development manager for the chip, told Reuters.

He did not reveal pricing or technical details of the chip, saying only that it would use the same amount of energy as AMD's existing processors and that it would be priced competitively with Intel's.

He also said AMD's chip would be superior because all four cores were placed on a single piece of silicon, improving speed and efficiency.

Intel's quad-core product essentially sticks two of its dual-core chips together, but the company is hoping that it can win back market share from AMD by claiming to be first to market with such a powerful chip.

AMD also said the new chip, which will be launched under its Opteron brand for server computers that run business networks, would be made with a process that etches circuitry at 65 nanometres across. All AMD chips are now made with 90-nanometre circuits, and its long-awaited shift to 65 is expected to improve the performance of its processors and make its factories more profitable. -- REUTERS

Microsoft

December 1, 2006, 6.12 am (Singapore time)

Microsoft launches Windows Vista

NEW YORK - Microsoft launched Windows Vista for businesses on Thursday, unveiling the first major upgrade of its dominant operating system in five years and predicting that over 200 million people will run new Windows, Office or PC server software by the end of 2007.

Vista upgrades the operating system used on more than 90 per cent of the world's computers and features translucent windows to make it easier to view items on the desktop, an improved search system, and improved reliability and security.

The world's largest software maker will not make Vista widely available for retail customers until Jan 30, giving computer manufacturers time to load the operating system onto new PCs.

Plagued by a series of development delays, Windows Vista is the cornerstone of a new product cycle at Microsoft and a crucial litmus test for the company's ability to maintain its grip on desktop computer customers.

At the same time it faces fierce competition from Web rivals such as Google, which is offering software-like Web services, and electronics makers such as Apple Computer and Sony Corp. Apple's iPod music player and Sony's PlayStation video game console series dominate markets that Microsoft covets.

Along with Vista, the new Office 2007 software suite and Exchange server became available to business customers on Thursday.

Microsoft's Windows and Office business accounts for more than half of its sales and almost all of its profits, but even more importantly its steady cash flow allows the company to venture out into new business areas such as digital music players, game consoles and mobile phone software.

Microsoft said it plans to spend 'hundreds of millions' of dollars to market the Windows upgrade. The marketing budget will eclipse the US$500 million Microsoft spent to market Windows XP, the predecessor to Windows Vista.

In the first year of release, Vista will be installed on more than 100 million computers worldwide, according to research firm IDC. Nearly 60 per cent of all new PCs in 2007 will run Vista, according to research group Gartner.

Consumers buying the Vista software off the shelf will pay between US$199 and US$399 for versions ranging from basic to 'ultimate', although new computers almost always come with a version of Windows installed and corporations tend to have massive licensing deals.

Among the changes in Office 2007 is a ribbon at the top of the screen that displays the most commonly used functions.

And one of Microsoft's main selling points to business customers is Vista's beefed-up security, including a feature that encrypts data aimed at preventing people from stealing information from lost or stolen laptops. -- REUTERS

Chartered

December 1, 2006, 5.02 pm (Singapore time)

Chartered says using 75-78% of Fab 7 capacity

SINGAPORE - Contract chip maker Chartered Semiconductor Manufacturing said on Friday that it was using 75-78 per cent of capacity at its most advanced factory, slightly better than forecast.

Chartered had said in October that about 70 per cent of total factory capacity at Fab 7 would be used this quarter. Fab 7's customers include micro processor maker Advanced Micro Devices Inc, Microsoft Corp's Xbox 360 video game console, and wireless technology and chip supplier Qualcomm Inc.

Fab 7 makes chips from 12-inch wafers - about the size of dinner plates - using cutting-edge 90-nanometre process technology, which produces chips with higher processing speeds and lower power consumption, ideal for mobile and gaming devices.

The factory has an output of 15,000 wafers per month and has a total capacity of 30,000 wafers per month. -- REUTERS

China Communications Construction IPO

November 24, 2006, 2.10 pm (Singapore time)

China's top port builder picks key investors

HONG KONG - China's top port builder, China Communications Construction, readying a US$1.8 to US$2 billion Hong Kong IPO, will sell up to US$240 million in shares to three investors, including China Life Group, ahead of its listing, sources familiar with the deal said on Friday.

The state-run company will earmark 10 to 12 per cent of its IPO for three investors, including China Life Group, New World Development chairman Cheng Yutung and Singapore's GIC Direct Investments, the sources said.

'Each of them will take US$80 million worth of shares,' one of the sources said.

Billionaires Li Ka-shing and Saudi Prince Alwaleed bin Talan, had hoped to be cornerstone investors, but neither was on the list, the sources said.

Alwaleed planned to buy shares from the institutional portion of the IPO to get a larger stake, one source said.

It was not clear how soon after the HK listing the domestic one would follow, but the domestic A-share offering should be in place at least six months after the company lists in Hong Kong, because of domestic rules, one of the sources said.

China Communications Construction, whose business includes infrastructure design and construction to dredging and port machinery manufacturing, is offering 3.5 billion H-shares, or 24.4 per cent of its enlarged share capital.

A formal marketing roadshow will start on Nov 28 and the retail portion of its Hong Kong offering will run from Dec 1 to Dec 6, with final pricing on Dec 9. A trading debut is set for Dec 15. -- REUTERS

Innovalues

November 24, 2006, 10.00 am (Singapore time)

Innovalues in talks to buy rubber parts firm

SINGAPORE - Electronic components maker Innovalues Precision is in talks to acquire an Asian-based rubber parts maker, in a bid to boost its automotive components business, a senior executive told Reuters.

Innovalues, which has a market value of about US$83 million, makes precision-machined parts for automobiles, printers and hard disk drives. Its automotive customers include German car parts maker Robert Bosch GmbH and the car electronics unit of German engineering conglomerate Siemens, Siemens VDO. It also sells to printer maker Hewlett-Packard Co, as well as Japan's Minebea, which produces spindle motors for hard disk drive makers Seagate Technology and Western Digital.

'We're in discussions to acquire a company specialising in rubber technology, which would help us penetrate the Japanese automotive market,' Innovalues Business Director Steven Pung told Reuters in an interview.

Chief Financial Officer Soh Wai Kong said while the firm would fund its capital spending needs with internal cash, it was considering a share placement, bank debt and/or convertible bonds to finance its acquisitions. -- REUTERS

China Sky Chemical Fibre

November 24, 2006, 7.52 am (Singapore time)

China Sky plans to sell 80m new shares

SINGAPORE - China Sky Chemical Fibre, China's largest nylon fibre producer, said on Friday it plans to place 80 million new shares at $1.36 each.

'The placement has been effected with a view to attracting interest from reputable investment funds and improving the liquidity of shares in the market,' it said in a statement. It said about 30-40 per cent of the net proceeds from the placement -- estimated at US$69 million -- would be used to acquire land in Fujian province for future expansion.

The company's Singapore-listed shares closed at $1.46 on Thursday. -- REUTERS

Stats ChipPac

November 23, 2006, 11.42 am (Singapore time)

Stats ChipPac submits bid for assembly, test facility

SINGAPORE - Stats ChipPac, the world's fourth-largest microchip packaging firm, has submitted a bid to buy the assembly and test operations of a US chipmaker in Asia, sources familiar with the situation said on Thursday.

'A US chipmaker is selling its back-end facility in Asia. Stats submitted a bid one month ago; it should know the outcome in December,' an industry source said.

Stats ChipPac reported in October a third-quarter net profit of US$18.5 million and said it expects fourth-quarter net profit excluding special items to be between US$22 million and US$29 million. -- REUTERS

Lippo Reit (First Reit) IPO

Published November 22, 2006

IPO WATCH

Lippo Reit draws strong response THE order book for the initial public offering of Indonesian conglomerate Lippo Group's property trust is five times covered, a source close to the deal said yesterday. The source also said that the deal would be priced today. Jakarta-listed Lippo Karawaci, one of the real-estate arms of the Lippo Group, is raising up to $111 million with the listing in Singapore of a property trust. The real estate investment trust, to be called First Reit, will be based on three hospitals and a hotel resort worth $257 million in total, and would be the first Singapore-listed Reit to be based on Indonesian assets. The group is offering 140.4 million units for the property trust at a price range of between $0.68 and $0.79 per unit. Merrill Lynch and Oversea-Chinese Banking Corp are joint lead managers for the deal. Lippo, which is controlled by Indonesia's Riady family, said the trust would eventually own and invest in healthcare assets in Singapore, China, Malaysia, Thailand and Hong Kong. - Reuters Published December 5, 2006 Lippo Reit priced at lower end of indicated range INDONESIA'S Lippo Group is set to raise about $100 million from the sale of units in its Singapore real estate investment trust after pricing it at the lower end of an indicated range. Jakarta-listed Lippo Karawaci, one of the real estate units of conglomerate Lippo Group, is selling 140.4 million units of First Reit at $0.71 each. The property trust is backed by three hospitals and a hotel resort in Indonesia worth $257 million. Lippo had set an indicative price range of between $0.68 and $0.79 per unit. Merrill Lynch and Oversea-Chinese Banking Corp are joint lead managers for the deal. The Lippo deal follows a highly successful $218.4 million offering for CapitaRetail China Trust, based on Chinese shopping centres last week. The China Reit was spun off by Singapore's CapitaLand and was priced at the top end of an indicated range. Lippo, controlled by Indonesia's Riady family, said the trust would eventually own and invest in healthcare assets in Singapore, China, Malaysia, Thailand and Hong Kong. Moody's Investors Service last month lowered the outlook for Lippo Karawaci's B1 corporate family rating to negative from stable, citing the group's weaker than expected financial results for the first nine months of this year. - Reuters