Honda to Pour $15 Billion into EV Factory in Ontario–the Largest Auto Investment in Canada's History

Ontario Premier Doug Ford, Prime Minister Justin Trudeau, and Finance Minister Chrystia Freeland listen as Toshihiro Mibe, President and CEO of Honda Motor Co., speaks to the crowd at Honda of Canada – released by Honda.

In late April, Honda Motor Company announced plans to build a comprehensive electric vehicle (EV) value chain in Canada with an approximate investment of CAD$15 billion (USD$11 billion).

Consisting of four manufacturing plants for EVs, EV batteries, and battery components the first will have a production capacity of 240,000 EVs per year when fully operational, while the battery plant will produce around 36 gigawatt-hours per year.

Battery recycling and end-of-use concepts are being taken into account in the project.

Currently in evaluation phasing, the company hopes to build in Alliston, Ontario. In addition to securing the current employment level of 4,200 associates at its two existing manufacturing facilities in Ontario, Honda estimates it will add a minimum of 1,000 new jobs for the EV and EV battery manufacturing facilities.

The investment will also create significant spinoff jobs across all sites, including in the construction sector where it’s estimated that at least 4,000 tradesmen and laborers will be involved.

Honda has begun the process of evaluating the scope of its investment and completing negotiations with its joint venture partners, which includes the Federal Government of Canada who are supporting the work with CAD$5 billion. The work is expected to be finalized during the next six months.

Canadian and Ontario labor unions are scrutinizing the announcement for signs that Honda may employ foreign labor for the construction, when, they say, it should all be going to Canadians due to the presence of public money in the investment.

Honda Motor Company, Honda of Canada, and the Canadian Industry Minister, Francois-Philippe Champagne, have all said this will not be the case, with the Honda of Canada President going as far as to suggest a memorandum of understanding be signed on the topic of foreign workers versus unionized workers for the project.

Despite a recent slowdown in the growth of EV sales, especially in the U.S., Honda, the price of which reached a new 52-week high in March, said it was sticking to its goal of selling only EVs and fuel-cell, or hydrogen, vehicles globally by 2040.

Honda of Canada recently fabricated its 10 millionth car—a gasoline-powered CRV.

Honda of Canada workers finishing the 10 millionth vehicle assembled in Canada – credit – Honda

As the first step in achieving this electrification goal in North America, Honda positioned its existing auto production plants in the state of Ohio in the US as its EV hub for production, including the retooling of existing plants, an investment of USD$700 million, and the construction of a joint venture EV battery plant with LG Energy Solution, with an expected investment of USD$4.4 billion, the company said in a statement. Honda is the only auto manufacturer outside China that reveals its near neighbor for full supply chain EV production.Honda to Pour $15 Billion into EV Factory in Ontario–the Largest Auto Investment in Canada's History

Read More........ → May 10, 2024

India-Taiwan trade may reach $25 billion via investments, tech sharing

Mumbai, May 8 (IANS) As India-Taiwan economic partnership grows significantly in recent years, the trade between the two countries may reach $25 billion via investment and technology sharing, industry leaders have said.

Peter Huang, specialist of South Asia section (Market Development Department), Taiwan External Trade Development Council, who led a high-level delegation here, said that India is a friendly and hospitable country for Taiwanese industry.

"Our commercial relation is growing from strength to strength and this is our 15th business delegation to India," Huang said.

"India is still an untapped market for Taiwanese firms and there is huge trade and investment potential in India, especially in electronics, auto-components, machineries, food processing, medical devices and other sectors," he emphasised.

Taiwan has considered India as a critical partner under its 'New Southbound Policy' and both countries have also signed migration agreements to allow Indian workers to be employed in Taiwanese industries.

Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai, said that India-Taiwan economic relation is at an inflection point.

"For the first time, India conferred Padma Bhushan award to CEO of Foxconn, Young Liu, which is testimony to the strengthening of our bond," he mentioned.

The Taipei Economic and Cultural Centre (TECC) is also planning to set up a third office in India.

"Both the countries should grow bilateral trade to $25 billion, from the current level of $8 billion through partnership in investment and technology cooperation," industry leaders noted.

Of the $8 billion bilateral trade, Taiwan exports $6 billion and imports hardly $2 billion from India."In future, we are committed to facilitating our commercial partnerships in electronics, shipbuilding, and other sectors of mutual interests," Kalantri said.India-Taiwan trade may reach $25 billion via investments, tech sharing | MorungExpress | morungexpress.com

Read More........ → May 09, 2024

SES to buy Intelsat for $3.1bn

Posted by Georgia Sweeting: The deal comes less than a year after the two companies broke off merger talks

Luxemburg-based satellite company SES has signed a deal to buy Intelsat Holdings for $3.1 billion.

A joint press release from the two companies explained the combination as creating “a stronger multi-orbit operator with greater coverage, improved resiliency, expanded suite of solutions, enhanced resources to profitably invest in innovation, and benefit from the collective talent, expertise, and track record of both companies.”

Once combined, SES’s orbital assets will include 100 Geostationary Earth Orbit and 26 Medium Earth Orbit satellites.

The deal gives Intelsat an enterprise value stands of $5 billion, with SES suggesting the deal will deliver synergies worth €2.4 billion ($2.6 billion).

“Going forward, customers will benefit from a more competitive portfolio of solutions with end-to-end offerings in valuable Government and Mobility segments, combined with value-added, efficient, and reliable offerings for Fixed Data and Media customers,” said SES CEO Adel Al-Saleh.

Rumours related to a potential acquisition had first began to swirl last year, with SES confirming talks were taking place in a statement. However, these discussions appeared to fizzle out, leaving it unclear if discussions were ongoing.

Now, the deal has been unanimously approved by both company boards and is expected to close in the latter half of next year, pending regulatory approval.

The deal represents the latest stage in consolidation of the global satellite industry, as European companies attempt to compete against newer rivals such as Elon Musk’s Starlink, which launched in 2019 and has come to dominate in terms of sheer scale.

However, in terms of financials and with its well-established customer base, this newly combined SES–Intelsat could become an even more significant player in the satellite communications industry.

Indeed, some industry onlookers suggest that this combination could itself create a dominant market leader.

“The combined entity is poised to be the world’s largest satellite company in terms of revenue, and could dominate the market, leveraging its extensive resources and expertise to shape the future of satellite communications and deliver on new use cases,” commented Christof Kern, Business Development Lead in Satellite & Space at satellite consultancy TTP.

In related news, this week Intelsat announced that it will install and operate ruggedised multi-orbit satellite terminals on farm equipment from CNH in remote areas of Brazil. This will enable farmers to effectively implement precision farming, the practice of using technology to use precise amounts of water, fertiliser, and pesticides to maximise crop yield. The satellites will provide the connectivity allowing farmers to implement the practice. Source: https://totaltele.com/author/georgia-sweeting/e: 

Read More........ → May 02, 2024

SoftBank to invest $960m in Japanese AI

Posted by Georgia Sweeting: The investment follows the company spending JPY20 billion ($129.2 million) on computing infrastructure last year, Japanese tech giant SoftBank has announced that it will invest JPY 150 billion $960 billion to upgrade its computing infrastructure to deliver a Generative AI (gen AI) platform in the Japanese language, according to a report from Nikkei, which cited anonymous sources. Over the next two years, SoftBank will reportedly purchase GPUs (graphics processing units) from US based chip company Nvidia, using them to train and power its own large language models (LLMs), and then loan access to them to other firms. The investment in computing infrastructure is set to be the largest of any Japanese company, although SoftBank has not yet commented on the report. Last August, SoftBank invested JPY 150 million ($969 million) launched a new company, named ‘SB Institutions’, to research and develop homegrown LLMs that are specialised for the Japanese language. The company will ‘provide the necessary data sets and tools for LLM learning and develop models for reinforcement learning on SoftBank’s computing platform,” the press release reads. “By developing LLM specialized for the Japanese language, SB Intuitions can develop generative AI services tailored to the unique needs of Japan-based customers,” it continued. SB institutions is currently working on its own LLM, which is set to be completed this year. SoftBank to invest $960m in Japanese AI | Total Telecom

Read More........ → April 30, 2024

Taskforce Urges Investment in Women-Led Ventures to Fuel UK’s Tech Evolution

A glaring gender gap in the UK’s high-growth entrepreneurship ecosystem is hindering progress and stifling the full potential of women in driving innovation and economic growth, a new report has revealed.

The report, from a taskforce spearheaded by Anne Boden, founder of Starling Bank, advocates for significant reevaluation of investment strategies with only six per cent of high-growth enterprises being wholly or majority led by women.

The Women-Led High-Growth Enterprise Taskforce, chaired by Boden since it was established in May 2022, has worked with entrepreneurs, campaigning organisations, and the investment community to gather data and identify the main barriers for women in starting and scaling high growth enterprises.

Funding

Central to its report’s findings is the stark revelation of persistent barriers obstructing women entrepreneurs from accessing essential funding. Despite strides made in recent years, the report highlights that only a fraction of equity investment in the UK is directed towards fully female-founded businesses.

Women continue to receive less than two per cent of venture capital funding annually, painting a concerning picture of gender disparities in the investment landscape.

To increase the amount of money going into female-founded businesses, the Taskforce recommends:Investment companies must publish the percentage of senior investment professionals they employ alongside targets, as female investment professionals are more likely to back female founded and led businesses.

Investment companies sign up to the Investing in Women Code, where signatories are more likely back female led companies (35 per cent vs 27 per cent); although the number of signatories has grown by 40 per cent to 204 since 2022.

Diversity

Women-led businesses often encounter obstacles related to workforce diversity, leadership representation, and access to networks. The taskforce found that even after securing investment, women entrepreneurs face challenges in building diverse teams and accessing networks crucial for business growth and expansion.

Just 18 per cent of high-growth enterprises include one or more women on the founding team – while all-male founding teams make up 82 per cent of high-growth enterprises.

Improving diversity in senior investment roles is a key driver in enhancing the funding pipeline for women-led, high-growth businesses.Taskforce members agreed that gender balanced investors offer a broader spectrum of perspectives and experiences, enriching the decision-making process, reducing group-think.

Regional differences

Almost 45 per cent of England’s high growth enterprises are in London and considering that only 13 per cent of the UK population reside in London, this shows an imbalance in high-growth activities. The report stresses the importance of creating tailored support networks and resources for women entrepreneurs, particularly those outside traditional tech hubs like London.

To increase the number of women-led high-growth businesses outside London the Taskforce recommends:The establishment of Female Founders Growth Boards on a regional basis that will bring together public and private local stakeholders.

Boosting the economy

“As this report shows, the number of high-growth enterprises with at least one female founder is incredibly low and the picture is even worse for all-female teams,” says Maria Caulfield, Minister for Women. “This represents a shocking waste of talent and innovation and understanding the issues and barriers behind it was something I was particularly keen to understand.”

“We know women have the skills and ambition to launch successful businesses and we want to make sure they have every opportunity to do that. It is vital to everyone that we use this untapped potential to help boost the UK economy. I welcome the findings of the Taskforce’s work which will help us to achieve the government’s target of increasing the number of female entrepreneurs by half – equivalent to nearly 600,000

entrepreneurs – by 2030.”

Boden’s vision

In the report’s conclusion, Boden says: Our recommendations are ambitious, but I won’t apologise for that. Making small incremental changes won’t move the dial. We’ve been talking about this being a challenge for too long. Now we need to take big strides forward.

Source: https://thefintechtimes.com/

Read More........ → April 23, 2024

Tesla’s Musk likely to unveil $2-$3 billion India investment during visit, sources say

FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo

NEW DELHI (Reuters) – Tesla chief Elon Musk is set to announce an investment in India of $2-$3 billion, mainly for building a new factory, when he visits New Delhi next week to meet Prime Minister Narendra Modi, two sources familiar with the discussions said. Musk will meet Modi on Monday during his India trip, when the billionaire is expected to unveil his plans to enter the world’s third-largest auto market where electric car adoption is still in its infancy. India’s EV market is small but growing and dominated by local carmaker Tata Motors. EVs made up just 2% of total car sales in 2023, but the government is targeting 30% of new cars to be EVs starting 2030. Musk’s visit comes as Tesla battles slowing sales in the major markets of the United States and China, and has this week announced layoffs affecting 10% of its workforce. Details of Musk’s India visit are closely-guarded, with the CEO only publicly confirming on his social media platform X that he will meet Modi in India. The two sources said Musk will likely give an investment figure for India without sharing details such as a timeline or an Indian state where the plant will be built. Tesla did not immediately respond to a request for comment. For years, Musk opposed India’s high import taxes for EVs and lobbied for a change. India’s government in March unveiled a new EV policy lowering import taxes to 15% from as high as 100% on some models if a carmaker invests at least $500 million and sets up a factory. Tesla has already started scouting for showroom space in New Delhi and Mumbai, and its Berlin factory is producing right-hand drive cars it aims to export to India starting later this year, Reuters has reported. Musk is also likely to attend an event organised by the Indian government in New Delhi with space startups, the two sources said.Musk owns U.S. space company SpaceX. Tesla’s Musk likely to unveil $2-$3 billion India investment during visit, sources say

Read More........ → April 19, 2024

Belt and Road Initiative’s new approach and what it means for Chinese investments in Indonesia

The Jakarta-Bandung high-speed train, the first in Southeast Asia, was funded by China as part of its decade-old Belt and Road Initiative (BRI) project. ANTARA FOTO/Hreeloita Dharma Shanti/sgd/aww Ahmad Syarif, Johns Hopkins University

A shift in China’s international Belt and Road Initiative (BRI) from focusing on massive projects such as roads, railways and ports to “small but beautiful” ones has been announced by President Xi Jinping.

Launched in 2013, the initiative provides loans to build infrastructure in partner countries worldwide, with connectivity as its main focus.

Indonesia is BRI’s biggest recipient in Southeast Asia. The initiative has helped the country finance Southeast Asia’s first high-speed train project and poured billions of dollars of investment into nickel processing, unlocking a critical mineral asset.

As a scholar in political economy and a former government relations consultant working closely with the Indonesian business sector, I’ve been considering what the “small-but-beautiful” approach means for Chinese investment in Indonesia.

What does “small-but-beautiful” BRI mean?

This shift in BRI strategy signifies a focus on projects that are of a smaller scale more efficient and less risky. It is a sensible move for China, considering the global economic slowdown, the country’s moderating domestic economy, and trade tensions with the US.

It is also an attempt to repair China’s global image, amid fears it is seen as a loan shark. Several countries, such as Zambia and Sri Lanka, have already gone into default. China’s reputation will suffer if too many countries fail to pay debts.

Defaults are a liability for the BRI cash flow and the Chinese economy. Beijing should find reliable debtors with solid and promising economic performance. That is precisely what Beijing sees in Jakarta: stable politics, a growing domestic market and pragmatic economic policies.

Chinese state investment in Indonesia

China’s state-driven investment in Indonesia focuses on public infrastructure project run by Indonesian state-owned enterprises and funded by Chinese state-owned lenders. The Jakarta-Bandung high-speed train is an example of China’s investments in Indonesia.

Indonesia received a loan from the China Development Bank for the project and began construction in 2016. The project hit a US$2 billion cost overrun due to problems in its land acquisition and feasibility study.

Due to the ballooning costs, China asked for financial reassurance from the Indonesian government. This prompted the use of the state budget the public having been promised that the project would not touch any government funds.

This might set a precedent for future Chinese investment requiring state collateral – especially given Indonesia’s plan to persuade China to invest in Indonesia’s new capital project in East Kalimantan.

Indonesia has asked China to chip in to the US$35-billion project, which has struggled to secure investment. There has been no formal answer from the Chinese on the request thus far. However, investing in the new capital – which is far bigger and riskier than the high-speed railway project – does not fit the “small-and-beautiful” approach due to its high risks.

China may still opt to invest in the mega-project, but a more modest input seems more likely. And as part of risk sharing, Indonesian government collateral will be likely critical for its willingness to invest.

The Chinese private sector

While Chinese state-owned firms focus on funding public infrastructure projects, its private sector is more profit-oriented. This means that changes in BRI – which now emphasises more on less risky, bankable projects – is unlikely to affect Chinese private investment in Indonesia.

One of the critical projects between the two countries’ private sectors is a joint venture between Tsingshan Holding Group Company Limited, the China-based biggest private investor in nickel processing, and Merdeka Copper and Gold.

Close relationships with domestic tycoons have helped Chinese private sector firms navigate Indonesia’s planning rules and guide the engagement with the country’s domestic politics.

Chinese private companies such as Tsingshan are also backed by their state-owned firms in their Indonesian ventures. The Morowali Industrial Park in Central Sulawesi, Tsingshan’s most prominent project and the largest nickel processing park in Asia, is funded with loans from Chinese state-owned banks. The park’s processing technology contractor is mainly run by a Chinese state-owned subsidiary.

The Chinese state-owned companies find Tshinghan and other Chinese private sector operators successful in navigating their investment in complex and highly political sectors such as natural resources and critical minerals processing due to their strong links with Indonesia’s powerful politicians and business people.

Chipping in via profit-oriented projects run by private companies makes more sense for some Chinese state-owned firms than being directly involved in Indonesia’s public infrastructure projects. The investments driven by Chinese private sectors are relatively more risk-averse and commercially sound.

In the future, we will likely see a continuing trend of Chinese private sectors, supported by their state-owned firms, partnering with domestic business groups to invest in Indonesia’s profitable critical minerals and other sectors.

Ahmad Syarif, Doctor of International Affairs candidate, Johns Hopkins University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Read More........ → December 14, 2023

Telecom Italia approves US fund's bid for network

ROME - Telecom Italia on Sunday approved an offer by US investment fund KKR for its fixed-line network, infuriating its main shareholder which vowed to contest the "illegal" decision.

The Italian telecommunications operator is seeking to sell its fixed network to pare down a huge debt pile that stands at more than 26 billion euros ($28-billion).

TIM said its board had approved the deal, whose value could reach 22 billion euros and which would reduce the debt by "around 14 billion euros".

Its main shareholder, French media giant Vivendi, has opposed selling the network and valued it at 31 billion euros, saying KKR's previous bids were far too low.

Vivendi said it would "use all legal means at its disposal" to contest TIM's "illegal" decision.

It had previously threatened to launch legal action if the KKR offer was approved without being submitted to an extraordinary general assembly of shareholders, where Vivendi would carry considerable weight.

"The rights of Telecom Italia shareholders are being trampled on," Vivendi added.

TIM chief executive Pietro Labriola welcomed the board's "historic decision" and said he remained open to dialogue, particularly with the "biggest shareholders".

The Italian government is already the second-largest shareholder in TIM, which was privatised in 1997.

Prime Minister Giorgia Meloni's government intends to take a stake of up to 20 percent in the fixed-line network, viewing it as strategic infrastructure.

After months of suspense, TIM's board in June approved the start of exclusive negotiations with KKR.

The board rejected a lower offer from the Italian Caisse des Depots and Australian fund Macquarie Asset Management, worth around 19.3 billion euros.

If the deal goes through, TIM will become the first major operator in Europe to sell its fixed network on its domestic market to slash debt.The debt load is hampering TIM's efforts to invest in rolling out fibre optic networks, where Italy is lagging behind other advanced economies.Telecom Italia approves US fund's bid for network

Read More........ → November 07, 2023

Disney to complete takeover of Hulu with $8.6bn deal

NEW YORK - The Walt Disney Company announced it will buy Comcast's $8.6-billion stake in Hulu, completing its takeover of the streaming service.

The acquisition will "further Disney's streaming objectives," the company said in a press release, and comes as it strives to boost subscriber numbers at its Disney+ streaming service.

The deal values Hulu at $27.5-billion in total, according to Disney, which said the transaction will be concluded by December 1.

The California-based entertainment giant already sells Hulu as part of bundled offerings with its Disney+ and ESPN+ platforms.

An ad-subsidized bundle of the three services is priced at $15 monthly in the United States, with an ad-free version costing $25 per month.

The company will release its latest quarterly earnings next week, providing a look at how its cable and streaming services are doing in the fiercely competitive market.

Disney in August reported that Disney+ lost more than 10 million subscribers in the recently ended quarter, in large part in the Indian market.

Disney+ finished the second three months of this year with 146.1 million subscribers, compared with just shy of 158 million in the prior quarter, the group said.

Disney rival Netflix last month said subscriber numbers grew nearly 11 percent to 247 million as it cracked down on password sharing and refined an ad-supported tier.The leading streaming service increased prices on some of its plans, perhaps creating an opportunity for competitors such as Disney.Disney to complete takeover of Hulu with $8.6bn deal

Read More........ → November 04, 2023

Foxconn to invest $600 million in India’s Karnataka to make iPhone components, chip equipment

FILE PHOTO: A woman walks past the logo of Foxconn outside the company’s building in Taipei, Taiwan November 9, 2022. REUTERS/Ann Wang/File Photo

BENGALURU (Reuters) -Foxconn will invest $600 million in two projects in India’s Karnataka to make casing components for iPhones and chip-making equipment, signaling its growing interest in the south Asian nation as it spreads bets beyond China. Some $350 million will go towards setting up the iPhone component facility, which will generate 12,000 jobs, while Foxconn will tie up with Applied Materials in a $250 million project to make chip-making tools, Karnataka state said in a statement. Reuters was first to report the investment plans on Wednesday. The state government said both projects were signed via so-called letters of intent, meaning final modalities could change. Foxconn, which assembles around 70% of iPhones and is world’s largest contract manufacturer, has been diversifying production away from China amid COVID disruptions and geopolitical tensions. The investment decisions follow a meeting between Foxconn Chairman Young Liu, Karnataka’s IT minister Priyank Kharge, and Industries Minister MB Patil. “We are excited about the possibilities that Karnataka offers for our expansion plans in India,” Liu said in the statement. Foxconn’s expansion in India is also the latest in a string of foreign companies – from Micron to Amazon – that are expanding and committing billions of dollars worth of investment in the coming years, placing a bet on growing consumption and demand in the world’s most-populous nation. Prime Minister Narendra Modi is also attracting investors for semiconductor manufacturing, which is his key business agenda currently. In Karnataka, Foxconn will collaborate with Applied Materials on a project for making semiconductor manufacturing equipment, and create jobs for around 1,000 people. Foxconn also has plans to apply for incentives under a $10 billion scheme by India’s government to promote chip manufacturing, and is in talks with Gujarat to set up a chipmaking facility in the western state. Foxconn chairman Liu has been in India and been meeting officials in several states after attending the federal government’s flagship semiconductor conference.India’s Tamil Nadu state has also announced that Foxconn will invest $194 million in a new electronic components manufacturing facility that will create 6,000 jobs. Foxconn to invest $600 million in India’s Karnataka to make iPhone components, chip equipment

Read More........ → October 09, 2023

Successful nuclear projects key for future investments : New Nuclear

White & Case LLC's Julien Bocobza addressing the Symposium (Image: World Nuclear Association)

Being able to refer to success stories of nuclear power projects being completed on time and on budget, whether refurbishments or new build, will be key to securing finance for future projects, panelists in a session of the recent World Nuclear Symposium 2023 agreed.

"Nuclear energy could and should play an important role in ensuring the rapid and secure energy transitions, and investments in nuclear must step up fast," said Keisuke Sadamori, Director of Energy Markets and Security at the International Energy Agency (IEA). "Existing nuclear power plants need to be extended."

However, he noted: "While increasing year-on-year at the rate of nearly 15% from about USD37 billion in 2019 - before COVID - to USD65 billion in 2023, nuclear investments remain a small part of overall clean energy investments, around a 4% share."

Speaking during a session on Investing in Nuclear on 8 September, Sadamori said the IEA released its Nuclear Power and the Secure Energy Transitions report more than a year ago. Under the report's net-zero scenario, nuclear power needs to double from around 400 GW now to more than 800 GW in 2050. "Less nuclear power would make the net-zero transition harder, more expensive and riskier," he added.

"The resurgence of nuclear power in the net-zero scenario entails a massive increase in investments in the coming decades," Sadamori said. "Global investments in nuclear surges over USD100 billion in the first half of the 2030s in the net-zero scenario, and that's over three times the average of the 2010s."

Innovative funding models

Nuclear projects have for many years relied on state ownership or the regulated monopoly structure to guarantee revenues and reduce risks to investors, Sadamori noted. However, there are private sector investors willing to finance such projects but innovative financing mechanisms are needed to secure this funding.

"The key concern that investors see is the duration that it takes to put a project up to connection, up to operation," said Julien Bocobza, partner in the Japan office of White & Case LLC. "You've got naturally the development phase, the planning stage, which is borne by investors, by equity providers, by developers. But even once the project is approved and starts construction, the typical duration, because everything has to be customised, is around seven years.

"The impact on the financing is tremendous, in particular because it means you need to have the amount of cash available to pay interest during construction. So you are really paying lenders for seven years before you start getting any revenue, which creates issues. But also given that scale, you need a very long period to repay that loan, which then is often an issue with commercial lenders who cannot go beyond 15, 18 years typically for repayment periods."

Details about the UK's Regulated Assets Base (RAB) funding model, which is being used for financing the Sizewell C project, were outlined by Iain Smedley, chairman of power and utilities banking at Barclays. Under this model, a company receives a licence from an economic regulator to charge a regulated price to consumers in exchange for providing the infrastructure in question. He said the model "from an investor perspective, is structured to produce attractive, stable, low-risk and inflation-linked returns at scale".

Smedley added: "The RAB model is designed to set up a structure that provides a high level of certainty and confidence and predictability for investors, whilst also making sure that there are appropriate incentives in place."

Showcasing successful projects

All the speakers on the panel agreed on the need for the nuclear industry to deliver projects on time and on budget in order to attract funding from investors.

"What the financial sector sees ... is delays and cost overruns," Bocobza said. "And how will each project deal with that? Clearly for lenders, it is what they are going to look at in the first instance. They will not take that risk or they will be very reluctant to take that risk until it's clearly mitigated."

He added: "Having very successful stories about being on time and on budget will really, really help. And that's why I agree it was fantastic to hear those stories because it gives confidence. Lessons learned I think is absolutely key in the construction space, of course, but also for governments to make sure that if you're putting together a new programme you understand what worked, what didn't work, and you actually implement gateways to ensure that you make it work."

"The key here is being able to showcase to the world that we can deliver large-scale projects on time and on budget," added Kevin Kelly, executive VP, finance and CFO, Bruce Power. "And, you know, whether it's a multiple billion dollar refurbishment or new build, you got to stick to the basic principles of having your engineering done, getting your long-lead parts, having an established supply chain."

Sadamori said it should not just come down to the industry to attract the necessary finance for nuclear projects. "Governments need to have a very strong policy to ensure public awareness of the possible important contributions from nuclear for both energy security and climate change mitigation, and also, as presented, the needed financial mechanisms to ensure the needed investments in nuclear, because the current competitive unbundled electricity power systems in mostly the advanced economies are not good enough to ensure the necessary investments into assets like nuclear."Researched and written by World Nuclear News. Successful nuclear projects key for future investments : New Nuclear - World Nuclear News

Read More........ → September 25, 2023

Foxconn to invest $600 million in India’s Karnataka to make iPhone components, chip equipment

FILE PHOTO: A woman walks past the logo of Foxconn outside the company’s building in Taipei, Taiwan November 9, 2022. REUTERS/Ann Wang/File Photo

BENGALURU (Reuters) -Foxconn will invest $600 million in two projects in India’s Karnataka to make casing components for iPhones and chip-making equipment, signaling its growing interest in the south Asian nation as it spreads bets beyond China. Some $350 million will go towards setting up the iPhone component facility, which will generate 12,000 jobs, while Foxconn will tie up with Applied Materials in a $250 million project to make chip-making tools, Karnataka state said in a statement. Reuters was first to report the investment plans on Wednesday. The state government said both projects were signed via so-called letters of intent, meaning final modalities could change. Foxconn, which assembles around 70% of iPhones and is world’s largest contract manufacturer, has been diversifying production away from China amid COVID disruptions and geopolitical tensions. The investment decisions follow a meeting between Foxconn Chairman Young Liu, Karnataka’s IT minister Priyank Kharge, and Industries Minister MB Patil. “We are excited about the possibilities that Karnataka offers for our expansion plans in India,” Liu said in the statement. Foxconn’s expansion in India is also the latest in a string of foreign companies – from Micron to Amazon – that are expanding and committing billions of dollars worth of investment in the coming years, placing a bet on growing consumption and demand in the world’s most-populous nation. Prime Minister Narendra Modi is also attracting investors for semiconductor manufacturing, which is his key business agenda currently. In Karnataka, Foxconn will collaborate with Applied Materials on a project for making semiconductor manufacturing equipment, and create jobs for around 1,000 people. Foxconn also has plans to apply for incentives under a $10 billion scheme by India’s government to promote chip manufacturing, and is in talks with Gujarat to set up a chipmaking facility in the western state. Foxconn chairman Liu has been in India and been meeting officials in several states after attending the federal government’s flagship semiconductor conference.India’s Tamil Nadu state has also announced that Foxconn will invest $194 million in a new electronic components manufacturing facility that will create 6,000 jobs. Source: https://www.newsindiatimes.com/

Read More........ → August 07, 2023

Indian startups bagged $9.3bn investments in 2020

Despite the COVID-19 challenges, Indian startups received investments to the tune of $9.3 billion in 2020, according to data from consultancy firm Tracxn.

The figure is much lower than the record $14.5 billion raised by Indian startups last year as the number of deals this year reached 1,088 from 1,185 last year, TechCrunch reported on Monday.

There were 20 funding rounds with deal size $100 million or larger in 2020 compared to 26 in 2019.

Similarly, rounds with deal size $50 million to $100 million fell to 13 in 2020 from 27 last year.

The figures exclude the funds raised by Jio Platforms, which alone bagged over $20 billion investments this year.

The report reveals that fortunes for the Indian startups turned significantly in the second half of the year.

The startups raised just $4.2 billion in the first half of the year from about 461 deals, said Tracxn.

The year saw 11 Indian startups including RazorPay, Glance and Unacademy becoming a unicorn.

The report revealed that global technology giants like Google, Microsoft and Facebook wrote checks for Indian startups, while Chinese giants such as Alibaba and Tencent made fewer investments amid border tensions with India. Source: https://southasiamonitor.org

Read More........ → December 30, 2020

Taiwanese electronic majors to invest US$900 million in India?

Three Apple suppliers in Taiwan are reportedly planning to invest US$900 million in India in the next five years under the Indian government's new incentive plan for large-scale electronics manufacturing. The three Taiwanese contract manufacturers — Foxconn, Wistron, and Pegatron — all plan to participate in India's US$6.65 billion production-linked incentive (PLI) scheme, according to Taiwan News quoting Reuters. 

The scheme is expected to help add 0.5 percent to India's economic growth in five years by encouraging local electronics production and attracting large investments from major global manufacturers, the report said. Foxconn has already applied to invest US$542 million, while Wistron and Pegatron have committed to invest US$176 million and US$163 million, respectively. Although it is unknown whether all the investment will go towards producing Apple products, it is understood that the majority of it will be used to expand iPhone manufacturing in India.

The investments highlight a potentially seismic shift as Apple diversifies its supply chain beyond China. India is seeking to capitalize on the fallout and wants to transform the South Asian country into the world's No. 1 in mobile manufacturing hub by 2025, according to Tech News.

Source: https://southasiamonitor.org/

Read More........ → October 04, 2020

Self-reliance is not being closed to the world: PM Modi

Inviting global companies and investors to India amid his government's push for import substitution and a self-reliant India, Prime Minister Narendra Modi on Thursday said that the call for an 'Aatmanirbhar Bharat' is not about being self-contained or being closed to the world.

Delivering the inaugural speech at the India Global Week 2020, he said that the concept of Aatmanirbahar Bharat merges domestic production and consumption with global supply chains.

Inviting global investments in agriculture, logistics, defence and space, the Prime Minister said: "We are laying a red carpet to come and establish presence in India."

"Aatmanirbhar Bharat is not about being self-contained or being closed to the world, it is about being self-sustaining and self-generating. We will pursue policies that promote efficiency, equity and resilience," he said.

The Prime Minister first used the term Aatmanirbhar Bharat, or self-reliant India, during an address to the nation in May, wherein he had asked citizens to purchase Indian and India-made goods and called upon India Inc to produce all the products imported by the country and become self-sufficient. Since then, it has become a catchphrase among industry participants and traders along with government representatives.

Talking of market liberalising reforms, he said that India is one of the most open economies in the world.

He also outlined several "reform" measures taken by the government in the past six years including "total financial inclusion", "record" housing and infrastructure projects, tax reforms including the Goods and Services Tax among others.

Further as the world goes through a recession amid the pandemic, Modi said that India will play a leading role in the global economic revival.

He also said that India has already started seeing "green shoots of recovery".

Noting that Indian technology industry and tech professionals along with contributions in other sectors by Indians, including healthcare, banking and scientific research, have always played a major role globally, he said: "There is faith that the story of global revival will have India playing a leading role."

Modi also said the ability of Indians to reform and rejuvenate would be significant in this regard.

As on one hand, India is fighting the pandemic with stress on healthcare, it has also given equal importance on economic revival and reform, he added. (IANS)

Source: https://southasiamonitor.org/

Read More........ → October 01, 2020

India needs further economic reforms to attract more investment: IMF

JUL 24, 2020 WASHINGTON: India's concerted efforts to strengthen the business climate and encourage investment in trade have helped attract investment, but the country needs further economic reforms to ensure sustainable and more inclusive growth, according to the IMF. The remarks by International Monetary Fund's Chief Spokesperson Gerry Rice on Thursday came in response to a question on the recent FDI announcements made by global giants like Facebook and Google in India. In recent weeks, several international companies have pledged USD 20 billion FDI in India, and a whopping USD 40 billion this year so far. "Concerted efforts have been made in recent years, in India, to strengthen the business climate and encourage investment in trade, and these have helped to attract investment and improve the current account financing mix and also help to contain external vulnerabilities,” Rice told reporters at a news conference here. Relevant reforms have included the new bankruptcy code, the National Goods and Services Tax. These have helped to gain in India's doing business ranking, moving up rapidly in the World Banks Ease of Doing Business index, up to 63 in 2020, from 100 in 2018, significant progress there, indeed, Rice said. " Nonetheless, further economic reforms, including labour, product mixed land, and others, and additional infrastructure investment are necessary, in our view, to attract even more investment, and to ensure sustainable and more inclusive growth in India, he said in response to the question. Recently, the IMF in its update to the World Economic Outlook projected India growth rate at -4.5 per cent, and then six per cent recovery, for the fiscal year 2020-21 and fiscal year 2020-22, respectively, he said. Our projection for fiscal year 20-2021 was revised down, as was the case for most countries driven by the impact of the pandemic, Rice said. On balance, I think we would say the risks to the economic outlook remain," he said. Despite gradual recovery in activities and a solid agricultural performance, the downside risks remain. "The main downside risk is, of course, the continued spread of the pandemic, he noted, referring to the coronavirus pandemic. "Further outbreaks could require additional lockdowns, and concerns about the virus could also dampen consumer confidence and delay the economic recovery. Again, this is the case not just in India, but in many countries, Rice said. Copyright © Jammu Links News, Source: Jammu Links News

Read More........ → July 25, 2020

Google set to invest $10bn in India

Sundar Pichai, chief executive officer of Alphabet

Google said yesterday it will invest $10bn in India over the next five to seven years as it battles rivals like Facebook and Amazon in the vast market of 1.3bn consumers.

Chief executive Sunder Pichai told a virtual Google in India event that its fund would help “accelerate India’s digital economy” and will include investing in local firms and infrastructure in areas like digital payments, education and health.

“There’s no question we are facing a difficult moment today, in India and around the world. The dual challenges to our health and to our economies have forced us to rethink how we work and how we live,” Pichai said.

“But times of challenge can lead to incredible moments of innovation,” Indian-born Pichai said according to a transcript of his remarks released by the US search engine giant.

Foreign firms have spent tens of billions of dollars in India in recent years as they fight for a piece of the Asian giant’s burgeoning digital economy.

This has included only this year around $16bn in investments from Facebook, Intel and others in stakes in the digital services unit of Jio, controlled by Asia’s richest man Mukesh Ambani.

Pichai yesterday briefed Prime Minister Narendra Modi on his plans, but a government statement suggested that Modi also expressed concerns about data security and privacy.

Modi “said that tech companies need to put in efforts to bridge the trust deficit,” the statement said.

Earlier this month the Indian government banned 59 Chinese cellphone apps including the hugely popular TikTok over concerns the firms were passing user data to the Chinese government. Source: https://www.gulf-times.com/

Read More........ → July 17, 2020

Google announces $10bn investment in 'digital India'

Image copyright AFP Image caption Sundar Pichai said the investment was "deeply personal"

Google will invest $10bn (£7.93bn) in India in the next five to seven years, the chief executive of its parent company Alphabet Inc has announced.

Sundar Pichai spoke at the annual Google for India event, held online.

The investment will be used to build products and services for India, help businesses go digital and use technology "for social good".

"This is a reflection of our confidence in the future of India and its digital economy," Mr Pichai said.

With more than 500 million active internet users in the country, India is perhaps the biggest potential growth market for Google.

The investment will be made through the Google for India Digitisation Fund

Mr Pichai said the fund would focus on four areas to scale up digital infrastructure in India. It would:enable "affordable access and information for every Indian in their own language""build new products and services that are deeply relevant to India's unique needs"empower local businesses who want to go digital "leverage technology and AI [artificial intelligence] ]for social good" in sectors like health, education and agriculture

Mr Pichai also touted Prime Minister Narendra Modi's Digital India project which aims to overhaul the country's digital infrastructure.

Mr Modi tweeted to say that he and Mr Pichai had discussed "leveraging the power of technology to transform the lives of India's farmers, youngsters and entrepreneurs".

Why this investment makes sense for Google

Nikhil Inamdar, BBC news Mumbai

India is already a major market for all of Google's key products including Android, Search and YouTube. Nearly 245 million Indians access YouTube in India.

Growing internet use across smaller towns and villages has also led to a boom in regional language internet use which, according to one estimate, now commands a 66% share in overall content consumption in India, far surpassing English.

This, along with a significant uptick in the number of Indians using AI-based technologies for education, healthcare and financial services, dovetails directly with Google's ambitions to bring first-time users online.

"I expect digital adoption in sectors like education will be two to three times faster because of this investment," telecoms analyst Minakshi Ghosh told the BBC.

The timing of Google's announcement is particularly interesting. It comes close on the heels of India announcing a ban on 59 Chinese apps including TikTok and WeChat.

"Google can scale its presence and fill the void created by some of them, especially in browser space, communication tools and utility apps," says Tarun Pathak, associate director with Counterpoint Technology Market Research. "The ban has created uncertainty in the market, which is an opportunity for Silicon Valley giants like Google and Facebook."

This is not the first time Google has made large investments in India.

In 2015, the company partnered with Tata Trusts to launch Internet Saathi, a programme to help bridge the gender divide and deliver technology to Indian villages. According to the programme's website, the effort has helped around 28 million women across nearly 300,000 villages learn about the internet.

In his blog, the Indian-born Mr Pichai wrote that this mission was "deeply personal".

"Growing up, technology provided a window to a world outside my own. It also brought us closer together as a family," he saidGoogle announces $10bn investment in 'digita

Read More........ → July 11, 2020

Silver Lake to invest Rs 5,655.75 crore in Jio Platforms, says Reliance Industries

Reliance Industries Limited on Monday announced that private equity firm Silver Lake will invest Rs 5,655.75 crore in its digital arm, giving it a valuation of Rs 4.90 lakh crore.

The fresh deal came days after Facebook announced an investment of Rs 43,574 crore to buy a 9.99 per cent stake in Jio Platforms, which is the digital services entity.

“Reliance Industries Limited (“Reliance Industries”) and Jio Platforms Limited (“Jio Platforms”) announced today that Silver Lake will invest Rs 5,655.75 crore into Jio Platforms. This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5% premium to the equity valuation of the Facebook investment announced on April 22, 2020,” the statement said.

Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said, “I am delighted to welcome Silver Lake as a valued partner in continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians.”

“Silver Lake has an outstanding record of being a valuable partner for leading technology companies globally. Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation,” Ambani added.

Commenting on the investment, Egon Durban, Silver Lake Co-CEO and Managing Partner, said, “Jio Platforms is one of the world’s most remarkable companies, led by an incredibly strong and entrepreneurial management team who are driving and actualizing a courageous vision….. The market potential they are addressing is enormous, and we are honored and pleased to have been invited to partner with Mukesh Ambani and the team at Reliance and Jio to help further the Jio mission.”

Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a whollyowned subsidiary of Jio Platforms.

“In the wake of the severe economic disruptions caused by the COVID-19 pandemic, globally and especially within India, this partnership with one of the most renowned tech-investors globally, Silver Lake, has special significance. Comprehensive digitisation will be a vital component of the revitalisation of the Indian economy,” the statement said Source:  http://tehelka.com

Read More........ → June 28, 2020

Alibaba to invest $1.25b in food delivery app ele.me

A deliveryman of Chinese food delivery company Ele.me prepares to deliver meals. (file photo)

E-commerce giant Alibaba Group Holding Ltd is said to have invested $1.25 billion in ele.me, becoming the biggest shareholder of the food delivery application. According to a report from caixin.com on Friday, the two parties have already reached an agreement but the deal is expected to be completed after China's Spring Festival in February 2016. The investment is expected to give Alibaba about a 30 percent stake in ele.me. Ele.me, which announced its latest fundraising of $630 million in August, is expected to see its estimated value boost to $4.5 billion after Alibaba's cash injection. Both Alibaba and ele.me, when reached by China Daily on Friday, said they could not comment on market speculation. Analysts said that it is important for ele.me to land investment as the online food delivery market in China requires cash-burning competition to gain market share. The deal is also able to help Alibaba gain a stronger foothold in China's online-to-offline dining market. Ele.me, which was launched in Shanghai in 2009, is a major player in China's booming online food delivery market. According to a report released by iResearch Consulting Group, the online food delivery market, which had overall transactions of 9.51 billion yuan ($1.47 billion) in 2014, has huge potential in China. Source: China.org.cn

Read More........ → December 26, 2015