By Zhang Fengming – COCA-COLA Co will open two more plants in China as it pushes forward its three-year, US$2 billion investment plan in its third-largest market, its chairman and chief executive officer said yesterday in Beijing.

The Atlanta-based company will open plants in Guangdong Province and Hohhot in Inner Mongolia Autonomous Region this year, Coca-Cola Chairman and Chief Executive Officer Muhtar Kent said.

The world’s largest soft drink maker also started construction of a plant in Henan Province this year.

“Our US$2 billion investment plan is on track,” Kent said. “China is a tremendous growth market for us and a market of great investment, partners and innovation.”

The company opened three plants in China last year in Xinjiang, Jiangxi, and Hubei. The company is also raising capacity at existing facilities.

“Without any doubt, we are completely in belief and completely allied with the prospects of what China’s future development holds,” Kent said.

Coca-Cola’s business in China grew 16 percent in the first quarter of this year. It has maintained double-digit growth in China for 38 quarters.

Coke has invested US$2 billion in China since 1979 and created 40,000 jobs directly. It creates 10 jobs indirectly with each direct job.

China is the world’s second-biggest ready-to-go non-alcoholic drink market after the United States.

The 58-year-old Turkish American businessman steering the American company said he expects China to become the biggest non-alcoholic beverage market “in a fairly short period of time” and one day become Coca-Cola’s biggest market.

“Everything is becoming possible,” Kent said. “It’s not a question of if, it’s a question only of when.”

The company covers segments including soda, water, tea, dairy and juice in China. – read more at ShanghaiDaily.com

American Airlines will use the Boeing 777 for its new Chicago-Beijing service.

American Airlines on Tuesday called off plans for a big celebration at the Beijing’s airport where Dallas Cowboys Cheerleaders were scheduled to greet the landing of its inaugural nonstop flight from Chicago to Beijing.

The Texas-based carrier cited a disagreement with Chinese aviation authorities over take-off and landing times in Beijing and rescheduled the new service for May 4 as it tries to resolve the dispute.

The cancellation of the flight is expected to delay American’s efforts to seize the upper hand in the world’s fastest-growing commercial aviation market, which is a key driver in the global aviation industry’s recovery.

But the new route will remain grounded if American cannot reach an agreement with Chinese aviation officials about “commercially viable operating slots”, the airline said in a statement.

“I don’t want to speculate what might happen. But there is the possibility that more cancellations will happen if we do not get this resolved,” said Theo Panagiotoulias, American’s vice-president for the Pacific.

American had scheduled the Boeing 777 flight to arrive at Beijing Capital International Airport at 1:55 pm on Tuesday and depart Beijing later in the afternoon.

It said Chinese authorities only allowed the flight to land at 2:20 am and depart at 4:20 am from Beijing, Asia’s busiest airport.

“Simply put, American has not received commercially viable landing and takeoff slots,” the statement said.

The airline said it is currently rebooking customers on other flights to get them to their destinations. Customers are also being offered full refunds or the opportunity to travel on American at a later date.

American had sold about 240 seats on the inaugural flight from Chicago to Beijing and about the same number on the return flight, said Panagiotoulias. – read more at People’s Daily Online…

Scheduled to fly in 2016, the COMAC C919 will be China's first large commercial jetliner.

People’s Daily Online, April 23, 2010 – US Aerospace firm Hamilton Sundstrand said it has won a $1 billion long-term contract to provide the electric power generation and distribution systems for China’s first single-aisle C919 aircraft, beating rivals including General Electric Co.

A source close to the deal told China Daily that Hamilton Sundstrand will form a joint-venture partnership with Aviation Industry Corporation of China (AVIC) System Co Ltd to develop and manufacture the electrical system, as stated in a letter of intent signed on April 15 in Xi’an, Shaanxi province.

The C919, China’s first large commercial jetliner developed by the Commercial Aircraft Corporation of China Ltd (COMAC), is expected to take flight in 2016.

Shanghai-based COMAC aims to sell more than 2,000 of the 150-seat single-aisle planes over the next 20 years, challenging Airbus and Boeing in both the domestic and global markets.

Hamilton Sundstrand, a subsidiary of United Technologies Corp, estimated in a statement on its website that the deal would be worth more than $1 billion in revenue over the life of the program.

“Hamilton Sundstrand is honored to partner with COMAC to provide the electric system on the new C919 aircraft,” said Hamilton Sundstrand President Alain Bellemare.

“With this agreement, Hamilton Sundstrand continues to play a large role in the Chinese aviation industry’s rapid growth.”

The contract is expected to contribute to United Technologies Corp’s estimated 2010 earnings of between $54 billion and $55 billion for 2010.

United Technologies Corp, which also makes Pratt & Whitney jet engines and Sikorsky helicopters, said on Wednesday its first quarter profit jumped 20 percent, the first increase in a year as the industrial conglomerate cited its efforts to cut costs and boost productivity.

United Technologies rose $2.73, or 3.7 percent, to $76.93 in New York Stock Exchange trading on Wednesday.

Hamilton Sundstrand is a key supplier on COMAC’s 90-seat ARJ21 regional jet, including the electric power, high-lift actuation and fire protection systems. — read more at People’s Daily Online…

The Wynn Macau. Steve Wynn is reportedly considering moving his company's corporate headquarters from Las Vegas to Macau.

HONG KONG (MarketWatch) — Casino magnate Steve Wynn said he plans to build a third major casino in Macau and will consider relocating the Las Vegas headquarters of publicly held Wynn Resorts to the Chinese gambling hub.

Wynn, during an interview Wednesday to promote the launch of Encore Macau, told CNBC he is looking at shifting the company headquarters to Macau, without providing details.

Wynn Resorts /quotes/comstock/15*!wynn/quotes/nls/wynn (WYNN 89.71, -0.21, -0.23%) reportedly gets about 60% of its revenue from operations in Macau. Its local unit, Wynn Macau, is one of the six licensed casino operators in the territory. – read more at MarketWatch.com…

Joining the SkyTeam will help China Eastern Airlines fend off the competition from major rivals and share more resources with other members. (Agencies)

By Wang Ying (China Daily) – SHANGHAI – China Eastern Airlines said on Friday it would sign a memorandum of understanding to join global airline alliance SkyTeam.

“What we have signed is a preliminary agreement. And after a year when China Eastern fulfils all the requirements of SkyTeam, we will become its official member,” Luo Zhuping, company board secretary, told China Daily.

The Shanghai-listed airline had been the only one of China’s top three carriers not to be a member of any global alliance.

Analysts said joining the alliance will help the airlines fend off the competition from major rivals and share more resources with other members.

Liu Shaoyong, chairman of China Eastern, said earlier this week the company was in talks with all three global alliances, including Star Alliance and Oneworld. Sources with knowledge of the matter told China Daily that all three alliances were lobbying the carrier with favorable conditions.

Currently, both Shanghai Airlines and Air China belong to Star Alliance, and the two carriers share a lot of resources in term of customers, flight transition and air ticket booking on the platform. Guangzhou-based China Southern Airlines is member of SkyTeam.

“The airlines’ choice is easy to understand,” said Yao Jun, an aviation analyst at China Merchants Securities. “As former chairman of China Southern Airlines, Liu would like to join forces with China Southern to compete against the nation’s most profitable airlines, flag carrier Air China Ltd,” Yao said.

This also marks a major victory for SkyTeam which has sought to expand its membership in the Asia-Pacific region, one of the world’s fastest growing aviation markets. – read more at ChinaDaily.com…

Visitors look at property models at the Shanghai real estate fair.

April 14, 2010 (People’s Daily Online) – A total of 62 new property projects will start pre-sale in Shanghai in April, up 63 percent month-on-month. Analysts said the significant growth resulted from the developer’s fears over tightening policies that may be introduced if prices remain too high.

“As of this Tuesday, 62 new projects are expected to be released by the end of April, and 15 of them have already started pre-sale,” said Xue Jianxiong, an analyst with Nasdaq-listed China Real Estate Information Corp (CRIC).

The momentum started in late March, when 619,000 square meters of new housing was made available from March 20 to 27, accounting for 88.5 percent of the total in the month.

“Usually, the best season for property sales is May and June, and in each peak season, the new projects released won’t exceed 40,” said Xue.

“The last four days of March saw average sales of more than 1,000 every day, marking the beginning of the new sales season, which will last throughout April and May,” said Ma Ji, a consulting manager with Centaline Property Agency Ltd in Shanghai.

“However, if the price stays at a high rate, the trade volume will not be able to pick up. In such circumstances, further tightening policies from the central government are inevitable,” Ma said.

As the host city of the World Expo, the authorities in Shanghai have required all construction sites to suspend work within an area of 25 sq km of the Expo.

But analysts said the recent explosive growth in the number of projects recently released has little to do with the restriction.

“Only a limited amount of residential projects are included in the 25 sq km area, and most of these are luxury housing. Actually, developers have made good preparations to cope with the new regulation,” said Michael Klibaner, head of research at Jones Lang LaSalle (JLL) Shanghai. – read more at People’s Daily Online…

An attendee checks out an LG Electronics 47-inch LCD HDTV with slim, full LED-backlight technology and NetCast Entertainment Access at the 2010 International Consumer Electronics Show in Las Vegas. (China Daily)

By Chen Limin (China Daily) – BEIJING – LG Electronics Inc, the world’s second largest TV brand and third biggest mobile phone maker, expects to double its sales in China this year as the global economic recovery spurs demand.

“LG Electronics is on track to a 100 percent growth in China,” Choong Bong Cho, chief executive officer of LG Electronics Greater China Region said in an interview with China Daily. China poised to be world’s largest LCD TV market

Sales of LG Electronics in China reached approximately $22 billion last year, according to the company.

He added that the company’s sales in China grew by 80 percent year-on-year over the first quarter, mainly led by rising demand for mobile phones, LCD (liquid crystal display) TVs and other home appliances bolstered by government subsidies for residents in rural areas launched in late 2008.

China is currently the sixth largest market for LG Electronics, and the company hopes it will play a bigger role in its global business.

“We’ve just redefined China as a market equally important with South Korea,” said Cho, adding that the company hopes to increase the manufacturing force in China.

The company is now waiting for approval from the Chinese government for LG Display Co, the world’s second largest LCD maker that LG Electronics is the largest shareholder in, to set up a plant in China to produce eighth-generation LCD displays.

According to Semiconductor Equipment and Materials International (SEMI), China is likely to be the largest LCD TV market in the world this year, with its LCD TV sales forecast to grow by nine million units this year. – read more at ChinaDaily.com…

The Singapore real estate market shows no signs of cooling off

Agence France-Presse (via Taiwan News) – Singapore’s housing sector is still sizzling despite government measures to cool it down, with demand fueled by a strong economy and foreign investor confidence, analysts say.

Hefty price tags have not dented the market, with buyers flocking to pre-construction sales offering blank cheques to reserve condominium units which they expect to rise sharply in value after the projects are finished.

All 202 units at a private condominium in the central business district – costing 1.2 million-2.0 million Singapore dollars (US$870,000-US$1.4 million ) – were snapped up in just one day at a preview in March, agents said.

About 25 percent of the 56 multi-million-dollar units offered at an invitation-only event at an exclusive waterfront development, The Residences at W Singapore Sentosa Cove, were bought in just one weekend preview.

Waterfront homes boasting unobstructed sea views, marketed as the ultimate experience in lifestyle living, have been prime among the recent launches.

“The market is driven by confidence fuelled by the recovering economy and employment market, and supported by low interest rates,” Tay Huey Ying, director for research and advisory at property consultancy Colliers International, told reporters.

“Market optimism is also riding high on the anticipated potential for Singapore to rise in prominence in the investment radar of foreigners, particularly the high net-worth individuals and high-rollers, as a result of the opening of the two integrated (casino) resorts in 2010.”

Singapore in February opened its first casino resort complex, which includes Southeast Asia’s first Universal Studios theme park. A second casino built by Las Vegas Sands will open next month.

The city-state, a regional financial center, is also promoting itself as a hub where the world’s growing ranks of multi-millionaires can park their money safely.

Warning of a possible bubble that could derail the economic rebound, the government in February imposed new regulations to stem property prices, and warned it was prepared to take further measures if necessary.

But the move, designed to discourage investors who buy and sell for a quick profit, appears to have had limited impact.

Private home prices rose 5.1 percent in the first quarter from the previous three months, government figures showed.

Although this was slower than the 7.4 percent rise in the previous quarter, property analysts said prices are expected to continue going up for the rest of the year. – read more at Taiwan News…

By ChinaRetailNews.com Editor – According to reports in the Financial Times, Wal-Mart, the world’s largest retailer, plans to launch e-commerce businesses in China and Japan, and it is currently establishing the technology platform.

The reports say that Wal-Mart’s recent job advertisement for a “product localization manager” for Japan and China lists responsibilities that cover preparing for the launch of an e-commerce business.

So far, Wal-Mart has opened 282 physical stores in China, but has no direct online sales. The company is reportedly setting up related systems for its new centralized network technology platform to coordinate with its business in China and Japan. Wal-Mart has been developing this platform over the past two years. – read more at ChinaRetailNews.com…

Air Canada's overall capacity will increase 4 to 6 percent this year, while Asia will see a more-than-10 percent rise in capacity. (Agencies)

By Lu Haoting (China Daily)- BEIJING – Air Canada, the flag carrier of the North American country, said it will resume double daily services to Beijing and Shanghai in June and is planning to fly to Guangzhou in 2013 to cater to increasing travel demand between the two countries.

The Canadian carrier is expected to receive its first Boeing 787 Dreamliner in 2013 and is considering launching scheduled services between Guangzhou and Vancouver with a B787, the most fuel-efficient airliner built by Boeing, said Calin Rovinescu, chief executive officer (CEO) at Air Canada.

The Guangzhou service would make Air Canada the first North American airline to serve the southern city in the Pearl River Delta.

“China is amongst the most important international markets for us. The increased capacity to Beijing and Shanghai is a large commitment of assets, over $1 billion of assets,” Rovinescu said on Friday.

Rovinescu said the continued economic rebound in China made Air Canada “confident about taking a risk” by expanding capacity in China while the airline industry has just started to see signs of recovery from falling travel demand.

Another important driver is that the Chinese government granted Approved Destination Status (ADS) to Canada last December, he said. The ADS system simplifies visa application procedures for tourists and they can use ordinary passports to apply for tourist visas if they want to visit an approved country.

The number of Chinese tourists in Canada is expected to increase 50 percent annually by 2015 after ADS takes effect, according to figures from Conference Board of Canada.

Air Canada reduced its total capacity by 14 percent last year due to falling travel demand. Its overall capacity will increase 4 to 6 percent this year, while Asia will see a more-than-10 percent rise in capacity and China is seeing the biggest increase, about 25 percent, Rovinescu said. – read more at CHinaDaily.com…