NNA Asia top stories Wednesday, Nov. 28
TOKYO, NNA – The following are the top stories from NNA Asia for Wednesday, Nov. 28.
NTT Data to take majority stake in India’s e-payment provider Atom
NEW DELHI, NNA – Japan’s leading information technology firm NTT Data Corp. said Tuesday it will acquire a majority stake in e-payment provider Atom Technologies Ltd in India, as the country moves toward cashless society.
Online transactions have grown sharply in India since the government scrapped 500- and 1,000-rupee banknotes two years go to crack down corruption and illegal cash holdings.
NTT Data has been providing e-payment services in East and Southeast Asia and is now expanding its scope to include South Asia.
Taiwan machinery orders from China slump due to U.S. trade row
TAIPEI, NNA – Taiwanese manufacturers are suffering a sharp drop in machinery orders from China amid the U.S. trade dispute, official data show.
Manufacturers in the mainland are cautious about investing in new equipment for producing goods that are subject to higher U.S. import duties.
Machinery orders from China plunged 21.7 percent from a year earlier in September, followed by a 6.7 percent drop in October, the Taiwanese government said Tuesday.
It compares with an increase in orders from U.S. firms, up 3.6 percent in September and 10.2% in October.
Watch parts maker Nihon Seimitsu issues stock to fund Vietnam, Cambodia ops
HO CHI MINH CITY, NNA – Watch parts and glasses frames maker Nihon Seimitsu Co. will raise cash through a private share placement to finance its operations in Vietnam and Cambodia as it expects to see a pickup in demand next year.
The Japanese company has factories only in Vietnam and Cambodia while it procures some parts from China.
Nihon Seimitsu said last week that it would allocate 944,000 new shares worth about 100 million yen ($878,000), or 106 yen per share, to a South Korean apparel firm, its largest shareholder.
“We expect the current cycle of inventory buildups and drawdowns by watch makers to ease next year, which will allow us to raise production,” Hideaki Kiriyama, manager of the company’s information management office, told NNA in Tokyo. “At the same time, we want to keep the balance of borrowing from banks at the current level.”
Nhon Seimitsu plans to use about 60% of the new funds for production capacity expansion in Southeast Asia, which has turned out to be costlier than expected, and the rest for repaying bank loans. The recent depreciation of the yen is also making the cost of overseas capital investment more expensive.
In China, an increasing number of closures of metal processing plants means a business opportunity for the Japanese metal parts supplier, which will also require new funding to ensure sufficient capacity in Southeast Asia.