Market briefs

1 August 2003

The world's largest cashmere company has decided to diversify because of weak demand and falling prices, reported Textile Asia. Eerdouosi Cashmere Products of Inner Mongolia plans to spend about Yn760m on moving into the banking, electricity supply and residential property sectors.

Electrolux has set up a global purchasing centre in Shanghai to buy the more than US$1bn a year of products from China annually over the next five years. The world's largest producer of domestic electric appliances has a global production base in Changsha for refrigerators and washing machines.

Demand for integrated circuits in China is expected to grow 23 per cent this year,according to the online marketplace Global Sources. Consumption on the mainland will reach about US$30bn this year, it predicted, of which 95 per cent will be met by imports.

Global consulting firm Cap Gemini Ernst & Young has moved its China regional headquarters from Hong Kong to Shanghai, Xinhua reported. The company hopes the move will further help expand its business in China and expand the proportion of local companies in its client portfolio from roughly half to around 60 per cent by the end of the year.

Japanese construction equipment maker Komatsu expects its sales in China to more than treble over the next three years, the Financial Times said. It will open an engineering plant in the country as part of its expansion plans.

Edrington Group has opened an office in Shanghai to promote its Macallan whisky, the first China office of any Scotch whisky company. Chinese demand for malts has been growing at 23 per cent during the past five years. The group plans a major investment programme in Asia to grow its key brands, which also include Highland Park and The Famous Grouse.