Toyota to build $1.29bn battery plant for hybrids, EVs in US

Toyota to build $1.29bn battery plant for hybrids, EVs in US
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Updated 18 October 2021

Toyota to build $1.29bn battery plant for hybrids, EVs in US

Toyota to build $1.29bn battery plant for hybrids, EVs in US

DETROIT: Toyota plans to build a new $1.29 billion factory in the US to manufacture batteries for gas-electric hybrid and fully electric vehicles.

The plant location was not announced, but the company said it eventually will employ 1,750 people and start making batteries in 2025, gradually expanding through 2031.

The plant is part of $3.4 billion that Toyota plans to spend in the US on automotive batteries during the next decade. It did not detail where the remaining $2.1 billion would be spent, but part of that likely will go for another battery factory.

It comes amid a flurry of global announcements about shoring up production of batteries for electric vehicles. Most automakers are working to transition away from internal combustion engines to zero emission battery vehicles.

Stellantis, formerly Fiat Chrysler, and LG Energy Solution said Monday that they plan to build a battery manufacturing facility to help the automaker get 40 percent of its US sales from electric vehicles by 2030. They did not say where the plant would be.

Ford, General Motors and Toyota have announced large investments in U.S. battery factories. GM plans to build battery plants in Ohio and Tennessee, while Ford has plans for plants in Tennessee and Kentucky.

Toyota will form a new company to run its new US battery plant with Toyota Tsusho, a subsidiary that now makes an array of parts for the automaker. The company also will help Toyota expand its US supply chain, as well as increase its knowledge of lithium-ion auto batteries, Toyota said on Monday.

“Today's commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers,” Ted Ogawa, Toyota’s North American CEO, said in a statement.

The new plant would likely be near one of the company’s US assembly plants in Missouri, Kentucky, Indiana, Alabama or Texas.

Toyota plans to sell 2 million zero emission hydrogen and battery electric vehicles worldwide per year by 2030. In the US, Toyota plans to sell 1.5 million to 1.8 million vehicles by 2030 in the US that are at least partially electrified.


Middle East investors eye London property on back of weak pound

Middle East investors eye London property on back of weak pound
Updated 10 August 2022

Middle East investors eye London property on back of weak pound

Middle East investors eye London property on back of weak pound
  • Thanks to the favorable exchange rate, a £1 million home in London that would have cost $1.7 million in 2014 currently costs only about $1.2 million
  • Exchange rate forecasts predict sterling will strengthen against the dollar between now and 2026, suggesting that now is the perfect time for overseas buyers to take the plunge

LONDON: The declining strength of Sterling has created a window of opportunity in London for investors from the Middle East, according to property consultancy JLL.

Sterling buyers are paying 35 percent more now for London properties than they were eight years ago but those purchasing in US dollars are paying 3.8 percent less.

In June 2014, a US buyer would have had to pay $1.7 million for a £1 million property in London. The weaker pound means at the end of June this year, a £1 million property in the city would have cost only $1.2 million.

Exchange rate forecasts from Oxford Economics predict the pound will strengthen against the dollar between now and 2026, suggesting that this is the perfect time for overseas buyers to take advantage of the currency-exchange benefits that are available.

Analysis of passenger arrivals at London’s Heathrow Airport show that the number of visitors from the Middle East has recovered to pre-pandemic levels. In fact, the number of passengers arriving from the region in May was 1 percent higher than the pre-pandemic average, and 2 percent higher in June.

“The weaker sterling, alongside the safe-haven status usually associated with UK real estate, is driving and will continue to drive investment here,” said JLL’s Alex Carr.

“This return of overseas demand at present is particularly apparent among purchasers from the Gulf states, who are traveling back here for the first time in two years.

“London has always, historically, been a safe haven for wealthy individuals from Gulf states who are looking to diversify their assets, being one of the most resilient and transparent property markets in the world.”

London’s upscale Kensington district reportedly has experienced a significant increase in inquiries and applications from buyers in the Middle East.

“It was evident in May that demand was building, with increased communications from prospective (Middle Eastern) buyers who were preparing for their return to the UK following two years of travel restrictions,” said JLL’s Thomas Middleditch.

“A lot of these individuals have kept in touch over the course of the pandemic to stay informed on the market, yet as most are tangible buyers they have waited until they are in a position to physically return to the UK before inquiring about specific properties.

“Kensington has always been popular among Middle Eastern buyers and considered a low-risk investment given its location and established address.”


Heathrow owner Ferrovial studies options for stake in Britain’s biggest airport: Sources

Heathrow owner Ferrovial studies options for stake in Britain’s biggest airport: Sources
Updated 09 August 2022

Heathrow owner Ferrovial studies options for stake in Britain’s biggest airport: Sources

Heathrow owner Ferrovial studies options for stake in Britain’s biggest airport: Sources

LONDON: Spain’s Ferrovial is looking at options for its 25 percent stake in London’s Heathrow, two sources told Reuters, and has held preliminary talks with external advisers on the future of its holding in Britain’s biggest airport.

The early stage discussions come amid interest in Ferrovial’s stake from private equity firm Ardian, which has held talks with its own advisers on a possible joint proposal with Saudi Arabia’s Public Investment Fund, these sources and another person familiar with the matter said.

Ferrovial has yet to take a final decision and the discussions may not result in a sale, all the sources said.

HIGHLIGHTS

Heathrow is worth about €24.3 billion ($25 billion), including debt.

Qatar Investment Authority, which has a 20 percent stake in Heathrow, is the second biggest investor in the busy British airport.

Shares in the Madrid-listed firm rose as much as 4.2 percent on the Reuters report. At market close they were up 3.7 percent, scoring their second best day in five months and making them the third best performing stock across the pan-European STOXX 600 index.

Ferrovial and Ardian both declined to comment while PIF did not immediately respond to a request for comment.

Heathrow is worth about €24.3 billion ($25 billion), including debt, JPMorgan analysts calculated in May. By JPMorgan’s estimates, Ferrovial's Heathrow holding has an equity value of €611 million.

But Insight Investment Research analyst Robert Crimes had a less conservative approach and told Reuters the equity value of Ferrovial’s 25 percent stake in Heathrow could be close to €2 billion, well above analysts’ consensus. He said Ferrovial’s stock has yet to reflect the post-pandemic recovery in traffic volumes and inflation-linked returns.

Heathrow, which Aviation data firm OAG said was the world’s fifth busiest airport in July, was hard hit by coronavirus lockdowns, but raised its 2022 traffic forecast to 54.4 million passengers in June after a travel rebound.

Last month Heathrow, like some other airports in Europe, asked airlines to stop selling tickets for summer departures and capped passenger numbers to limit queues, baggage delays and cancellations as it struggled with pent-up demand.

Madrid-based Ferrovial, which controls Spanish transport infrastructure developer Cintra and has stakes in motorways in the US and Canada, has been invested in Heathrow airport for 16 years and ranks as its single largest investor.

Qatar Investment Authority, which has a 20 percent stake in Heathrow, is the second biggest investor in the busy British airport, while Caisse de dépôt et placement du Québec, Singapore’s wealth fund GIC and China Investment Corp. also have sizeable holdings.

QIA declined to comment while CDPQ, GIC and China Investment Corp. were not immediately available.

 


Oil up as Russian pipeline halt revives supply fears

Oil up as Russian pipeline halt revives supply fears
Updated 09 August 2022

Oil up as Russian pipeline halt revives supply fears

Oil up as Russian pipeline halt revives supply fears

NEW YORK: Oil edged up on Tuesday, reversing an early decline as worries about tightening supply were revived after Russia said oil exports to Europe on the southern leg of the Druzhba pipeline had been suspended since early August.
Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline leg because Western sanctions had prevented a payment from Moscow for transit fees from going through.
“Not that we need it at this point, but it’s another reminder of how tight the market is and how sensitive the price is to supply disruptions, particularly those from Russia,” said Craig Erlam of brokerage OANDA.
Brent crude was up $1.01, or 1.1 percent, to $97.66 a barrel at 11:30 a.m. EDT (1503 GMT), a sharp rebound from the session low of $94.90. US West Texas Intermediate crude gained 75 cents, or 0.8 percent, to $91.51 a barrel, bouncing from the session low of $89.05.
Oil also got a boost from a weaker US dollar. The dollar index, which measures the currency’s value against a basket of peers, was 0.23 percent lower at 106.09 at 10:25 a.m. ET (1425 GMT). Traders awaited a US inflation report on Wednesday.
Until the Druzhba news, mounting fears that a recession could cut oil demand had offset support for crude prices from tight supply and progress in talks to revive the Iran nuclear accord.
“Early selling had been prompted by a renewed prospect of Iranian nuclear discussions that could eventually facilitate resumption of oil exports out of Iran,” said Jim Ritterbusch, president of Ritterbusch and Associates LLC in a note, but added that he considered an imminent deal unlikely.


GAC approves Zamil Development Co.’s acquisition of Itqan Capital

GAC approves Zamil Development Co.’s acquisition of Itqan Capital
Updated 09 August 2022

GAC approves Zamil Development Co.’s acquisition of Itqan Capital

GAC approves Zamil Development Co.’s acquisition of Itqan Capital

RIYADH: Saudi Arabia’s General Authority for Competition on Tuesday announced its approval for Zamil Development Co.’s acquisition of Itqan Capital.

Itqan Capital is a Saudi closed joint-stock company. 


South Korean group join hands with Aramco for Mideast expansion

South Korean group join hands with Aramco for Mideast expansion
Updated 09 August 2022

South Korean group join hands with Aramco for Mideast expansion

South Korean group join hands with Aramco for Mideast expansion

RIYADH: South Korea’s steel firm SeAH Group has partnered with Saudi Aramco to boost its expansion plans in the Middle East, according to the Korea Economic Daily. 

The group’s special steel maker, SeAH Besteel Corp. has established the joint venture SeAH Gulf Special Steel Industries with the Saudi oil giant.

The JV is set to start building the factory, with an annual capacity of 17,000 tons, in the fourth quarter of 2022. Commercial operations are likely to begin in the first half of 2025.

“We will actively explore the Middle East market with various products such as stainless steel precision tubes and seamless stainless steel pipes,” said a SeAH Changwon official.