China In-Focus — Tesla denies halting production at Shanghai plant; Geely buys stake in Renault Korea

China In-Focus — Tesla denies halting production at Shanghai plant; Geely buys stake in Renault Korea
Tesla had planned as late as last week to increase output to pre-lockdown levels by next week. (AFP)
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Updated 10 May 2022

China In-Focus — Tesla denies halting production at Shanghai plant; Geely buys stake in Renault Korea

China In-Focus — Tesla denies halting production at Shanghai plant; Geely buys stake in Renault Korea

BEIJING: Electric vehicle maker Tesla has denied halting production at its Shanghai plant, despite reports it had ceased most activities due to problems in securing parts.

Reuters reported that according to an internal memo seen by the news agency, the plant plans to manufacture less than 200 vehicles Tuesday — far less than the roughly 1,200 units it has been building each day since shortly after it reopened on April 19 following a 22-day closure.

Two sources familiar with the matter had earlier said supply issues had forced the factory to halt production Monday.

The company has refuted the report, saying that it hasn’t halted output at the site, although a spokesperson for the US carmaker acknowledged that it is experiencing some disruption to logistics amid the city’s long-running Covid-19 lockdown.

Shanghai is in its sixth week of an intensifying COVID-19 lockdown that has tested the ability of manufacturers to operate amid hard restrictions on the movement of people and materials.

Tesla had planned as late as last week to increase output to pre-lockdown levels by next week.

It was not immediately clear when the current supply issues could be resolved, said the people, who asked not to be identified because the production plans are private.

China's Geely buys stake in Renault Korea

China’s Geely Automobile will buy just over a third of Renault’s Korea unit for roughly $200 million, potentially helping it boost US exports, and freeing up funds for the French automaker to invest in its electric business.

Renault, which can assemble 300,000 vehicles a year in its factory in Busan, South Korea, is in the middle of a turnaround aimed at increasing margins and separating its electric vehicle business to catch up with rivals such as Tesla.

The French firm’s move to sell the stake to Geely — which owns Volvo Cars and a 9.7 percent stake in Daimler AG — follows an announcement by the two companies in January to develop hybrid vehicles for South Korea and abroad, produced at the Busan plant.

For Geely, which has typically grown its business through global partnerships, the deal goes beyond selling cars in South Korea and is a way for the Chinese automaker to export cars made in South Korea to America, a person close to the company said.

“It is an open door into the US,” said the person who declined to be named because the plans are confidential.

(With input from Reuters) 


OPEC+ supply cut essential to buoy oil prices, UBS says

OPEC+ supply cut essential to buoy oil prices, UBS says
Updated 12 sec ago

OPEC+ supply cut essential to buoy oil prices, UBS says

OPEC+ supply cut essential to buoy oil prices, UBS says

RIYADH: An oil production cut by the Organization of the Petroleum Exporting Countries and allies is vital to break the negative momentum in prices amid recession fears and a stronger dollar, analysts at UBS said on Tuesday.

“A lack of action by the group to remove barrels from the market is likely to spur further downside pressure on oil prices,” UBS said in a note.

“The group has to announce a production cut of at least 0.5 million barrels per day over the coming days.”

The Organization of the Petroleum Exporting Countries, Russia and other producers known as OPEC+, is scheduled to meet next on Oct. 5.

Crude is falling on fears that a recession will lead to weaker demand and a better supplied oil market, UBS said, adding that the broader risk-off environment caused by aggressive monetary policy tightening in the US and Europe was also weighing on prices.

Oil prices on rose more than 1 percent on Tuesday, after plunging to nine-month lows a day earlier, amid indications that producer alliance OPEC+ may enact output cuts to avoid a further collapse in prices. 


Saudi Islamic finance firm Nayifat appoints new CEO

Saudi Islamic finance firm Nayifat appoints new CEO
Updated 16 min 3 sec ago

Saudi Islamic finance firm Nayifat appoints new CEO

Saudi Islamic finance firm Nayifat appoints new CEO

RIYADH: Nayifat Finance co. has named Bandar Al-Baiz as CEO and managing director of the company following a formal approval by its board, a bourse filing shows.

This follows the resignation of CEO Abdulmohsen Musaed Al-Sowailem in May and the appointment of Chan Kok Veng as its acting chief in June.

The Islamic finance firm has also announced the appointment of Saleh Al Omair as a chairman and Abdulmohsen Al-Saleh as a vice chairman.

The firm’s shares increased 0.17 percent to SR22.98 ($6), as of 10:08 a.m. Saudi time.


TASI regains some momentum after dropping below 11k points: Opening bell

TASI regains some momentum after dropping below 11k points: Opening bell
Updated 31 min 47 sec ago

TASI regains some momentum after dropping below 11k points: Opening bell

TASI regains some momentum after dropping below 11k points: Opening bell

RIYADH: Saudi Arabia’s main index gained momentum after dropping below 11,000 points on Monday on fears of a global recession sparked by aggressive monetary tightening around the world.

The Tadawul All Share Index gained 1.04 percent to reach 11,022 in early trade on Tuesday, while the parallel market Nomu started almost flat at 19,723, as of 10:08 a.m. Saudi time.

Saudi oil giant Aramco started with a 0.29 percent gain, while Rabigh Refining and Petrochemical Co. added 1.05 percent.

The Saudi National Bank, the Kingdom’s largest lender, increased by 0.98 percent, while Saudi British Bank increased by 0.95 percent.

The Kingdom’s most valued bank Al Rajhi rose 1.15 percent, while Alinma Bank gained 0.58 percent.

Anaam International Holding Group continued to lead the gainers since yesterday’s trading session with a 6.83 percent gain, after it turned into profits of SR1.6 million ($425,599) in the first half of 2022.

Abdulmohsen Alhokair Group for Tourism and Development rose 4.52 percent after signing two contracts totaling SR94 million with a company specializing in establishing and operating international brands.

Saudi Paper Manufacturing Co. gained 1.38 percent, after it invited its shareholders to vote on raising its capital to SR337 million, following approval by the Capital Market Authority.

Nayifat Finance Co. added 0.17 percent, after it named Bandar Al-Baiz as managing director and CEO, as well as Saleh Al Omair as chairman and Abdulmohsen Al-Saleh as vice chairman.


Here’s what you need to know before Tadawul trading on Tuesday

Here’s what you need to know before Tadawul trading on Tuesday
Updated 27 September 2022

Here’s what you need to know before Tadawul trading on Tuesday

Here’s what you need to know before Tadawul trading on Tuesday

RIYADH: Saudi Arabia’s main index dropped below 11,000 points for the first time in nearly nine months thanks to falling oil prices and global recession fears.

The Tadawul All Share Index dipped 2.26 percent at the end of Monday’s trade, reaching 10,909 for the first time since Dec. 12, while the parallel market Nomu shed 0.84 percent to 19,708.

The UAE’s indexes tumbled in the same direction, Abu Dhabi’s main index tumbled 2.2 percent, while Dubai's main share index dropped 1.8 percent.

The Qatari index fell 1.3 percent, Bahrain's index fell 0.9 percent and Kuwait's index fell 1.1 percent.

Outside the Gulf, Egypt's blue-chip index declined by 0.6 percent at the end of Monday.

In energy trading, Brent crude traded at $84.94 a barrel and WTI crude reached $77.53 a barrel, as of 9:07 a.m. Saudi time.

Stock News

Alhokair Group for Tourism and Development signed two contracts totaling SR94 million ($25 million) with a company that specializes in the establishment and operation of international brands.

Saudi Paper Manufacturing Co. invited its shareholders to vote on raising its capital to SR337 million, following approval by the Capital Markets Authority.

Saudi Parts Center signed a Shariah-compliant credit facility agreement with the Saudi Investment Bank worth SR30 million.

Power and Water Utility Co. for Jubail and Yanbu has received CMA’s approval to offer 73 million shares in Tadawul’s initial public offering.

Saudi Top for Trading Co. obtained the CMA approval to float 880,000 shares on the parallel market, Nomu.


Saudi Capital Market Authority approves 3 new IPOs as listing wave continues

Saudi Capital Market Authority approves 3 new IPOs as listing wave continues
Updated 27 September 2022

Saudi Capital Market Authority approves 3 new IPOs as listing wave continues

Saudi Capital Market Authority approves 3 new IPOs as listing wave continues

RIYADH: Saudi Arabia’s Capital Market Authority approved three initial public offerings in the midst of a listing wave on the Saudi bourses.

The market regulator has approved an application from Power and Water Utility Co. for Jubail and Yanbu to register and sell 73.09 million shares, or 29.24 percent of equity, on the Saudi Exchange, according to a CMA statement.

Saudi Top for Trading Co. has obtained the regulator's approval to float 880,000 shares on Nomu-Parallel Market.

The CMA has also approved Molan Steel Co.'s application to register and offer 532,400 shares on Nomu-Parallel Market.

Saudi stock markets have been witnessing rising interest among companies to go public with its main market, TASI, listing 10 IPOs, whereas, the parallel market, Nomu, getting 11 IPOs listed so far this year.