Weekly Highlights of Global Investment | Issue 83,August 17,2024

Brief

Indonesia Launches "Golden Visa" to Attract Foreign Investors; The Korean tire industry is experiencing a rapid growth, pushing forward with the expansion of global production facilities; Fedex active in opening its first European life Sciences Center in the Netherlands;  Germany's Knauf Group announced a further increase in investment in China; Polestar Begins U.S. Production to Avoid Tariffs；Canadian Firm Radical Ventures Raises $800 Million for AI Investment; Japan's KOBE STEEL is set to form a joint venture with China's Baowu Steel Group; Suzano and Libang Paper jointly built R&D production pilot test center in Xiaogan, Hubei officially opened; Equinix’s $124M Data Center Investment in Hong Kong; American Tire and Rubber Company Goodyear Invests Over $575 Million to Expand Ontario Plant, Securing 1,000+ Jobs; The Japanese International Tobacco Company is building a factory in Morocco; Aurum Equity Partners Invests $400 Million in AI-Powered Green Data Center in Hyderabad, India.

Policy and Industry Dynamics

Indonesia Launches "Golden Visa" to Attract Foreign Investors

Indonesian President Joko Widodo has announced that the country launched a long-term visa program on August 15th, aimed at attracting foreign investors. Investors who invest up to $10 million will receive a 10-year visa and can enter the largest economy in Southeast Asia. Individual investors who invest $250,000 will receive a five-year "golden visa," while those who invest $500,000 will receive a 10-year visa.

The immigration agency said that investors who invest $500 million in the new capital being built in the jungles of Borneo, currently worth $32 billion, will receive a five-year visa, while those who invest $1 billion will receive a 10-year visa.

The Korean tire industry is experiencing a rapid growth, pushing forward with the expansion of global production facilities

According to the World Journal of Korea. Despite a sluggish sales of electric vehicles, the tire industry in Korea is seizing the opportunity and rushing to expand its global production facilities. The industry revealed on the 11th that the second-quarter earnings of Hankook Tire, Kumho Tire, and Niexon Tire increased significantly year-on-year.

MNCs Global Investment

America Fedex active in opening its first European life Sciences Center in the Netherlands

On August 16, America's fedex opened its first European life sciences center in Welderhoven, the Netherlands. This is fedex's sixth life sciences center, following Memphis in the United States, Mumbai in India, Singapore, Seoul in South Korea, and Tokyo in Japan, to provide customers with fast and secure logistics services.

China's ADM Group Commits $250 Million to Pakistan's EV Industry

On August 16，China's ADM Group has pledged $250 million to boost Pakistan's electric vehicle (EV) industry, supporting the country's green energy goals. The agreement, made with Pakistan's Minister for Industries and Production, aims to establish a network of EV charging stations across the country over the next three to five years. This investment will facilitate the widespread adoption of EVs and support domestic manufacturing, with vehicles offering a range of up to 300 kilometers per charge. The initiative is expected to create jobs, bring advanced technology to Pakistan, and help reduce carbon emissions, positioning the country as an emerging hub for EV production.

Germany's Knauf Group announced a further increase in investment in China

On August 15, KNAUF, a global leader in the plasterboard industry, announced a series of major investment plans to further increase its investment in China. Knauf will complete the expansion of the keel production line in Taicang in the first quarter of 2025. At the same time, Knauf Group also announced a comprehensive upgrade and expansion plan for Dongguan Machong factory. It is expected that the overall upgrade of Dongguan Machong plant will be successfully completed by the second quarter of 2025. The expansion will increase the plant's capacity by about 50 percent and add 8,000 square meters of storage area to optimize logistics and supply chain management.

Polestar Begins U.S. Production to Avoid Tariffs

On August 15，Swedish EV maker Polestar, owned by China's Geely, has started producing its Polestar 3 SUV in the U.S. to bypass tariffs on Chinese-made cars. The SUV will be made at Volvo's South Carolina plant and sold in the U.S. and Europe, with full production expected in two months. Deliveries to U.S. customers will begin next month, followed by Europe. Polestar plans to manufacture its Polestar 4 SUV coupes at a South Korean plant by mid-2025. The move comes as high interest rates dampen EV demand, prompting Polestar to cut costs and improve efficiency to achieve positive cash flow by 2025.

The Japanese International Tobacco Company is building a factory in Morocco

The Economic and Commercial Section of the Embassy of the Kingdom of Morocco in Japan reported on August 12th that the Japanese International Tobacco Company will invest nearly $100 million in building a 18,000 square meter factory in the Dheat Industrial Park in Tangier, Morocco, which is scheduled to start construction in July 2024 and be put into operation in October 2025. The Winston and Camel brands owned by the company will be produced in Morocco and then sold to 12 major markets around the world.

The Japanese International Tobacco Company plans to build the factory into a green factory, with 40% of its energy coming from solar power, and energy-saving measures, including the use of LED lighting and automated management systems. Upon completion, the factory is expected to provide 170 direct jobs and 50 indirect jobs in the Tangier-Tetouan region.

Japan's KOBE STEEL is set to form a joint venture with China's Baowu Steel Group

On August 13, Kobe Steel announced that it will set up a joint venture company in Shanghai with Baowu's "Baowu Aluminum Technology Co., LTD." and two subsidiaries of Baoshan Iron and Steel Co., LTD. "Baoshan Steel Automotive Aluminum Plate Co., LTD." The registered capital is approximately RMB900 million. Kobe Steel and Baowu will contribute half of the capital. The joint venture will produce aluminum panels used in car hoods and doors. Kobe Steel had previously shipped base metal produced at its upstream plant in South Korea to Tianjin for processing before supplying it to Chinese carmakers.

Suzano and Libang Paper jointly built R&D production pilot test center in Xiaogan, Hubei officially opened

On August 13, Suzano, a large commodity pulp producer in the world, and its customer Hubei Libang Paper Co., Ltd officially opened the Suzano - Libang household paper research and development production pilot center jointly built by the two sides. Located in Libang Paper's Hubei Xiaogan factory, the pilot test center is jointly established by Shuzan Xunnuo and Libang Paper. It aims to further integrate industry resources, fill the gap in the domestic household paper industry in the pilot test stage, and build a bridge between laboratory research and factory production. The pilot test center combines the advanced production equipment of Libang Paper and the professional technology of Shuzan Xunuo Asia Research and Innovation Center. At the current stage, it mainly targets the demand of wood pulp pretreatment technology to increase efficiency and reduce energy consumption. By collecting and analyzing various wood pulp characteristic data, the pilot test center monitors wood pulp performance, production process parameters and terminal product quality under different wood pulp pretreatment processes and conditions in real time, and integrates all relevant parameters to construct intelligent production prediction and optimization models. When introducing new raw materials, developing new products or applying new processes in the production line, the pilot test center can provide raw materials, raw material pretreatment and product quality prediction services, maximize the potential of raw materials, optimize process parameters, and realize the optimization of product quality and the maximization of economic benefits.

Equinix’s $124M Data Center Investment in Hong Kong

On August 13, Equinix is investing $124 million in a new International Business Exchange™ (IBX®) data center, HK6, in Hong Kong. This facility will be linked to Equinix’s existing data centers and is designed to support high-density AI workloads with advanced liquid cooling technology. It will operate entirely on renewable energy and is expected to open in early 2026, with an initial capacity of 1,000 cabinets and an eventual total of 3,550 cabinets. This investment will bolster Hong Kong’s role as a key digital gateway to the Greater Bay Area (GBA), enhancing cross-border connectivity and digital infrastructure in the region.

American Tire and Rubber Company Goodyear Invests Over $575 Million to Expand Ontario Plant, Securing 1,000+ Jobs

On August 13th, Goodyear Tire and Rubber Company, based in the United States, is investing more than $575 million to modernize and expand its plant in Napanee, Ontario. This significant investment will enhance Goodyear’s production capacity, including for electric vehicle (EV) and all-terrain tires, while creating 200 new, highly skilled manufacturing jobs by 2027 and securing over 1,000 jobs in total. The project aims to achieve net-zero emissions at the Napanee plant by 2040, supporting Canada’s goal of a net-zero economy by 2050. The expansion will be supported by up to $44.3 million from the Strategic Innovation Fund and $20 million from the Government of Ontario’s Invest Ontario, highlighting Canada’s growing role in the EV sector and commitment to sustainable growth.

Aurum Equity Partners Invests $400 Million in AI-Powered Green Data Center in Hyderabad, India

On August 10, Australia's Aurum Equity Partners has committed $400 million to build an AI-powered, green data center in Hyderabad. This new 100 MW facility expands on a previous $50 million investment and aims to enhance digital infrastructure across India. Telangana Chief Minister A. Revanth Reddy and Minister D. Sridhar Babu have welcomed the development, highlighting its potential to boost jobs and support digital services.

Follow Us for Int'l Cooperation and Investment News

Join Our Membership for More Benefits