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International Business News
Merkel warns EU against financial action on oil price
/\FP, Berlin
German Chancellor Angela Merkel warned EU states on Thursday against taking financial action to absorb the impact of record oil prices, amid French calls to cap value-added taxon oil.
"Measures, especially of a financial nature, which have been regularly discussed and which at the end of die day will prevent making the necessary changes to adapt to a changing market, should from our point of view be avoided," she told the lower house of parliament.
Merkel made the remarks before leaving for the European Union summit starting in Brussels Thursday.
French President Nicolas Sarkozy has said the bloc should use the two-day summit to consider a proposal he made in May to cap value-added tax on oil to help member states cope with prices nearing 140 dollars a barrel.
The proposal has run into resistance from other EU countries as well as the European Commission, which warned that it would send the wrong signal to oil-producing nations.
Billion-dollar microchip plant opens in Singapore
AFP, Singapore
South Korea's Samsung Electronics and Siltronic AG of Germany said they had opened Thursday their one-billion-US-dollar joint venture microchip plant in Singapore.
Siltronic Samsung Wafer Pte Ltd will produce 300 mm wafers and aims to reach a monthly capacity of 300,000 by 2010, a statement said.
"Today's commissioning is a key milestone in further expanding our presence on Asia's growth markets," said Siltronic chief executive officer Wilhelm Sittenthaler.
Oh-Hyun Kwon, president of Samsung Electronics' semiconductor business division, said the 300 mm segment is undergoing rapid growth.
The semiconductor industry's long-term prospects remain bright, Prime Minister Lee Hsien Loong said.
"Singapore has positioned itself to take full advantage of this and remain a leading manufacturing location in Asia for electronics and semiconductors," he said.
Domestic exports of electronic goods from Singapore have been declining since February last year, according to the government's trade promotion agency.
Toyota to cut US production
as sales slow
AFP, Tokyo
Japan's Toyota Motor Corp, will cut production at three US plants in response to slowing sales, a spokeswoman said Thursday, hitting a bump on the road to becoming the world's top automaker.
Some 200 temporary workers will lose their jobs as a result of the cutbacks, she said.
"We will slow down assembly lines, reduce operating hours and temporarily suspend production," the spokeswoman said.
The measures were to "cope with slowing sales in North America," she added.
Sales of automobiles, particularly large vehicles, are slumping in the United States due to soaring fuel prices and slack consumer spending amid a weaker economy and mortgage crisis.
BHP Billiton, Indonesian miner agree major nickel venture
AFP, Jakarta
Anglo-Australian giant BHP Billiton has agreed with an Indonesian firm a joint venture related to rich nickel deposits in eastern Indonesia, the companies saidThursday.
The venture would be split 50-50 between BHP and state-owned Indonesian company PT Antam Tbk, they said in separate statements.
Few details of the venture were made public and the deal is conditional on final approval by the companies' boards.
A Bl IP Billiton spokeswoman in Melbourne said the deal related to deposits on the islands of Halmahera, in North Maluku, and environmentally sensitive Gag Island in West Papua.
She could not confirm reports that it could lead to the development ofa4.9-bi)lion-dollar nickel smelter.