CHENNAI: Automakers Renault, its alliance partner Nissan Motor Co. and Hyundai Motor Co. face temporary factory closures in India due to growing unrest among workers concerned about rising COVID-19 cases.
Workers at Renault-Nissan’s car plant in the southern state of Tamil Nadu will go on strike on Wednesday because their COVID-related safety demands have not been met, a union representing the workers told the company in a letter on Monday.
Hyundai, meanwhile, has agreed to send its workers on five days of leave starting on Tuesday during which time its plant, also in Tamil Nadu, will remain shut, said E Muthukumar, president of the Hyundai Motor India Employees Union.
The unrest highlights the challenges companies face in India amid a huge wave of COVID-19 infections and a shortage of vaccines which is making employees more fearful.
Tamil Nadu is one of the worst hit states with more than 30,000 cases a day last week. The state, an auto hub known as India’s Detroit, has imposed a lockdown until May 31 but allowed some factories, including auto plants, to continue operating.
The five-day production halt at Hyundai’s plant comes after several workers briefly staged a sit-in protest on Monday before resuming work for the day, two union sources said.
“The management agreed to close the plant after workers expressed concerns over safety after two employees succumbed to COVID,” Muthukumar told Reuters.
Hyundai Motor India did not immediately respond to a request for comment.
The strike threat at the Renault-Nissan plant came ahead of a court hearing on Monday over allegations from workers that social distancing norms were being flouted and factory health policies did not sufficiently address the risk to lives.
“Due to unsafe working conditions and as the union demands have not been met ... members of this union will not report to work from the first shift on Wednesday,” the union said in a letter dated May 24, reviewed by Reuters.
It said workers would not return until they felt safe. The union represents about 3,500 workers at the plant.
Nissan, which owns a majority stake in the plant, declined to comment.
Renault-Nissan told an Indian court last week it rejected claims that COVID-19 safety protocols were being ignored at the factory, adding it needed to continue production to meet orders.
Renault-Nissan and Hyundai face shutdowns in India over workers’ COVID fears
https://arab.news/2qmxh
Renault-Nissan and Hyundai face shutdowns in India over workers’ COVID fears
- Workers at Renault-Nissan's car plant to strike on Wednesday because COVID-related safety demands have not been met
- Hyundai agreed to send its workers on five days of leave starting Tuesday
Saudi Arabia open to financing up to 75% of certain industrial projects, says minister
RIYADH: Saudi Arabia is open to providing up to 75 percent of financing for certain industrial projects, a minister has revealed in a bid to incentivize foreign investment and private sector players.
During his discussion with several Qatari investors on the sidelines of the 52nd meeting of the Gulf Cooperation Council Industrial Cooperation Committee in Doha, Bandar Alkhorayef, the Kingdom’s minister of industry and mineral resources, highlighted the vast opportunities that Saudi Arabia’s untapped mining potential provides to global investors.
According to a release on X, he reaffirmed that in addition to the incentives provided by the industrial and mineral wealth system and the multiple sources of financing, the prepared infrastructure in more than 36 industrial cities around the Kingdom offers a sum of qualitative capabilities such as the production of prefabricated factories and long-term rentals.
SAR sees 9% annual growth in cargo transported
RIYADH: The volume of minerals and goods transported by Saudi Arabia Railways reached 6.34 million tonnes during the first quarter of 2024, an annual increase of 9 percent.
According to its quarterly report, SAR stated that over 2.7 million passengers utilized its services, marking a 23 percent growth compared to same period last year.
Passenger rides also increased by 3 percent, reaching a total of 8,252 trips across the East Train, North Train, and Haramain Express train networks.
Saudi financial sector expands ambitions, eyes foreign investment surge: report
RIYADH: Saudi Arabia aims to enhance its stock exchange appeal to foreign investors, targeting 17 percent ownership of free float shares by 2024, a new report has revealed.
According to the 2023 Financial Sector Development Program document, the Saudi Capital Market Authority plans to boost assets under management to 29.4 percent of gross domestic product by 2024 by increasing the investment environment and attracting more investors.
The report, published annually, highlights the achievements in the financial sector, particularly the Kingdom’s ongoing progress in competitiveness indicators related to the capital market, as stated by Mohammed Al-Jadaan, minister of finance and chairman of the FSDP.
Commenting on the development of the financial sector, Al-Jadaan emphasized the importance of innovation and investment in talent and technology.
“We have placed innovation and investment in both talent and technology at the top of our priorities, because we recognize the importance of building a dynamic financial environment that allows companies — especially startups — to flourish and succeed,” the minister stated.
In line with its commitment to facilitating financing in the capital market, the CMA also plans to accelerate the pace of listings by welcoming 24 new companies in 2024.
Moreover, there will be a focus on supporting the development of new and promising sectors, with a target of having micro and small enterprises account for 45 percent of total listings.
Another area of emphasis is the deepening of the sukuk and debt instruments market, with the goal of increasing the debt-to-GDP ratio to 22.1 percent by the end of 2024. These measures aim to provide diverse financing options for companies and further stimulate economic growth.
“The capital market ecosystem continued its efforts to contribute to developing the financial sector and achieving the Saudi Vision 2030,” stated Mohammed El-Kuwaiz, chairman of the CMA.
“By approving rules for foreign investment in securities and streamlining regulatory procedures, we have witnessed a significant increase in foreign investments in the capital market, reaching SR401 billion ($106.9 billion),” El-Kuwaiz added.
The Saudi Central Bank also reaffirmed its commitment to adhering to international standards and best practices to enhance the strength and stability of the financial sector.
Initiatives such as developing digital solutions for supervising the financial sector and enabling local and international FinTechs demonstrate the Kingdom’s dedication to embracing technological advancements.
Furthermore, the Financial Academy unveiled its new strategy for 2024-2026, focusing on enhancing human capabilities in the financial sector through training programs and professional certifications.
The academy aims to increase the number of trainees and improve the quality of its services to meet the evolving needs of the industry.
The 2023 FSDP report highlighted significant progress across sectors like fintech and digital banking.
The Kingdom saw a surge in fintech companies, surpassing 2023 targets with 216 in operation and launching two digital banks.
Saudi Arabia claimed the top spot in the Corporate Boards Index among G20 nations and secured second place in various indices. Foreign companies relocated headquarters to the Kingdom, deepening the capital market.
Moody’s, Fitch, and S&P Global Ratings revised Saudi Arabia’s outlook to “Positive” and affirmed its “A1” and “A+” credit ratings, citing fiscal policy development, economic reforms, and structural improvements.
Saudi Arabia led venture investments in the Middle East & North Africa, securing 52 percent of total investments in 2023, and allocated SR10 billion to support small and medium enterprises across economic activities and regions in the first half of the year.
ACWA Power signs $1.51bn senior debt financing agreement for Qassim 1 Power Plant
RIYADH: Saudi utility firm ACWA Power has signed a senior debt financing agreement for the Qassim 1 Combined Cycle Power Plant for SR5.69 billion ($1.51 billion).
The deal, signed through Qudra One for Electricity Co., will extend for 28 years, according to ACWA Power’s statement to Tadawul.
International and local commercial lenders, including Standard Chartered Bank, Bank of China, and Riyad Bank, as well as Saudi National Bank, Alinma Bank, Saudi Investment Bank, and Saudi Awwal Bank, financed the senior debt.
Abu Dhabi’s ADQ lists debut $2.5bn bonds on London Stock Exchange
The smallest of three Abu Dhabi sovereign wealth funds ADQ has listed a dual tranche $2.5 billion bond on the London Stock Exchange, the fund said in a statement.
The fund sold a $1.25 billion five-year portion at 80 basis points over US Treasuries and another $1.25 billion 10-year tranche at 90 bps over the same benchmark, fixed income news service IFR reported.
Citigroup, Credit Agricole, First Abu Dhabi Bank, Goldman Sachs International, HSBC and Standard Chartered were joint global coordinators and active bookrunners on the bond issuance deal.
The proceeds from the debt sale, which was oversubscribed more than 4.4 times, will diversify ADQ’s funding mix, enhance financial resilience and contribute growth capital.
