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Indiscriminate unpacking of goods by importers on the port-yard has caused congestion at the Chittagong port, seriously hampering cargo handling.
   Importers have been using the port-yard as their warehouses for long affecting smooth cargo handling, said sources in the Chittagong Port Authority.
   Some of them are even running their business and marketing their imports from within the port-yard, said sources. ‘Not only bulk goods, the importers also measure their container goods, especially raw cotton bales, inside the yard,’ said a top official of the port authority.
   He also said most of the bulk goods including mustard seed, lentil, wheat, animal feed and loose scrap are being unpacked inside the port daily occupying a large part of the yard.
   Currently more than 75 per cent of the imported bulk goods were being unpacked inside the port yard, he informed.
   One of the importers admitted the fact but held some dishonest port officials responsible for allowing the unauthorised unpacking of goods inside the yard.
   ‘It is profitable for the importers to unpack their goods inside the yard instead of taking them elsewhere. They continue the unauthorised act in cooperation with port officials through underhand dealings,’ said the importer.
   Following the random unpacking the port authority on Wednesday issued a notice to the importers imposing a ban on releasing bulk goods inside the port from May 1.
   Signed by the director (traffic) of the port authority, Ahsanul Kabir, the notice said the importers would not be allowed to unpack their
   goods inside the port any more from May 1. The notice also pointed out that there is no such provision anywhere in the world.
   ‘The importers should unpack their goods at their own places after taking delivery of consignments, ’ said the notice.
   However, sources said the port authority imposed a similar ban in 1999 but failed to implement it due to unknown reasons.
   Talking to New Age, the chairman of the port authority, AMM Shahadat Hossain, admitted that despite repeated moves the authority failed to stop unpacking of goods in the port-yard.
   But Shahadat appeared determined to implement the order this time. ‘If necessary the authority will not hesitate to take punitive actions against the importers.’
   He added that they had no alternative but to stop unpacking to keep the port operative.
   He said the authority was considering a separate zone where importers will be allowed to unpack their cargoes.

The GTZ, a German agency for technical cooperation, has pledged to help Bangladesh’s knitwear sector meet the social and environmental compliances and stay competitive in the post-multi-fibre arrangement era.
   MA Baset, an executive member of the Bangladesh Knitwear Manufacturers and Exporters Association Friday said that the association has already signed a memorandum of understanding with the GTZ for technical cooperation for three years.
   Currently, out of the country’s around 600 knit factories, only 50 to 60 have the social compliances while none of the factories meets the environmental compliance, said Baset who is assigned by the association to deal with the GTZ.
   ‘The GTZ will help the industry improve the social compliance in a competitive post-multi-fibre arrangement scenario,’ said Baset adding that the German agency will also identify what types of training should be given to the stakeholders.
   He said that most of the knit factories in the country fall under the small and medium enterprise category and sprawled up in 90s when the compliance factor was not a big issue.
   But in 2005, the compliance issue has become very important as international buyers are putting pressure to meet social compliance criteria including workers’ wage, health and workplaces.
   However, Baset who is also a director of Knit Asia Limited hoped that by this year, 50 per cent export-oriented knit factories will be able to meet the social compliance.
   The knit exports fetched $2.2 billion in 2003-04 fiscal.
   ‘We hope to fetch $3 billion in the 2004-05 fiscal,’ said Baset, stating the sector achieved 38 per cent growth during July-December period of the current fiscal.
   The partnership with the GTZ, which is assisting the country’s private sector under a project titled ‘Promotion of private sector SMEs in the post-MFA era,’ will benefit the sector further, he hoped.

Political instability, bureaucratic hassles, poor infrastructure and deteriorating law and order situation hinder the country’s industrial growth, a seminar was told in Dhaka Saturday.
   To promote industrialisation, the government has to bring down the bank interest rates, improve port services and ensure power supply to raise the country’s export competitiveness, which is crucial for survival in the post-MFA era.
   ‘Without improving infrastructures, ports and the power supply, it would not be possible to promote the country’s industrial sector,’ AK Azad, president of Bangladesh Chamber of Industries, told the seminar.
   Industries Minister Motiur Rahman Nizami, who attended the function as the chief guest, admitted the problems that retard industrial growth and assured the entrepreneurs of looking into those.
   The government has already approved the industrial policy and is considering steps to support training programmes for SMEs, the minister said.
   The BCI and the Confederation of Danish Industries jointly organised the seminar on ‘Capacity Building of BCI for Industrialisation’ at the Chamber’s boardroom.
   The chamber president, AK Azad, chaired the seminar, also attended by the Privatisation Commission chairman, Enam Ahmed Chowdhury and business community leaders.
   Speakers said high interest rate raises production cost which ultimately reduces competitiveness of the Bangladeshi products.
   In Bangladesh, industrial lending rates range between 14 and 15 per cent, which is between five and six per cent in the neighbouring countries and as low as two to three per cent in many other countries, they pointed out.
   Survival of the readymade garment sector in the open market economy depends on some factors like setting up of backward linkage industries, reduction of shipment lead-time and modernisation of production units, they viewed.
   Speakers also stressed the need for capacity building of the BCI to raise its ability to extend technical and advocacy supports to domestic industries, mainly the small and medium enterprises, and to create more jobs.
    They sought all out support from the government to further strengthen the private sector.
   In September 2004, the BCI, the apex body of the private industries and the Confederation of Danish Industries initiated a project to devise a strategy for a sound business environment in Bangladesh.
   Confederation of Danish Industries executive JC Roth, FBCCI director MA Rouf Chowdhury, BCI leaders Shamsur Rahman Chowdhury and MA Shaheed were among others who spoke at the function.

Country’s poultry sector has seen 15-20 per cent annual growth since the middle of 1990s on the back of increased adoption of scientific method and modern technology, excepting the last year when Asian bird flu panic took its toll on the fledgling sector here also, says a study.
   Starting from a narrow base in 1983-84, the poultry production increased to 16.58 per cent in 1995-96 and jumped to 247.11 per cent in 2001-2002, it claimed.
   The share of poultry in the supply of animal protein to human diet increased from 14 per cent in 1977 to 23 per cent in 1987 and further to 30 per cent in 1995, said the study titled ‘small-scale commercial layer and broiler farming; magnitude of socio-economic changes and women empowerment.’
   In recent years, poultry as an agro-based industry showed an annual growth rate of 31 and 52 per cent for layer and broiler respectively.
   The study also said poultry production in Bangladesh is beset with many problems which include low productivity and high mortality of native chickens, lack of high yielding breed suiting the climatic conditions, shortage of feed, inadequate disease control and preventive coverage and poor research facilities for generation, adoption and transfer of technologies.
   For graduating from small backyard flocks to large industrial operation, the sector needs more use of modern technology in housing, management, feeding, health care, processing and marketing.
   Some of the technologies such as environmentally controlled houses, modern hatchery, feed mills, processing plants, can be readily adopted if resources are available, and in fact can be obtained from the manufacturers on turn-key basis, it pointed out.
   Poultry sector leaders however claimed that in recent years the industry has seen massive use of modern technology in the breeding sector, environment controlled housing, automated feeding and drinking systems, computer controlled incubators and sophisticated diagnostics.
   Worlds Poultry Science Association Bangladesh Branch (WPSA-BB), which sponsored a three-day show of poultry techs in Dhaka, estimates that 100 per cent of grand parent stock and 60 per cent of parent stock are being raised in the environment-controlled housing.
   Under the cost-effective environment control system, the temperature, humidity and the ventilation are maintained with microprocessor. Some 10,000-12,000 chicks can be reared in a house under the system. A man is enough to operate the total system, industry sources said.
   Since high temperature is a major problem for Bangladesh’s poultry sector, such system will be helpful for giving the industry a further boost, they felt.
   A wide range of poultry technologies and services were put on display in the 4th international show that ended Saturday in Dhaka drawing huge crowd.
   Moshiur Rahman, president of WPSA-BB, said that modern technologies, necessary drugs and vaccines for the poultry birds are now available in the country. About 50 per cent of the poultry drugs now manufactured locally, he said.
   Poultry industry experts from 18 countries attended the seminars arranged in the sidelines of the fair at the Bangladesh China Friendship Conference centre.
   A total of 33 papers from experts from Belgium, Holland, USA, Canada, France, Jermany, India, Vietnum, South Korea, Myanmar and Bangladesh, were presented and discussed.

Stocks maintained a gaining streak for the fifth straight session the Dhaka Stock Exchange with marginal rise on the week’s first day amid cautious trading.
   The DSE general index gained 5.2 points or 0.27 per cent to 1966.7 points Saturday, with gainers topping the losers 82 to 72.
   Brokers said investors concentrated on blue-chip stocks which pushed the DSE 20 index to 2182.4 points, up by 16.6 points or 0.76 per cent from Thursday’s closing.
   Day’s turnover at DSE recorded at Tk50.4 crore, which market sources said largely dominated by the institutional trading. At CSE, turnover amounted to Tk7.9 crore.
   Market observers believe that the nature of trading in the past one-and-half week reflects a bullish sentiment. The turnover, which averaged around Tk50 crore in the last couple of weeks, reached the year’s peak of Tk58.6 crore in the past week.
   They said that small investors are moving cautiously and waiting for corporate declarations due in March-April period.
   Most of the issues listed in categories A and B gained on the day while none of the weak fundamental ones listed in Category Z gained.
   Southeast Bank, Exim Bank, United Leasing Commercial, First Lease International, Standard Bank, Mutual Trust Bank, Dhaka Bank, Mercantile Bank and Uttara Finance were the most active shares.
   IFIC Bank, Renata Pharmaceutical, Standard Bank, MTBL and BATBA were the major gainers while Keya Cosmetics, Rupali Insurance, GQ Ball Pen, Green Delta Insurance, Appex Spinning and Heidelberg Cement were the major losers.
   UNB adds: Trading at the Chittagong Stock Exchange closed higher Saturday although the turnover in terms of both volume and value decreased.
   The CSE All Share Price Index increased by 12.33 points or 0.34 per cent to close at 3610.86 points from 3598.53 points on Thursday.
   The CSE-30 Index also rose by 2.07 points or 0.06 per cent to close at 3439.71 points from Thursday’s 3437.64 points.
   Of the 75 issues traded Saturday, 33 gained, 32 declined and 10 remained unchanged.
   Some 1,939,315 shares and debentures worth Tk 7.88 crore changed hands against 2,082,123 shares valued at Tk 10.74 crore on the previous trading day.
   Market capitalisation stood at Tk 217.21 billion from 216.49 billion on Thursday.

The minister for fisheries and livestock, Abdullah Al Noman, is now in Rome to attend the UNFAO ministerial meeting on fisheries beginning here on Saturday.
   The UNFAO (United Nations Food and Agriculture Organisation) meet began after the 26th session of the committee on fisheries that took place from March 7 to 11.
   The minister had bilateral meetings with the president of International fund for Agricultural Development, Lenurat Bage at IFAD Headquarters and the European Commissioner for fisheries, Joe Borg, on March 11.
   Anwarul Bar Chowdhury, Ambassador and Permanent Representative to the UN agencies in Rome and Nasrin Akhter, Economic Counselor, were present in the meeting.
   During the meeting, the minister informed the IFAD president and the EU fisheries commissioner about the Bangladesh government’s efforts to improve the quality of life of small and marginal fishermen through different livelihood improvement projects and programmes.
   The minister highlighted successful completion of the EU and IFAD-funded projects in the meeting.
   He also described government’s endeavor for establishing the rights of the fishermen over the larger water body owned by the government and elimination of the middlemen through gradual introduction of licensing system ensuring community participation.
   The minister also pointed out the government’s efforts for women empowerment in fisheries sector.
   He sought IFAD and EU assistance and cooperation in such kind of small and marginal fisheries development project.
   He also highlighted government’s recent efforts on creating alternative employment opportunity for the 1.3 million small and marginal fishermen affected by ‘responsible hilsha fishing’ through which government banned catching hilsha fish of certain size during the breeding season.
   The IFAD president praised the Bangladesh government’s success in development of the fisheries sector.

Bangladesh can explore Malaysia’s huge market of halal meat if it can ensure health and religious standards set by the Southeast Asian economic powerhouse.
   ‘As a predominantly Muslim country, we can penetrate into Malaysian market provided we can create necessary capacity and institutions to catch the market,’ the Bangladesh High Commissioner to Malaysia, Shafi U Ahmed, told BDNEWS.
   Malaysia is seen emerging as a global hub of halal market through setting up institutions like global halal meat certification, halal logo and branding.
   At present, Malaysia is a major halal meat importing country mostly sourcing beef and mutton from India, Australia and New Zealand. The total volume of Malaysian import of beef and mutton per year is around 85,000 and 17,000 tonnes respectively.
   Bangladesh is yet to be included in the list of eligible meat sourcing countries for Malaysia, Bangladesh’s trade diplomats said.
   Malaysia has imposed compliance of national halal certification as well as health and sanitary requirements for importing halal meat, which Bangladesh can not meet.
   The licensing authority of Mala-ysia plans to visit Bangladesh to evaluate the overall facilities, inclu-ding animal health status and animal husbandry practices, sources at Bangladesh High Commission said.
   ‘Import of halal meat from Bangladesh will depend on this evaluation and final approval in terms of food safety and halal requirements,’ the source said adding Malaysia enquired about the state of Bangladesh’s livestock and poultry abattoirs and animal health services as well as existence of halal certification mechanism.
   A memorandum of understanding has already been signed with Barakah Import Export (M) Sdn Bhd, Malaysia and Premium Abattoir, Bangladesh, sources said.

A seminar on 'innovative management' organised by Pubali Bank Training Institute was held in Dhaka recently, says a press release.
   The managing director of the bank, Khondkar Ibrahim Khaled, attended the seminar as chief guest while the deputy managing directors, M Rafiqul Islam, Helal Ahmed Chowdhury and Shahadat Hossain Chowdhury were present as special guests.
   In his speech, the managing director urged the managers to be logical, flexible and open minded in dealing with banking affairs.

Kohinoor Chemical Company (Bd.) Ltd. declared 17 per cent dividend for the year 2003-2004 at its 17th annual general meeting on Friday, says a press release.
   The chairman and managing director of the company, Md Obaidul Karim, presided over the meeting held on the premises of company's factory.
   The meeting discussed and approved the audited accounts for 2003-2004 in presence of maximum shareholders and approved the dividend.

Orion Laboratories Ltd. recently launched Zinc tablet under the brand name 'Pep-20', says a press release.
   People suffering from Zinc deficiency will be treated with this drug. Zinc deficiency causes malnutrition, dermatitis, diabetes, immune disorder and even cancer.
   An adult will have to take 1 to 3 tablets daily on the prescription of a doctor to develop immune system, to cure common cold, reduce the surgical healing time, cure dermatitis and even to boost male fertility.

The 2nd managers' meeting of Dutch-Bangla Bank Limited was held at the bank's training centre in Dhaka on Thursday, says a press release.
   The managing director of the bank, Md Yeasin Ali, presided over the meeting.
   Abul Hashem Khan, deputy managing director (operation) and AAM Zakaria, deputy managing director (administration), among others, spoke at the programme.
   In his speech, the managing director stressed the need for coordinated endeavors to keep pace with the fast-growing global business.
   He put special emphasis on marketing of the bank's customer-need-focused products and services.

The United States and the European Union said Friday they would press China to slow down exports of cheap clothing that have stoked fears of huge domestic textile job losses, but stopped short of promising to impose emergency curbs.
   New government data showed US imports of textiles and clothing from China shot up nearly 41 per cent in January from December and were nearly 30 per cent higher than a year earlier.
   The increase followed the end of an international quota system on Jan 1 that has protected American and European textile producers for decades by limiting imports.
   ‘We are concerned about the impact of this increase on our industry and other trade,’ Jim Leonard, US deputy assistant secretary of commerce, said in a statement.
   ‘We will raise this issue as part of our ongoing dialogue with the Chinese to reinforce US concerns ... and to seek solutions,’ he said.
   But Commerce Department officials refused to say if they would ‘self-initiate’ actions aimed at curbing Chinese textile imports, as US producers have said is needed to prevent hundreds of thousands of jobs losses in states such as North Carolina, South Carolina and Georgia.
   ‘This surge of imports from China is just the tip of the iceberg. If history is any indication, Chinese imports will continue to soar until they gain a virtual monopoly of the US market,’ said Auggie Tantillo, executive director of the American Manufacturing Trade Action Coalition.
   EU officials also promised to press China to slow down its exports, but said they did not have enough data yet to act on a call by the European industry group Euratex to impose curbs.
   ‘We are at present in contact with the Chinese authorities and plan to hold talks at the diplomatic level next week,’ EU spokeswoman Claude Veron-Reville said in Brussels.
   The EU plans to only impose safeguard restrictions as a last resort and is drafting guidelines for ‘preventive consultations’ with Beijing to help moderate Chinese exports and make formal curbs unnecessary, she told reporters.
   The Italian and French government have also expressed concern about a surge in imports from China. EU Trade Commissioner Peter Mandelson was to meet Italy’s deputy productive activities minister on the issue next week.
   China made 17 per cent of the world’s textiles and clothing in 2003, but the WTO sees that market share rising above 50 per cent within the coming three years.
   Beijing agreed when it joined the WTO in 2001 to let member countries impose safeguard restrictions on its textile and apparel shipments through 2008 that would limit growth at 7.5 per cent from the prior year. But importing countries have to show ‘market disruption’ to impose such curbs.
   US textile groups said the new trade figures show imports of several categories of clothing from China increased dramatically in January compared to the same month last year.
   Imports of cotton trousers increased by about 1,000 per cent, while other major apparel items such as shirts and underwear showed triple-digit gains, they said.
   But overall clothing imports from China and all other suppliers were up only 6.7 per cent in January, said Laura Jones, executive director of the US Association of Importers of Textiles and Apparel, which represents major retailers that have been eager for the end of the quota system.
   ‘Clearly, US importers are taking their business where it makes the most sense. China is one of those places, but so is Honduras, Bangladesh and elsewhere in the both the Western Hemisphere and Asia,’ Jones said.
   The retail group obtained an injunction that has blocked the Bush administration from considering a dozen industry petitions filed in late 2004 asking for import curbs based on the ‘threat’ shipments from China would increase this year.
   The January trade data shows there is no basis yet for any safeguard actions, she said.

The United States needs to pursue a tougher trade policy against China and the European Union to reduce a trade deficit that totalled a record $618 billion last year, a Democratic lawmaker said Friday.
   Ben Cardin, a Maryland Democrat, said the Bush administration should immediately file a case against China’s currency policies at the World Trade Organisation.
   It should also renew a WTO complaint against the EU if talks aimed at eliminating government support for trans-Atlantic aircraft rivals Airbus and Boeing Co. do not reach a deal by an April 11 deadline, he said.
   Cardin, a party spokesman on trade because of his position on the House of Representatives Ways and Means Committee, accused the White House of being uncharacteristically deferential when it comes to defending US trade interests.
   ‘I wish that this administration would use the same tolerance for diplomacy with trade as they did in Iraq with the former regime. I mean it’s time for us to take some action,’ Cardin said.
   Cardin said it was a ‘no-brainer’ that China’s long-time practice of pegging its currency at 8.28 yuan to the dollar gave it an unfair trade advantage that violated WTO rules.
   The Bush administration should file a trade complaint while continuing its direct talks with Beijing on moving to a market-driven exchange rate, he said.
   In January, the United States and the EU suspended a pair of competing cases over government support for Airbus and Boeing and launched a 90-day effort to negotiate an agreement to end aircraft subsidies on both sides.
   ‘If we don’t have a satisfactory agreement for Boeing by April 11, on April 12 we should file a claim at the WTO. Why are we so reluctant to use the WTO? I tell you, our trading partners aren’t bashful,’ Cardin said.
   The 10-term congressman offered an overall critique of Bush administration trade policy in his first major speech since becoming the senior Democrat on the Ways and Means Committee’s subcommittee on trade.
   The White House has focused too much attention on trade agreements with small countries, at the expense of world trade talks which offer a far bigger economic payoff, he said.
   However, the Bush administration should renegotiate a free trade pact with Central American nations to strengthen labour and environmental provisions before submitting it to Congress for a vote, he said.

Mittal Steel said it had obtained approval from US regulators for its acquisition of US International Steel Group, clearing a major hurdle in the deal to form the world’s largest steel maker.
   Mittal Steel and ISG said in a joint statement that a registration statement on its proposed merger lodged with the US Securities and Exchange Commission ‘has been declared effective as of March 11, 2005. ‘
   ISG and Mittal will each hold special meetings of their shareholders on April 12 to give final approval to the proposed merger, the statement said.
   Mittal Steel will become the world leader in terms of steel shipments, far outstripping the current world number one, the European consortium Arcelor, according to its chairman Lakshmi Mittal, the world’s third richest man, according to Forbes magazine.
   The group will also be the number one steel group in terms of market capitalisation (18.5 billion dollars) ahead of Japan’s Nippon Steel.
   Mittal Steel was created from Netherlands-based Ispat International, which acquited LNM Holdings, also based in the Netherlands. Mittal himself is based in London.
   The companies have signed a letter of agreement with the United Steelworkers of America and the Independent Steelworkers Union. The current chairman of ISG, Wilbur Ross, will become a member of the board of directors of Mittal Steel.
   Mittal Steel will have operations in 14 countries including the United States, Canada, Mexico, France, Germany and eastern Europe and employ 165,000 people.
   In 2004, Mittal Steel had revenues of 22.2 billion dollars and steel shipments of 42.1 million tons.
   According to Forbes, Indian-born Mittal has a personal net worth of 25 billion dollars, trailing only Microsoft chief Bill Gates (46.5 billion) and US investment guru Warren Buffett (44 billion).

HSBC will expand its Florida, California and New York branch networks starting this year and begin promoting an internet banking service nationwide, a top US executive with the bank said yesterday.
   HSBC Bank USA President and Chief Executive Officer Martin Glynn, speaking at the Reuters Banking Summit, said the bank plans to open more branches in Manhattan and the New York metropolitan area, joining the retail bank frenzy in that market.
   Glynn also said the bank will have 25 to 30 Florida branches, up from 11 now, and expand its California network to between 15 and 20, up from eight, within the next two years.
   In addition, Glynn said the bank plans to launch an Internet banking account that will solicit deposits across the United States, not unlike the direct banking service offered by Dutch financial giant ING Group. The 2.75 per cent being offered by the account on HSBC’s web site is higher than ING Direct, which currently pays 2.60 per cent on its savings account.
   Over the past 18 months, HSBC has retooled its bank offerings, waiving account fees and raising deposit rates to attract customers.
   aHSBC has about 400 New York state branches, mostly gained from its acquisitions of Buffalo’s Marine Midland Bank and Republic New York Corp. But Glynn acknowledged HSBC, which as 200 locations in the New York metro area, has not been an active competitor in New York’s retail bank market.
   Glynn said expansion in South Florida is a natural direction for the London-based bank because Miami sits at a ‘crossroads’ between its operations in the US and Europe and bridges North and South America.
   In California, HSBC is adding more branches to further target Chinese consumers. The bank also opened its first office in Washington, D.C., aimed at the city’s large expatriate and embassy communities.

Germany is hoping the record number of Asian firms at the world’s biggest high-tech fair, the CeBIT, will boost investment here but the guests have their sights set on eastern Europe.
   Hundreds of Asian companies have gathered in this northern German city to touch base with clients, boost sales in Europe and discuss link-ups with European firms.
   But many Asian executives said that western European powerhouses such as Germany had begun to pale in comparison with the new European Union member states when it comes to production.
   ‘We are very interested in eastern European countries, not just as a market but also for people who can help us build up our manufacturing base,’ Theodore Huang, chairman of the Chinese National Association of Industry and Commerce in Taiwan, told a Taiwanese-German roundtable meeting at the CeBIT.
   ‘We are serving western Europe but because of labor relations and regulatory boundaries by your government, we are also looking elsewhere.’
   Taiwan has sent 777 firms to the fair in addition to 150 Taiwanese businesses based in Germany, making it the largest contingent among the 6,270 companies at the CeBIT after Germany.
   The meeting was hosted by the German high-tech association BITKOM, but most of the questions from Taiwanese participants were on how to make inroads to the east.
   BITKOM Director General Bernhard Rohleder acknowledged that the days when Germany was technologically the only game in town were now ancient history.
   He said that aside from high labor costs, regulations such as an EU requirement for computer manufacturers to take back used equipment for disposal, high German copyright fees and price pressure from the German gray market were also standing in the way of more foreign investment.
   One of the Taiwanese executives, George Lien of Taipei-based electronics group TECO, told AFP later that major Asian companies needed to establish a production beachhead in all the major trading blocs including NAFTA in North America and the EU.
   ‘If I want to build a flat TV panel, it’s very labor intensive. If I build a factory here (in Germany), how much would I pay? A fortune,’ Lien said.
   ‘Compare that to Slovakia. Labor costs here are just too damn high.’
   Lien said that TECO planned to have a production facility up and running in Slovakia by the end of 2005, having turned down incentive packages offered in western European countries.
   ‘But high labor costs are not even the key issue. In Germany, the government has very strict labor laws—they’re quite weird to Asians,’ he said, singling our the shorter work week and long vacations.
   ‘Gradually the Taiwanese, the Koreans, the Japanese have moved away from Germany, first to the Netherlands and now to eastern Europe. Germany has to make some changes if it’s going to continue to attract business.’
   A spokesman for LG Electronics, Park Sangbae, said that countries such as Poland, which joined the EU along with nine other nations last May, offer tax breaks, investment security and proximity to the big markets of western Europe.
   ‘It’s close to Germany, it’s pretty close to France and it’s cheaper for us to send our televisions by land from there than it is from the ports of England,’ he said.
   LG is one of more than 200 South Korean companies at the fair.
   Sales executive Takako Tamai of Japan’s Isuzu Glass, a small firm that makes optical glass products for the IT industry, said it was seeking a Polish subcontractor and hoped to find an intermediary at the CeBIT to make contacts.
   ‘It’s just so much cheaper in eastern Europe,’ she said.
   And Leslie Lee, assistant manager of overseas sales for South Korea’s Jeongmin Electronics, an LCD television and IP video phone maker, said it planned to shift some manufacturing from its plant in the western German city of Frankfurt to points east.
   ‘We would like to move production to Poland,’ he said. ‘There are already a lot of Korean companies with operations there.’
   But Lien of TECO said that while cheap labor would make eastern Europe hard to beat for years to come, Germany could still take heart in its reputation for technological prowess.
   ‘Our preference for production may be Slovakia and the Czech Republic but for research and development, it has to be Germany,’ he said.

Kohinoor Chemical Company (Bd) Ltd declared 17 per cent dividend for the year 2003-2004 at its 17th annual general meeting on Friday, says a press release. The chairman and managing director of the company, Md Obaidul Karim, presided over the meeting held on the premises of company’s factory. The meeting discussed and approved the audited accounts for 2003-2004 in presence of huge number of shareholders and approved the dividend.
   
   Eagle Star makes loss Tk 6m
   Eagle Star Textile Ltd, a now suspended company, has reported a net loss of Tk6.15 million as on December 31, 2004. According to un-audited half yearly accounts, the company registered a negative earning per share of Tk1.17. The company, which is listed in Category Z, made a loss of Tk29.61 million with negative earning per share Tk5.61 a year back.
   
   Meghna Group cos posts loss
   Meghna Pet Industries Ltd, a now suspended company, has reported a net loss of Tk10.53 million as on December 31, 2004. According to un-audited half yearly accounts, the company registered a negative earning per share of Tk0.88.
   Meghna Condensed Milk Ltd, also a suspended company, made a net loss of Tk102.48 million during the same period. According to un-audited half yearly accounts, the company registered a negative earning per share of Tk 6.4. Both the companies are in category Z.
   
   Spot trading of One Bank, ULC
   Shares of One Bank Ltd and United Leasing Company Ltd will be traded at spot market from March 13 to 15 on the eve of its record date, which is March 16. The trading of the companies will remain suspended on the record date. As per the rule, investors, who hold shares of a company till the record date, would get the dividend from the company.
   
   Preema to sell Prime Bank’s share
   Preema Construction Ltd, an associate of Prime Bank, has reported its intention to sell 16,900 shares out of its holdings of 1,11,857 shares of the bank at prevailing market price through stock exchange within next 30 working days.

Repo and reverse repo auctions held
The repo auction and reverse repo auctions for commercial banks and financial institutions was held in Dhaka Saturday. Fourteen bids of repo auction of 1-day tenor amounting to Tk 879.00 crore were received, of which 14 bids amounting to Tk 526 crore were accepted. The rates of interest against the accepted bids were from 8.00 per cent to 6.00 per cent per annum. Meanwhile, one bid for reverse repo of 7-day tenor amounting to Tk 13 crore was received and accepted. The rate of interest against the accepted bid was 4.00 per cent per annum, said a Bangladesh Bank release.
— UNB

JCI vice president to visit Bangladesh
The Junior Chamber of Industries vice-president Ted Tu is scheduled to visitto arrive in Bangladesh today. Ted joined with the chamber in 1993 and took part in many national and international JCI events and activities. He is vice-president for Area B and his assigned countries are Bangladesh, Nepal, Pakistan, India, and Sri Lanka. During his visit to Bangladesh he we will meet with the officials of different chambers and organisations, as well as will observe the JCI activities. JCI is a worldwide federation of young members and entrepreneurs. There are more than 200,000 active JCI members and millions of JCI alumni participation in projects, meetings, learning programs, and events worldwide.  JCI operates in more than 6,000 communities and located in more than 120 countries throughout the world.
— New Age

India’s forex reserves at record high
India’s foreign exchange reserves rose by nearly $2 billion to a record high in the week to March 4 as the central bank worked to keep exports competitive by absorbing equity investments from foreigners, analysts said. Data from the Reserve Bank of India on Saturday showed the country’s foreign exchange reserves rose to $137.56 billion on March 4 from $135.66 billion a week earlier, the fourth consecutive weekly increase. India’s reserves holdings are the sixth largest in the world.
— Reuters

Pakistan forex reserves dip to $12.634 billion
Pakistan’s foreign exchange reserves fell by $37 million to $12.634 billion in the week ending March 5, the central bank said Saturday. Reserves held by the State Bank of Pakistan dipped slightly to $9.824 billion from $9.840 billion a week earlier, while those held by commercial banks fell to $2.810 billion from $2.831 billion a week ago, the central bank said in a statement. It gave no reason for the fall in reserves. Pakistan’s reserves hit an all-time high of $12.730 billion in the week ending Jan. 29 on receipts from the sale of a $600 million Islamic Bond.
— Reuters

Glazer’s new ManU bid not ready yet
US entrepreneur Malcolm Glazer will not submit a revised takeover proposal for Manchester United before the end of next week, people familiar with the matter said on Friday. The owner of the Tampa Bay Bucaneers American football team had hoped to get his 800 million pound ($1.54 billion) revised business plan to United’s board by the end of this week. ‘There are still quite a few things to set in place,’ one person close to the process said on Friday. Glazer still needs to meet with financial backers to finalise the debt package he will need to buy the world’s richest soccer club. United’s board has rejected two earlier bids from Glazer to buy the 15-times English league soccer champions.
— Reuters

Lodha wins main Birla battle of will
The Kolkata High Court has ruled that Yash Birla, CK Birla and KK Birla cannot challenge RS Lodha’s claim on MP Birla’s assets as per Priyamvada’s will and only GP Birla has that right. Earlier, the Court heard arguments regarding the legal status of MP Birla trusts. Justice Kalyanjyoti Sengupta in his order, admitted only the caveatable interest of G P Birla. The ruling states that Yash Birla cannot file objections to the 1999 Priyamavada will. On the other hand, the court also admitted Lodha’s caveatable interest in the 1982 will of M P Birla and Lodha will be part of probate prceedings of 1982 will, which also means he gets to challenge the 1982 will. The court also ruled that the probate application for the 1982 will of MP Birla and 1999 will, of Priyamwada Birla, would be heard first. Lodha, a chartered accountant and close confidante of Priyamvada is locked in a legal battle with the Birla family over the ownership issue of Rs 5000 crore worth estate of MP Birla. Priyamwada Birla, who died on July 3 last year had bequeathed the entire estate of MP Birla to Lodha by the purported will of 1999.
— ANI

Reliance acquires exploration rights
in Oman
Reliance Industries Ltd (RIL), the country’s largest petrochemical producer, said on Saturday that it had acquired exploration rights to one of the large deepwater blocks in Oman. ‘RIL’s Block-18 is off the Batinah coast in the Gulf of Oman and spreads over 18,000 sq km,’ the company said in a statement. ‘RIL will be the operator of the block with 100 per cent of the working interest.’ The company, which did not give further details, said the exploration and production sharing agreement was signed on Saturday.
— Reuters

Call centers may handle McDonald’s orders
McDonald’s Corp, the world’s largest restaurant chain, is testing the use of remote call centers to handle drive-thru orders in an effort to improve service. Company officials said the idea, being tested at a small number of restaurants in the Pacific Northwest, is aimed at reducing the number of mistakes at the drive-thru window. ‘If you’re in L.A. and you hear a person ... with a North Dakota accent taking your order, you’ll know what we’re up to,’ McDonald’s Chief Executive Officer Jim Skinner said during a presentation to analysts Thursday in New York. The strategy would help process orders faster and allow McDonald’s employees to focus on delivering better customer service, the company said.
— AP