Jiji Press Daily Japan Business News Briefs (Oct. 31)

PIONEER SUSPENDS PDP TV PLANT CONSTRUCTION–Pioneer Corp. said it has suspended the planned construction of a new plant for plasma display panel televisions in Yamanashi Prefecture, central Japan, amid a sales slump.

The plant was intended to launch operations by fiscal 2008 ending in March 2009 in the city of Minami-Alps. The company announced in January this year that the start of construction had been delayed. The construction is likely to be canceled, according to informed sources.

SOJITZ TO MAKE BIOETHANOL IN BRAZIL–Major Japanese trading house Sojitz Corp. said it will produce bioethanol in Brazil by taking a stake in a local company.

Sojitz will spend about 9.2 billion yen for a 33.33 pct stake in ETH Bioenergia SA, a Sao Paulo company that makes ethanol and sugar from sugarcane. Sojitz aims to achieve annual output of 980,000 kiloliters of ethanol and 790,000 tons of crude sugar by 2016.

TOKYO ELECTRIC EXPECTS 1ST NET LOSS IN 28 YEARS–Tokyo Electric Power Co. said it now expects to post a group net loss for fiscal 2007, as it is set to book a total of 603.5 billion yen in costs related to an earthquake-hit nuclear power plant in central Japan.

It will be the first time in 28 years for the power supplier to book a net loss for the full year since it logged an unconsolidated net loss for the business year to March 1980. The company revised down its group profit estimate for the business year to March 2008 to a net loss of 95 billion yen from its earlier projection of a net profit of 65 billion yen.

KIRIN TO RAISE BEER, QUASI-BEER PRICES IN FEB.–Kirin Brewery Co. said that it will raise shipment prices of all of its beer and quasi- beer products, including “happoshu” low-malt beverages, on Feb. 1, 2008, in response to surging materials prices.

Retail prices of the company’s products are thus expected to rise 3 to 5 pct from the current levels. The markup for beer will be the first by the firm since March 1990 except hikes implemented in line with liquor tax rate hikes, according to Kirin Brewery, a unit of Kirin Holdings Co. .

JAPAN HOUSING STARTS DOWN 44 PCT IN SEPT.–Housing starts in Japan in September plunged 44.0 pct from a year before to 63,018 units, even lower than the level of the previous month, which marked the lowest level in more than 40 years, the Land, Infrastructure and Transport Ministry said.

The third consecutive drop reflects the revised building code, enforced in June, which calls for stricter preconstruction checks, ministry officials said. Construction starts for condominiums, most severely affected by the revised law, tumbled 74.8 pct to 5,328 units.END

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