SYT Syngenta Ag (delisted)

By Paul Page 

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China Inc. is set to take control of a big piece of the global agriculture supply chain. The approval by shareholders of agro-giant Syngenta AG's $43 billion takeover by China National Chemical Corp. sets in motion a consolidation that portends a profound shift in the agriculture sector. The WSJ's Brian Spegele and Kane Wu report that China's biggest foreign deal to date will give the country a greater role in U.S. and other countries' food supplies as it scoops up technologies for its own farms. It also comes against the backdrop of broad industry consolidation, which has triggered objections from farmers over less choice and potentially higher prices. The biggest immediate impact may be within China, where ChemChina executives hope to use Syngenta's seed and pesticide business to help remake the country's fragmented and inefficient sector for farming and food distribution. The sheer size of the Chinese market means those efforts are likely to be felt in agriculture businesses around the world.

China is making its biggest push yet to take its place in one of the world's most sophisticated supply chains. The maiden flight of its first commercial airliner marks a breakthrough in the country's drive to build up its own aerospace sector, the WSJ's Trefor Moss reports, and a landmark for China as it races to upgrade its industrial capacity in advanced manufacturing. The C919 still faces a steep climb to compete with Boeing Co. and Airbus SE, but analysts say the research effort that's fallen years behind schedule and costs many billions of dollars remains critical to China's long-term industrial goals. China seems to care less about returns from costly experiments like the C919 than about securing a foothold in high-value industries dominated by foreign players. For now, Western manufacturers may have little to fear: some three-quarters of the inner workings come from foreign aerospace companies.

Logistics companies are betting any rebound in U.S. consumer spending comes over the web. Businesses tied to e-commerce fulfillment resumed hiring at a rapid pace in April, WSJ Logistics Report's Jennifer Smith writes, even as traditional transportation carriers paused their job growth. The latest Department of Labor report shows the warehousing and storage sector, which includes fulfillment centers that process online orders, added 2,500 jobs. Truckers pulled back, however, and freight railroads slashed jobs even as shipping volumes improved. The strong hiring at logistics and courier companies was part of a robust national report, with payrolls expanding by 211,000 jobs last month. Still, the hiring may not revive tepid shipping demand: Job expansion in manufacturing slowed, and the biggest payroll gains came in areas such as healthcare, education and finance -- service sectors that won't produce goods, at least until the newly-hired workers start spending their earnings.

SUPPLY CHAIN STRATEGIES

Wal-Mart Stores Inc. doesn't want to just wait around for consumers to order household goods online. The retailing giant is seeking a patent for the use of sensors that would be attached to goods in homes and track their use and, perhaps more significantly, trigger automatic delivery of replacements. The WSJ's Sarah Nassauer reports the proposed system is an advanced version of subscription services that other retailers have built to allow consumers to simply scan or push buttons to order goods. Wal-Mart's taking another step by creating a sort of home-based inventory management system, with the store's marketing system added in to track consumer behavior and suggest new products. Whether consumers will want to have Wal-Mart tracking when they do laundry remains a question, but the reach of the technology under research suggests the fierce competition that's underway for e-commerce innovations.

The future of 3-D printing looks increasingly like it is being put together in Europe. General Electric Co. is placing two European companies it recently acquired at the core of a new business unit it is spinning out of GE Aviation, the WSJ's Daniel Michaels reports, part of a series of moves the industrial giant is making across the continent pointed toward a new world of manufacturing. GE is considering European sites to host its new GE Additive division. Along with investments Siemens AG of Germany is undertaking, the research is already having an impact on the production of aircraft-engine parts, and GE wants additive manufacturing -- as it's more formally known -- to generate $1 billion in revenue by 2020, up from $300 million today. That's a small slice of the manufacturing market, but the growing research in Europe could help 3-D printing gain traction in more industrial supply chains.

QUOTABLE

IN OTHER NEWS

The euro rose to a seven-month high against the dollar in a short-lived rally after Emmanuel Macron won the French presidency. (WSJ)

U.S. consumer borrowing rose at a 5.2% seasonally adjusted annual rate in March. (WSJ)

China's foreign-exchange reserves rose by $20.45 billion in April, the third straight monthly increase. (WSJ)

Canadian Prime Minister Justin Trudeau says he would consider retaliatory measures if the U.S. imposes a new tariff on the country's lumber exports. (WSJ)

The U.S. Justice Department is probing whether Baxter International Inc. colluded with other companies to create supply shortages of injectable medicines and benefit from higher prices. (WSJ)

Dutch paints and chemicals maker Akzo Nobel NV rebuffed a third, unsolicited takeover bid by U.S. rival PPG Industries Inc. (WSJ)

Monsanto Co. is investing in new gene-editing capabilities to keep an edge over rival suppliers of high-tech crop seeds. (WSJ)

The Transportation Security Administration warned trucking companies and their drivers about the use of stolen trucks as methods of attack. ( CBS)

YRC Worldwide Inc. is cutting 180 management and other non-union jobs after the trucker's first-quarter net loss doubled to $25.3 million. (Kansas City Star)

A regional cargo plane contracted to United Parcel Service Inc. crashed at a West Virginia airport, killing the two crew members. (WDRB)

Soybean exports from the U.S. and Brazil, the world's largest growers, are at the highest level ever for this time of year. (Bloomberg)

Copper prices have fallen to five-month lows amid rising inventories. (Australian Financial Review)

Orders for industrial robotics equipment in North America rose 32% year-over-year in the first quarter. (DC Velocity)

A garment-industry alliance suspended operations at nine more Bangladesh factories because of poor safety standards. (Just-Style)

Air Transport Services Inc. expanded first-quarter net profit 21% to $10 million as revenues jumped amid growing service for Amazon.com Inc. (Air Cargo News)

Terminal operator DP World is pursuing port development deals in India worth a combined $1.3 billion. (Port Technology)

Oregon's Port of Coos Bay wants to advance a $400 million deepening project to give regional bulk shippers greater access to international markets. (The Register-Guard)

Amazon launched grocery delivery in Berlin and Potsdam for members of its Prime subscription service in Germany. (Reuters)

Indian carrier Blue Dart Express saw net profit fall 37% in the March quarter despite a 7% gain in revenue. (Business Standard)

ABOUT US

Paul Page is deputy editor of WSJ Logistics Report. Follow him at @PaulPage, and follow the entire WSJ Logistics Report team: @brianjbaskin, @jensmithWSJ and @EEPhillips_WSJ and follow the WSJ Logistics Report on Twitter at @WSJLogistics.

Write to Paul Page at paul.page@wsj.com

(END) Dow Jones Newswires

May 08, 2017 06:42 ET (10:42 GMT)

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