DRB-Hicom Bhd's unit has teamed up with Germany's HBPO GmbH to design, develop and supply front-end modules for vehicle original equipment manufacturers. DRB-HICOM said in a statement that its wholly-owned subsidiary, Hicom Polymers Industry Sdn Bhd and HBPO, had formed a joint venture company called Hicom HBPO Sdn Bhd. It said Hicom HBPO will be able to introduce new modular automotive engineering products not only to the group's stable of manufactured components, but also other original equipment manufacturers. This cooperation will also be extended to other Asean countries as both parties plan to expand their footing in the region. ' Business Times

AirAsia Bhd is putting finishing touches to a deal to buy up to 100 Airbus jets, ending a flirtation with Canada's Bombardier and putting Asia's largest budget carrier on course for regional expansion, sources familiar with the matter said last Friday. The deal for A320-family jets, potentially worth about US$9bil (RM28bil), is designed to fuel the growth of what is fast becoming a cluster of related airlines under Tan Sri Tony Fernandes, who placed a record order for 200 Airbuses last year. Demand from Asian low-cost carriers is helping to drive production at Europe's Airbus and US rival Boeing to record levels, shielding aerospace workers from recession. Talks are at the final stage but the Airbus deal will not formally be ready in time to be announced at this week's Berlin Airshow, the sources said. AirAsia says it still needs more of the existing generation of A320 to support ambitious short-term plans, which include expansion in the Philippines, Indonesia and Japan. ' Business Times

Perwaja Holdings Bhd's almost  one-year wait to secure an  iron ore mining concessionaire has finally ended with the official award of a 243ha concession in Bukit Besi by the Terengganu government, said a source close to the group. He said the concession would enable Perwaja's unit Perwaja Steel Sdn Bhd to mine iron ore under a mining lease which would be subject for renewal every 10 years, up to 42 years. In terms of the concession area, the size was similar to the previous one awarded last year to Eastern Steel Sdn Bhd, a joint venture (JV) between Hiap Teck Ventures Bhd, China Shougang and Chinaco Investment Pte Ltd. To date, companies reported to be vying for iron ore mining rights in Terengganu include Lion Group and a JV group comprising  Takaso Resources Bhd and Terengganu-state owned timber company Golden Pharos Bhd. For economies of scale, potential investors in iron-ore mining operations should be given 500ha or more with a lease of at least 10 years, the source pointed out. The cost of mining iron ore locally is estimated at US$50 per tonne versus the traditional cost of importing the iron ore raw material by steel millers at about US$100 to US$120 per tonne. - StarBiz

Source: AmeSecurities