Japan Inc shows promise with savvy holiday deal spree

WHILE much attention has been focused on Japan's big ailing companies and their prospects for survival, a few small developments show some promising signs for the country's future.

Kicking off a week in deals, Asahi Glass Co said on Dec 20 it would buy CMC Biologics for 60 billion yen (S$739 million), helping its move into contract drug manufacturing.

While Asahi Glass gets half its sales from glass used in buildings and cars, the electronics sector provides over 40 per cent of its operating profit. Yet even that division is overshadowed by the chemicals business, which includes solvents, pharmaceutical ingredients and resins, and which has grown to account for 43 per cent of earnings.