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CHINA

China asks German firms to halt production before Olympics

The Chinese government has asked six German companies to close factories near Beijing ahead of and during the Olympic Games in Beijing to help cut pollution, business daily Handelsblatt reported.

China asks German firms to halt production before Olympics
Smog in Beijing frames banners for the upcoming Olympics. Photo: DPA

The German firms, which include paint maker Wörwag, construction machinery maker Wirtgen, BYK Chemie, and mining equipment maker DBT, are among more than 80 companies that have been asked to cease production in Langfang, Hebei province from July 15 to the end of September, the paper reported on Wednesday. Citing an official document it obtained, the paper said a total of some 267 companies had been asked to close operations in Hebei province while 40 factories have been shuttered in the port city Tianjin.

“These companies are producing for China’s economy,” Jörg Wuttke, president of the EU’s Chamber of Commerce in Beijing told the paper, adding that lost production will not reach billions of euros.

German news agency dpa said the list of factories asked to wind down production during the Olympics included companies from the US and South Korea.

The Chinese government is scrambling to improve the country’s notorious record on air pollution in time for the Olympic Games and says pollution in Beijing, especially levels of sulphur dioxide emissions which cause acid rain, are declining. The government promises the air will be clear by the time the athletes arrive for the Games, which start on August 8 and run until the end of the Paralympics a month later.

Companies, both foreign and domestic, in China are already struggling with heightened security measures imposed by the Chinese government ahead of the Olympics. Starting July 20, they will also have to deal with logistical problems such as restrictions on the transport of high-risk goods and wide-reaching travel bans in Beijing.

ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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