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BUSINESS

American firms turned off France by Hollande

France's attractiveness as a place to do business has plummeted in the eyes of US businesses active in the country after the change to a Socialist government, according to a survey released Thursday.

The survey among the heads of the French units of US companies found that only 22 percent saw France as an attractive place to do business, down from 56 percent in 2011.

Conducted by the American Chamber of Commerce in Paris and consulting firm Bain and Company, the survey questioned 52 leaders of French operations of US companies that had 39,000 employees and generated €32 billion ($42 billion) in sales last year.

Some 39 percent of the business leaders said they believed their headquarters in the United States had a negative perception of France, compared with 15 percent in 2011 and 9 percent in 2010.

While the drop in attractiveness was due to a range of factors, 65 percent of respondents said the election of a Socialist government had had a negative effect.

The survey was conducted in October, before the new government sent shivers through business circles by threatening to nationalise a steel factory toprevent ArcelorMittal shutting it down.

Some 85 percent of those polled had a negative opinion of the government's business tax policies, although 73 percent were in favour of a €20-billion initiative that would lower their tax charges to employ workers.

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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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