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BUSINESS

Volkswagen steers new business to China

German car giant Volkswagen is to open five new factories in China before the end of this year, it emerged on Friday. The move is part of the company's attempt to replace rivals Toyota and General Motors as the world's leading car maker.

Volkswagen steers new business to China
Photo: DPA

At present the Volkswagen produces 20 car models in China, as well as importing 50 more. By 2015, when a further two factories will have opened, the number of models produced on-site is expected to rise to 30 and the number of imports to 60.

Chinese law requires foreign investors to set up joint ventures with local companies to prevent businesses from abroad from dominating the market.

One of the plants Volkswagen is planning to open by September is located in Ürümqi in the remote north-western restive region of Xinjiang, which is populated by the Uyghur Muslim minority. They claim to be suppressed by the government – which in turn accuses members of the community of involvement in terrorist activities.

According to head of Volkswagen’s Chinese operations, the company had established clear strategies to employ people from all sectors of the population.

DPA/The Local/kkf

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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