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BUSINESS

France and China to get down to business

China and France will do business on Wednesday on the first full day of President Xi Jinping's state visit. Scores of deals are set to be signed off between the two nations, many of which have remained closely guarded by both sides.

France and China to get down to business
China's President Xi Jinping (C) arrives flanked by French Foreign Affairs minister Laurent Fabius (R) at the Lyon Saint-Exupery Airport on March 25. Photo: Jeff Pachoud/AFP

China and France are expected to sign scores of business deals on the first full day of President Xi Jinping's state visit on Wednesday after he was wined and dined in the gastronomic capital of Lyon.

France lags behind some European neighbours, most markedly Germany, in trade and investment links with China but has worked hard to catch up and accords in the aviation, nuclear, space, agriculture and urban development sectors are expected to be unveiled.

Details have been closely guarded by both sides. The only deal certain to be signed is one that will see Chinese firm Dongfeng take a stake in troubled French auto giant Peugeot.

An agreement on the joint construction of civilian helicopters between Airbus Helicopters and China is also expected.

When French President Francois Hollande visited China in April last year, Xi welcomed him with a pledge to buy 60 Airbus planes and there could be more to come.

"My visit to France… will allow me to work with President Francois Hollande… to sum up 50 years of Sino-French relations and to plan the future together," Xi said Tuesday at a dinner in the centre-west city of Lyon, his first stop.

"Investments are welcome in France and we are mobilised to facilitate them," French Foreign Minister Laurent Fabius told Xi.

Hollande will welcome Xi and his glamorous wife Peng Liyuan to the presidential palace, where the two countries will sign the Dongfeng-Peugeot deal

The couple's three-day visit will culminate in a concert at the Versailles palace, as the two countries celebrate 50 years of full diplomatic ties.

Ahead of his trip, Xi penned a column in French daily Le Figaro in which he paid tribute to French leader Charles de Gaulle's 1964 decision to break ranks with the United States and recognise communist China, paving the way for Beijing's global acceptance.

Areva wants nuclear deals 

Luc Oursel, head of French nuclear giant Areva, last week said he was hoping that several agreements would be signed, as negotiations continue on the construction in China of a nuclear waste reprocessing plant.

France's finance ministry is also organising an economic forum on Thursday that will gather together about 400 businesses

"Our economic and trade relationship with China is marked by a strong imbalance," the French foreign ministry said, pointing to a trade deficit of €25.8 billion ($35.7 billion) last year between the two countries.

At the end of 2012, France's total investments in China came to 16.7 billion euros, four times more than China's in France.

The trip is also due to touch on political matters as the crisis in Ukraine dominates the international agenda.

Tibet protest planned 

The trip also carries a symbolic note, with Xi scheduled to make a major speech in Paris highlighting historical bonds such as the experiences of Communist Party luminaries Zhou Enlai and Deng Xiaoping, who both studied in France.

Xi's wife Peng, a famous singer and China's first prominent First Lady, is also a Francophile.

And while she no longer has a French counterpart after Hollande split from his partner Valerie Trierweiler, Peng has her own itinerary planned that will see her named special UNESCO envoy for the promotion of women's education.

The question of human rights in China will impact on the visit amid an ongoing, government-backed crackdown on dissent, with Tibetan exiles planning a big rally in Paris on Thursday.

Since 2009 about 120 Tibetans have set themselves on fire in China in protests against the authorities, denouncing what they say is an erosion of their religious freedoms and culture and discrimination by the country's Han majority.

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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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