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Chinese firm starts rehabilitating airport runway in Namibia
2015-03-19 09:11 Xinhua Web Editor: Gu Liping 1


A Chinese company has started rehabilitating the Ondangwa Airport runway in northern Namibia.

The rehabilitation is being done by the China State Construction Engineering Corporation that signed an agreement Friday with the Namibian Airports Company (NAC) and Aurecon Namibia.

Ondangwa is about 670 kilometers from Namibia's capital Windhoek.

Work on the runway estimated to cost about 16 million U.S dollars. It is expected to be completed by July 2016.

The plan is to widen the runway to 45 metres and lengthen it to 2.8 kilometres. Once the runway is completed, Airbus A319 will be allowed to use the Ondangwa Airport.

Acting chief executive officer of NAC Tamar El-Kallawi said after the signing ceremony: "This is a great step for us."

El-Kallawi also said the next step is to rehabilitate and upgrade Ondangwa airport infrastructure to make Namibia a connection hub.

"We are strategically positioning ourselves by upgrading our airport infrastructure to meet this need. This will also create much needed employment for Namibians," he said.

At the moment, Air Namibia has two flights between Windhoek and Ondangwa daily.

Fuel storage facilities have also been refurbished in order to serve other airliners which refuel at Ondangwa airport.
 
Taiwan interested in joining AIIB: finance chief
Xinhua, March 19, 2015

Taiwan is willing to join the Asian Infrastructure Investment Bank (AIIB) if invited, Taiwan's finance chief Chang Sheng-ford said Thursday.

When asked by lawmakers on Thursday, Chang said the participation would open up a good channel for Taiwan's investment.

His remarks came after three large eurozone economies -- France, Germany and Italy -- announced their intention to become prospective founding members of the AIIB.

Britain last week announced its own decision to join the AIIB.

With an expected initial subscribed capital of 50 billion U.S. dollars, the AIIB will fund infrastructure projects in Asia and is expected to be formally established by the end of this year.

The bank was initially proposed by Chinese President Xi Jinping with a mission of helping to fund infrastructure projects in poor Asian countries.

Chinese mainland has pledged a large part of the initial 50-billion-U.S.-dollar capital.

Twenty-one countries including China, India and Singapore signed a memorandum of understanding in Beijing in October last year to found the bank.

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Discrediting 'foreign capital withdrawal'
By Chen Yan -- March 19, 2015

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Some media reports recently asserted that "a massive amount of foreign capital is being withdrawn from China," following the closure of some foreign-owned factories in China.

Japanese watch maker Citizen announced that it was closing its factory in southern China's Guangzhou City, and fired all the Chinese employees in February. Microsoft shut down its factories in Dongguan and Beijing, and is expected to transfer its production facility to Vietnam. Some other foreign firms also reportedly transferred their factories in China to their home country or Southeast Asian countries.

Although these announcements are indeed true, the assertion of "massive capital flight" is an overgeneralization.

China's GDP grew by 7.4 percent last year. Though it was slowing down compared to the country's performance in previous years, it was still much higher than the United States (2.4 percent), the European Union (0.8 percent) and Japan (0.2 percent in the last quarter of 2014). China also overtook the United States to become the world's top destination for foreign direct investment (FDI) for the first time since 2003. The assertion of "foreign capital being withdrawn from China" did not take into consideration the strategic shifts made by some foreign companies and China's changing industrial landscape.

China as the top destination for FDI

According to China's Ministry of Commerce, the utilized FDI last year was US$119.56 billion, an increase of 1.7 percent from the year before. China's overseas investment and FDI are gradually closing the gap, and the average amount of contract investment rose 14 percent.

Based on the figures released by the United Nations Conference of Trade and Development, global FDI fell by 8 percent to US$1.26 trillion last year, due to the downward trend in the global economy and the rise of geopolitical risks. But FDI in the Chinese mainland increased about 3 percent to US$128 billion, making it the top spot for foreign investment.

Hong Kong and the United States took the second and third spots for FDI last year. As most of the FDI in Hong Kong flowed into the Chinese mainland, the combined FDI of the Chinese mainland and Hong Kong is twice the size of FDI in the United States.

China's industrial landscape is witnessing dramatic changes

Though foreign capital is not fleeing China, the country's industrial landscape is indeed witnessing dramatic changes.

Foreign investment in China's service sector has overtaken investment in the manufacturing sector. About 56 percent of FDI was in the service sector last year, while FDI in the manufacturing industry was declining and its share in the total FDI was sliding as well.

As the costs of labor and production keep climbing up, some foreign-owned, labor-intensive manufacturing companies are relocating their production bases to lower-income countries outside China. But foreign investment in China's high-tech and high-end companies is still on the rise.

Though some foreign firms transferred their factories outside China, some also brought factories into the country. For instance, a number of auto makers set up factories in China; Intel and Samsung spent billions of dollars in Chengdu and Xi'an setting up high-end quality testing and chip-making factories; pharmaceutical giant Johnson & Johnson established an Asia Pacific research center in Shanghai.

More foreign manufacturing companies are expected to withdraw from China. Meanwhile, some Chinese clothing manufacturing firms will also transfer to overseas countries. As China adjusts its industrial structure, the withdrawal of some firms is nothing to be alarmed or get hyped up about.

The writer is CEO of ribenchan.com and a specialist studying Japanese enterprises.
 
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The world's first tram powered by hydrogen energy rolls off the production line at a CSR Qingdao Sifang Co plant in Qingdao, Shandong province. This is the first time that hydrogen energy has been applied in the tram manufacturing. China has also become the first country worldwide to possess the technology to make hydrogen-fueled streetcars. (Photo/Xinhua)

World's first hydrogen tram rolls off assembly line
2015-03-20 09:50 Xinhua

World's first hydrogen-powered tramcar rolled off the assembly line in Qingdao on Thursday.

Liang Jianying, chief engineer of Sifang Co., a wholly-owned subsidiary of China South Rail Corporation (CSR), said the new tram is the only hydrogen powered vehicle in the field, and makes China the only country in the world to have mastered the technology.

Hydrogen fuel cells are a new clean energy source, widely used in the automobile industry, but lagging behind in the field of rail transit.

"It took two years for Sifang to solve key technological problems, with the help of research institutions," Liang said.
The tram can be refilled with hydrogen in three minutes and can then run for 100 km at speeds as high as 70 km per hour.

"The average distance of tramcar lines in China is about 15 km, which means one refill for our tram is enough for three round trips," Liang said, adding the overall running costs will be greatly reduced.

No nitrogen oxides will be produced as the temperature of the reaction inside the fuel cell is controlled under 100 degrees Celsius. Water will be the tram's only emission, Liang said.

Each tram has over 60 seats and can carry more than 380 passengers.

 

China telecom giants lead int'l patent filings in 2014: WIPO

English.news.cn 2015-03-20 01:12:31

GENEVA, March 19 (Xinhua) -- The World Intellectual Property Organization (WIPO) on Thursday said China's telecom giants Huawei and ZTE listed as among the top three international patent applicants in 2014 as the country saw a double-digit increase in patent filings.


Under WIPO's Patent Cooperation Treaty (PCT), Huawei, with 3,442 published applications, overtook Panasonic of Japan as the largest applicant in 2014.

U.S.-based Qualcomm was the second largest applicant in 2014, with 2,409 published applications, while China's ZTE took third place with 2,179 PCT applications.

Among the top 50 applicants, Huawei saw the largest increases in patent filings (1,332), followed by Tencent (727) and Microsoft (652). In contrast, Japan's Panasonic and Sharp companies saw the largest declines.

WIPO said the United States was the primary country of origin for patent filers in 2014, with 61,492 applications and 7.1 percent growth. Japan followed with 42,459 applications, representing a 3 percent decline on 2013.

Applicants from China filed 25,539 applications, an 18.7 percent annual increase. Among the top 10 PCT-filing countries, China is the only country that saw double-digit growth in 2014.

WIPO noted that for the first time since 2007, European Union countries recorded growth in patent filings, with strong growth coming from France and Britain.

"The rapid growth in international patent applications underscores the increasing importance of intellectual property as it moves from the periphery to the center of the global economic system," said WIPO's director general, Francis Gurry.

Editor: yan
 
New Normal brings vitality to China: Chinese-British economist


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Professor Yao Shujie (Picture by Zhao Heping/ Guangming Daily)


Famous Chinese-British economist Yao Shujie, Head of the School of Contemporary Chinese Studies at The University of Nottingham and economic counselor of United Nations Development Programme (UNDP) and World Bank, shared his opinion on the report on government work delivered by Premier Li Keqiang as well as the prospect of Chinese economy in a written interview with Guangming Daily correspondent.

Professor Yao said, compared with its fast economic growth in the first decade of 21st century, China has undergone significant economic adjustments in last two years. In 2014, China’s GDP growth of 7.4% in real terms was 0.1 percentage point lower than scheduled for the first time in the last more than two decades. And the growth rate of total export-import volume of Chinese commodities is only 2.3%, lower than the planned 6%.

It’s the first time for RMB to depreciate against U.S. dollar after appreciating for years. Recession also began to happen in the real estate industry, the pillar industry of China’s economic development. Some people exaggerate the signs above and say that China's golden times for economic development are coming to an end and its economy is heading towards crisis. Some people believe that China’s current anti-corruption campaign is pushing itself into economic recession. Some people even assert that China’s current political system will not adapt to the requirement of China’s long-term development.

Professor Yao believes that all those opinions above are severely partial, which not only don’t tell the actual situation of China, but also ignore the potential of China’s future development. First, although the GDP growth rate of 7.4% is lower than before, it remainssufficiently high. Especially, China has dramaticallyexpanded its size of economy after over three decades of fast development. China's GDP has grown from six trillion U.S. dollars in 2010 to 10.3 trillion U.S. dollars in 2014, which is more than twice that of Japan's, four times that of India's and equals the total GDP of India, Russia, Brazil and Italy.

Yao pointed out that China has seized the opportunity of economic transition to adjust in time to cope with some negative effects brought by fast economic growth after the 18th National Congress of the Communist Party of China (CPC). There are still a number of inspiring economic data in 2014, including the energy-consumption reduction of 4.5% per GDP unit and the decrease ofthe urban-rural income difference from the peak 3.3:1 several years ago to 2.75:1.

China also has paid more attention to service industry and reduced the proportion of manufacturing in its industrial structure. The number of new jobs has reached over 13 million, a new peak in history, ensuring the continuous improving of people’s living standards. And foreign trade surplus has reached the highest level in history and Consumer Price Index (CPI) has decreased to the lowest in recent years.

Professor Yao said, essentially, the government work report delivered by Premier Li Keqiang can be described as “Keep moving ahead in the face of difficulties”. China plans to maintain medium-to-high speed of growth and achieve medium-to-high level of the structural development of manufacturing and service sectors. Pains always accompany transition and upgrading to realize the long-term strategic goal. China is the only country in the world to maintain such long-term, high-speed and continuous economic development. Is there any country in the world that can develop like China with an over 7% GDP growth rate in the face of multiple international and domestic pressures?

Meanwhile, China also has huge development potentials. First, China’s political stability and its government’s strong confidence safeguard the nation's long-term prosperity. Popular support for the government’s anti-corruption campaign contributes to the country’s stability and development. Second, China’s status in global economy can’t be replaced by other countries. China has already surpassed the U.S., the largest economy in the world, in fields like manufacturing and international trade, and many western developed countries in fields of emerging industries, including high-speed railway, nuclear power, telecom, basic equipment manufacturing and construction and biotechnologies. With the strong international competitive advantage, China can achieve further development.
 

China delivers 95 electric trains to South Africa


Mar 20, 2015




Ninety-five Chinese-made electric locomotives were delivered to South Africa on Thursday at a grand ceremony attended by South African President Jacob Zuma.

South Africa’s transport utility Transnet delivered the locomotives in collaboration with the Chinese Zhuzhou Electric Locomotives Company under the China Southern Locomotive and Rolling Stock Industry Group.

Eighty-five of the locomotives were assembled at the Transnet Engineering Koedoespoort Plant in Pretoria.

In this particular project, 190 people were trained in China and 260 people were employed in the assembly, Zuma said at the ceremony in Pretoria. “The training received from the Chinese counterparts will ensure that Transnet has the necessary capability to effectively maintain these locomotives over their economic lifespan, thereby sustaining local jobs,” said Zuma.

The acquisition of these locomotives forms part of Transnet’s long-term fleet renewal programme aimed at increasing capacity whilst reducing the average age of South Africa’s locomotives fleet.

It also forms part of government’s national infrastructure development programme, designed to improve the social and economic infrastructure to boost the economy and improve the quality of life.

This project marks the success of Transnet’s first venture into the production of electric locomotives.

It is also a significant step towards Transnet’s long-term goal of developing Transnet engineering into an original equipment manufacturer.
“I commend Transnet for the transition to a low carbon freight system through introducing these locomotives that are energy efficient. This will help reduce emissions and save electricity,” Zuma said.

The delivery of these locomotives will enable Transnet to transport more freight on rail in a more efficient way. “This will advance government’s objective of shifting the transportation of goods from road to rail,” said Zuma.

Source: Xinhua

China delivers 95 electric trains to South Africa -
 
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China's electronics, IT manufacturing sees added value up 11.8 pct

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BEIJING, Mar. 20 (Xinhua Finance) -- China's electronics and IT manufacturing industry, covering only enterprises each with over 20 million yuan of annual business revenue, registered an 11.8 percent year-on-year increase in industrial added value in the first two months of 2015.

The growth rate was 2.9 percentage point higher than that for the same period of 2014 and five percentage points higher than the average level of China's whole industrial sector in the January-February period, the Ministry of Industry and Information Technology announced on Thursday evening.

The electronics and IT manufacturing industry achieved a total sales value of 1,513.9 billion yuan in the first two months of this year, up 9.4 percent year on year. The growth rate went up 2.4 percentage points year on year. In a breakdown, 729.6 billion yuan was export delivery value, up 5.9 percent year on year; and 784.4 billion yuan was from the domestic market, up 12.9 percent year on year.
 
China to help Ghana construct 1 bln USD solar plant

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ACCRA, Mar.19 (Xinhua Finance) -- The Chinese Hanergy Group is investing one billion U.S. dollars to construct a 400-megawatt (MW) solar power plant to help boost Ghana's energy needs, Zhou Youbin, Charge d'Affaires at the Chinese Embassy, said here Thursday.

Zhou, who was speaking at a day's natural resource conference, said: "China, as a traditional friend and an important development partner over the years, has spared no efforts in supporting the development and construction of Ghana."

The conference was on the theme "Natural Resource Governance and Management in Ghana: The Stride Towards an Efficient use of our Natural Resources". Zhou listed numerous projects the Chinese government had undertaken in Ghana such as the western corridor gas infrastructure development project, construction of the 400- megawatts Bui Dam, and the Kpong Water Supply Expansion Project. He emphasized that the Chinese government would continue to build on the capacities of local people in the area of natural resources management.

To this end, he said some 30, 0000 African professionals were being trained under the African Talents Program in various sectors. China, he noted, became the biggest investor in the past year in the cocoa, gold oil producing West African country's economy. "In 2014, statistics about China-Ghana cooperation is inspiring.

Ghana's export to China and Chinese Foreign Direct Investment (FDI) inflows to Ghana has both surpassed one billion dollars, making China the biggest investor of Ghana in the past year," he said. The Chinese envoy mentioned problems facing foreigners in the natural resource governance of the country as including the acquisition of land and rising resource nationalism, which had plagued many resource-rich countries and their development partners. He further called on the Ghanaian authorities to streamline and boost the vitality of small-scale mining since the sector contributed about one-third of the total gold production and 100 percent of the country's diamond in 2013. "The most important thing is to balance the interests of the stakeholders, mainly the government, mining communities and the investors. Policies to ensure the healthy and sustainable development of the mining sector should be designed as soon as possible," Zhou appealed.

The Chief Executive Officer of the Institute of Green Growth, Dr. Eric Twum, organizers of the conference, said the synergy between Ghana's resource availability, management and associated resource use benefits had over the years and in most cases not been fully met. "Our institutions are not the best despite the numerous efforts. We are saddled with inefficiencies, uncertainty and difficulties in management, among others when natural resources come to mind," Twum said.

Ghana, Dr. Twum said, lost about 90 million dollars and 70 million dollars due to stability agreements in the mining and oil and gas sectors in 2011 and 2012 respectively. He therefore appealed to political leaders to desist from politicizing issues of natural resource governance and management.
 
Saturday, March 21, 2015, 12:29
UnionPay makes mark in Turkey
By Wu Yiyao in Shanghai

The largest domestic bank card company, China UnionPay Co Ltd, has begun issuing cards in Turkey jointly with Garanti Bank, riding on the "One Belt, One Road" initiatives.

UnionPay has been expanding fast in overseas markets, especially Central Asian countries, to support the national strategy to build the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

The belt stretches northwest from China through Central Asia, the Middle East and onward to Europe, while the maritime road runs to Southeast Asia.

About 30 percent of UnionPay's latest list of 80 international airport merchants that offer prestige packages to cardholders are located in countries on the "One Belt, One Road" pathways. They include Singapore, Malaysia, Thailand and Qatar, according to UnionPay's website.

Economic ties with Turkey are growing fast, and UnionPay sees more opportunities in that country, said Shi Wenchao, China UnionPay president. Simpler visa policies are helping as well.

Ergun Ozen, president of Garanti Bank, which is Turkey's largest bankcard issuer, said deeper cooperation with UnionPay will help local merchants and enterprises get more business.

About 30 percent of retailers in Turkey accept UnionPay cards. Many of them are in cities that are popular with Chinese travelers, including Istanbul and Ankara.

UnionPay International, the bankcard issuer's overseas arm, has been developing its networks along the "One Belt, One Road" in several countries, including Kazakhstan and the United Arab Emirates.

"The bankcard association is deepening and expanding cooperation with its partners in these countries and regions," said Cai Jianbo, chief executive officer of UnionPay International.

UnionPay's overseas business is being driven by China's outbound travel boom.

The card "is increasingly known these days overseas and its logo is at almost every cashier and ATM wherever I travel," said Sun Junyi, a tour guide with Shanghai Xinxin Travel Agency.

About 260 million merchants in 150 countries and regions accept UnionPay cards, which has the world's largest number of cardholders and the second-largest bankcard transaction volume, just after that of United States-based Visa Inc.

In 2014, interbank transactions using UnionPay cards totaled 41.1 trillion yuan ($6.62 trillion), up 27.3 percent year-on-year.

UnionPay makes mark in TurkeyEditor's Pick - China Daily Asia
 
CCTV News

China to boost new energy vehicles to 300,000 by 2020

In a bid to combat ‪#‎pollution‬ and reduce dependence on fossil fuels, the Chinese government has said that it aims to have nearly 300,000 new energy vehicles on the roads in the country by 2020.

The Ministry of Transport said on Wednesday that it will work to ensure that there are 200,000 ‪#‎newenergy‬ buses and 100,000 taxies and delivery vehicles plying the roads within five years.

A recent guideline issued by the transportation authority calls for measures such as encouraging the construction of charging facilities and providing tax benefits and subsidies to promote the purchase of new energy cars (Click on the following infographic for more).

‪#‎China‬ manufactured 11,900 new energy vehicles in January and February 2015, a five-fold increase compared to the same time last year, said the Ministry of Industry and Information Technology on Tuesday.

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http://www.ft.com/intl/cms/s/0/e9b48e14-cefa-11e4-893d-00144feab7de.html#axzz3V0TMAXe7

China’s CNCC in €7bn talks to take over Pirelli
By Rachel Sanderson in Milan

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©Reuters
Camfin is in talks to sell its 26 per cent stake in Pirelli to China National Chemical Corporation, in a deal that will set up the possibility of a full €7bn takeover bid for the Italian tyremaker.

A sale of Camfin’s stake to CNCC would also effectively remove Rosneft from the Pirelli shareholder register, in the wake of western sanctions against Russia over Ukraine. Rosneft is Camfin’s main shareholder, under a deal struck a year ago.

In a statement, Camfin confirmed that talks were under way to secure “an international industrial partner” and if successful it would sell its entire 26 per cent stake at €15 per share to a new group of investors.

People familiar with the talks said that a deal is being discussed with CNCC and that the Chinese will play a significant role.

Once the purchase of the 26 per cent stake is completed, the buyers’ newly-formed investment vehicle would then launch a takeover of the remaining shares in Pirelli, Camfin said in a statement.

Shares in Pirelli rose 4 per cent to €15.56, their highest level in the past five years in early trading in Milan.

If successful, such a deal would represent the latest example of Chinese investors picking up assets in Italy, as local investors sell up amid the country’s triple dip recession.

Camfin’s other main shareholders — alongside Rosneft and the Pirelli chairman and chief executive Marco Tronchetti Provera — are the Italian banks Intesa Sanpaolo and UniCredit.

People familiar with the negotiations noted that the deal would allow Mr Tronchetti Provera to ensure the whole or partial exit of Rosneft from the tyremaker. The Russian company’s chairman, Igor Sechin — a close ally of President Vladimir Putin and a target of western sanctions — would also leave the board of Pirelli.

One banker pointed out that Mr Tronchetti Provera was limited in his options for brokering a deal with Rosneft, because any potential US buyers would be banned under sanctions.

News of the talks also confirms the resilience of Mr Tronchetti Provera, a businessmen well connected among Italy’s establishment, who has been chairman of Pirelli since 2003 and chief executive since 2011.

Reuters reported the negotiations included a clause that would see Mr Tronchetti continue in his role until 2021 when he will be 73.

In the past year, Chinese investors have snapped up stakes in Fiat Chrysler Automobiles, Mediobanca, Telecom Italia, Prysmian, Eni and Enel.

In July last year, China’s state grid, the world’s largest utility, bought a 35 per cent stake in CDP Reti, a subsidiary of Italy’s state financing agency that controls the country’s electricity grid operator and gas distribution.

According to bankers, Chinese investors are looking at other Italian infrastructure assets including the port system in Venice.
 

China finishes first passenger flight with biofuel

English.news.cn 2015-03-21 22:45:56

BEIJING, March 21 (Xinhua) -- Hainan Airlines announced it finished China's first passenger flight with sustainable biofuel on Saturday, a milestone for the country's commercial aviation industry.


The flight, which carried more than 100 passengers from Shanghai to Beijing in a Boeing 737, used biofuel made by Sinopec from waste cooking oil collected from restaurants in China.

The airplane's two engines were powered by the fuel blended of approximately half biofuel and half traditional jet fuel, the company said.

"We are honored to see our flight with safe and effective biofuel," said Pu Ming, vice president of Hainan Airlines, also the flight's pilot.

Boeing has been collaborating with Chinese airlines to develop aviation biofuel industry. In 2011, Air China conducted China's first test flight with aviation biofuel in a Boeing 747.

Editor: yan
 

China finishes first passenger flight with biofuel

English.news.cn 2015-03-21 22:45:56

BEIJING, March 21 (Xinhua) -- Hainan Airlines announced it finished China's first passenger flight with sustainable biofuel on Saturday, a milestone for the country's commercial aviation industry.


The flight, which carried more than 100 passengers from Shanghai to Beijing in a Boeing 737, used biofuel made by Sinopec from waste cooking oil collected from restaurants in China.

The airplane's two engines were powered by the fuel blended of approximately half biofuel and half traditional jet fuel, the company said.

"We are honored to see our flight with safe and effective biofuel," said Pu Ming, vice president of Hainan Airlines, also the flight's pilot.

Boeing has been collaborating with Chinese airlines to develop aviation biofuel industry. In 2011, Air China conducted China's first test flight with aviation biofuel in a Boeing 747.

Editor: yan

This is the way to go China - turning hateful and vicious sniping into positive and productive energy like our HSR experience

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Finely polished jade snuff bottle
Red agate cap
 
Restoring faith in nuclear power
Updated: 2015-03-20 07:37
By Cecily Liu(China Daily Europe)

China contributes to safety enhancement work through cooperation and technology

The European Bank for Reconstruction and Development has recognized China's contribution toward the nuclear safety enhancement work required at Chernobyl nuclear power plant and expressed hope for China's further cooperation.

Although China was an emerging country in 1986, when the Chernobyl crisis occurred, its subsequent economic growth and nuclear industry development has led it to participate in international efforts to assist Chernobyl's transformation work.

In 2011, China contributed 4 million euros ($5.9 million) to the Chernobyl Shelter Fund, which was established at the EBRD in 1997. Currently, 26 countries have contributed toward the fund, and the fund has disbursed 1.4 billion euros as of the end of 2014.

"I know that China responded to the invitation of the G7 leaders and the European Union, and China came to the pledging conference in Kiev in 2011," says Vince Novak, director of the nuclear safety department at EBRD.

Novak says that as China continues to grow and develop its nuclear industry, he hopes China can further participate in the CSF to enhance nuclear safety work in cooperation with the international community.

Novak was speaking during a press tour of the Chernobyl power plant, which showed the progress already made in the construction of the New Safe Confinement, a structure that will be completed in 2017, to help reduce risks of radiological exposure of the damaged reactor.

Despite being very close to the New Safe Confinement's construction completion, the Shelter Implementation Plan is still experiencing a shortfall of 615 million euros in funding, EBRD will host a donor's conference in London on April 29 in an attempt to close the funding gap.

The EBRD has already decided to commit an additional 350 million euros from the bank's reserves and there is an anticipated 165 million euros contribution from the G7 countries and the European Commission, leaving a shortfall of 100 million euros required from additional donors.

Novak says that the completion of the New Safe Confinement will be crucial in improving public perception of nuclear power, adding that he is confident it will be finished on schedule and on budget.

"In the nuclear business Chernobyl is extremely important, because it symbolizes a failure of the nuclear industry, and I hope it is a failure that stays in the past. But until Chernobyl has been put behind us, the credibility of nuclear power is at stake," he says.

The Chernobyl nuclear disaster that took place on 26 April 1986, caused deaths, within weeks, of some 30 workers and firemen at the plant, and injured many others. Its long-term impact on the health of others is the subject of debate to this day.

The disaster also led to the evacuation of about 200,000 people from regions neighboring the destroyed reactor, and caused long term economic damage to the area. A 30 kilometer closed exclusion zone was imposed, which is still in place.

In the weeks after the accident, a large amount of fuel containing material was dropped from helicopters to contain the radioactive material in the damaged reactor, confined by a hastily constructed concrete sarcophagus.

As this sarcophagus could still pose risks, the New Safe Confinement was constructed and will be moved into position over the sarcophagus in 2017.
It will protect the environment from radiation releases and provide the infrastructure to support deconstruction of the sarcophagus and nuclear waste management operation over its 100-year design life.

The New Safe Confinement is a huge lattice construction of tubular steel built on two longitudinal concrete beams. In order to reduce radiological exposure to the workforce, the arch has been assembled 250 meters to the west of the damaged reactor and will later be moved over the shelter.

The construction work is now focusing on the installation of a sophisticated ventilation system that will keep the structure corrosion-free during its lifespan and the technological building that will house control and electrical systems and equipment for decontamination.

Aside from CSF, EBRD manages another donor fund that finances the decommissioning infrastructure and related works in Chernobyl, known as the Nuclear Safety Account. Established in 1993, the NSA today finances two important projects in Chernobyl, which are the Interim Spent Fuel Storage Facility and the Liquid Radioactive Waste Treatment Plant.

ISF2 will provide safe and secure storage of the spent nuclear fuel that was generated when the plant was operational. It is currently in the final phase of construction, and will process, dry and cut more than 20,000 fuel assemblies and place them in metal casks.

LRTP retrieves highly active liquids from their current tanks, processes them into a solid state and moves them to containers for long-term storage. The plant has been completed and received its operating license in December 2014.

Novak says that the task of managing the two donor funds prompts EBRD to take on a very different role from its day-to-day operation, which is to provide loans in the expectation of generating returns. Instead, the EBRD is providing a service to the international community, and has also become the largest contributor to the NSC and ISF2 projects, with total commitments from its own resources of 675 million euros.

"It started in 1992, when the top priority of the international community was to address the issue of nuclear safety associated with the first generation Soviet designed reactors. That was the first time the international community approached EBRD, and that was the beginning of the nuclear safety team at the bank," Novak says.

Over the years, Novak says he has experienced both excitement and frustration while leading the nuclear safety team, and is very proud to witness all its progress today.

"This has been an extremely difficult program. In the beginning no one knew what needed to be done because the roadmap was on a conceptual level and we had to develop the solutions, and verify them through preliminary engineering.

"But the transformation of the site we witnessed was phenomenal and I have seen it appears very realistic that we will succeed in completing this New Safe Confinement by 2017," he says.

Novak says that he believes nuclear is an important energy option for the future, as it ensures sufficiency of energy but at the same time protects the environment from the pollution that inevitably comes from the burning of fossil fuel.

He also praised China's nuclear industry strength. "China is a global power, which has the largest nuclear program in the world. I believe it will become not only the recipient of nuclear technology but an active exporter of technology," he says.

China currently has 22 nuclear power reactors in operation with an installed capacity of about 17 gW. A further 26 units are under construction, with combined capacity totaling almost 30 gW.

In November, the State Council rolled out an energy plan to have more efficient, self-sufficient, green and innovative energy production and consumption. The plan envisages having 58 gW of nuclear power in operation by 2020 and at least 30 gW under construction.

The Chinese nuclear industry's international focus began in 2005 when the National Development and Reform Commission, the country's top economic planner, suggested selling the country's nuclear expertise overseas. China has so far built overseas reactors only in Pakistan.

But one high profile nuclear program that could allow China to establish a solid reputation internationally is the UK's Hinkley Point C project. Led by EDF Group of France, the two planned reactors will cost 14 billion pounds ($18.4 billion), and are due to start operating in 2023 if built on time and will run for 35 years.

Majority-controlled by EDF, China General Nuclear Power Group and China National Nuclear Corporation are expected to have a combined 30 to 40 percent stake in the consortium, with Areva taking the remaining 10 percent. Further commercial cooperation details of the investment are expected to be announced soon.

As part of the agreement, EDF will in turn support the two Chinese nuclear companies in a further UK nuclear project, which will be majority owned by the Chinese investors and use a significant amount of Chinese nuclear technology.

In December, China's own nuclear technology, the ACP1000 technology developed by China National Nuclear Corp, passed the Generic Reactor Safety Review by the International Atomic Energy Agency, a milestone that puts China on a level playing field to compete against the West in bidding for international projects.

The ACP1000 forms the core technology of the Hualong One, a third-generation nuclear reactor design jointly developed by the CNNC and the China General Nuclear Power Group. Hualong One was created earlier this year in a government initiative to form a coherent nuclear technology policy in China.

The development of third-generation nuclear technology came about after the Fukushima nuclear power station disaster in Japan, and has been designed to ensure better safety. China, the United States, France and Russia all have their own third-generation nuclear technology.

Restoring faith in nuclear power|Business|chinadaily.com.cn
 
Thanks to @Martian2 for mentioning the deal.


ChemChina to buy into Italian tire maker Pirelli in $7.7 billion deal

ChemChina to buy into Italian tire maker Pirelli in $7.7 billion deal| Reuters

Reuters) - China National Chemical Corp (ChemChina) is to buy into Pirelli, the world's fifth-largest tire maker, in a 7.1 billion-euro ($7.7 billion) deal that will put the 143-year-old Italian company in Chinese hands.

The deal, agreed with Pirelli's top shareholders on Sunday, is the latest in a series of takeovers made in Italy by cash-rich Chinese buyers, who can take advantage of a weak euro just as signs emerge that Europe is coming out of economic stagnation.

The offer will be launched at 15 euros per share, valuing the Italian group at 7.1 billion euros excluding net debt of almost 1 billion euros at the end of 2014. The ChemChina unit also envisages taking Pirelli private.

Shares in Pirelli rose as much as 3.5 percent on Monday to 15.76 euros - above the offer price, with some traders pointing to expectations that ChemChina may have to lift its bid to win over shareholders.

"The success of the likely public offer at 15 euros cannot be taken for granted," Banca Akros said in a note.

But if successful the deal will give state-owned ChemChina, led by acquisitive chairman Ren Jianxin, access to technology to make premium tires, which can be sold at higher margins, and give the Italian firm a boost in the huge Chinese market.

The bid for Pirelli marks a return of China's state-owned enterprises to global dealmaking following a hiatus caused by President Xi Jinping's anti-graft crackdown that targeted several current and former senior officials at state companies.

It would be China's fifth-biggest outbound deal by a state-owned firm, according to Thomson Reuters data, and the first major acquisition since China's MMG Ltd led a consortium last year to buy the huge Las Bambas copper mine in Peru from Glencore.

Under the proposed deal ChemChina's tire making unit, China National Tire & Rubber, will enter into a joint venture which will first buy the 26.2 percent stake that Italian holding firm Camfin owns in Pirelli. The venture will then launch a mandatory takeover bid for the rest of Pirelli, the companies said in a statement on Sunday.

The bid will be launched by a vehicle controlled by the Chinese state-owned group and part-owned by Camfin investors, who include Pirelli boss Marco Tronchetti Provera, Italian banks UniCredit and Intesa Sanpaolo, and Russia's Rosneft.

Rosneft bought a 50 percent stake in Camfin a year ago, before the onset of the Russian economic crisis. The oil company will remain a Pirelli investor after the buyout but it is unclear at this stage what its final stake will be.

The new Chinese owners will pick a new chairman while Tronchetti Provera, who started working in the tire maker in 1986 after marrying a member of the Italian family that founded the firm, will remain chief executive.

COUNTERBID

As details of the deal were leaked before the weekend, shares in Milan-listed Pirelli hit a 25-year high on Friday at 15.81 euros.

Some analysts said that level prices expectations of an ordinary dividend of between 38-44 euro cents, which the company has said will be paid before the buyout deal.

If Pirelli decides to pay out a special dividend on the disposal of its steelcord business announced last year, the stock could still rise to 16 euros before hitting the offer ceiling, according to analyst estimates.

Italian press reports mentioned the possibility of a counterbid by a major European competitor like France's Michelin or Germany's Continental, which would also push the share price higher, although analysts were skeptical.

"While a counterbid from Western tire makers is unlikely (anti-trust issues, limited strategic appeal), this deal is nonetheless set to considerably shake up the sector," Natixis said in a note.

The agreement would give ChemChina access to technology used in making premium tires and could help China further develop its automotive industry, while strengthening Pirelli's position in competing against larger rivals such as Michelin and Continental which are looking for growth in Asia.

Camfin said on Sunday Pirelli's less profitable truck and industrial tire business would be folded into ChemChina's listed unit AEOLUS, allowing it to double its output.

Previous Chinese acquisitions in Italy, the euro zone's third-largest economy, include stakes in power grid firms Terna and Snam, turbine maker Ansaldo and luxury yacht maker Ferretti.

Excluding the financial sector, Italy is the second-biggest acquisition market for China in Europe and fifth-largest worldwide, with 10 deals completed since the start of 2014, according to Thomson Reuters data.

Rothschild and ChemChina Finance Corp advised ChemChina. J.P. Morgan advised China National Tire & Rubber, while Lazard was the financial adviser to Camfin.
 

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