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Nov. 26 (Bloomberg) -- Areva SA and Airbus SA led $30
billion of contracts awarded during President Nicolas Sarkozy's
first state visit to China as the French leader pressed
authorities in Beijing to let their currency strengthen and do
more to fight global warming.
Areva won an 8 billion euro ($11.9 billion) agreement to
build nuclear reactors, a record for the French company. Airbus
was awarded a contract of about $17 billion for 160 planes.
Alcatel-Lucent SA, Alstom SA and Suez SA also sealed deals in
what Sarkozy called an ``unprecedented'' haul.
``France wants to build a complete partnership for the
future with China,'' Sarkozy said today in Beijing during a
joint briefing with Chinese President Hu Jintao. ``China's
spectacular development is a chance for the world.''
With his popularity at home falling to the lowest level
since his election in May, Sarkozy's trip gives him an
opportunity to spur exports as he plans new measures this week
to give a fillip to an economy that's lagging behind euro-region
growth for the second straight year.
Sarkozy's visit to the world's fastest-growing major
economy comes amid increased tension between the European Union
and China, whose trade surplus with the 13 countries sharing the
euro ballooned 25 percent in the first eight months of 2007.
European Central Bank President Jean-Claude Trichet and
Luxembourg Finance Minister Jean-Claude Juncker arrive in
Beijing tomorrow to make the case for the yuan to appreciate.
`Harmonious' Exchange Rate
``We need to reach harmonious and fair exchange rates,''
Sarkozy said today. ``This implies that China, in its own
interest, accelerates the yuan appreciation against the euro.''
The French leader thanked Hu for his role in helping solve
the North Korea nuclear dispute and for helping convince the
Sudan government to cooperate with the international community
to restore peace in the Darfur region. Sarkozy said Hu and he
agreed to cooperate on Myanmar, and said both reaffirmed the
unity of the international community regarding Iran.
China Guangdong Nuclear Power Group Co. will order two
nuclear reactors from Areva, the world's largest maker of the
units, the French company's chief executive officer, Anne
Lauvergeon, said in Beijing. She was among about 40 executives
with Sarkozy. Guangdong Nuclear also gains access to 35 percent
of production from Areva uranium unit UraMin Inc., she said.
Areva Gains
Investment certificates in state-owned Areva gained 4.6
percent to 756.22 in Paris trading.
Areva and Toshiba Corp.'s U.S.-based Westinghouse Electric
Co. unit are competing to build as many as 26 reactors by 2020
as China turns to atomic energy to cut pollution. The nation
needs to build two reactors a year to meet a target of getting 4
percent of its power supply from nuclear plants by 2020. China
also wants to gain nuclear-power expertise.
Westinghouse secured a $5.3 billion order from China in
July. That accord includes the supply of equipment and
technology to build four reactors. China's energy demand is
increasing, boosted by an economy that expanded 11.5 percent in
the third quarter.
Electricite de France SA, Europe's largest power generator,
will own 30 percent of two nuclear reactors Areva will build in
the city of Taishan in southern Guangdong province. Areva will
supply fuel for the two units until 2026, Lauvergeon said.
``The accord includes the creation of an engineering joint
venture to enable us to work on reactor design in China for the
long term,'' Lauvergeon said. She said Areva didn't want to
transfer technology without securing closer business ties.
Sharing Technology
Sarkozy said France is ready to transfer ``clean
technologies'' to China to curb carbon-dioxide emissions.
Airbus, the world's largest commercial planemaker, won an
order for 160 aircraft, cementing a record year. Shares in its
parent, European Aeronautic, Defence & Space Co., slid 14 cents
to 21.38 euros.
The deal comprises 110 A320s and 50 A330s, Louis Gallois,
chief executive officer of EADS, said in Beijing. The deal
includes 10 A330 aircraft ordered by China Southern Airlines Co.
Airbus will also award Chinese companies 5 percent of
supply contracts for the 300-seat A350, including wing flaps and
rudders, Chief Operating Officer Fabrice Bregier said.
Alcatel-Lucent, the world's biggest telecommunications-
equipment maker, received orders worth 750 million euros from
the parent companies of China's two largest mobile-phone
carriers. Alcatel slid 1 cent to 5.08 euros.
Suez said it signed agreements with the Chinese
municipalities of Chongqing and Tianjin for water and waste
management services.
Among other deals, Alstom received a 43 million euro
contract to supply electronic equipment for Shanghai's subway,
according to the French president's spokesman.
Eurocopter SA, a unit of EADS, will get an 80 million euro
contract to sell 10 helicopters to China, Sarkozy spokesman
David Martinon said, without providing details.
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