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Denmark and China to sign USD 508m port deal

15th June 2012

Shipping and oil group A.P. Moller-Maersk will sign a port deal with its Chinese partners when President Hu Jintao visits this week

Maersk's ports arm, APM Terminals, will sign an investment deal worth more USD 508m for a new container terminal in China

President Hu Jintao will oversee two deals worth USD 1.69 billion with Danish companies, a third of which will come from a new container vessel in China. The visti is first such encounter since the countries formed ties 62 years ago.

Denmark's minister for trade and investment, Pia Olsen Dyhr, told Reuters in an interview on Tuesday she expected deals worth more than 10 billion crowns (USD 1.69 billion) to be signed during Hu's stay in Copenhagen. Part of the money will come from a deal with wind turbine maker, Vestas.

Maersk said its ports arm, APM Terminals, would sign an investment deal worth more than 3 billion Danish crowns (USD 508 million) for a new container terminal in China on Friday.

The announcements follows news Carlsberg would spend 4 billion crowns to build a giant brewery in China aimed at tapping growth in the world's largest beer market.

Hu will be accompanied by a large delegation of Chinese officials and business leaders, and a signing ceremony for the economic part of the visit is scheduled for Friday morning, when the Maersk and Carlsberg deals will be inked.

Maersk's APM Terminals is one of the world's biggest port operators with interests in 63 ports and terminals in 37 countries on five continents. It has nine port facilities in China.

The ports business supports the global operations of Maersk Line, the world's biggest container shipping company, and serves Maersk's shipping rivals.

Hu's visit to Denmark is the only European stopover on his way to next week's meeting of Group of 20 (G20) leaders in Mexico.