(Bloomberg) -- Suez SA signed a contract worth slightly less than €100 million ($108 million) to design and build a sludge incineration plant for Chinese utility Dongguan Water Group, a spokesperson for the French water and waste-treatment company said.

The plant, which will be located in the Chinese city of Dongguan, will be able to handle 2,000 tons of municipal sludge per day to produce heat and power, Suez said in a statement Monday. The French firm is seeking to land a follow-up deal to operate and maintain the facility, which could generate about €1 billion of revenue over 20 years, a company representative told Bloomberg.

On the sidelines of President Xi Jinping’s Monday visit to France, the first stop of his European tour, Suez also signed memorandums of understanding with Envision Group and Chongqing Sanfeng Environment Group Corp. to cooperate, respectively, on electric-car battery recycling in France and energy-from-waste projects in Southeast Asia, the Middle East and Africa.

“We can leverage our combined strengths to produce more secondary raw materials and sustainable energy from waste and wastewater, to the benefit of our French, Chinese and international customers,” Suez Chief Executive Officer Sabrina Soussan said in a statement.    

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