PARIS — French nuclear and renewable energy group New AREVA has signed a memorandum of commercial agreement with its Chinese partner on a nuclear reprocessing project, the company announced on Tuesday.

The project will build a Chinese recycling plant capable of reprocessing 800 tons of used fuel per year.

The memorandum was signed by New AREVA and China National Nuclear Corporation (CNNC) in Beijing during French President Emmanuel Macron's ongoing visit to China, the company said in a press release.

"Substantial progress" have been made in the past few months on the negotiations of a contract, said New AREVA, adding that both sides are committed to launching the project in 2018.

The new re-processing plant will be built on the model of New AREVA's two existing plants, La Hague and Melox, both situated in France.

Macron is on a state visit to China from Jan 8 to 10 at the invitation of Chinese President Xi Jinping.