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Chinesepod - Veolia expands water business in Tianjin

BIZCHINA / Overseas Investment

Veolia expands water business in Tianjin

(Xinhua)
Updated: 2007-05-24 14:31

French group Veolia Environment, the world's largest water company, has
reached an agreement with a Chinese counterpart in Tianjin, North China
to set up a joint venture, bringing the number of joint projects it is
involved in in China to 22.

The new joint venture, Tianjin Teda Veolia Water Co. Ltd., will
specialise in the integration of water processing systems, urban sewage
disposal, industrial wastewater treatment, desalination, sales of water
treatment equipment, management of water equipment, technical services
and investment.

Veolia said its Asian business currently accounts for less than 2 percent
of its global business, but the ratio is expected to jump to 10 to 20
percent in the future.

The contract was signed here on May 22 by Veolia Water Group, under
Veolia Environment, and Teda Investment Holding Company, the biggest
state-owned enterprise in this northern Chinese port city.

Veolia holds a 49 percent stake in the joint venture and Teda the
remaining 51 percent.

With total assets of 300 million yuan (over 39 million US dollars) during
the initial operation period, the joint venture aims to expand rapidly
and increase its total assets to 1.8 billion yuan (nearly 235 million US
dollars) in the near future.

Veolia, which entered China in 1997, operates more than 20 water projects
in cities such as Beijing, Shanghai, Tianjin and Shenzhen and has more
than 18 million employees across the nation. Under its management, a
renovated Tianjin-based water plant is providing drinking water to a
population of about 1.8 million.

According to Qiu Baoxing, deputy Minister of Construction, China will
invest one trillion yuan in the water market -- including waste water
treatment and the renovation of urban water supply networks -- during the
11th Five-Year Plan period (2006-2010).

Investment in the construction of sewage disposal and water recycling
facilities is expected to increase by more than 330 billion yuan (about
43 billion US dollars) during the period.

(For more biz stories, please visit Industry Updates)

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