Thursday, December 27, 2007

Chinesepod - Veolia aims to expand China business

BIZCHINA / Overseas Investment

Veolia aims to expand China business
(Shenzhen Daily)
Updated: 2006-09-21 14:39

Veolia Environnement SA, the world's largest water company, said it aims
to supply and treat water for as many as 50 million people in China in 10
years, as the country continues to overhaul its networks.

Veolia should be able to add two to three contracts covering 3 million
people a year, Antoine Frerot, chief executive officer of the company's
water unit said in Beijing late yesterday. The Paris-based Veolia already
manages water systems, including supply and waste treatment, for 18.7
million people in China.

Veolia and rival Suez SA have invested a combined 1 billion euros
(US$1.27 billion) in China��s urban water treatment and distribution
systems since the government opened the market to foreign companies in
2002. China has pledged to spend US$125 billion cleaning up its scarce
water supplies by 2010, as well as upgrading water systems to cope with
rapid urbanization.

"If we make the assumption that the market will stay bullish, and I think
it will, we can hope to stay at the same speed of growth" of two to three
contracts a year, Frerot, 48, said. Veolia will continue to increase
investment in China by about 25 percent a year over the next decade, the
CEO said.

The company has spent 500 million euros in China and secured contracts in
cities including the capital Beijing, Shenzhen and the Pudong region of
Shanghai, said Frerot, who heads Veolia Water.

Last week, Veolia signed its 19th contract in China, to upgrade and
manage waste water treatment and water distribution services over the
next 30 years in Liuzhou City, which has a population of 1 million, in
Guangxi.

The company supplies water to about 110 million people and trash
recycling for some 74 million. It has expanded its water business to the
U.K. and in central Europe and was interested in buying the water assets
of rival Suez.

Veolia will also pursue contracts to install waste water treatment
equipment in factories as more industrial polluters try to comply with
government environmental protection guidelines, Frerot said.

"We��re not only interested in municipal customers. We're also interested
in serving industries that are using large quantities of water and
polluting," he said. ��The rules and regulations are getting stronger,
forcing them to treat waste water properly.����

(For more biz stories, please visit Industry Updates)

Related Stories

� Veolia to take Shanghai as priority market
===========================================================================

Most Popular Stories in 48 Hours

� China halts foreign investment in brokers

� Chip makers file competing lawsuits

� Pension funds tightened up

� Market lifeless as investors cautious

� CGPI rising year on year in August

Today's Top News 

� China, US set up strategic economic dialogue

� Thai leader: No elections for a year

� Japan fears losing quality edge

� Panda bites man, man bites him back

� Thai coup leader to install new PM in two weeks

Top Biz News 

� Draft law to support aero-leasing industry

� Regulators may relax rules for foreign banks

� CNOOC clinches supply deal for liquefied natural gas

� Nation needs more FDI

� China's IMF quota increases

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Chinesepod

No comments: