French group Veolia Environment, the world's largest water
company, has reached an agreement with a Chinese counterpart in
Beijing 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
specialize 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 US$39 million)
during the initial operation period, the joint venture aims to
expand rapidly and increase its total assets to 1.8 billion yuan
(nearly US$235 million) 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 US$43 billion) during the period.
(Xinhua News Agency May 24, 2007)