JV eyes nation's waste treatment market

Suez Environnement SA, which is considered Europe's second-biggest water company, inked a joint venture deal on Thursday with a Chinese partner to gear up for expansion in China's robust waste-treatment market.

The Paris-based water and waste solution provider and Beijing Enterprise Environmental Group Ltd, a subsidiary of the Hong Kong-listed Beijing Enterprises Holdings, are to work together on the operation and management of waste facilities.

Officials said the partnership, created through SITA Waste Service, a subsidiary of Suez Environnement, will offer services to the existing waste treatment facilities of Beijing Enterprise as well as new projects.

In China, the waste market continues to expand, driven by rapid urbanization and strong economic growth, said Jean-Louis Chaussade, CEO of Suez Environnement, which had global revenues of 15.1 billion euros ($19.7 billion) last year.

"The Chinese government is eager and serious to improve the standards of environmental protection.

"We believe that in the long term, our international experience and expertise in the entire waste management cycle, combined with the local knowledge of Beijing Enterprises, will help to enhance the capabilities of waste facilities and overcome critical environmental challenges in China," he said.

Chaussade said at this early stage there is very little financial investment from his firm in the new joint venture, because the initial contract is only to provide operation and maintenance services.