Suez Environnement and NWS sign deal with Chongqing Water to invest in environment sector

Chongqing Suyu Business Development Company, a joint venture entity formed by French utility Suez Environnement and NWS Holdings, has signed an investment cooperation agreement with Chongqing Water Assets Management (CWA) in China to form a new entity, Derun Environment.

The deal strengthens the long lasting relationship between the three parties, who intend to enter into a definitive investment agreement for their stake in Derun Environment.

It is in line with previous strategic deals signed by the companies and is subject to multiple precedent conditions and final approvals from the parties involved.

After the transaction, assets under Derun Environment will include 67.085% equity interest in Chongqing Sanfeng Environment Industry Group, which handles waste-to-energy projects in China.

Derun Environment will also own 50.1% stake in Chongqing Water Group, which offers water and wastewater treatment services in the urban area of the Chinese city.

The firm is likely to transform into a platform operating environmental-related businesses, which might include renewable resource recycling and utilisation pollution control, soil remediation, environmental technology development, waste treatment and waste-to-energy project investments.

Suez Environnement CEO Jean-Louis Chaussade said: "This agreement is a turning point in the cooperation between SUEZ environnement, CWA and NWS.

"Suez Environnement, which has been present in China for more than 30 years, is determined to further improve the development of the environmental industry in Chongqing but also in all Mainland China.

"Our Group will bring, its experience and operational know how, and will become a leader in this country; this strategy matches perfectly with the new incentives in matter of environmental regulations norms highlighted by the Chinese government in its five years plan."

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Image: Chongqing city in China. Photo: Courtesy of Suez Environnement.