Suez forms joint venture in China

Environmental services firm will work with NWS Holdings to grow its water and waste management business in China, Hong Kong and Taiwan.

Suez, a France-based environmental services company, has announced the expansion of its long-standing partnership with Hong Kong based NWS Holdings Ltd, with the decision to merge both companies’ waste and water services in China into Sino French Holdings. According to both companies, the result of the joint venture will strengthen companies’ business efforts in China, Hong Kong, Taiwan and Macao.

Following the closing of the venture, Suez will hold a 58% stake in the joint-venture company, while NWS will hold the remaining share in the joint venture company. The deal is expected to be finalized by the end of the year.

Suez notes that it has been involved in the China market for more than 30 years, and has been in the waste management sector in Hong Kong since 1998.

Under the terms of this transaction, Suez will contribute its recycling and recovery businesses, excluding Derun Environment, as well as construction businesses, into Sino-French Holdings (SFH). In return, SFH will pay Suez €50 million (US$55 million). Through SFH, Suez and NWS Holdings, partners since 1985, are expected to generate additional commercial and operational synergies.

Derun Environment was set up last year by the city of Chongqing, China, with Suez and NWS both having a 25.1% stake.

“We are proud of this high added value operation for our Chinese customers concluded with NWS Holdings. In the last 30 years, our partnerships have enabled us to support an increasing number of local authorities and industrial manufacturers in their implementation of solutions that are adapted to climate change and the sustainable management of resources. With this single entity, we will go even further in the environmental transition of China,” says Jean-Louis Chaussade, CEO of Suez.