2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
VE in industrial outsourcing
21% of VE’s water turnover in 2000 was with industrial clients, which rose to 28% by 2003. VE’s
industrial outsourcing contracts have a typical duration of between 3 and 10 years, although an
increasing number of contracts now run for 15 or 20 years. Overall revenues rose by 30% in 2003 to
€400 million. During 2003-04, Veolia Environnement signed several multiservice contracts (water,
waste and energy) with industrial customers for cumulative revenues of around €1.25 billion. Veolia
Environnement’s multiservice customers include Arcelor, Aventis, BP, Novartis, PSA, Renault, Solvay
and Total.
Industrial outsourcing in the Americas
In the US, USF enjoyed a 53% market share for identified industrial water and wastewater outsourcing
services in 2002, according to Public Works Financing. Major recent developments include a 20 year,
US$66 million) contract with Alon, USA, to manage the water, wastewater, sludge and groundwater
facilities at its Big Spring refinery in Texas and the acquisition of MCS Technologies LLC, a leader in
the refinery waste separation and treatment services market, based in Corpus Christi, Texas. The 15
year IPSCO Steel contract was gained in 1999 while the US$100 million Sunoco contract was gained
in 1998. Contracts gained in 2000 include Westlake (15 year, US$75 million), Conoco (US$30
million), GM (US$30 million) and BP (US$1.3 million). In 2001, VE gained a €300 million, 15 year
industrial services contract for Usinor’s Vega do Sul facility in Brazil.
In 2003, USFilter gained contracts with the Dupont and Kerr-McGee chemical and energy groups for
terms between 15 and 20 years with an aggregate estimated total revenue of more than US$100
million.
Industrial outsourcing in Europe
Veolia Water Industrial Outsourcing provides water and wastewater management services to industrial
customers in the UK and Ireland. Contracts include a 10 year contract with Shell to supply all of their
chemical and oil refineries on site with up to 3,500m 3 /day of softened water on a DBO basis, and a 10
year O&M contract with Mettis Aerospace (the aerospace component manufacturer), regarding its
effluent treatment plant as well as to supply its manufacturing operations with recycled process water.
During 2002, a €27 million 15 year contract with Arcelor Packaging and a €11 million, 12 year contract
with Smurfit Cellulose du Pin were gained in France, both for effluent treatment.
In October 2001 VE acquired Depurazioni Industriali (DI) from Italy’s Montedison. DI specialises in the
treatment of industrial waste water, and generated €8 million in revenues in 2001. The company owns
three plants where it treats effluent from three industrial sites operated by Montedison’s Cereol and
Novaol under 20-year management contracts, along with effluents from third parties. VE also reached
a partnership agreement with the Montedison group for a three year exclusive right between Veolia
Water and the four companies (Cereol, Cerestar, Provimi and Beghin Say) resulting from the 2001
Eridania Beghin Say contract, covering the outsourcing of water management at over 50 industrial
sites throughout Europe. VE believes that the industrial water outsourcing service market in Italy is
worth €300 million. In the Czech Republic, a €20 million 10 year contract with Spolchemi involving the
design, construction and operation of an effluent treatment plant was signed in 2001. In 2002, a €5
million, 10 year water and wastewater services contract was signed with Cutisin’s Jilemnica, a
subsidiary.
In September 2003, Veolia Water gained an industrial services contract with Synthesia, a member of
the Unipetrol Group covering the operation of Synthesia’s wastewater treatment facility. The 200,000
PE plant also treats wastewater from the city of Pardubice (population of 100,000 in eastern
Bohemia), where the company is located. The 10 year contract will generate revenues of €90 million.
In addition, Veolia Water signed a contract in Hungary with Hajdú-Bét, a major poultry slaughterhouse
located in Debrecen, in the east of the country. The 3 year contract covers the operation of a
wastewater pre-treatment plant and will generate revenues of €1 million.
Other contracts gained in 2003 included Johnson Matthey (United Kingdom) MD Papier GmbH & Co.
(Germany), and Grande Paroisse S.A. (France, a subsidiary of the Atofina Group). Total revenues for
these contracts will be €57 million.
A €60 million, 10 year contract was gained in March 2004 by VE’s Globalis GmbH for environmental
services at Visteon’s German site in Duren. This was the first multi service contract awarded in
Germany. A €78 million 10 year contract signed with Corus Packaging Plus in Trostre (Wales, UK) in
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Pinsent Masons Water Yearbook 2005 – 2006