Suez (NYSE:SZEZY) CEO Gerard Mestrallet has signed two environmental strategic partnerships in China during French President Nicolas Sarkozy's state visit to that country.
The company has signed a partnership agreement for the extension of a waste-water management system, and the supply and management of a sewage-sludge drying facility for Chongqing, the largest municipality in the world. Suez said the partnership represents investments of over 70 million euro.
Mestrallet said in an interview on radio station Europe 1 that the company may take a stake in Chongqing Water. The company supplies water to 32 million users.
The company also has been selected for the city of Tianjin's Binhai New Area economic and residential development project. The 2,270-square km project is designed as 'a model of environmental preservation', Suez said.
Through the strategic partnership, signed for an initial three-year period, the company will establish a master plan for the management of water, sanitation, waste and energy services in the development zone.
Suez said the agreement offers 'important business development opportunities for Swire SITA, the local SUEZ Environment subsidiary, particularly in the fields of waste recycling and recovery and waste to energy conversion'.
Mestrallet confirmed that the contracts were signed in local currency.
