(Corrects 8th para to say the company has about 500 mln euros
this year for acquisitions, not per year)
By Geert De Clercq
PARIS, April 10 French waste and water group
Suez Environnement will combine self-generated growth
with small- to medium-size acquisitions, notably in the
treatment of waste water for the oil and gas industry, the
company said on Thursday.
The company's comments came after it said it had agreed to
acquire a company called Mining and Industrial Labour Services
(MAILS), which specialises in treating waste from gold mines in
southwestern Australia. It gave no financial details.
Marie-Ange Debon, one of Suez's four deputy chief executives
and head of international operations, told a press briefing the
group would look for acquisitions where it wanted to complete
its technological expertise or geographical footprint.
Like its bigger French sector peer Veolia, Suez is
trying to boost its business from industrial clients as margins
shrink in its traditional municipal market.
Earlier this week Veolia said it expects revenue from
treating waste water from the mining and metals industries to
double to 1.5 billion euros by 2020.
Debon said the treatment of waste water in the oil and gas
industry, a sector Suez has entered only recently, would be a
particular area of focus.
"We have had good success in the upstream oil and gas sector
and we will keep developing that business," she said.
Suez has a budget of about 500 million euros ($694 million)
this year for acquisitions, which will be focused on four areas:
industrial water; material and energy recovery in waste;
international development in countries like Brazil, India,
Eastern Europe and the Mediterranean area; and the development
of "smart water meters" for municipal and industrial clients.
The group expects the global market for industrial water to
grow from about $15 billion in 2014 to $21 billion in 2018, with
average growth of around 9 percent per year. It sees growth of
15 percent in the upstream oil and gas industry and 12 percent
in the mining industry.
Last year Suez had sales of 570 million euros in industrial
water out of a total 14.6 billion. It expects water use by
industry to grow more than 80 percent by 2030.
Debon also said Suez's waste and waste water treatment
business in emerging markets is growing as regulation is not
only being tightened but applied.
The company's toxic waste incinerators in China for
instance, which up to a few years ago were not fully used, are
now working at capacity as authorities crack down dumping, she
(Editing by David Holmes and Anthony Barker)