Interview with Jean-Michel Herrewyn, Director General of Veolia Water Solutions & Technologies

Coinciding with the delivery of the "Global Water Awards, which this year was held in Barcelona, Jean-Michel Herrewyn, Director General of Veolia Water Solutions & Technologies, has had a meeting with the media where has addressed issues such as the times facing the water industry, positioning of the company and its plans for expansion, both globally and in Spain.

Veolia Water Solutions & Technologies (VWS), a global leader in water treatment, is the technological Division of Veolia Water and belongs to the giant French number one in environmental services, Veolia Environnement. Jean-Michel Herrewyn, Director General of Veolia Water Solutions & Technologies, reveals some of the keys in which his firm decision to growth is based for the next few years, whose first results already have been left out. In 2006, VWS increased their sales by 19 percent from the previous year, achieved a turnover of EUR 2 billion.

Jean-Michel Herrewyn (JMH). Currently, the water industry is subject to a continuous evolution. It is absolutely incredible to see what is happening in the Middle East, in China or in the India.Son economies with rhythms of double digit growth, where large investments are being made in new infrastructure, both in the industrial sector and in the city. Logically, this development carries with it the investment in infrastructure for water, making him a very attractive market. As a result, and analyzing it from the point of view of competition, the panoramic view of this market has been changing a lot in recent years. It is now very common to find in these markets - China, India, East means...-with competitors who had never before made international raids. On the other hand, the growing awareness in environmental issues - because the water is a scarce natural resource which we should take care and because each time there is a greater awareness of respect for the environment - also is fueling new opportunities that require treatment of water with added value technologies. In this regard, we believe that Veolia has much to offer, thanks to our wide range of advanced technologies. But, as I said, where there are always opportunities you'll find with competitors and the fact of being the leader does not mean that you can relax. It is not wise to underestimate the competition. I therefore think that the keys to success for Veolia continues to be the leading company in the treatment of the water sector is to continue betting on the development of technologies, through our r & d centers, and to assist and empower the different local teams in the development of their respective markets. This last is very important. We believe in a gambling business model for the continuity of the local teams, not in the use of work equipment moved to other countries for a specific project and that, once completed, they return to their country of origin.

It depends from the point of view from which you look, but in general terms we can say that the industry of the water live moments of high level of competitiveness. In some markets, you can find local competitors, which are strong and well-established. You can be competing with international companies in other markets. And at other times, you can compete with companies which, although small, are great specialists in a specific water treatment application.

The market of water, contrary to what some believe, is an extremely competitive market. As said before, many things are happening in the water industry and this is what makes the water industry is a fascinating industry.

The Spanish subsidiary is the expert in desalination of the group. It is working actively with other subsidiaries for the development of desalination in their markets

In that connection, my view is that to grow it should not be larger, but stronger. Our goal is to serve our customers every day better and to achieve this goal is not primary to acquire new companies, although of course, I am not going to say no to interesting opportunities.

Again I must stress the fact that my vision of the business is investing in the development and growth of our local branches in their respective markets. The Group has 7,000 employees that are distributed throughout the world, in 120 subsidiaries, and if they are strong, the group is stronger. And as part of this strategy, we use the knowledge of a subsidiary to export it and share it, to serve as a model for other subsidiaries. As such, we are doing at Spain with desalination.

Yes, indeed. And it is in fact already doing so. The Spanish subsidiary is an expert in certain fields of the treatment of water and especially in the area of desalination. They are working actively with other subsidiaries of the group, as for example Mexico, Australia, North Africa... in the development of the desalting market. In fact, I can tell you that in the past two years, the Spanish subsidiary and mexicana have managed several contracts for sea water desalination plants amounting to 12 million euros.

My vision is to promote internally know-how for the development of the business because the market of desalination, and specifically the desalting market by membranes, it is a business that is growing rapidly and you have not always experts in this area in all parts of the world. So we are using the knowledge and know-how of the Spanish subsidiary for the development of desalination in the world market.

To grow it must not be larger, but stronger. Our goal is to serve our customers every day better

In fact, Veolia Water Solutions & Technologies, together with its partners - Veolia Water, Sando and Inypsa - UTE, has been awarded this desalination plant, which is part of the water programme.

This award is undoubtedly very important for us, because when you are competing in a market as difficult, as it is the Spanish market, where there is a great knowledge in desalination, always is a recognition for the company to win such projects.

I think that the Spanish team, as we mentioned earlier, has a strong knowledge in desalination, since it has been working in this sector for many years and, again, has done an excellent job in recent years and has a team of great professionals, extensive experience in desalination. Hard work, perseverance and patience always bring their fruits.

The award of the desalination plant of field Dalías has been very important to us, as Spain is a very difficult, very competitive market because it has a great knowledge in desalination

Clearly we will continue betting on Spain, it is one of the most important subsidiaries of our group. 50 Per cent of the total business, which are EUR 2 billion, is made in Europe, and Spain is in the fourth position.

My goal is to continue investing and betting for the desalination and reuse of treated waste water. In addition, in this second point, we have deposited great confidence, and that the Group has very advanced technologies that not all competitors have.

In the reuse, the Spanish subsidiary also being a pioneer within the group as his knowledge in this area is being used in other countries. For example, here has developed a solution for the reuse of treated waste water, which is known with the name of ACTIDisk, and featuring the most important reference in Europe - in the WWTP of the Baix Llobregat-. In addition, we have other important references in Spain such as plants in the WWTP of bars, in Madrid, or in the WWTP of Algorós, in Alicante.

In regards to the field of desalination, Spain is making significant progress in pretreatment, which is one of the most important challenges facing the desalting market, pretreatment is a fundamental stage of the process that can reduce the cost per cubic metre of desalinated water. It is also working on the development of desalination using solar energy systems, thus building on green energy and minimizing the environmental impact.

As you can see, Spain investment plans are strong and determined, but I do not have a figure head. We can say that my plans of expansion for Spain are qualitative and not quantitative.