A Key Step of a Strategy to Grow Revenues 60% by 2004,
The Premier Water Solutions Provider Unites Its Activities Under a Common Brand
Suez, the world leader in energy, water, waste management and communication services, announced today the creation of ONDEO. The move represents the formation of the world’s strongest and most comprehensive water solutions group, as well as a key step of an aggressive growth strategy to increase revenues 60% between1999 and 2004.
With annual revenues of 9.1 billion euros in 2000 ($8.5 billion), 60,000 employees and a presence in 130 countries, ONDEO offers a full range of solutions to meet the water-related needs of cities, consumers and industries. To expand its already leading market share, ONDEO is implementing a growth strategy focusing on both internal and external opportunities.
Suez has united its existing water activities—as well as a newly established company that provides industrial water solutions—under a single global brand, ONDEO. Effective today, ONDEO’s water solutions organization consists of the following companies:
- ONDEO Services - market leader in water management services to cities (resources, drinking water, sanitation services), formerly operating under the company name Lyonnaise des Eaux;
- ONDEO Nalco - market leader in water treatment and process chemicals for industries, formerly operating under the name Nalco;
- ONDEO Degrémont - water treatment specialist and market leader in turnkey engineering, formerly operating under the name Degrémont;
- ONDEO Industrial Solutions - a new company created to satisfy a full range of industrial water needs, mainly assistance to water management.
No layoffs are expected as a result of the creation of ONDEO.
Commenting on the creation of ONDEO, Gérard Mestrallet, Chairman and CEO of Suez, said: “The creation of ONDEO, one of Suez’s core businesses, is a major milestone in our history. We are creating today the world’s premier water solutions group whose scale, global reach, and financial resources are without equal.”
ONDEO combines the four companies technical expertise, research and development capabilities, procurement policies and human resources management thus creating synergies for ONDEO Services, ONDEO Nalco, ONDEO Degrémont and ONDEO Industrial Solutions.
Gérard Payen, Chairman and CEO of ONDEO commented: “In ONDEO, we have created a group possessing the expertise, financial resources and research and development capabilities required to provide customized solutions to our millions of customers worldwide. We expect ONDEO to dramatically increase its market share in the fast-growing water services industry.”
Gérard Payen added: “Under one name, ONDEO, we are of one mission, which is to be the premier provider of sustainable water-related solutions and services worldwide, through long-term partnerships that benefit our customers, communities, employees and the environment.”
The Municipal Market
ONDEO activities in cities and consumer market represent 64% of its revenues worldwide. Today, only 5% of the population benefits from private sector water and wastewater services. According to the Global Water Partnership, “Framework for Action,” an estimated $180 billion investment per year between 2000 and 2025 will be necessary to develop water services in developing nations, twice the current yearly spending. In the United States alone, an estimated $14 billion annual investment will be necessary to upgrade infrastructure and meet even stricter regulations standards.
The Industrial Market
ONDEO activities on industrial market while already 36% comes from business activities with industries – a vast untapped market. A recent study carried out by Suez among 200 big accounts indicated that the industrial outsourcing market – including energy and water would reach $20 billion by 2009.
About ONDEO
ONDEO is the premier water-related solutions provider with a presence in 130 countries. ONDEO supplies 110 million people with water and wastewater services, provides services to more than 60,000 industrial customers and built more than 10,000 water treatment plants worldwide. ONDEO comprises four business activities branches, including: ONDEO Services, world leader in water management services; ONDEO Nalco, world leader in water treatment and process chemicals; ONDEO Degrémont, world leader in water treatment engineering services; and ONDEO Industrial Solutions a specialist in water services to industries. ONDEO had revenues of $8.5 billion. ONDEO is a fully owned subsidiary of SUEZ.
In the United States, ONDEO activities includes – ONDEO Nalco, world leader in water treatment and process chemicals, headquartered in Chicago, United Water, subsidiary of ONDEO Services, leader in water management services on the U.S. market and Infilco Degrémont Inc., subsidiary of ONDEO Degrémont. ONDEO revenues in the U.S. were $1975 million in 2000.
SUEZ CREATES ONDEO