Vivendi Water, the water subsidiary of Vivendi Environment, has just been selected by the city of Inchon (population 2 400 000) and by the state of Chilgok (population 150 000) in South Korea for the final negociation of two wastewater treatment plant construction and operation contracts. Inchon, situated near Seoul, is the third largest city of South Korea in economic terms, with rapid development including the new international airport of Seoul, inaugurated on 29th March 2001.
The Chilgok project, in partnership with Hyundai Construction, includes the 23-year operation of two existing treatment facilities as well as the design, financing and construction of a new treatment plant. The Inchon project, in partnership with Samsung Engineering, involves the construction and operation of two new treatment plants over a 20-year period.
Once in service, the facilities with an overall capacity of 150 000 m3/day, will benefit from advanced technologies such as Biostyr and Azonit-P to be used for the first time in South Korea. The annual turnover for these two contracts is estimated to be more than 20 million Euros. The investment required is nearly 145 million Euros, with Vivendi Water providing 30 million Euros and South Korean public bodies and financial institutions making up the balance.
These two projects express Vivendi Water's active response to the opening-up of the private municipal wastewater treatment services sector which was undertaken a short time ago by the South Korean government.
In parallel, Vivendi Water has just closed an important industrial services outsourcing contract with Hynix Semiconductors Corporation (ex Hyundai Electronics Industries).
This contract involves Vivendi Water, in association with several South Korean financial organizations, taking over industrial water production and treatment facilities from Hynix Semiconductors Corporation. The total cost of this transaction is 196 million Euros, with an investment of Vivendi Water limited to around 10% of this amount.
Vivendi Water will be the 100% owner of the operating company in charge of these facilities which include four ultrapure water treatment plants with a total capacity of 80 000 m3/day as well as two wastewater treatment facilities. This company will be responsible for operation over a 12-year period.
The overall turnover expected from this last contract is estimated at 830 million Euros.
These three new projects reinforce Vivendi Environment's presence in South Korea. Vivendi Environment has already been operating industrial water treatment facilities at Hyundai Petrochemical, Daesan for nearly a year as well as a large toxic waste plant in association with Rhodia.
Vivendi Water is the world-leader in the water business for local communities, industrial organizations and private individuals. Vivendi Water provides a complete service including production and distribution of potable water, purification, management, design / construction, systems and equipment.
Present in more than 100 countries, Vivendi Water serves 110 million people and 40 000 industrial customers with a turnover for the year 2000 of 12.7 billion Euros and 69 000 employees.
Press Contact
Véronique Doux, tel : 33 1 49 24 30 49
veronique.doux@generale-des-eaux.net
Myriam Mahrez, tel : 33 1 49 24 31 46
Fax : 33 1 49 24 34 61
Disclaimer:
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: inability to develop and achieve success for new products, services and technologies; and inability to maintain new contracts. Neither Vivendi Universal nor Vivendi Environnment undertakes any obligation to provide updates or to revise any forward-looking statements. Investors and security holders may obtain a free copy of documents filed by Vivendi Universal with the U.S. Securities and Exchange Commission at www.sec.gov or directly from Vivendi Universal.
