Water. Desalination + reuse
Issue link: https://fhpublishing.uberflip.com/i/867173
6 The Quarterly September 2017 Water. desalination + reuse US Jacobs pays $2.85 billion for CH2M Jacobs buys its way into water treatment markets served by fi rm Morocco Abengoa wins added work on existing project The scheme will provide water for drinking and irrigation across the Souss- Massa region France Suez appoints Markhoff to top job Suez names GE Water's Heiner Markhoff as CEO of new Suez Water Technologies & Solutions (Suez WTS). China Floating nuclear and desalination units State-owned company to build off -the-shelf systems for sale What happened? Who covered it? Why does it matter? Bloomberg and Reuters both ran with the line that the deal was a bet on US president Donald Trump's mooted infra- structure spending spree of $1 trillion. Bloomberg's Brooke Sutherland com- mented it was "reasonably priced, with an ebitda multiple in the range of comparable industrial deals; factoring in $150 million in targeted annual costs savings, the multiple drops to 6.9." Morocco World News reported on the signing ceremony for the expanded contract in Agadir. It quotes a water price of MAD 5 ($0.53) per cube, and contract values of MAD 2.6 billion ($274 million) for the desalination plant, and MAD 600 million ($63.3 million) for 44 kilometres of pipeline, a 35,000 m3 capacity water tank, two pump- ing stations, two loading tanks, and three high voltage power lines. Suez WTS, the new name for the industrial water business that will be created from Suez's swoop on GE Water, and confi rmation that GE Water's chief executive Markhoff will be at the helm of the new unit, failed to make headlines in the international business press. Focusing on the French company's H1 2017 results, Reuters noted a dip in earnings before inter- est and tax of 0.6 per cent to €594 million, re" ecting low in" ation in Europe, and rev- enues up o ne per cent to €7.53 billion. Chinese state-owned news outlet Global Times ran a story citing a statement by China National Nuclear Power (CNNP) put out on local social media platform WeChat, about the formation of a new manufacturing consortium led by CNNP and Shanghai Electric. Global Construction Review explained that small, modular nuclear reactors will be — tted to barges, and will be mass produced in Shanghai shipyards. The two groups combined creates some fi repower in the water sector by pro- viding publicly-listed Jacob's an entrance into the markets where CH2M has a respected presence. The new business comprises four units: building and infra- structure, including water and transporta- tion, at $4.8 billion revenue; aerospace and technology, $3.7 billion; and with revenue of £3.3 billion each, petroleum and chemicals, and industrial. It represents a big win for Abengoa, combining two schemes: An increase in capacity from 100,000 to 150,000 m3/d on the desalination project it won in 2014, which is in development; and a contract for 125,000 m3/d of desalinated water for irrigation and a distribution network to cover 13,600 hectares. Further, the project provides for potential expansion of the existing total contracted capacity of 275,000 m3/d, up to 450,000 m3/d. Suez gave some early indications about its new shape, saying that the acqui- sition will boost revenue from industrial clients from 34 to 40 per cent, and rebal- ance the business from 33 to 40 per cent of revenue from outisde Europe. The deal increases the research and innovation budget by 65 per cent, doubles the number of research and innovation experts, and creates a portfolio of more than 3,200 patents. Creation of the new entity fulfi ls an ambition of China's fi rst trailed in April 2016 to build fl oating nuclear and desali- nation units. Then, the stated aim of the programme was to support infrastructure construction activities in the South China Sea, to strengthen China's control on the area.The company will be based in Shanghai with $150 million of capital The Quarterly Suez names GE Water's Heiner Markhoff as CEO of new Suez Water Technologies & Solutions (Suez WTS). $0.53 per cube $150 million targeted annual cost savings $150 million capital 3,200 patents THE KEY NUMBER THE KEY NUMBER THE KEY NUMBER THE KEY NUMBER