ANNUAL REPORT

Transcription

1 ANNUAL REPORT

2 1 billion people served by Degremont facilities 4,448 staff billion in sales in 2006 Degremont shares the policy laid down by SUEZ Environment in response to the great challenges of sustainable development as defined by the Executive Committee of SUEZ: Climate change Resource conservation Quality of life Changing markets Local embeddedness

3 Contents 10,000 facilities built worldwide INTERVIEW WITH THIERRY MALLET WORLDWIDE REACH 08 Our business is at the heart of sustainable development 10 Drinking water production 12 Reverse osmosis desalination 14 Municipal wastewater 16 Sludge treatment SUEZ ENVIRONMENT: N 2 in Europe for services to the environment SUEZ Environment supplies services, plant and equipment essential to life and to environmental protection: drinking water production and distribution, wastewater collection and treatment, solid waste processing and recycling HIGHLIGHTS OF THE YEAR THE WAY WE WORK 22 Quality 24 Human resources 26 Safety 28 Innovation 30 Environmental protection 2006 ACCOUNTS HISTORY PROFILE Degremont, the world water treatment plant specialist, is a subsidiary of SUEZ Environment. Its teams design, build and commission facilities for drinking water production, desalination, wastewater treatment and sludge treatment for local authorities. They also directly operate facilities and provide all the services required for them to run smoothly maintenance, spare parts, upgrading work. Either directly or via Degremont Technologies, Degremont also offers customers specific solutions for disinfection, thermal sludge drying, incineration etc. The nature of its work makes Degremont a vital player in the battle for sustainable development. The Group has made this a key to its corporate growth and helps its customers day by day in their drive for continuous improvement. Degremont operates in more than 70 countries and has nearly 4,500 staff.

4 4 FOREWORD A message from Thierry Mallet Chief Executive Officer of Degremont Recruitment and training will be among the big challenges of 2007.

5 The number and range of contracts Degremont won in 2006 demonstrate the quality of the Group s offering. In our three business areas (design-build, plant operation and equipment supply) and in our four areas of expertise (drinking water, desalination, wastewater and sludge treatment) our innovations and the commitment of our teams enable us to bring to customers worldwide solutions that are always appropriate to their particular water treatment needs. In 2006 the city of Budapest entrusted us with the 1.5 million population equivalent wastewater facility project in Csepel. In Barcelona, Spain, we are going to build Europe s largest desalination plant (200,000 m3/d). We also won contracts for the 60,000 m3/d drinking water plant in Macao and a wastewater recycling facility (also 60,000 m3/d) in Doha, Qatar. In France, our Cyclor* and Ultrafor** technologies, which allow us to build very efficient wastewater facilities with small footprints, are in operation at Olainville, Bréhat and Issoire. Also in France, our ultrafiltration solution will improve the quality of the drinking water produced at the Apremont, Bolbec and Saintes facilities. We have renewed our operating contracts for the Marseilles sludge treatment plant and the Gargenville wastewater facility. In North America, we were selected to build four Thermylis incinerators for Toronto and supply five ozone generators for Los Angeles. Our field teams work daily to deliver reliable, efficient facilities and equipment on time, commission them and operate them. Thanks to their commitment and hard work, in 2006 we opened the Sonia Vihar plant in India (producing drinking water for 3.5 million people), the world s largest ultrafiltration unit in Moscow, and Europe s second highest capacity sludge drying unit in Valenton, France. We started up the Warsaw water treatment facility with the new Innodry*** technology. Our operating competencies enabled us pursue lasting partnerships with customers after establishing a sound working relationship during construction. Our aims in plant operation are to optimise the industrial plant, transfer knowledge and technologies, and use the experience to enrich our expertise in design and construction so as to offer ever more innovative technologies. Technological innovation is at the heart of our strategy. In 2006 it was focused on alternative water resources, wastewater treatment, energy saving across the board and the ecological impact of all our technologies and plants. These are new issues for our customers, and for Degremont they are further opportunities for progress in water treatment technology. Degremont is flexible and quick to respond, constantly adapting to trends in our markets. In 2006 we set up a new structure in France to deal specifically with the market for small facilities. We also created Degremont Technologies, to make sure our customers get the same high service quality and expertise for our Ozonia, Aquasource and Innodry technologies the world over. Degremont also continued the large-scale overhaul of its internal organisation, designed to offer ever more rigour in satisfying customers, managing risks and meeting quality commitments and delivery dates. To continue to meet our challenges, recruitment and training will be among the big challenges of Degremont is still developing towards healthy, lasting growth. At present we are building up our workforce with numerous new staff, and we are paying attention to our teams development, especially through training and mobility. With 70% of our staff working outside France, we are particularly proud of the Group s diversity. I take this opportunity to thank our customers for the trust they have placed in us. That trust is reflected in our 2006 financial statement by strong growth in our construction, services and equipment offering. I would also like to thank all Group staff for the quality of their work in the service of our customers and for the big changes in our Group, as highlighted by the 30% increase in our profitability. Let me assure our customers of my commitment and the commitment of all the Group s staff to assist them with the same energy and the same enthusiasm in * Cyclor: Degremont sequential biological reactor ** Ultrafor: Degremont membrane bioreactor *** Innodry: Degremont two-stage thermal dryer with energy recovery.

6 6 TURNKEY FACILITIES Drinking water production, wastewater treatment and recycling, sludge treatment More than 65 capital cities around the world are served by Degremont facilities. Delivered on a turnkey basis to local authorities, they provide the best possible safeguards for public health. EQUIPMENT Disinfection, thermal sludge drying etc. Degremont Technologies provides specific solutions for sludge drying, incineration, disinfection etc. Its brands include Ozonia, Infilco, Innoplana, Aquasource, Anderson, Triogen and Schreiber. SERVICES Facility operation and upgrading, spare parts supply Degremont adapts its services offering to customers needs. Our aim is to combine optimised process control with timely plant maintenance in a spirit of visibility and partnership.

7 Worldwide reach Our teams provide solutions and expertise: based on efficient, reliable technologies, adapted to each economic and geographical situation, affordable in terms of investment and operating costs. OUR AREAS OF EXPERTISE Launched in 2006 in the United States, Asia and Europe, Degremont Technologies brings all the brands in Degremont s Equipment business line under one umbrella. This way they benefit from Degremont s world status as well as the reputations of their technologies _ Ozonia, Aquasource, IDI, Innoplana etc. DRINKING WATER PRODUCTION DESALINATION MUNICIPAL WASTEWATER TREATMENT AND RE-USE SLUDGE TREATMENT Water is life. Conserving water resources is not just an obligation, it is a duty to future generations. All Degremont s business areas help towards that end.

8 8 WORLDWIDE REACH - Our business is at the heart of sustainable development Degremont develops appropriate solutions for use in widely varying contexts, yet all our teams have a single motivation: they want Degremont to be the best in its field. For Degremont, an innovative subsidiary of SUEZ Environment, being number one in the water industry naturally means developing the best possible solutions all over the world. But it also means providing optimal working conditions and safety in every country where we have business. By making commitments and setting precise targets, with a number of non-financial indicators to measure by, Degremont is able to demonstrate that it is an irreproachable, responsible actor. JEAN-LOUIS CHAUSSADE, Chief Executive Officer, SUEZ Environment Our business is at the heart of sustainable development All Degremont s business activities have one objective: to optimise water treatment by giving our customers reliable, efficient facilities that integrate fully into their economic, social and environmental plans. For example, conserving water resources and protecting public health, facilitating re-use of wastewater, improving sludge management to make it a usable product and reduce fossil fuel consumption. The close links between our Design-Build and Services activities really bear fruit in the feedback between them. The result is an active transfer of know-how and a guarantee that manufacturers and operators are working to the same objectives. Finally, since water treatment is a core issue for sustainable development, our plants ergonomics not only ensure operators safety but also preserve the quality of life of people living nearby.

9 Degremont has installed re-use capacity of 2.4 million m 3 /d, in the world

10 10 WORLDWIDE REACH - Drinking water production 1.3 million m 3 per day of ultrafiltered water 3,000 drinking water production facilities worldwide Drinking water production GROUNDWATER, SURFACE WATER, BRACKISH WATER OR SEAWATER: WHATEVER THE ORIGIN AND QUALITY OF THE RESOURCE, OUR TEAMS HAVE A FULL RANGE OF TECHNOLOGIES AT THEIR DISPOSAL TO TURN IT INTO CLEAN DRINKING WATER AND ENSURE OPTIMUM PUBLIC HEALTH CONDITIONS. Degremont adapts its solutions to each country and each individual case In 2006, Degremont won design-build contracts to increase drinking water supply to Macao in China, Dakar in Senegal, Apremont and Nemours in France and Astana in Kazakhstan. Meanwhile new drinking water facilities came online in Moscow in Russia, New Delhi in India and Vivé in Martinique. All these facilities have or will have treatment technologies suited to the quality of their resource. chosen for the Macao facility in China. The potable water production expertise of Degremont s design-build and plant operation teams is proving its worth throughout the world and in facilities of every size. Degremont Technologies adds its expertise in supplying specific plant items: the Aquasource range of ultrafiltration membranes and the Ozonia ranges of ozone plant and ultra-violet disinfection systems. Degremont stays at the forefront of innovation In every case, the choice of facilities and technologies is designed to improve public health in the communities concerned. To achieve this, Degremont s teams are increasingly using membrane ultrafiltration. Now widely acclaimed in France, this technology is becoming a popular choice in Eastern Europe too: one example is the Moscow plant, which opened in November 2006 and is equipped with 1,344 Aquasource membrane modules producing 275,000 m 3 /d of ultrafiltered water. The membrane solution was also

11 197 ultrafiltration facilities 2 questions for CÉCILE ROCHE site engineer at the Saint-Cloud plant THE SAINT-CLOUD PLANT SUPPLIES 100,000 M 3 OF DRINKING WATER TO PARIS EVERY DAY. THE NEW ULTRAFILTRATION UNIT WAS OFFICIALLY OPENED THIS YEAR, AFTER THREE YEARS OF DESIGN AND CONSTRUCTION. CÉCILE PROVIDED VALUABLE SUPPORT TO THE PROJECT MANAGER THROUGHOUT THIS PERIOD. You re a site engineer. What exactly does the job entail? It s mainly a field mission that involves coordinating and supervising the work being done. The site engineer has to see that technical specifications are complied with and that the various phases are completed on time and within budget. Is the Saint Cloud plant your first site? Yes. And it s true that it s a fine product! But I wasn t on my own, I was part of a close-knit team. I worked closely with the programme manager, Marcel Buchoux, who rather took me under his wing. He trained me, so now I can move on to a job as programme manager at the centrifugal sludge treatment operation in Achères. INDIA - NEW DELHI WITH HIGH POPULATION GROWTH AND A CITY SPREADING AT AN UNPRECEDENTED RATE, NEW DELHI IS ADAPTING ITS DRINKING WATER SUPPLY INFRASTRUCTURES. CRISTAL 3G: Cristal 3 rd Generation is a new treatment chain for raw water with a high load of dissolved organic matter (TOC over 10mg/l) and micro-pollutants. After the clarification stage it has a Pulsazur powdered activated carbon reactor to reduce concentrations of dissolved organic matter and eliminate micro-pollutants. The water can then just be polished to remove taste and odour using Cristal, which combines membrane ultrafiltration with adsorption on powdered activated carbon in dead-end mode. Built in one phase and operated by Degremont, the Sonia Vihar drinking water plant alone supplies water to 3.5 million people. With a 635,000 m 3 /d capacity, it is Delhi s largest drinking water facility. The raw water is treated by three Turbocirculator preclarification units (used during the monsoon), 8 Pulsator clarifiers and 22 Aquazur V sand filters. The sludge is thickened and then centrifuged.

12 12 WORLDWIDE REACH - Reverse osmosis desalination 250 seawater desalination facilities 8 facilities under Degremont operation Reverse osmosis desalination OF 70 CITIES WITH NO DIRECT ACCESS TO AN ADDITIONAL SOURCE OF FRESHWATER, 42 ARE IN COASTAL AREAS. INDEED 39% OF THE WORLD S POPULATION, 2.4 BILLION PEOPLE, LIVE WITHIN 100 KM OF THE SEA. THESE TWO FACTS MAKE DESALINATION OF SEAWATER OR BRACKISH WATER AN ENTIRELY VIABLE ALTERNATIVE FOR DRINKING WATER PRODUCTION AND THE RAW WATER RESOURCE IS VIRTUALLY INEXHAUSTIBLE. Degremont was historically a groundbreaker in desalination by reverse osmosis and now has more than 250 facilities to its name, producing some 2 million m 3 of water every day. In 2006 the Group won two major contracts: one for Barcelona in Spain, in partnership with AGBAR, and one for the Barka 2 complex in Oman, for a capacity of 120,000 m 3 /d. In 2006 Degremont also delivered facilities producing 45,000 m 3 /d and 18,000 m 3 /d to customers in Chile and Curaçao (Dutch Antilles). efficient technologies available to design technical solutions tailored to its customers needs. With a wide range of products at their disposal, the Group s desalination experts select the best technical combination for the job. Their goal is to optimise every treatment stage, but the purification stage is the key. This is because the throughput of the membranes, and hence the plant s smooth running, reliability and robustness, depend on the purity of the water reaching the membranes. For a sustainable desalination A pioneer in the use of reverse osmosis desalination its first facility, on the Ile de Houat (France), opened in 1969 Degremont offers customers well-tested solutions in this field, whether standard or custom-built. An offering that combines all the Group s expertise in water treatment and professionalism as a builder and operator. With 250 facilities already in service and 520 experts in design, construction and operation, Degremont commits to fast delivery of efficient, reliable facilities at optimum investment and operating cost. Degremont designs original processes and incorporates the most

13 Nearly 2 million m 3 of desalinated water a day 3 questions for MARC SIMON Managing Director, Degremont Australia AFTER GRADUATING FROM THE INSTITUT NATIONAL AGRONOMIQUE PARIS-GRIGNON, MARC FIRST WORKED AS A CONSULTANT. IN 1993, HE JOINED DEGREMONT AND THEN SUEZ ENVIRONMENT AND WAS SENT TO SINGAPORE TO MANAGE AN INDUSTRIAL WASTEWATER TREATMENT PROJECT. IN 2003 HE HEADED FOR SYDNEY AND A JOB AS MANAGING DIRECTOR OF DEGREMONT AUSTRALIA. As Managing director of Degremont Australia, what does your job entail? The job is really multi-faceted even on a day-to-day basis, and you have to work with very different time frames: a few weeks to answer a call to tender, several months to build a plant or several years for operating a facility. What kinds of project do you manage? Here in Australia, Degremont has some very large, very high-tech projects. They re also long-term since we re responsible for design, construction and operation as well. Which means we have to find partners, negotiate with local authorities, use sophisticated technologies and sometimes recruit people with very specific expertise. What do you find most exciting about your job? What I really enjoy is the opportunity to be involved in all the phases and dimensions of a project, including the commercial aspects, construction and operation. It s also stimulating and important to always be looking ahead and finding ways to strengthen Degremont s position in this part of the world. AUSTRALIA - Perth SUSTAINABLE DESALINATION April 2005: the Water Corporation of Western Australia entrusts Degremont with the design, construction and 25 years operation of the first reverse osmosis facility for Perth (140,000 m 3 /d). AQUADAF RICTOR: A DEGREMONT PROCESS WELL SUITED TO PURIFYING SEAWATER With a flotation speed of 20 to 40 m/h, this fast flotation system is three to five times as fast as conventional flotation processes. It is compact, simple to operate and easy to maintain. It is especially suitable for water with a high load of low-density particles or dissolved organic matter, which makes it especially suitable for purifying seawater. November 2006: the first water is fed into the first two 2 reverse osmosis racks. The plant reaches maximum output mid- January The Perth facility uses a new pressure-exchange energy recovery process that improves conventional performance by 15 to 20%. To minimise the impact of the brackish water effluent, Degremont has introduced a discharge pipe 200 m long, perpendicular to the current in the bay. Water Corp. has installed a wind farm to supply green energy to the plant.

14 14 WORLDWIDE REACH - Municipal wastewater Water re-use around the world 3,769 km 3 /yr of water taken from the natural environment worldwide 369 km 3 /yr of wastewater collected by the world s sewers 160 km 3 /yr of wastewater treated 7.1 km 3 /yr of wastewater treated and recycled Municipal wastewater OF THE 368 KM 3 OF WASTEWATER THAT PASS THROUGH THE WORLD S SEWERS EACH YEAR, ONLY 60 KM 3 ARE TREATED AND 7.1 KM 3 RECYCLED. LOCAL AUTHORITIES THAT HAVE ALREADY INVESTED IN WASTEWATER TREATMENT FACILITIES TO IMPROVE PUBLIC HEALTH IN THEIR AREAS ARE NOW BEGINNING TO REGARD TREATED WASTEWATER AS AN ALTERNATIVE RESOURCE THAT CAN HELP THEM CONSERVE THEIR NATURAL RESOURCES. In 2006 as in earlier years, Degremont signed new contracts, delivered facilities, installed plant and was operating wastewater facilities around the world. In France, its teams proudly delivered facilities for Clermont-Ferrand (400,000 e.p.), Brest (60,000 e.p.), Toulon (Toulon Est facility, 80,000 e.p.) and Pont-an-Illis in Finistère (2,500 e.p.). Internationally, the year began with the signing of a contract in Budapest, Hungary, to build a 1.5 million p.e. plant in Csepel. And it ended with the acceptance of the Warsaw facility and three others in South Korea. All these facilities use specific processes to remove suspended solids, organic pollution, nitrogen and phosphorus as required. Re-use: a major commitment for our customers Where a local authority opts for re-use, Degremont adds a tertiary treatment stage, using conventional drinking water production technologies such as sand filters, membranes and ultra-violet to ensure that the recycled water is absolutely safe for public health. Recycling wastewater as a step towards sustainable development is a major commitment for our customers. The city of Doha in Qatar, for example, entrusted Degremont with the construction and ten years operation of one of the 135,000 m 3 /d facilities that will recycle its wastewater for irrigation purposes. This contract came just a few weeks after the opening of the facility in San Luis Potosi in Mexico, where recycled water will henceforth be used in agriculture and industry. At the end of the year another emblematic contract was signed, this time for the town of Pimpama in Australia. Of the 17,000 m 3 a day to be treated at the plant, 9,000 will be further treated so that it can be piped to households via a parallel distribution network and re-used to water gardens.

15 2 questions for Degremont has so far installed a re-use capacity of 2.4 millions m 3 /day JOUBRANE OUECHEC Commercial Director for the Middle East AFTER TWENTY YEARS OVERSEAS IN THE UNITED ARAB EMIRATES, JORDAN, IRAN, SAUDI ARABIA, INDIA AND NORTH AFRICA, JOUBRANE KNOWS THE MIDDLE EAST INSIDE AND OUT. What is your role? My role is first to make contact with all potential customers in the public and private sectors and convince them that when they choose Degremont they re choosing a company that can give them the best possible solution in terms of quality and price: reliable, proven solutions implemented by true experts in the field. In any case, Degremont s experience is there to back up my arguments! Then we move into the contract negotiation phase and finally, since these are big contracts for high-capacity facilities, I often provide commercial follow-up during the implementation phase as well. That must take a lot of experience Well, you have to have a sound knowledge of the water treatment field, but it s even more important to know the country and the people who live there, the way they think, their culture. So you need to have lived there for a while. This job involves developing relationships, listening, using intuition, having the technical skills and knowing when to act. Every context is different, and you must never forget that every country has a distinct culture. QATAR Doha West DESIGN, BUILD AND OPERATE THE COUNTRY S LARGEST WASTEWATER TREATMENT FACILITY: SUCH IS THE MISSION THE QATAR PUBLIC WORKS AUTHORITY ENTRUSTED TO DEGREMONT IN ULTRAFOR : MEMBRANES FOR TERTIARY TREATMENT Ultrafor, the Group s membrane bioreactor, cuts footprint by half for the biological, clarification and disinfection stages because its ultrafiltration membranes with external skin are directly submerged in the biological liquor. The process produces effluent of high quality, suitable for discharge into vulnerable ecosystems or for re-use in farm or city irrigation. The process Degremont is installing for this facility will involve several treatment stages and producing water to meet high standards. It will consist of primary treatment, secondary treatment with activated sludge and tertiary treatment combining sand filtration and membrane ultrafiltration. The plant will have a capacity of 135,000 m 3 / day, serving a population of 500,000, and will be operational in mid Its entire output will be re-used to irrigate farmland.

16 16 WORLDWIDE REACH - Sludge treatment 30 Innodry 2E drying shops 36 Thermylis lines Sludge treatment SLUDGE IS THE FINAL WASTE PRODUCED BY WASTEWATER TREATMENT. DEALING WITH IT HAS BECOME A MAJOR ECONOMIC AND ENVIRONMENTAL CHALLENGE FOR LOCAL AUTHORITIES. DEGREMONT HAS ALL THE EXPERIENCE AND EXPERTISE, AND A WIDE RANGE OF TECHNOLOGIES, TO OFFER DEDICATED SOLUTIONS. To comply with new legislation, wastewater has to be treated to ever higher standards and, as a result, produces and ever growing quantity of sludge. Every country takes a particular position on how best to make use of the sludge or dispose of it. Degremont takes into full account the social and regulatory requirements its local authority customers have to meet, and offers dedicated solutions for each case. Solutions based on Degremont s ample experience and expertise in building and operating sludge treatment facilities using all the relevant treatment chains and technologies: digestion, dewatering, drying, incineration, supplementation, etc. Dedicated solutions to meet a range of challenges Degremont s engineers have an array of technologies at their disposal that is as wide as the market. It ranges from the Group s own inventions like the Innoplana dryer and the Thermylis incinerator to licensed technologies like the Heliantis solar dryer. Where the situation requires it, the Group also mobilises its suppliers and their technologies to solve a local authority s problems in the best way possible. Starting in the United States, where 15 Thermylis plants have already been installed, the Group s incineration solution is gaining ground in the rest of the world. In France, thermal drying (direct, indirect, two-step or solar) is still attractive because it is suitable for all disposal channels. And digestion is increasingly often considered, because the biogas can be recycled on-site to optimise energy efficiency. INNODRY 2E : SAFE, EFFICIENT SLUDGE DRYING The dryer developed by Innoplana within Degremont Technologies is a two stages with heat recovery drying process. It entails no risk of explosion because it operates at low temperature and produces no dust. It is suitable for facilities anywhere in the 20,000 to 300,000 p.e. range.

17 3 questions for 45 Heliantis units JEAN-LUC VENTURA Manager of the Seine amont Plant JEAN-LUC, WITH 10 YEARS EXPERIENCE IN ENGINEERING AND 10 YEARS AT DEGREMONT SERVICES, IS NOW MANAGER OF THE SEINE AMONT PLANT, A NEW GENERATION PLANT IN EVERY SENSE OF THE WORD. A new generation plant? What does that mean? The Valenton plant used to be an ordinary wastewater treatment station. Now, with the enlargement, it s joined the new generation of de-pollution plants producing usable products ash and sludge. New generation also refers to the 70 young technicians who were recruited in six months and had to be trained and integrated into the company. How did you build bridges between new recruits and long-standing employees? I decided to reorganize everything and have mixed teams. In addition to the 10,000 hours of formal training that about fifty of the new employees received, the new recruits were also trained by the veterans. And we put a lot of effort into communication and management to encourage exchanges and promote teambuilding. How do things look today? Valenton has become a trans-generational plant with a true team spirit. Even more importantly, the staff are really proud to be part of Valenton. We have very little staff turnover and the people who have left _ mostly for family reasons _ say they miss the site s good atmosphere. FRANCE Seine amont facility: FRANCE S LARGEST-CAPACITY SLUDGE DRYING PLANT Multi-market utilisation solutions The sludge processing unit at the SIAAP sewage facility produces several types of sludge: fresh, biological, digested and physicalchemical. Once dried, the sludge is channelled towards different uses depending on its characteristics. - fertiliser manufacture (organic matter with minerals) - on-site energy production - production of non-fossil substitute fuel.

18 18 Highlights of the year SAN LUIS POTOSI Mexico CLERMONT-FERRAND France LUSAIL Qatar This plant was officially opened in January. After appropriate treatment, 80,000 m 3 /d of clean effluent is re-used for irrigation or as cooling water at the thermal power station in the nearby town of Reyes. Produced in just 42 months, this 400,000 p.e. wastewater treatment station is capable of treating 78,800 m 3 /d in dry weather and up to 175,000 m 3 /d in wet periods. Entirely roofed in and with total odour removal, this facility blends perfectly into its urban surroundings. This USD 188 million contract is to build and operate a 60,000m 3 /day wastewater facility. Like Doha West it will use ultrafiltration as a tertiary treatment stage, with the Ultrafor process, the first one in the Middle East. services WARSAW Poland The Warsaw wastewater facility (112,000 m 3 /d treated for a 470,000 p.e.) was officially opened on 1 July and accepted on 26 July. Treatment includes a conventional primary process and biological secondary treatment with nitrogen and phosphate removal. Sludge treatment includes thickening, digestion, dewatering on belt pressure filters and finally mixed drying with an Innoplana system. MACAO China In 2008 Macao will become the first city in China to produce its drinking water using ultrafiltration membranes. Right from the design stage, Degremont had to allow for the plant s 60,000 m 3 /d capacity to be doubled. The contract was signed in The factor that put it ahead of the competition was the combination of an AquaDAF with ultrafiltration, which will give it a small footprint in this island city where every square metre counts. KMS 2 Senegal The Keur Momar-Sarr facility, which supplies drinking water to Dakar, Senegal, was built by Degremont in Now its capacity is to be upgraded to 130,000 m 3 /d. Entirely financed by the World Bank under the long-term programme for water supply to Dakar, the contract totals more than 8 million and will include installation of a Pulsator clarifier, filtration on Aquazur V and chlorine disinfection as a final stage.

19 Barcelona: Europe s largest desalination plant DOHA WEST Qatar The design-build contract for Doha West is worth USD 180 million and the plant operation contract totals USD 80 million. This is a 135,000 m 3 /day wastewater facility, the first in the Middle East to use tertiary treatment with ultrafiltration membranes. All the treated water will be equipment used for farm irrigation. CHENCHIN LAKE Taiwan Degremont built this drinking water plant in 2004 and is operating it under a 15-year services contract. Just two years after it came online and six months ahead of schedule, the Degremont teams were granted ISO 9001 certification for quality management and ISO for environmental management. AD&EAU a Web portal for purchase and exchange of spare parts Degremont Services has set up this tool to enable facilities operated by Degremont or by outside customers such as SIAAP in France to purchase equipment and spare parts online. The user gets a personalisable catalogue which at present includes more than 200 suppliers and 50,000 listed articles. BARCELONA Spain The city of Barcelona has entrusted Degremont and its partner AGBAR with the design, construction and two years operation of the largest reverse osmosis desalination facility in Europe. With a 200,000 m 3 /d capacity, it will come online in 2009 to supply drinking water to a population equivalent of 1.3 million. The investment cost is 159 million. MOSCOW Russia Moscow city council officially opened its SouthWest drinking water facility on 8 November With an output of 275,000 m 3 /day, it is the largest facility in the world to use Aquasource ultrafiltration membranes in combination with powdered activated carbon. It has 1,344 Ultrazur 450 modules in 56 racks. OLLAINVILLE, BREHAT, BONIFACIO France Ultrafor has an excellent reputation in France. Many towns have chosen Degremont to supply them with this purification technology, which combines membrane ultrafiltration and biological treatment in the same tank. Result: small footprint and clean effluent, for re-use or release into sensitive environments. BARKA 2 Oman Degremont is the supplier of a 120,000 m 3 /d reverse osmosis desalination unit for the consortium led by SUEZ Energy International under an independent water and power plant contract in Oman. The collaboration between two SUEZ branches made it possible to optimise the design so as to recycle the brackish water by mixing it with the cooling water for the thermal Design-build power station. 290 million for the Budapest wastewater treatment plant BUDAPEST Hungary Degremont signed a 290 million contract to design, build and operate a wastewater facility for Budapest with a capacity of 1.5 million p.e.. The plant is right inside the town, so it will be almost entirely roofed, with vegetation on the roof and the air will be fully treated before being released into the atmosphere.

20 20 OUR TECHNOLOGICAL INNOVATIONS are designed first and foremost to improve public health, conserve freshwater resources, reduce fossil fuel use, protect the environment and improve quality of life. OUR ORGANISATION on the ground, worldwide, fosters the sharing of good practice in quality control and safety for staff and partners. OUR HUMAN RESOURCES MANAGE- MENT prioritises training, continual skills upgrading and giving each staff member responsibility in their work, whatever their country or culture of origin.

21 The way we work Degremont has always struck a balance between growth and sustainable development. This is the logic underlying the organisation, culture and practices the Group has developed under its Strategic Vision. Human resources, industrial organisation, quality and safety policies and the company s environmental approach are all underpinned by a culture of continuous improvement in compliance with the practices set out in the SUEZ Group s Ethics Charter. WATER TREATMENT HANDBOOOK IN PUBLISHING THIS REFERENCE BOOK AND MAKING IT AVAILABLE TO ALL IN THE WATER INDUSTRY, FROM PROFESSIONALS AND RESEARCHERS TO STUDENTS, DEGREMONT SIGNALS ITS EDUCATIONAL ASPIRATIONS AND ITS DESIRE TO CONTRIBUTE TO A MORE HARMONIOUS AND SUSTAINABLE USE OF WATER RESOURCES. THE HANDBOOK IS PUBLISHED IN SEVERAL LANGUAGES; PUBLICATION OF THE RUSSIAN EDITION IS DUE IN SPRING 2007 AND THE NEW ENGLISH EDITION A FEW WEEKS LATER.

22 22 THE WAY WE WORK - Quality Making quality a reflex at every instant Quality DEGREMONT SEES QUALITY CONTROL AS A VITAL CONTRIBUTION TO INCREASING ITS EXPERTISE IN ITS THREE BUSINESS SEGMENTS, INCREASING ITS COMPETITIVE ADVANTAGE, CREATING SYNERGY AND INNOVATING FAST. More than a requirement, quality is a way of thinking Quality assurance has long been a sphere of excellence for Degremont. It was the first water engineering company to obtain ISO 9001 certification _ that was back in What steps can be taken to continue improving quality assurance today? Degremont s answer to that question is to make quality management an intellectual framework that can be applied to all the company s problems. In other words, management by process. A practical approach that can be used to audit the company s expertise and potentials in fine detail. Omega, a system set up in 2004 to address particular non-quality issues, has since become a highly effective and unifying analysis tool that is being applied company-wide to address issues in many fields. This way of thinking is the core of Degremont s corporate plan, the 2010 Strategic Vision. In 2005 Degremont started to set up an information system purpose-built for quality control. This tool has taken the company s knowledge management far beyond the standards set by the regulations. Staff log onto a dedicated intranet to find document bases with up-todate information on their discipline or business segment, directly accessible in French, English and Spanish. Quality beyond certification, for growth and rapid innovation Degremont has taken its drive for quality far beyond the certification requirements. Certification processes become non-events because Degremont has already met the ISO standards of its own accord.

23 The experience of our operators feeds back into the development of processes and the optimisation of facilities, right from the design stage THIERRY MALLET Director general FOCUS ON THE OMEGA PROCESS IN 2006 DEGREMONT MADE THE OMEGA PROJECT AND ITS VARIOUS STRANDS THE PRIMARY FOCUS OF ITS DRIVE FOR CONTINUOUS IMPROVEMENT. THE GOAL: AN EFFICIENT SYSTEM OF MANAGEMENT BY PROCESS SO THAT THE COMPANY CAN ADVANCE AND CREATE MORE RAPIDLY, IN CLOSE MATCH WITH THE MARKET AND FULLY IN LINE WITH ITS STRATEGIC VISION. The method The originality of Omega is that it approaches the company by looking at the processes involved. This quintessentially horizontal approach very quickly revealed its potential, and was soon being applied to new fields. This year Omega was applied to Innovation and the complete map of Degremont s processes was validated in December More than a method: tools as well, and above all the will to use them The process approach is a big cultural change for Degremont. It comes hand in hand with the decentralisation of some central functions to bring them closer to the work on the ground. In 2007 the new form of management will be systematically extended to some central departments: HR, Purchasing, Health, Safety and Finance. The Omega Saphir tool (see box) is the keystone of the new information system and will enable the Omega model to show its full potential. This new multi-dimensional management tool is expected to be fully in place in 2010: Omega Saphir will then link up the entire company and all staff will be able to use it. OMEGA SAPHIR: a new ERP for our business segment processes OMEGA SAPHIR IS THE LATEST OMEGA PROJECT TO LAUNCH. IT IS DESIGNED TO GIVE ALL DEGREMONT STAFF A MODERN DATA SHARING AND PROCESSING SYSTEM TO SUPPORT THE BUSINESS SEGMENT PROCESSES. DEADLINE: Kingpin of Degremont s information system, it will manage all internal processes and procedures, feeding data into all the decision-making indicators and reflecting the integrated way the company operates. It is based on a storage and distribution tool covering the entire documentation system (processes, procedures, forms etc.) that constitutes the shared data repository.

24 24 THE WAY WE WORK - Human resources Forging ahead together Human resources WITH MORE THAN 4,500 STAFF WORKING IN 70 COUNTRIES, DECENTRALISATION IS A SIMPLE FACT OF LIFE AT DEGREMONT. THE HUMAN RESOURCES DEPARTMENT MANAGES TRAINING, EXPERTISE AND CAREERS INTERNATIONALLY. For every staff member to advance their career we must get to know them properly Degremont has developed a special tool for optimising expertise management: Omega Competencies. This is a worldwide database of all the Group s technical and business segment competencies. It provides both a good overview and exhaustive detailed information on knowhow in each country. This way the company can anticipate medium and long-term needs and work out career plans. To enrich the database, a second survey of in-house expertise was launched in November 2006; there are now 1,500 staff members and their skills in the database. Degremont is investing in young talent: a planet-wide hunt In line with the targets in its 2010 Strategic Vision, Degremont has already hired 800 new staff in three years. The Group is clear about its intention to invest in young talent. Of 200 new jobs, at least 100 will be filled by young graduates. With this mission to fulfil, the HR teams attended a number of trade shows and job fairs in major cities of Asia, North and South America and, of course, Europe. In 2006 the Group also ran recruitment communication drives on the Web and took part in chat rooms. This policy will be pursued even more vigorously in Hiring young talent makes training and skills upgrading more important than ever The training budget is growing at a pace of 25%, in France and internationally. As a leading world expert in water treatment facilities, Degremont makes sure to handle its own technical training programmes: the HR department has introduced a training system in which the Group s own experts design courses, create teaching aids and supply the teaching themselves. In 2006 this training system was given its own brand name: Campus. In 2006 Degremont ran an e-learning trial with a view to making these courses more accessible to working teams wherever they are in the world. Training modules will be designed in-house for this purpose. Degremont also wants to use this approach to give its expatriate and foreign staff the opportunity to build up a lively virtual community. So that after their training, participants can continue to discuss online in specialised internal forums.

25 Recruitment is one of our big challenges for Which is a good sign, because it is a direct consequence of our growth momentum. THIERRY MALLET CEO ESTELLE CLERMONT Deputy Manager for operations at the Gabal wastewater treatment plant in Cairo (Egypt). WHEN ESTELLE WAS STUDYING BIOLOGICAL ENGINEERING SHE DID HER FINAL INTERNSHIP IN DEGREMONT S R&D DEPARTMENT. SHE DIDN T KNOW MUCH ABOUT WATER TREATMENT AT THE TIME, BUT THAT S EXACTLY WHY SHE WANTED TO DO AN INTERNSHIP WITH DEGREMONT. THE ADVENTURE HAS LASTED FOR 14 YEARS AND COUNTING. CAREER What happened after you completed your internship at Degremont? After a 6-month short-term contract with the R&D department, I was officially hired. I spent 4 years on plant commissioning operations in Europe, Thailand, the U.S.A., China and Argentina. It was a real marathon, and excellent training. I gained a lot of experience in potable water and municipal wastewater re-use. Then I returned to Paris for two years where I managed projects and was part of a cosmopolitan team responsible for setting up engineering tools at a European scale. And for the past 3 years I have been at the Cairo plant in Egypt. What are your motivations today? I always wanted to learn, discover and give of my best, and Degremont has given me the opportunity to do just that. I also think water treatment is a noble pursuit; it s important for life, humanity and the environment. Can you tell us something about the international dimension of your job? Working abroad concentrates a host of experiences, both personal and professional. The important thing is to be curious, have an open mind, be adaptable and able to deal with the unexpected. WHAT IS A COMPETENCIES PASSPORT? TO PURSUE AN INTERNATIONAL CAREER, YOU REALLY MUST HAVE A VALID PASSPORT. TO PURSUE A DEGREMONT CAREER, YOU MUST ALSO HAVE A COMPETENCIES PASSPORT. Staff create or update their passports on line using their logins and personal passwords. Once entered, the information is validated by their line manager. With these professional identity files available on the intranet, the talents and aspirations of each staff member can be better matched with the Group s needs in terms of skills and qualifications.

26 26 THE WAY WE WORK - Safety Health and safety: a matter of professionalism, ethics and competitiveness Safety SAFETY IS ONE ASPECT OF THE PROFESSIONALISM DEGREMONT EXPECTS OF ITS TEAMS. IT STEMS FROM AN ATTITUDE CULTIVATED AT ALL LEVELS OF THE COMPANY AND FROM DESIGN TO PLANT OPERATION. DEGREMONT HAS MADE SAFETY A CORE ELEMENT IN ALL ITS BUSINESS SEGMENT PROCESSES AND AN INTEGRAL PART OF ITS MANAGEMENT SYSTEM. Protect by anticipating risks Degremont s safety and prevention policy is part of a more overarching approach. It concerns people, plant and equipment, processes and facilities. It is taken into account right from site design and at every stage in the Group s business. It is applied with the same rigour in all the countries where the Group operates, while specific local features are also taken into account. A culture of safety for company growth Degremont takes steps to convey a genuine culture of safety to its teams. More than this, it has made it a management tool, starting with training managers and teams to change behaviours, raise risk awareness, etc. Management s onsite safety inspections and compliance audits are effected company-wide, demonstrating the managers commitment to safety. This is a key factor for a well-rooted and successful culture of safety. matter for experts but must structure business segment processes and methods and must be incorporated into purchasing, HR and other support functions. Our design offices, building sites and facilities have access to technical documents that take safety into account. This approach benefits staff wellbeing as well as the performance of the company and its customers. Health and safety as value-added for the Group, its customers and its partners In all three Degremont business segments, the care and attention paid to safety is a real asset for our customers. Degremont s approach in this field also stimulates its local partners to make improvements, helps them manage their own risks and improves their image. The safety aspects are included in contracts and become a prime criterion in choosing service suppliers. Health and safety built into the management system and working methods To have all staff routinely implement health and safety measures, this must not be seen as a

27 There is safety awareness throughout the Group, at every level of the command chain and in every country. OLIVIER VALOGNES Safety and Environment Director 3 questions for ANA ROMERO Safety coordinator for Spain ANA, A SAFETY EXPERT, JOINED DEGREMONT 5 YEARS AGO. What does a Safety Coordinator do? Our job is to support the safety policy, procedures and targets defined by corporate management and to help on-site teams implement and adapt them to their Business Unit. We also monitor local legislation for possible impacts on Degremont s activities. We implement General Management s decisions and provide continuous feedback from the base. Last but not least, we make sure all company staff apply safety measures as part of a continuous improvement process. What do people on the sites think about safety? Things have changed! Nowadays all staff are involved in safety, and project engineers feel that progress in this area is helping improve the quality of their tender proposals. What are you particularly happy about? I m very pleased to have convinced Degremont staff that safety is every bit as important as output. AUDITS SPEED SAFETY POLICY IMPLEMENTATION In 2006, Degremont continued its external safety audits, which are performed by DNV (Det Norske Veritas). They are providing an independent assessment of safety management in all Degremont entities worldwide. The teams always see these audits in a positive light and take advantage of the reports to introduce new practices and improve performance even further.

28 28 THE WAY WE WORK - Innovation At the heart of Degremont s strategy Innovation INNOVATION IS A CORE FEATURE OF DEGREMONT S STRATEGY AND ONE OF THE KEYS THAT DISTINGUISH IT FROM COMPETITORS IN ITS MARKETS. GROUP STAFF ARE PROUD TO WORK IN A COMPANY THAT HAS BEEN HELPING TO DRIVE PROGRESS IN WATER TREATMENT TECHNOLOGIES EVER SINCE ITS FORMATION. IN 2006, INNOVATION AT DEGREMONT CONCENTRATED MAINLY ON ALTERNATIVE RESOURCES, BUT WASTEWATER WAS ALSO A FOCUS. THE GROUP S PUBLIC HEALTH OFFERING WAS ALSO EXTENDED. In 2006, innovation efforts concentrated on treatment chains and technologies for supplying potable water from alternative sources. The research, development and industrialisation teams working on these issues focused on optimising membrane systems (which are the usual choice for these applications), purification pre-treatments and energy balance sheets. There were also research projects on wastewater. Treatment facilities must deal with ever more pollutants endocrine disrupters, priority substances and yet achieve smaller footprints, increase their energy-efficiency and reduce reagent use. On the odour side, in 2006 Degremont optimised its conventional treatment solutions and studied new possibilities. It also increased its expertise on odorous emissions and dispersal models. On the public health side, Degremont added three innovations to its offering. Subsidiary Cerdeg released the new Cristal 3G system, which combines Pulsazur (a reactor with activated carbon bed and pulsed flow) and the Cristal process (membrane ultrafiltration and powdered activated carbon) to treat raw water with a high organic matter load. The IGS (Intelligent Gap System), developed by the Group s Swiss research centre, optimises dielectrics and cuts the investment and operating costs of ozone generators. DENARD, the Group s research centre in Richmond, USA, developed the Aquaray 3X system which combines the use of cutting-edge UV lamps with reactors of a unique design to provide maximum wastewater disinfection capacity with considerably fewer lamps and a smaller footprint.

29 Innovating to bring reliable, economically viable solutions. THIERRY MALLET Director general FOCUS ON CYCLOR-SHUNT PASCAL VIZIER Innovation Director Pascal Vizier describes its advantages. CYCLOR-SHUNT IS A BIOLOGICAL REACTOR PURPOSE-DESIGNED TO TREAT DIGESTER LIQUOR. IT WAS SUBMITTED AND SHORT-LISTED FOR THE SUEZ INNOVATION TROPHY. Why is digester liquor a problem? The liquor from dewatering digested sludge carried a heavy ammonium load and can account for 15% to 35% of total nitrogen in the wastewater treatment line. Treating this with conventional biological processes increases consumption energy (for aeration) and organic reagents. How does Cyclor-Shunt solve the problem? The conventional process has its limitations in terms of cost and volume. Cyclor uses a turbo solution to remove nitrogen. A nitrates shunt converts directly from ammonium to nitrites and then nitrogen gas under particular pressure, temperature and ph conditions. Surely that must cost something? Compared to conventional biological nitrogen removal, this system reduces energy consumption for aeration by 25%, biodegradable carbon requirements by 40% total sludge output by 25%. The final cost per cubic metre of sludge liquor treated is only a third as much as with biological treatment and three to nine times less than with physical-chemical treatments. Innovation is a key feature of the Group s strategy and one of the first Degremont activities to have had its process described, overhauled and revised to make it more efficient. The aim being to give the Group more innovations, produced and disseminated faster than ever. Degremont has developed a method and tools to speed the process. This is mainly based on decision bodies examining such factors as the new solutions environmental performance indicators (low energy and reagent consumption, by-products easy to dispose of).