Suez buys into Chinese water firm

Suez sees China as a growth market.

French utility group Suez has bought a stake in a Chinese water firm.

In partnership with Hong Kong firm New World Services, it is investing 1.5bn yen ($214m; £107m) for a 15% share of the state-run Chongqing Water Group.

The Chinese company supplies water to about 32 million people in the south west of the country.

Analysts say that with water being unfit to drink in many parts of China, it is a key growth market for Suez and rival operators such as Veolia.

Suez already has some investments elsewhere in China.

Last year it said that it planned to hire 20,000 extra staff worldwide in 2008 as it prepares to merge with Gaz de France.