Demand for water treatment products in China to exceed 34 billion Yuan in 2010.

For Immediate Release

Contact:

Corinne Gangloff

Media Relations

phone: [phone]

fax: [phone]

[e-mail]

Demand in China for water treatment products--chemicals, equipment and supplies--is projected to increase 14.1 percent per year to [yen]34 billion in 2010. For nearly every product and every market, growth will be faster in China than in any other industrialized nation. This is due in large part to the continued economic expansion in China, which is currently unparalleled elsewhere in the world and creates growth in demand for industrial water treatment chemicals and other products. These and other trends are presented in Water Treatment in China, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

A number of other factors will also contribute to a large and fast-growing market for water treatment in China. Until recently, water was not well-managed by the government, and water usage was fairly indiscriminate. As a result, China still uses much more water to produce a ton of paper or steel than do the industrialized nations of Western Europe, the United States and Japan. Industrial users had generally discarded wastewater in the most expeditious manner without regard for short- or long-term environmental impact. Water supplied by municipal providers has generally been either untreated or undertreated, and water considered "fully treated" is often not safe to drink without first being boiled.

The Chinese government has begun to adopt policies, enunciated in the Eleventh Five-Year Plan, that promote more efficient use of water, greater rates of water recycling in industrial settings, more aggressive treatment of wastewater, and provision of safe water to a larger number of citizens via municipal water supply facilities. As a result of historical neglect and the newfound commitment to better water management practices, it is expected that demand for water treatment products will continue to post exceptionally strong gains despite relatively modest changes in industrial and municipal water usage. Gains for nonchemical treatment equipment and supplies are expected to be somewhat faster than for treatment chemicals due to the overall expansion of the water supply infrastructure in China, which will prompt growth for filtration and separation equipment and supplies.

Water Treatment in China (published 06/2006, 238 pages) is available for $4,900 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone [phone], fax [phone] or e-mail [e-mail]. Information may also be obtained through www.freedoniagroup.com.

A limited license to use or reprint information from this news release is granted to you provided attribution for the same--including, if possible, the price of the report--is given to The Freedonia Group, Inc. (Cleveland, OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.

WATER TREATMENT DEMAND IN CHINA
(million yuan)

                                                    Annual Growth

Item                         2000    2005    2010   05/00   10/05

Water Treatment Demand       7515   17600   34100    18.6    14.1

  By Type:
    Chemical                 2233    4975    9265    17.4    13.2
    Nonchemical              5282   12625   24835    19.0    14.5

By Market:
  Industrial                 4229   10050   19470    18.9    14.1
  Municipal                  3156    7130   13355    17.7    13.4
  Residential & Commercial    130     420    1275    26.4    24.9

[c] 2006 by The Freedonia Group, Inc.