In contrast to its prudence in the global market, Veolia Environment Group is ambitious about the Chinese market and vows to expand its presence in the world's fastest-growing major economy.

"We have more confidence in China than any other country," said Jorge Mora, Asia president of Veolia Environment of France, at a news conference in Beijing Dec 16.

Jorge Mora, Asia president of Veolia Environment of France

Mora predicts that China's market share in Veolia's global business will increase from the present 4 percent to 6 percent in 2012, and to more than 10 percent after the global economy recovers from the downturn.

A global economic slowdown and stresses in Europe's financial system kept Veolia, the world's largest environmental utility in terms of revenue, cautious on its global strategy. The group announced earlier this month a sweeping restructuring plan in which it wants to raise 5 billion euros from asset sales to reduce debt. It will also withdraw from some markets in Africa due to political uncertainty and exit the solid waste business in the United States.

"The global economic crisis indeed affected China to some extent, but I believe China's economy will keep stable growth, while international rating agencies maintain positive outlook for Chinese economy, especially China's banks," noted Mora.

"What happens in the US will never happen in China," said Mora, referring to the divestiture of the solid waste business in the US, "And there will be no layoff in China. In fact we are trying to create more job opportunities in the country."

He revealed that the company is working on a CHP (co-generation of heat and power) project in Chengdu, Southwest China's Sichuan province, a metal recycling project, and investigating subway network in a city which he would not disclose the name of.

Veolia will also seek some financial tools to better serve its development, he added.

However, Veolia still have to overcome some difficulties while developing in China, said Mora. "The biggest difficult is culture. We westerners still need to learn more about the country. "

Over more than 10 years, Veolia has invested nearly $2 billion in China, having 62 water disposal, water conservancy management and energy source projects in 41 cities on the mainland and in Hong Kong, Taiwan and Macao, according to statistics.