SWECO: Sweco acquires engineering and wastewater consultancy in Germany
After a period of focus on performance improvement, Sweco is now expanding its capabilities in the German market by making its first acquisition in several years. The acquired engineering company Frilling + Rolfs GmbH is specialised in water management and wastewater treatment. The acquisition will expand Sweco's presence in the water business and thus enable Sweco to capture more business opportunities in a growing segment.
Frilling + Rolfs provides wastewater treatment advice and solutions to municipalities, wastewater associations and companies. With over 60 years of experience in the fields of water and wastewater, civil engineering and environmental technology, the company's 30 experts will expand Sweco's existing team of 60 wastewater experts. The acquisition will expand Sweco's geographical footprint in the north-western part of Germany and is in line with Sweco's strategy of combining a strong local presence with international expertise.
"In the past few years, we have executed a turnaround of Sweco's business in Germany and we will now focus on expansion in selected areas moving forward. With this acquisition, we have increased our capabilities in providing water and wastewater services to the German market," says Åsa Bergman, President and CEO of Sweco.
"The ongoing green transition and new EU regulation (https://water.europa.eu/freshwater/europe-freshwater/urban-waste-water-treatment) for urban waste water treatment and nature restoration is driving demand for Sweco's services related to water resilience, including water supply, sanitation, flood protection and restoration of water ecosystems. In Europe in general and in Germany in particular, we see that governments recognise the need for significant investments to support the modernisation of the water sector and its adaptation to climate change," says Åsa Bergman.
Frilling + Rolfs had a turnover of approximately EUR 5.4 million in 2023 and Sweco Germany had a turnover of approximately EUR 167 million in 2023. The acquisition was signed on 15th July and closing and consolidation into Sweco is expected to take place soon hereafter.
- Sweco's experts support public and private clients in the growing field of water management, ranging from providing access to clean water to protecting societies from flooding.
- Sweco provides clients with consultancy services within water and wastewater engineering services, water resource planning, urban water management and design of flood protection structures.
Background on Europe and water management
- Balancing the need for an adequate supply of water of high quality for human health, economic activities, and nature is a key challenge in Europe in the ongoing green transition.
- Floodplains and wetlands need to be restored to improve biodiversity and boost ecosystem services, while climate change leads to extreme weather risks such as flooding, water scarcity and droughts. The Water Framework Directive (https://environment.ec.europa.eu/topics/water/water-framework-directive_en) and the recently adopted Nature Restoration Law (https://www.consilium.europa.eu/en/press/press-releases/2024/06/17/nature-restoration-law-council-gives-final-green-light/) put water ecosystems at the forefront of the agenda.
- Across Europe, water utilities are now investing in more efficient and sustainable operations, in order to meet these challenges - and to meet criteria of the Urban Water and Wastewater Treatment Directive (UWWTD (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31991L0271)).
- The UWWTD is a key component of the European Green Deal and sets EU standards for management and treatment of water resources, for more stringent regulations on water quality-including PFAS, emerging contaminants, and nitrogen levels.
- These policies will compel water and wastewater utilities to confront mounting economic, environmental, and regulatory challenges. As an example, Bluefield Research forecasts a total of US$476 billion (https://smartwatermagazine.com/news/bluefield-research/europes-proactive-policy-approach-advances-us476b-water-wastewater-capex) in water & wastewater infrastructure CAPEX from 2024 to 2030.