+-----------------------------------------------------------------------+
| # Country or Region: Sweden                                           |
|                                                                       |
| # Water and Wastewater Treatment Market                               |
+-----------------------------------------------------------------------+
| Catharina Kronstrom                                                   |
|                                                                       |
| Date: 04/2006                                                         |
|                                                                       |
| ID:# 136653                                                           |
+-----------------------------------------------------------------------+

####### Summary

Sweden is situated in Northern Europe, on about the same latitude as
Alaska and with the approximate size of California. More than half of
Sweden's land surface is covered with forest, but the country is also
rich in water with almost 100,000 lakes dotted about the countryside,
accounting for nine percent of the total area of the country. Many of
the lakes are very small, but Lakes Vanern and Vattern are among the
largest lakes in Europe and together they account for 24 percent of the
total lake area in Sweden.

The Swedish people have a long tradition of concern for nature and
environmental values and Sweden was among the first countries in the
world to recognize the growing environmental problems. The Swedish
Environmental Protection Agency, the first national agency in the world
with responsibility for environmental issues, was formed already in
1967. In a recent ranking by researchers at Columbia and Yale
universities, Sweden came out as second best on a list of 130 countries
that do most for the environment.

Today, Sweden can look back on a number of major successes in the field
of the environment, which have gained widespread international
attention. Sweden has been especially successful when it comes to the
area of water and wastewater treatment. The market for water treatment
equipment is very mature and dominated by domestic suppliers.

####### Market Overview

Urban water and wastewater services and other collective services are
normally provided by the local authorities of municipalities or
municipally owned companies, which also operate and own all the assets.
Each municipality determines the fees for public water and wastewater
services based on the services being able to cover their own investment,
capital and running costs. Consequently, it is mostly a self-sustaining
business and, furthermore, according to Swedish legislation, no profits
are allowed. The number of people employed by the Swedish water and
wastewater utilities is estimated at 6,000 of which 2,000 are
technicians at water works or wastewater treatment plants, 2,000 work on
the water pipes with the remaining 2,000 employed as engineers,
economists, etc.

Sweden has more than 2,000 publicly owned water works of which the
majority is municipality owned. Larger works based on the withdrawal of
surface water serves the main proportion of the urban population (51
percent of the population). Surface water treated by artificial
infiltration (serving 24 percent of population) and virgin groundwater
is the source for the remaining part of the urban population (25
percent). The total water production is estimated at 310 liters /person
and day with 180 liters for household consumption. The remaining 130
liters are used in production, industries and for use in official
premises, and also includes leakage in the distribution network.

Most of the municipal wastewater treatment plants were not built until
the late 1960s. As late as 1965, wastewater from some 60 percent of the
urban population was discharged untreated or after sedimentation only.
Implementation of modern sewage treatment in Sweden has taken place only
during the last 40 years. There are some 2,000 municipal treatment
plants in Sweden, serving 7.7 million customers. Today no water is
discharged without pretreatment.

The total length of the municipal water mains is 67,000 kilometers (or
8.8 meters per connected person).

####### Competition 

There is no official statistical data available for the environmental
technology equipment market or services related to environmental
consulting/engineering. However, according to Statistics Sweden sales by
the environmental sector is estimated at SEK 240 (\$32) billion.

Most of the domestic companies active in the environmental sector are
small with the majority, 40 percent, being active in the water and
wastewater treatment technology area. Domestic companies manufacture
equipment for potable water supply systems, water conditioning for
industry, wastewater treatment and industrial water pollution control.
Some examples of equipment and components include: aeration and mixing
units, sludge processing equipment, sedimentation equipment, pump and
pump stations, metering equipment, coagulants and polymers. Some of the
major domestic manufacturers include Malmberg Water, Nordic Water, and
Lackeby Water. .

The import climate is open and the Swedish market is receptive to U.S.
products. American firms interested in entering the Swedish market
should establish a partnership or a joint venture with a Swedish
company, or appoint an agent/importer to represent them on the market.
Licensing should also be considered as a way to successfully enter the
market.

According to trade contacts, the local market demand is not expected to
show any major growth potential in the next few years, except for
opportunities in the sale of replacement equipment.

####### Role of Government

Water supply and drinking water quality are the responsibilities of the
Ministry of Health and Social Affairs, with the National Food
Administration as the central supervisory agency.

The Ministry of Sustainable Development is responsible for environmental
quality objectives, climate change, water, chemicals policy,
environmental legislation, and nature conservation including biological
diversity, planning and energy, and international environmental
cooperation.

The Swedish Environmental Protection Agency (Naturvardsverket, SEPA) is
the central administrative agency charged with promoting Swedish
environmental policy. The Swedish Environmental Protection Agency
implements Ministry action and research plans on a national and
international level. As well as participating in nature conservation and
protection programs, the SEPA coordinates and monitors the environmental
policy of regional and local authorities.

The National Licensing Board for Environmental Protection
(Koncessionsnamnden for miljoskydd) issues operating licenses for
industries involved in potentially environmentally hazardous activity.
After reviewing the application and investigating the activity, the
Board prescribes the conditions of a permit, for example, noise limits,
pollutant discharge levels, and purification requirements.

County administrative boards represent the environmental interests of
central government in each respective region. They are responsible for
implementing and monitoring environmental policy within their respective
regions.

Municipalities have supervisory power in many spheres. They are also
responsible for developing and pursuing national environmental quality
goals -- together with residents in the area, associations and others
who are locally affected -- and for translating them into concrete local
goals and action programs.

####### 

####### International Cooperation

Sweden takes an active role in the international work to create a better
and sustainable environment. Sweden is active not only in the Nordic
region, but also in Europe and globally.

In the Nordic region, emphasis is on reducing and eliminating
environmental threats around the region, including the Baltic Sea area
and the Barents Sea area.

In Europe the focus is on Swedish membership in the European Union as
well as prioritizing measures against acidification and climate change,
work for an eco-cyclic society and for the conservation of biological
diversity.

At the global level, Sweden is active in the work of the Commission for
Sustainable Development (CSD). The main purpose of the Commissions
project, The Sustainable City, is to gather and communicate
comprehensive knowledge on the most innovative and inspiring urban
solutions.

####### End-Users 

There are two major end‑users of water treatment equipment, the industry
and the municipalities, the latter being the largest. Trade sources
expect that future requirements from the industry will include water
purification equipment for new industrial installation as well as to
replace old and out‑dated equipment.

####### Market Access

Following Sweden's entry into the European Union on January 1, 1995, the
EU law with coherent regulations replaced the Swedish customs law and
regulations. Therefore, Sweden is obliged to apply external EU tariffs
to imports from the United States and other non-EU countries. Goods
imported to Sweden are also subject to a value-added-tax (VAT) of 25%.
Marketing and labeling requirements follow the EU-standards.

The import climate is open and the Swedish market is very receptive to
US products. American firms interested in entering the Swedish market
should establish a partnership or a joint venture with a Swedish
company, or appoint an importer/agent to represent them in the market.
Generally, importers and agents have distribution channels already set
up and are well connected with the end-users. Licensing should also be
considered as a way to successfully enter the market. To sell directly
from the US is not recommended, as the market is very complex and
difficult to penetrate.

Sweden has a well-developed banking system, thus financing is usually
not a problem. Larger projects however, might demand custom-made
financing. For accounts receivable up to \$100,000 the payment schedule
is often 30-60 days.

Sweden, as a member of the European Union, has adopted the EC Water
Framework

Directive (WFD, see also 4.5 and 4.6). The overall objective of the
Directive is to ensure that all waters in the 25 EU member states
(lakes, rivers, groundwater and coastal waters) meet the requirements of
"good status" by 2015. The overall goal is to obtain good ecological,
chemical and, in the case of groundwater also quantitative, water
status.

The requirements laid down in the WFD apply to all bodies of
groundwater. However, the requirements to identify groundwater bodies
and develop programs of measures to ensure adequate protection and
measures to ensure that no deterioration of the water occurs, in terms
of quality or quantity, only applies to those bodies currently being
used or planned to be used in the future for withdrawal of drinking
water and providing an average of 10 m3 of water per day or serving 50
people or more per day.

Other EC directives affecting water supply and wastewater treatment in
Sweden include:

the Urban Waste Water Treatment Directive (91/271/EEC), the Nitrates
Directive

(91/676/EEC), the Bathing Water Quality Directive (Council Directive
76/160/EEC concerning the quality of bathing water), and the Drinking
Water Directive (98/83/EC).

The Swedish Environmental Code was adopted on the first day of 1999. The
Code is a combination of 15 previously existing Swedish environmental
laws, new principles originating from national concerns, the EU
directives and aspects of international environmental law. Thus it
represents a broad body of legislation in a more strict form in and
effort to further sustainable development.

####### Trade Shows 

The trade show listed below should provide U.S. firms a good opportunity
to introduce their products to the Swedish market and to establish
contact with companies actively engaged in water and water treatment.

Eco-Tech Scandinavia

Goteborg, November 21-23, 2006

Organizer:

The Swedish Exhibition Center

412 94 Goteborg

Tel: +46 31 708 80 00

Fax: +46 31 16 03 30

[www.swefair.se](http://www.swefair.se/)

Eco-Tech cover the areas of water technology, waste and recycling
technology, energy technology, environmentally efficient transport and
traffic systems, process technology, environmental safety and materials
handling, land and nature conservation, etc. At these fairs U.S. firms
can offer their products and services to an audience of top
decision-makers and politicians involved in environmental issues.

####### Key Contacts

Commercial Service

U.S. Embassy

Dag Hammarskjolds Vag 31

SE-115 89 Stockholm, Sweden

Tel: 46-8-783 53 52

Fax: 46-8-660 91 81

Contact: Catharina Kronstrom, Commercial Specialist

E-mail: catharina.kronstrom@mail.doc.gov

Swedish Environmental Protection Agency

SE-106 48 Stockholm, Sweden

Tel: 46-8-698 10 00

Web:
[www.internat.naturvardsverket.se](http://www.internat.naturvardsverket.se/)

Varim

The Swedish Asssociation of Suppliers of Effluent and Water Treatment
Equipment

Box 5510

SE-114 85 Stockholm, Sweden

Tel: 46-8-782 08

Web: [www.varim.org](http://www.varim.org/)

####### For More Information

The U.S. Commercial Service in \[Insert CS Office (CITY/COUNTRY)\] can
be contacted via e-mail at: \[Insert AUTHOR\'S [Email
Address]{.underline}\]; Phone: \[Insert Office Phone Number\]; Fax:
\[Insert Office Fax Number\] or visit our website:
[www.buyusa.gov/your_office](http://www.buyusa.gov/your_office).

####### The U.S. Commercial Service --- Your Global Business Partner

With its network of offices across the United States and in more than 80
countries, the U.S. Commercial Service of the U.S. Department of
Commerce utilizes its global presence and international marketing
expertise to help U.S. companies sell their products and services
worldwide. Locate the U.S. Commercial Service trade specialist in the
U.S. nearest you by visiting <http://www.export.gov/>.

*Disclaimer: The information provided in this report is intended to be
of assistance to U.S. exporters. While we make every effort to ensure
its accuracy, neither the United States government nor any of its
employees make any representation as to the accuracy or completeness of
information in this or any other United States government document.
Readers are advised to independently verify any information prior to
reliance thereon. The information provided in this report does not
constitute legal advice.*

*International copyright, U.S. Department of Commerce, 2006. All rights
reserved outside of the United States.*