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Participation in Mexico in one of the World's Largest Wastewater Treatment Projects

Jan. 8, 2010


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Mitsui & Co., Ltd. ("Mitsui") (Head Office: Tokyo; CEO: Masami Iijima), through its consolidated subsidiary Atlatec (*1), together with IDEAL(*2), ICA(*3) and ACCIONA AGUA(*4) concluded a 25-years wastewater treatment service agreement with National Water Commission of Mexico which involves the construction and operation of one of the world's biggest wastewater treatment plants on January 7th of 2010.

With this project, Mitsui's subsidiaries, Atlatec, a water/wastewater treatment engineering and operation company located in Mexico, together with the corporate groups IDEAL and ICA, both leading construction and infrastructure firms in Mexico, and ACCIONA AGUA, the water engineering and operation company in Spain, and some other companies will establish a project company ("Project-Co") and the Project-Co will supply the waste water treatment service to National Water Commission of Mexico for 25 years. (Please refer to the Contract Scheme.)

The Project-Co will design and build the world largest wastewater treatment plant with a capacity of 3,600,000 tons/day at Atotonilco, Hidalgo state, which is about 60 km north east of Mexico City, and sanitize the wastewater from the Mexico City metropolitan zone. Hidalgo State is one of the breadbasket states in Mexico and its fields are irrigated using untreated wastewater emitted from the Mexico City metropolitan zone. Thus environmental pollution has become an urgent issue in that area. The Project-Co will sanitize about 60% of the wastewater emitted from the metropolitan area of Mexico City, with a population of 20 million. It will significantly contribute to the improvement of the environment of this country as well as contribute to raising the treatment rate of wastewater in Mexico from 36% to 60%.

Mitsui has already participated in 10 BOT projects in Mexico, such as a wastewater treatment project in Jalisco State and industrial wastewater treatment projects for PEMEX refineries.

There are some other areas, in Mexico, which need to improve sanitation. Accordingly, Mitsui will continuously undertake water/wastewater treatment projects which contribute to regional communities and environmental preservation in Mexico and further develop its water business through municipal water/wastewater projects and desalination projects in regions which have water problems, such as in Asia and the Middle East.

Outline of the Project

Name of Project Atotonilco Wastewater Treatment BOT Project
Location Atotonilco, Hidalgo State, Mexico
Project Scope - Wastewater treatment service to National Water Commission of Mexico ("CONAGUA")
- 25-year BOT (Build, Operate and Transfer)
(Construction: 37 months, Operation: 263months)
Project Cost Approx. 80 billion Japanese Yen
Project Company Aguas Tratadas del Valle de Mexico, S.A. de C.V.
Established by Atlatec(24.26%), IDEAL(40.80%), ICA(10.20%), ACCIONA AGUA(24.26%) and other minority shareholders

(*1) Atlatec

Name of Company Atlatec, S.A. de C.V.
Location San Pedro Garza Garcia, Nuevo Leon, Mexico
Business Design, build, and operate water/waste water treatment plants, project development and equity investment.
Shareholder Mitsui & Co., Ltd. : 85%
Toyo Engineering Co. : 15%

(*2) IDEAL

Name of Company Promotora del Desarrollo de America Latina S.A. de C.V.
Location Mexico D.F. Mexico
Business Construction and Infrastructure projects
(Mexico's leading company in this area)

(*3) ICA

Name of Company Empresas ICA, S.A.B. de C.V., with its subsidiary Controladora de Operaciones de Infraestructura S.A. de C.V. (CONOISA)
Location Mexico D.F. Mexico
Business Construction and Infrastructure projects
(Mexico's leading company in this area)

(*4) Acciona Agua

Name of Company Acciona Agua S.A.
Location Madrid, Spain
Business Design, build, and operate water/waste water treatment plants

Contract Scheme

Contract Scheme

Map

Map

Notice:
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Mikako Sachigai
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819