Feb. 28 (Bloomberg) — Degremont, the water-treatment unit of Suez Environnement, has begun producing drinking water from modular desalination units that are converting brackish groundwater in the Riyadh area of Saudi Arabia.

The Suez subsidiary said today in a statement that the production of drinking water from the first 5,000 cubic meter a day unit started this month near the Dharhat Laban district and would serve 3,000 households formerly supplied by tanker trucks.

Degremont won 40 million euros ($52 million) of contracts last October from the National Water Company of Saudi Arabia for the supply and installation of 33 modular units to produce potable water from areas where fresh water resources are scarce.

Link to Degremont statement: {http://www.degremont.com/en/news/news-in-water-treatment/press- releases/}

To contact the reporter on this story: Randall Hackley in London at rhackley@bloomberg.net

To contact the editor responsible for this story: Randall Hackley at rhackley@bloomberg.net