By Jac van Tuijn, journalist WaterForum (original interview in Dutch)
“Scaling Up Enables Industrial Standardization”
Nijhuis Saur Industries has experienced tremendous growth over the past four years. Revenue surpassed 500 million euros in 2024, and a mega-hall in Groenlo now produces ready-to-use water treatment plants as if they were hotcakes. CEO Menno Holterman explains what makes scaling up in the fragmented water tech sector so remarkable, even for Dutch drinking water companies and water boards.
Perhaps the most notable part of the program celebrating the 120th anniversary of Nijhuis Saur Industries (NSI) on October 4 in Groenlo was the tour of the immense production hall. The large stock of water treatment units, mostly built on frames and of various types, illustrates the company’s growth philosophy. While most water tech companies outsource their production, NSI has consciously chosen to keep it in-house.
When Menno Holterman took the helm of the family business Nijhuis in 2012, the company only made and delivered flotation installations (dissolved air flotation/DAF). “We produced them on a per-order basis,” he recalls. “We would receive an order, build the installation, deliver it, and hand over the key. That was it. Over the years, our workload grew, and we began to think about how we could do things more efficiently. Now we produce our treatment installations on a much larger scale. If we make 25 or 50 at a time, the costs are much lower, and we can deliver directly from stock.”
This business philosophy of large-scale production is not self-evident in the Netherlands, Holterman notes, particularly in the fragmented Dutch water sector. He acknowledges the critical views of his entrepreneurship. Nevertheless, he knows that in the highly competitive water market, it’s a matter of eating or being eaten. Large-scale production forms the foundation for an industrial approach and standardization. “I see the hesitation in the market,” he says, “but this is a necessary step to truly tackle the complex water challenges of the future and respond to the rapidly growing demand.”
Series of Acquisitions
According to Holterman, the growth in revenue from 25 million in 2012 to over 500 million now has been largely made possible by access to growth capital. This capital was not only needed for investments in scaling up their own production hall but also for acquiring companies with innovative water technologies and for co-financing complete design-build-finance-operate-maintain (DBFOM) projects, which have become increasingly common in the industry. Over the past four years, NSI has made many acquisitions and now has an extensive portfolio of often innovative water treatment technologies.
A highly strategic acquisition was the purchase of Veolia’s mobile treatment services in 2022. “We merged Veolia’s mobile rental units with our existing mobile units for wastewater,” says Holterman. “And we’ve since expanded further. The number has now grown to over 500 units.” This allows NSI not only to assist customers quickly in emergencies 24/7 but also aligns with the modular construction method for complex treatment installations.
Easily Replaceable
“Our industrial customers are experiencing the increasing complexity of their water supply,” he explains. “We have two types of customers: for one group, water is a raw material that ultimately ends up in the end product. These customers continue to manage the supply themselves, but we see them hiring extra capacity from us. They have products that are thriving, but they don’t know if that will still be the case in two years. For this group, it’s all about flexibility. The other group uses water as a utility in the production process and is often looking for a single partner to whom they can outsource the entire water supply.”
As an example of these two customer types, Holterman points to the DBFOM project for an Italian chip manufacturer. The deal was signed on the day of the anniversary celebration. “It involves the construction of a new factory costing 5 billion euros. The client could build the water treatment plant themselves but chose a DBFOM structure because the water supply is becoming increasingly complex. Water is becoming scarcer, reuse more necessary, discharge requirements stricter, and the business cases for recovering energy and resources more lucrative. That’s why they’re looking for an engaged partner who will continue to work for them based on joint investments. We can quickly replace parts when better technologies become available, remove that component, and see if another customer can benefit from it, or add it to our rental fleet.”
The contract was signed in October, with plans for the installation to be operational in the first quarter of 2026.
“Scaling up is essential to truly address the complex water challenges of the future and meet rapidly growing demand.”
The French Connection
In 2012, the paths of Nijhuis Water Technology and Menno Holterman crossed. He took over the family business with his business partner Ronald Ruijtenberg. Both entrepreneurs were well-versed in the international water technology sector, and the company grew steadily.
The next major step came in 2021. During the COVID-19 crisis, Dutch investors struck a deal with the French company Saur, originally a drinking water company (Société d’Aménagement Urbain et Rural). The investors injected additional funds into the globally operating company, which primarily serves utility companies and industries. With the money, Saur acquired Nijhuis. As Nijhuis Saur Industries, the company gained the freedom to focus entirely on industrial water customers from its base in Doetinchem.
This move paid off for Saur. In 2023, the company reported an overall revenue increase of 8 percent, and the industrial sector grew by a whopping 44 percent. In an explanation, Saur attributed this spectacular growth to the expansion of rental activities and strategic acquisitions. Alongside positive cross-pollination, NSI and Saur support each other with expertise in the increasingly dynamic water landscape and share a common mission: #MissionWater—to give water the value it deserves and contribute to a sustainable, resilient, and water-secure future.
Standardization
The extensive work with major international companies has taught NSI how to standardize water technology projects. “A few years ago, customers challenged us on low operational costs. Now they challenge us to present a solid investment plan,” Holterman explains. “Luckily, we’ve grown large enough to offer compelling proposals. We have skilled personnel who collaborate with clients to thoroughly prepare projects. We can manufacture installations quickly and affordably in-house, and thanks to Saur (the French parent company, ed.) and our shareholders, we can co-finance plans. Internally, we continuously focus on automation, digital twins, and 3D designs that allow us to involve customers early in the process. This builds trust with future operators.”
The production hall in Groenlo is a temporary facility to bridge the gap until a larger hall is constructed in Doetinchem. This new facility will feature additional staff and robots, recently ordered by Holterman, capable of assembling control cabinets. Everything aligns with the growth philosophy, which the CEO believes benefits both NSI and its clients. Holterman asserts that industrial standardization is essential to manage the monumental challenges of water management. This includes standardizing not only construction methods but also the overall approach and execution.
“Severe water shortages force us to consider multiple water sources: groundwater, surface water, rainwater, seawater, and reuse. This complexity is amplified by the need for CO2 neutrality. It’s about and, and, and,” Holterman says. The standardized, frame-mounted high-quality purification units, which are easily interchangeable, are well-suited for this task.
Faster Implementation
The push toward CO2 neutrality brings the discussion to a UK water company with over 15 drinking water production sites. Holterman notes, “This client aims to become CO2 neutral, and we’re working with them to implement three innovative purification technologies, two of which originate from our company. One focus is on cellulose recovery. Typically, construction at a utility company takes five years. We sat down and arrived at a two-year timeline. It’s now extended by a quarter, but meanwhile, preparations for other sites are underway. This allows us to realize two locations in the time it would typically take to complete one, helping the client achieve CO2 neutrality faster.”
Over the past four years, NSI has expanded the industrial water division within Saur. However, over 10% of revenue now comes from the municipal water market. “We’re building new drinking water installations in Singapore and Hong Kong using PWNT’s ceramic Ceramac® filters,” Holterman states. He believes NSI has much to offer the municipal water market, including Dutch drinking water companies and water boards. “The technologies and methods we developed for the industry are equally applicable here, including financing options.”
He observes the significant struggle among water utilities and boards to keep up with rapidly evolving regulatory requirements while managing costs. “The existing estimates are a major issue, they don’t align with actual costs in a complex world,” Holterman analyzes.
Ensuring Continuity
As with industrial clients, Holterman sees the solution in organizing continuity, which he feels is lacking in the Dutch water sector. “Every drinking water company and water board operates with different techniques and standards at each site. Work is outsourced to various contractors, resulting in the loss of accumulated knowledge and experience every time.”
He also notes the challenges in starting projects. “Sometimes it’s waiting for administrative approval; other times, it’s waiting for permits. In a structured schedule like ours, that’s not feasible. We have a time slot, and realization must occur within it.”
An industrial approach offers advantages but requires discipline. “We need close collaboration,” Holterman stresses. “Water challenges are too complex to solve alone. We must help each other.” To this end, he proposes a large-scale modular approach. “We’re already looking internally at how we can best assist the Dutch water sector. We have the capacity and are eager to reserve it for faster realization. If something doesn’t work, we can immediately replace the modular installation.”
Whether the Dutch water sector will rise to this challenge remains to be seen. Holterman acknowledges the hesitancy to adopt such a radically different approach, especially involving a large market player. However, with increasing water shortages and looming deadlines for the Water Framework Directive and the updated Urban Wastewater Directive, he sees little choice. “An industrial approach reduces risks, speeds up implementation, and offers more flexibility for the future,” Holterman concludes. “You must give up something to gain something in return, that’s part of standardization.”
Recent Acquisitions and Strategic Partnerships
A selection of recent acquisitions by Nijhuis Saur Industries of Dutch companies with innovative water treatment technologies includes:
- CirTec (Purmerend): Specializes in Cellcap technology for extracting cellulose from municipal wastewater for reuse.
- Byosis (Raalte): Offers ByoFlex technology for recovering ammonium (a mineral) from water and digestate.
- Semilla Sanitation (Doetinchem): Focuses on decentralized wastewater treatment, converting urine (yellow water) into fertilizer and purifying household wastewater (grey water) for reuse.
- PWNT (Amsterdam): Known for Ceramac® ceramic membrane filters for drinking water purification.
