Canada-based water treatment specialist, H2O Innovation, is expanding its business activities in Mexico.

The new Mexican entity, H2O Innovación Mexico, will gain from innovations and technologies offered by H2O Innovation through a royalty agreement. And H2O Innovación Mexico will be able to use H2O Innovation’s references in its bids for new projects.

In order to meet the sustained demand for water, wastewater and desalination treatment systems, the new Mexican government proposed a five-year investment plan of $32 billion to develop water treatment infrastructure.

H2O Innovation said Mexico’s US$ 32 billion National Infrastructure Plan will enable H2O Innovación Mexico to set itself up in the country through new projects and operation and maintenance contracts. H2O Innovación Mexico’s operations will be based in Monterrey, Canada with regional offices in Cancun and Cabo.

“We are now proposing a unique business model that will allow H2O Innovation to expand its business in a high growth market without adding to its current cost structure. We strongly believe that this could have a positive impact on the financial results within the first 12 months”, said president and chief executive officer of H2O Innovation, Frédéric Dugré.