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  Custom Processing
 
  Custom processing is headed up by Arpadis Custom Processing S.A.

This activity consists of processing chemical products for the account of a customer and according to that customer’s specifications and formulae.
It could involve blending various compounds on the basis of the dosage and specifications provided by a customer. It could also involve chemical synthesis.

There are many different scenarios:
a) The customer also provides the raw materials, which remain its property throughout the processing period.
     By offering this service, Arpadis renders a production infrastructure profitable and manages the processing process.
  b) By means of a sell and buy back operation, the raw materials are acquired by Arpadis for the account of the customer
     on the basis of the customer's specific requirements. Custom processing is carried out by Arpadis, on the basis of the
     customer's specifications, and the customer purchases the product once it has been processed and packaged.

In both cases, the customer provides Arpadis with the technology required for the processing operation.

The subsidiaries active in this sector are:
■ Arpadis Coatings Services S.A. (formerly Schoonjans S.A.) in Jodoigne, primarily specialising in
   the custom processing of automotive coatings
■ Arpadis Manage S.A. (former SigmaKalon factory in Manage, taken over in March 2007
■ Arpadis Gondecourt (France) - former CATRY SA
■ and shortly Arpadis Custom Processing China Co. Ltd in Nanjing, China, for which land has already been acquired.

The group's development strategy for the coming years is predominantly based on development of this sector of activity. This will involve firstly, incorporating the Manage & Gondecourt plant into the group and developing its utilisation rate, and secondly, successfully completing the construction of a plant in China, which will cover the areas of activity in which the group has gained experience in Europe and which will enable it to respond to the requirements of its customers in that part of the world.