C O M P A N Y O V E R V I E W
M+W Group:
M+W Group Is Opening Up in Malaysia
The company believes keeping its books open and stay the curve are keys to success. Written by: Kevin Smead Produced by: Andrew Zhao
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M+W GROUP
M+W GROUP ISN’T exactly new to the game. The company, which is more than 100 years old, is a global engineering and construction partner for technology-based clients in a variety of sectors including energy, environmental technologies, life sciences, IT and telecommunications, and much more. However, the company is best recognized as the market leader in several segments: semiconductors, photovoltaics, biotechnology, and high-tech infrastructure. 91
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The company’s Malaysian office is helming some of its most innovative projects, but most important, exemplifies some of its best practices. A Competitive Advantage M+W believes it has a competitive advantage in the market for a few reasons, the first of which is its commitment to its customers and community. M+W Group is a big proponent of social responsibility and strong ethical values. It’s also strongly supports its employees and places environmental concerns
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among its top priorities, making it a business that others want to work with. “Our objective is to be a partner of choice, by offering transparency, best in class execution, and setting industry benchmarks in quality, safety, time to market and total cost of ownership across diverse industries,” Managing Director of M+W’s High-Tech Projects in Malaysia Richard Kimber said. “We are committed to creating long lasting relationships, value for customers and want to be ‘partner of choice’ delivering on time and with cost certainty.” M+W also believes its global operations and 100-plus years of experience—with 18 in Malaysia—puts it ahead of the pack in the various industries it serves.
“We are committed to creating long lasting relationships, value for customers and want to be ‘partner of choice’ delivering on time and with cost certainty.”
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SECTOR
STRUCTURAL STEEL SPECIALIST Tel: +604-5826 790 / 791
Fax: +604-5826 786
Quality • Fast • Reliable
With over 30 years of experience, Khean Seng Engineering Sdn. Bhd. is specializing in structural steel works for small, medium, and large factory construction, plants, towers, platforms, bridges, pipe racks, utility platforms, etc.
SUPPLIER PROFILE
1566, Lorong IKS Simpang Ampat K, Taman IKS Simpang Ampat, 14100 Simpang Ampat, S.P.(S) Pulau Pinang, Malaysia Email: ksesb@kheanseng.com Website: www.kheanseng.com
SIEMENS
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the fields of industry, energy and healthcare as well as providing infrastructure solutions. For over 165 years, Siemens has stood for technological excellence, innovation, quality and reliability. The company is the world’s largest provider of environmental technologies. Around 40 percent of its total revenue stems from green products and solutions. Since its inception into Malaysia in 1972, Siemens has actively participated in Malaysia’s dynamic economic and social growth. Backed by its global network of innovation, Siemens Malaysia assures its customers of international expertise localized and tailor-made to suit their business needs. Today, it is one of the leading technology providers in the country with comprehensive products, services and solutions for various markets in the Malaysian economy.
Website: www.siemens.com w w w. c o m p a n y u r l . c o m
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KHOR KHYE HING CONSTRUCTIONS
SDN. BHD. (425060-T)
KW CONSTRUCTION SDN. BHD. We are a team of engineers specialise in design and build factories, warehouses and showrooms.
Reliable. Trusted. Preferred. • Civil Construction Works • Rental Of Machineries: Excavator, Compact Roller, Backpusher, Backhoe, Tipper Trucks • Construction Materials: Sand, Red Earth, Quarries
Call: 012-474 6101 Off tel: 017-430 5577 Fax: 04-397 8188 Email: khorsb@gmail.com Lot. 1332 (Lot. 634), MK5, Permatang Ara, 13500 Permatang Pauh, Seberang Perai Tengah, Penang, Malaysia
Build Right And Deliver On Time 62-5B, Jalan Bukit Raja, Taman Seputih, 58000 Kuala Lumpur, Malaysia email: kwbcsb@gmail.com phone: 60 3 2272 3136 fax: 60 3 2274 2731
M+W GROUP Regardless of which office is approaching a project, the standard operating procedure (SOP) will be the same. “M+W has one SOP that uses knowledge transferred from all global entities within M+W, intercountry or regional engineering, resource support, and a ‘lessonslearned’ culture,” Kimber said. “We ensure that quality and commissioning starts on Day 1.” This doesn’t mean they approach every project the same way, though. M+W uses customized solutions to meet the needs of each customer. This is streamlined thanks to all of its engineering processes being done in-house. An Open Book Approach Tackling projects in this manner
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works so well mainly because of M+W’s open book approach. “This allows M+W to provide a ‘total facilities solution’ under one roof, and for efficiency and consistency,” Kimber explained. “It promotes ‘fast track’ projects’ success since design and construction are overlapped. We have proven that time and cost can be reduced when compared to a lump sum approach—where typically the design is not fully completed when issued for pricing to contractors.” This emphasis on openness is a boon to business in more ways than just increasing efficiency. It also allows for increased dialogue between M+W and its customers. Kimber believes the approach is built on transparency and trust, and that everyone benefits from it.
“We seek to be open, honest, transparent, and true to our word. At times this doesn’t help us when we are competing against local contractors or clients that are blinded by the cheapest price.”
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“We have delivered numerous projects under this procurement approach and we share in the savings by managing the construction process to agreed timescales, budget, and quality levels,” he said. According to Kimber, it’s also about giving the customer the right advice at the right time. “The difference we can make to saving costs and influencing the final product diminishes the later we come in.” For M+W, it’s about maximizing its work and giving the
customer the best value, all while keeping them fully in the loop. This is especially important to the Malaysian operation, since this is one stop shop open book service M+W can offer that many others cannot. The company believes that this is in the best interest for the customer, since many are promised the complete package, but often end up getting burned by. “There are local contractors who would do anything to win jobs—offer unrealistic promises,
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SECTOR
“You Can Count on Our Strengths in Service Excellence and Uncompromising Quality”.
Civil Engineering and Construction Company that is specializing in: • Structural Steel Fabrication and Erection • Piling and Substructure Works • Roadworks and Bridges • Construction of Airport Runways and Parking Aprons • Marine Construction of Wharves and Jetties • Tunnels and Outfalls • Reinforced Concrete Buildings and Plant Structures
Principle Perspective Engineering Sdn Bhd (421648-A) Lot 2220, Jalan Kasawari Kg Kebun Baru, Batu 10 Telok Panglima Garang 42500, Kuala Langat Selangor Darul Ehsan Malaysia
Tel : 603-3122 1266 | Fax : 603-3122 7866 | Email : info@pp-eng.com.my
www.pp-eng.com.my
M+W GROUP agree to schedules that cannot be achieved and submit low bids,” Kimber said. “We seek to be open, honest, transparent, and true to our word. At times this doesn’t help us when we are competing against local contractors or clients that are blinded by the cheapest price.” In Malaysia, an understanding of the correlation between risk and cost is vital. Customers often select the service provider who makes lowest bid without realizing the potential risk. In recent years,
there have been many unfortunate cases of contractors taking on too much risk and failing to deliver, which ultimately leads to them going bust and leaving the customer with a distressed project. Kimber explained that while the customer may be paying more for contractors that are resourced and managed correctly, the risk is dramatically reduced. “It’s all about managing risk,” Kimber stressed. “Clients need to ask themselves: would they
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deposit money in a bank that they haven’t heard of, has a limited track record, but promises a good return? No, they will go to a bank that gives certainty at a competitive price.” Playing it Safe For M+W, physical safety for its employees is just as important as investment safety for its customers. “Safety is a core value and we are committed to an injury free work place where everybody goes home safe,” Kimber said. “There is no compromise and work will stop even if this means program delays. We set working conditions to ensure that our work practices and procedures meet or exceed all applicable legislations related to health, safety, and the environment.” M+W also expects trade partners to actively contribute to the implementation of its Environmental Health and Safety (EHS) policy. In Malaysia, the policy has continuously developed using M+W’s global and regional EHS requirements and practices as a basis, while
also taking into account particular EHS considerations for working in Malaysia. To accomplish this, M+W has worked alongside the Malaysian Ministry of Human Resources regulations. Not surprisingly, these practices are working and it’s not going unnoticed. M+W in Malaysia received the Gold Star for Occupational Safety and Health (OSH) for construction in 2011, 2012 and 2013. M+W are targeting OSH platinum award for 2014, the highest possible award for OSH. Looking Ahead Looking ahead toward the future, M+W is optimistic, but understands it faces certain challenges, such as a shortage of skilled laborers in the state of Johor. “Based on experience and lessons learned, we have told our clients and potential clients that worker retention is and will continue to be a challenge— especially with the proximity of Singapore, which offers higher salaries and lower taxes,” Kimber explained. “This is also
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a challenge with the impending Refinery and Petrochemicals Integrated Development (RAPID) project in Johor. We need to address this by paying realistic labor rates, offering incentive schemes for project completion, etc.” Despite this, M+W has some exciting projects happening in Malaysia, including the design of one of the largest data centre projects in Asia, two biotech projects, one in Johor and the other in Negeri Sembilan. A customer in Malaysia since 2006, First Solar continues to expand its presence in Kulim High Tech Park and M+W supports First Solar as its partner on an open book basis. Similarly, Infineon, a global partner with M+W have had a presence in Kulim High Tech Park since 2005, and M+W have recently completed the design and build of their 2nd Fab on an open book basis. “We have also streamlined our trade partner data base and will engage with those that truly share the same values as M+W,” Kimber noted. On top of all of that, Kimber was clear in saying that M+W Malaysia is always looking to improve how it conducts business. “As an engineering and construction company, there is a continuous effort to improve on efficiency, facilitate smart solutions for both engineering and construction, and together with our partners, seek to provide better solutions that always ensure a win-win situation with our new and existing clients.”
Company Information INDUSTRY
Construction HEADQUARTERS
Stuttgart, Germany FOUNDED
1912 EMPLOYEES
7000 PRODUCTS/ SERVICES
M+W Group with headquarters in Stuttgart/ Germany is one of the leading global companies in the field of high-tech engineering, procurement and construction. From concept development to turnkey solutions the Group manages projects of all sizes for industries like Electronics, Pharma and Chemicals, Energy and IT.
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M+W Group 20th Floor, Unit A, Gurney Tower Georgetown Kedah Malaysia Tel. +60 4 370 4500 Richard.Kimber@mwgroup.net www.mwgroup.net/