www.constructionglobal.com | July 2015
SPECIAL REPORTS Holcim Vietnam & Egyptian Steel Major Projects Don’t get caught out by Subcontractor Legislation
LABOUR MANAGEMENT & PLANNING
Tackling Roadblocks In The Construction Industry
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EDITOR’S COMMENT
Building on a Solid
FOUNDATION A R E Y O U A M O N G the many managers in construction
who perfectly understand costs and profits, projects and processes but whose eyes glaze over when it comes to buildings legislation? But for the industry in the UK there’s no getting away from the fact that the amendments to Part II of the Housing Grants, Construction and Regeneration Act 1996 (Construction Act 1996, also known as the HGCRA), made in 2011 to close a number of loopholes, are important. Businesses which make mistakes risk paying heavily. In this issue Wes Simmons takes us through some of the provisions affecting subcontractor provisions. Meanwhile, in the USA one of the biggest problems facing the industry is the shortage of labor, forcing project managers to look at ways to mitigate this by the increased use of prefabrication, standardization, co-construction and other techniques. It is turning point, believes Kevin Kuntz offering the industry the chance to create new standards going forward. To concentrate the mind, finally, we look at a few construction disasters in history – there’s always something to be learnt?
Enjoy the issue!
John O’Hanlon Managing Editor John.O’Hanlon@wdmgroup.com 3
CONTENTS MAJOR PROJECTS
MANAGEMENT
Features Don’t Get Caught Out With Subcontractor Legislation
12
Tackling Labour Roadblocks 4
July 2015
6
Construction Disasters
TOP10
20
Doron Construction
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42 Egyptian Steel
Holcim Vietnam
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70 82
116 Mercury Engineering
H essert Construction Group
124 C harter Hall/ Watpac 333 George Street Project
C ervini Painting & Decorating Ltd.
90
142
Schindler Lifts (Singapore)
W alsh Construction Downtown Crossing Project
Company Profiles
CANADA
AUSTRALIA
82 Cervini Painting and Decorating Ltd.
124 Charter Hall/ Watpac 333 George Street Project
USA
AFRICA
90 Walsh Construction Downtown Crossing Project
132 Colliers International
32 Doron Construction 42 Egyptian Steel 52 Lubrik Construction
ASIA 60 Holcim Vietnam
EUROPE 70 Mercury Engineering
AUSTRALASIA
100 DPR Construction BioMarin Expansion Project
142 S chindler Lifts (Singapore)
alsh Construction 108 W Olson Pavilion at Lutheran Home Project
LATIN AMERICA 152 Industrias Aguayo 162 Grupo MĂŠxico
essert 116 H Construction Group
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MAJOR PROJECTS
Don’t Get Caught Out With SUBCONTRACTOR LEGISLATION Large scale builds require subcontractors, but don’t let poor management turn your major project into a major disaster W R I Tt E N b y: W E S S I M M O N S
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MAJOR PROJECTS DESPITE BEING NEARLY 20 years old, the Construction Act 1996 continues to cause problems for businesses. Recent court cases have highlighted the importance of making payments according to the strict rules of the Act and changing subcontractor legislations, as businesses which make mistakes risk paying heavily. The key payment procedures To avoid making a mistake, particularly in cases where you want to withhold payment for nondelivery or disputes about quality, you need to properly understand your obligations. The Construction Act 1996 demands that you: • Issue a ‘payment notice’ to your subcontractors within five days of every payment due date. • Issue a ‘pay less notice’ which outlines any intention to underpay, along with the calculations of how the sum (including nothing at all) was arrived at. • The payment must then be paid by the final date stipulated in the contract/invoice. It is essential that this subcontractor legislation is followed exactly, or 8
July 2015
you could find the dispute costs a lot more than expected. The potential cost of getting it wrong The case of a Devon hotel refurbishment project shows the importance of keeping paperwork in order. The building contractor issued an Interim Application (IA60) to the company commissioning the hotel project for £4 million (the whole project value), which it believed was due. The hotelier saw differently, believing that they were only supposed to pay instalments, rather than the entire project cost. However, instead of following the procedure outlined above, the company behind the hotel issued neither a payment notice, nor a pay less notice. At this point the sum requested in the application ‘crystallized’, making the hotelier legally liable for the full amount immediately. Another case between another building contractor and an Essexbased college also had a similar outcome. Again the client (the college) failed to respond to the builder’s IA60, and became liable for the full amount – £1.1 million. In both cases the law found that the clients had failed to act in accordance
S U B C O N T R A C T O R L E G I S L AT I O N
‘Never forget, if you fail to fulfil your legal obligations and comply with subcontractor legislations, your job – if not the future of the business itself – could be in jeopardy’
Subcontractors are necessary for major projects, so make sure your business is up to date with legislation
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MAJOR PROJECTS
with subcontractor legislations and were therefore liable for the full amounts that they had been billed. Your role in the payment process Both these cases relate to bills between builders and the end client, but the Construction Act applies to builders and subcontractors too. Thus it is extremely important to follow the prescribed steps
when handling payment demands from your subcontractors. Although the Finance Manager is responsible for making payments, as the Commercial Manager you are responsible for assessing work completed by subcontractors and approving payment. It is vital then that you complete such assessments in a timely fashion and ensure that the outcomes are forwarded
‘ Ensure you fully understand your payment obligations under the Construction Act 1996’ 10
July 2015
S U B C O N T R A C T O R L E G I S L AT I O N
to the finance department before the five-day deadline expires. Where work is found to be unsatisfactory, you will need to calculate how much of the sum due is to be held back. Ensure that those calculations are also forwarded to the finance team because they will need to be included with the pay less notice that is returned to your subcontractor. And never forget, if you fail to fulfil your legal obligations and comply with subcontractor legislations, your job – if not the future of the business itself – could be in jeopardy.
TAKEAWAYS To avoid costly problems with subcontractor payments: • Ensure you fully understand your payment obligations under the Construction Act 1996. • Keep track of subcontractor progress and document all cases where standards are not met. • Ensure you inform the finance department in advance of any payment dates so that the relevant notice is forwarded to the subcontractor.
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MANAGEMENT PLANNING
Tackling Labour Roadblocks How the construction industry plans to tackle labour roadblocks through advanced technology, prefabrication and co-construction E d i t e d B y: K E V I N K U N TZ , S O U T H E A ST D I V I S I O N P R E S I D E N T, M C C A RT H Y B U I LD I N G C O M P A N I E S
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MANAGEMENT PLANNING CHALLENGES ARE FORECASTED for the construction industry in 2015, but they are different from the trials industry leaders faced in recent years. After a difficult start to 2014, the industry is recovering, adapting to new regulations and techniques, contending with labour and material shortages and implementing advanced technology. These factors create risk and potential setbacks, as well as tremendous opportunity for greater success in the new year. The US economy has continued to gain momentum, but the construction industry still dealt with the hangover from the downturn in 2014. The first six months of 2014 provided few new building opportunities. This was coupled with additional regulations, including healthcare reform and labour reporting, causing more hurdles for businesses. The sluggish market and time required to adapt to new guidelines bred an overall environment of cautious advancement. The turn came in mid-2014 as the market surged with a year’s worth of opportunities to be completed in just months. While the increase in work in 2014 was 14
July 2015
welcomed, those new regulations and requirements created unexpected extra costs that extend into 2015. Those increased costs are just one issue that carries into this year as the industry works its way back from the recession. Companies continued to downsize last year, either through attrition or continued layoffs. The decrease in available workers could make it more difficult for companies to keep up with demand, which make joint ventures a likely path forward in the near-term. Companies will team up to handle the increasing demand, and owners may return to selecting a project team on a best value,
‘Technology advancements help mitigate risks associated with coconstruction as well as provide a platform for the industry’s early adopters to effectively progress in the coming year’
TA C K L I N G L A B O R R O A D B L O C K S
Joint ventures are a likely path forward in the near-term
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MANAGEMENT PLANNING
Traditional practices rather than least expensive, basis. While joint ventures allow for progress and probable industry growth, the labor-shortage problem is not going away. Even with a steady increase in demand, the industry probably won’t see a rise in labor. To begin to solve this dilemma, technical schools are working to revive and redesign their programs to attract a new generation of students to the construction field. In addition to improving education programs, passing comprehensive immigration reform will increase the labor pool and 16
July 2015
have an immediate, positive impact in construction. However, both of these measures will likely be a several year process, which means that the industry must rely on other measures, such as new building techniques and industry-wide collaboration, to continue its forward momentum. Experimenting with new building techniques is always an evolving process, but it also provides a method to help address the labor shortage. Traditional practices involve bringing materials to the job site to erect a building. This takes time and is
TA C K L I N G L A B O R R O A D B L O C K S
‘The construction industry is at an exciting turning point right now. We’ve collectively weathered the worst of the storm and see a bright path forward to create new industry standards for the coming year and beyond’
expensive compared to prefabrication techniques. Prefabrication is just what it sounds like: assembling a structure in a warehouse or other manufacturing site, transporting completed sections of structure to the site and putting those sections together to create the final structure. Long used in the housing industry, the practice is finding inroads in the commercial and industrial spaces as well. The approach allows businesses to take into account conditions of materials, natural elements, budget and labor, as well as providing a means of
Prefabrication making inroads
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MANAGEMENT PLANNING Teaming agreements
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TA C K L I N G L A B O R R O A D B L O C K S
fixing issues more quickly than when building on site. Prefabrication techniques are advancing quickly due to technology improvements, which aid in reducing costs and completing builds with less labor. Co-construction is another technique industry leaders are using to help combat labor shortages and limited resources. Co-construction is essentially allowing one team to build upon another’s work to collaboratively complete a project. While more companies are creating these teaming agreements, there is some risk involved. Co-construction leaves room for error and miscommunication. Effective co-construction incorporates sharing accountability in a fair and reasonable manner, while not creating an undue burden on the owner. Still, the practice has the potential to better serve and benefit owners as well as the teaming companies delivering the project.
Technology advancements help mitigate risks associated with co-construction as well as provide a platform for the industry’s early adopters to effectively progress in the coming year. Companies are implementing those technologies that allows for faster construction processes and more efficient use of the limited labor pool. Although some industry leaders are less comfortable with the ever-changing technology, the need for faster, more efficient techniques will likely outweigh, or at least lessen, any reluctance. The construction industry is at an exciting turning point right now. We’ve collectively weathered the worst of the storm and see a bright path forward to create new industry standards for the coming year and beyond. In many ways, the downturn has forced the industry to reexamine its practices. The opportunity for increased efficiency due to co-construction, prefabrication and advanced technology is great, but success will depend, in part, upon the open-mindedness of industry leaders and the incorporation of multigenerational ideas of how to improve the construction process. 19
TOP 10
TOP10 CONSTRUC In the world of construction a very small mistake or oversight can have devastating consequences. Construction Global unveils a list of the industry’s top 10 most catastrophic disasters.
CTION DISASTERS While some only caused damage to property, others were truly dangerous and had tragic consequences. Let this be a lesson to us all. 21
TOP 10
10
Leaning Tower of Pisa Although it poses no imminent risk to human safety today, this iconic campanile is the most obvious example of a construction error. The tower began to tilt during construction, having an inadequate foundation on soil that could not support the weight of the enormous structure. In the 19th and 20th century, attempts to fix the tower succeeded in decreasing the angle of incline from 5.5 degrees to a 3.9 degree angle. 22
July 2015
T O P 1 0 C O N S T R U C T I O N FA I L S
Tacoma Narrows Bridge Built in 1940, the original Tacoma Narrows Bridge was the third largest suspension bridge in the US at that time, spanning nearly 6000 feet. It opened on July 1st 1940, and several months later, in November of the same year, 40 mph winds caused the bridge
to collapse and crash into Puget Sound. Amazingly, not a single person was killed. However, the collapse of the bridge influenced the study of bridge aerodynamics for years, and was influential in changing how bridges were built.
9
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TOP 10
The Hubble Telescope If there was one thing that should be double checked to make sure everything was attached correctly, you’d think it would be something that was being shot into space. But you would be wrong! When the Hubble Telescope was first launched, it had a faulty mirror that reduced the quality of its images. The repairs to Hubble Telescope cost US taxpayers nearly six billion dollars.
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T O P 1 0 C O N S T R U C T I O N FA I L S
7
Lotus Riverside Complex
In Shanghai in 2009, a recently built, but vacant apartment building collapsed, killing one worker. An investigation proved that ground instability, caused by dumping excavated soil on a nearby river bank had caused the building to collapse. The collapse led to the other buildings in the project being investigated. 25
TOP 10
6
New York City Crane Collapse The collapse of a crane in New York City in 2008 illustrated just how dangerous it can be to ‘cut corners’. Seven people were killed after a crane fell in a downtown neighbourhood. Investigators found that the company had tried to save money using safety straps that were worn and in poor condition. Additionally, the company only used four safety straps to secure the crane, instead of the required eight, which was found to be the main reason for the collapse. 26
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T O P 1 0 C O N S T R U C T I O N FA I L S
Sampoong Department Store Collapse Work began on the Sampoong Department Store in 1987 in Seoul, South Korea. Originally planned as an apartment building, the developers decided to build a department store instead, which meant that some support columns had to be left out to make room for escalators. Additionally, the developers wanted to add a fifth floor for restaurants. When building companies refused to make the changes, claiming that they were unsafe, they were fired by the developer, who then found a company that would build what they wanted. The department store opened in 1990, and attracted close to 40,000 visitors a day. In April 1995, cracks began to appear on the 5th floor ceiling.
Two months later, more cracks developed prompting the closure of the top floor of the building. However, this just delayed the impending collapse. Shortly before 6 pm on June 29th 1995, the south wing of the building collapsed, killing 502 people and injuring more than 1500. The Sampoong Department collapse is considered one of the world’s deadliest building collapses, and was caused by the developer’s inability to abide by building standards and the addition of a fifth floor.
5
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TOP 10
Quebec City Bridge In 1907, when an engineer working on the Quebec City Bridge reported that he’d noticed the frame starting to bend, he was told that the problem was not a major concern, as the beams must have been bent before they were installed. Not long afterwards, The Quebec City Bridge collapsed, killing 75 workers. The collapse was caused because the bridge actually weighed 8 million pounds more than was initially calculated, and the beams had been unable to handle the excess weight. It seems unbelievable that nobody thought to investigate the engineer’s concerns. 28
July 2015
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T O P 1 0 C O N S T R U C T I O N FA I L S
Willow Island Cooling Tower In 1978, a cooling tower being built at Willow Island power plant collapsed in West Virginia. The falling concrete knocked over a scaffolding tower, killing 51 construction workers. The project had been significantly behind schedule, and this motivated workers on the project to find ways to speed up the construction process. After the accident, investigators found that many of the short cuts led the catastrophe.
For example scaffolding was attached to concrete that hadn’t set, they had used the wrong kind of bolts, or just worn bolts, and the concrete hoisting system they used had not been approved by the authorities. The collapse of the cooling tower is said to be the worst construction accident in US history.
3 29
TOP 10
2
Teton Dam
In 1976, the earthen dam build by the federal government in Southeastern Idaho broke apart. On the morning of June 5th 1976, workers noticed a small leak in the dam, but didn’t think it was a problem. As the leak grew, crews tried to repair the hole, but it was too late. The dam burst at 11.55 am, sending 2,000,000 cubic feet of water per second into the Teton River Canyon. 11 people, and 30
July 2015
13,000 cows were killed in the accident, and the accident caused nearly $2 billion in damages. An investigation revealed that the type of soil used to build the dam allowed water to seep through; this caused cracks and eventually eroded the structure. However, the Teton dam disaster forced the US government to increase regulations for similar projects.
T O P 1 0 C O N S T R U C T I O N FA I L S
Hyatt Regency Walkway Collapse In 1981, two walkways at the Hyatt Regency hotel in Kansas City, fel four floors onto the lobby below where a dance competition was being held. In this catastrophe 114 people were killed and more than 200 were injured, and it was considered the deadliest structural collapse in US history until the attacks on the World Trade Center in 2001. An investigation into the accident
1
found that changes to the design of the walkway meant that the tie rods and support beams were forced to hold the weight of both the second floor walkway and the fourth floor walkway. This proved fatal, as the added weight of the people on the walkway was too much for the ties and beams to hold, and it gave way. After the investigation, $140 million was given to the victims and their families in compensation.
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Written by: Sam Jermy Produced by: Richard Deane
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DORON CONSTRUCTION
Despite being less than a decade old, the firm has grown steadily to the point where it is now looking to be the South African contractor of choice for clients in multiple sectors
D
oron Construction is a Construction Company specialising in Civil Construction and General Building for clients in the Mining, Governmental, Commercial and Residential Sectors. The strong growth of Doron Construction has been built on a foundation of consistently delivering construction projects to the highest standards. Since beginning as a small civil construction contractor in 2007, Doron Construction has demonstrated an unbeaten track record for delivering high quality civil projects to our world class clients. Doron Construction is looking forward to enhancing the good reputation it has built up after just eight years in the industry, with a number of large projects on the horizon and in process. These projects include being appointed the
Doron has steadily grown since 2007
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July 2015
AFRICA
managing contractor for the construction of an extension of a tailings processing plant with Dikgosi Tailings Processing, the construction of two eight mega litre reservoirs, pump station and the associated infrastructure, as well as plenty of mining-related activities. Christo Smit, Managing Director at Doron Construction, said: “We started the company in 2007 with the vision to distinguish ourselves in the construction industry through quality and integrity. We set our vision from the beginning to become one of the larger construction firms and we never allowed the difficult times to distract us from our vision. “We have worked hard to grow to a company where clients invite us to participate in projects or to tender for projects. We have built a business profile of successful projects and we retained the human capital that was developed through this period. “Looking forward, we are aiming to increase our involvement in the mining sector by increasing our client base and by becoming involved in contracts that has a longer duration than the normal construction contracts.” Dikgosi Tailings Processing recently acquired 51 percent of the shares of the company, and it subsequently appointed three new directors. Smit believes their experience will make the management team even stronger in order to support the additional growth that is expected through their marketing
Key Personnel Kgosi Tshikare Non-Executive Director A custodian of the governance process, monitor the executive activity and contribute to the development of strategy
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DORON CONSTRUCTION
The company has staff from over 15 nations
AFRICA
and projects that will spawned through the group of companies they are involved with. Continuous Improvement Focusing on the various stakeholders of the firm is one of the most important principles for Doron now and going forward. Frequent feedback sessions are scheduled with shareholders in order to set goals and reestablish the vision and medium-term goals. Good client relations are obviously crucial too, and the company has learned to effectively serve its client whilst simultaneously protecting its own business interests. Smit said: “We see our employees as assets and they are the people who are turning the wheel. Enhanced performance assists the growth and profitability eventually. Therefore it is the responsibility of the directors to ensure that our employees are positive and that they undergo continuous improvement. “We are viewing our suppliers as our partners
“Looking forward, we are aiming to increase our involvement in the mining sector by increasing our client base and by becoming involved in contracts that has a longer duration than the normal construction contracts.” – Christo Smit, Managing Director w w w. d o r o n . c o . z a
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DORON CONSTRUCTION
Waste Water Treatment Works
and it is important for us to continuously improve our supplier base, as well as becoming increasingly better clients to our suppliers. “Two years ago we invested in the use of an Integrated Cost Management Software including estimating, planning, project control, cost management and enterprise accounting, enabling us to control and record all aspects of the company from inception to completion on an integrated system. We are continuously implementing and improving the use of the software throughout the company through internal workshops, training and increasing the number of users on the system. “To that end, our approach to project
Get to Builders. Get it Done! Building Material Supplied by Builders
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July 2015
0860 284 533 www.builders.co.za
AFRICA
An example of general civil construction work
management and project execution is becoming leaner and we are continuously improving as we learn through each project. We have developed internal manuals with regards to all processes of construction from plant/fleet management to casting of concrete. We are now ready to take it further and to engage in Lean Six Sigma.� Projects Doron’s biggest income stream at the moment involves the civil construction projects at various mines across South Africa. The company has worked with major clients such as Platinum Group Metals at Maseve Mine, Rustenburg where the company were contracted to build the front end concrete structures, the plant buildings, high security fencing and all the plant
Key Personnel Christo Smit Managing Director Gained an engineering degree through the University of Stellenbosch. Involved with the company since inception.
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DORON CONSTRUCTION
Doron has gained specific experience in water and concrete projects
60% The percentage of local labour that Doron Construction use in their projects 40
July 2015
infrastructure pipelines including three one mega litre reservoirs. This is well as working with Anglo Gold Ashanti, Northam Platinum and DRA South Africa. Despite this success, Doron likes to supplement these larger, more sporadic works with more frequent concrete and water projects. “We have gained a lot of experience in water and concrete structures, reservoirs, sewage treatment on top of our pleasing mine activities and we are even moving focus to solar plants.” said Smit. “In terms of our work with local authorities in erecting water retaining structures, we adapted to the narrow tolerances whilst keeping to the program through planning, organising, leading
AFRICA
and control of the construction projects.” “Our construction at a platinum mine involve concrete structures of the plant, structural steel, plant buildings, high security fences, potable and fire water pipelines, reservoirs, sewage water pipelines and the communication sleeves. We also have a diverse plant and equipment hire range which is prospering and provides us with another revenue stream.” Investments and development There is a yearly budget for training which results to approximately 3 percent of Doron’s overall payroll, meaning there is tangible ongoing investment on employee skills. It has monthly internal training sessions and external training is focused on estimating, costs control, project management, procurement, fleet management, store control and technical knowledge. Doron also utilise a minimum of 60 percent of local labour on all construction projects. The local labour undergoes daily inductions and are supervised with a team leader and skilled labour who give them on the job training. Smit concluded: “Overall we are happy with the way our business is going. We have recently moved to new premises where the different departments will have space to establish themselves. The offices will have sufficient space for training and a conference facility. Not only that, but we will continue to invest in gaining and maintaining a skilled workforce and intend to continuously improve our plant and vehicles.”
Company Information INDUSTRY
Construction HEADQUARTERS
Potchefstroom, SA FOUNDED
2007 EMPLOYEES
350 REVENUE
R89 million PRODUCTS/ SERVICES
Construction & Mining
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AGAINST THE ODDS: EGYPTIAN STEEL’S MEGAPROJECTS
The award-winning steel manufacturer is pioneering competitiveness, sustainability and social improvements on a truly impressive scale Written by: Nye Longman Produced by: Richard Deane 43
EGYPTIAN STEEL
CEO Ahmed Abou Hashima
E
gyptian Steel has carved a trailblazing path through Egypt’s steel industry since its foundation 2010. The company has invested over $1 billion over the past 2 years, chiefly on constructing two massive state of the art steel megaprojects, but also on developing exemplary business operations, environmentally friendly practices and CSR standards. The company is confident that its actions will contribute to a successful Initial Public Offering (IPO) in the next five years.
The company has invested $1 billion over the past two years 44
July 2015
Operations Egyptian Steel’s operations are divided between its subsidiaries, which comprise National Port Said Steel (NPSS), IIC for Steel Plants Management, and Egyptian Steel for Building
July 2015
CONSTRUCTION
Key Personnel
Ahmed Abou Hashima CEO
“Egyptian Steel has carved a trailblazing path“
Materials. Alongside a portfolio of capabilities catering for the steel industry, the company also has the capacity to produce a variety of building materials, particularly cement (an avenue which the company is actively exploring.) The business was founded at one of the most turbulent times in Egypt’s history: the January Revolution of 2011. However, CEO Ahmed Abou Hashima’s faith in his abilities and the resilience of the country paid off, he said: “It was a calculated risk, but my faith in Egypt, its people, and that we always come up stronger than before made me sure that this was a temporary phase and that eventually taking this risk would pay off. Fortunately, I was right.” The company is seeking to expand its share of the Egyptian Steel market and has
Ahmed Abou Hashima is CEO of the Cairobased Egyptian Steel, which he co-founded in 2010. A self-made global entrepreneur, Mr. Abou Hashima has worked in the steel industry since 1996. Named one of the World’s 100 Most Powerful Arabs by Arabian Business, Mr. Abou Hashima has been the recipient of CEO Middle East’s Young CEO Award and Arabian Business’ Best Visionary awards. He was the first Egyptian to receive CEO Middle East’s Young CEO of the Year Award. He’s also the recipient of Executive of the Year Award –Manufacturing Industry at Stevie’s International Business Awards in Paris, October 2014, in addition to an honorary Golden Award in the same ceremony as “Rising Businessman of the Year”.
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EGYPTIAN STEEL
“Each team is always updated about developments in its field and submits reports on what improvements are needed; teams act as a part of a whole, which in the end is developed for competition on an international level.” –A hmed Abou Hashima, CEO
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invested heavily in doing so, Hashima said: “The company forecasts total production to soon represent 20 percent of Egypt’s market share.” No small feat for a company with less than a decade of experience under its belt. Its two megaprojects, which are set to become fully operational in 2017, not only indicate a business willing to invest in the long term but also one that is not afraid of making a large scale commitment to the prosperity of the company, its employees, and Egypt. The two facilities will each produce 830,000 tonnes of steel annually which will put the company well on its way to achieving its target market share. Hashima noted that constructions of this size required significant capital investment to get off the ground, he said: “We paid approximately 60 million dollars just to secure
CONSTRUCTION
“The company forecasts total production to soon represent 20 percent of Egypt’s market share.” energy flow to the plants.” The expansion is set to make the number of employees reach 6,000 in Egyptian Steel’s books, which illustrates that the company is confident in its abilities to effectively train, manage and deploy its varied workforce in a timely and cost-effective manner. At the heart of its operations lies the principle of continuous improvement, which Abou Hashima summed up by saying: “Each team is always updated about developments in its field and submits reports on what improvements are needed; teams act as a part of a whole, which in the end is developed for competition on an international level.” Its remarkable progress was recently recognised, when it was awarded “Rising Star”
830,000
Tonnes of steel produced annually by each of the two facilities
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SESCOTRANS 50 FOR DEVELOPED LOGISTICS S.A.E
-SESCOTRANS Integrated logistics solutions for your business 24/7 at your service -SESCOTRANS is serving 4 main ports in Egypt, Three on Mediterranean Sea (Damietta port, Alex port and Abu Qir port) and one on Red Sea ( Adabyia port ) • Annual volume exceeds 13 Million Metric Tons. • Storage capacity exceeds 300,000 square meters either covered or open yards which accomodates 2 Million Metric Tons as a volume per a single session. • More than 250 trucks with various specifications with GPS feature for handling all types of goods and products. • 700 Different kinds of equipment serving your operational processes : Ship-unloaders, Harbor Cranes, Conveyor belts and extra equipment. • 1700 High qualified and well trained employees with a great experience of management and operation. -MAIN ACTIVITIES • Steel Station ( Steel Scrap – HBI – DRI- Steel Billets/Bars) • Energy Station (Pet Coke-Coal) • Grains Station • Fertilizers Station • Cement & Clinker Station • Mining Station -SESCOTRANS is providing Logistics support for EGYPT MEGA projects • NEW SUEZ CANAL • NEW PETROLEUM REFINERIES LABS • NEW POWER PLANTS • STEEL PLANTS 48 July 2015 www.sescotrans.net
EGYPTIAN STEEL
CONSTRUCTION
status at the Platt’s Global Metal Awards. Talent Management Since its inception, Egyptian Steel’s workforce has grown exponentially yet Abou Hashima and his management team still have the time, resources and willpower to ensure that each employee is not simply loyal to the company and its vision, but also a fully-rounded professional. He said: “We choose the best calibre people and work on developing them, implementing the relevant corporate governance so that each person has a solid idea of their career path and what is expected of them to achieve this; we all work together as one big family.” Backing up its close-knit, skill-centred approach to employee development is the company’s strong HR team, backed up by a philosophy committed to what can be achieved in the future; this is exemplified by the large number of varied graduate internships offered by Egyptian Steel. Sustainability Developing sustainable practices will always remain a challenge in the steel and building materials industries, but this has not hindered the company and has, in fact, become a profitable pursuit. Abou Hashima said: “The technologies we use depend on constant charging of scrap in electric arc furnaces without hatch opening, which secures shortened melting time, saving energy while controlling harmful emissions, and
Receiving the Platts Global Metals Awards
‘Its remarkable progress was recently recognised, when it was awarded with ‘Rising Star’ status at the Platt’s Global Metal Awards’
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EGYPTIAN STEEL
“The production process does not consume as much energy as our competitors” limiting strain on the national power grid.” The competitive edge that companies are gaining from the adaptation of efficient technologies is becoming harder to ignore, Abou Hashima agreed: “This resulted in having a price competitive edge for our products, since the production process does not consume as much energy as our competitors; our plants do not negatively affect the communities they operate in.” At the heart of its operations lies the principle of continuous improvement
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Social Responsibility Abou Hashima summed up his business’s attitude to social responsibility: “I believe that the private sector has a major role in developing and
CONSTRUCTION
enhancing the living conditions of the people. The government will not be able to address all problems on its own. At Egyptian Steel our CSR program is one of our top priorities.” This commitment has already been put into practice at the most trying of times in the country’s recent history; during one of the coldest winters on record, the company was responsible for the distribution of 20,000 blankets. Egyptian Steel’s commitment to helping the less fortunate has even taken priority over other aspects of the business, Abou Hashima said: “In 2014, we cancelled both our advertising and marketing campaigns and directed all the funds toward revamping Egypt’s 20 poorest villages. The living conditions in these villages were inhumane; they had no clean water or electricity. We wanted to ensure that these people lived in a human environment.” Its CSR activities have not gone unrecognised and have received many awards, notably the silver ‘CSR Program of the Year’ award from the 2014 Stevie Awards in Paris. This accolade is much coveted and is from an awarding body that seeks to “honour and generate public recognition of the achievements and positive contributions of organisations and working professionals worldwide.” The next half of Egyptian Steel’s first decade is set to be just as exciting as the first half: in that time its megaprojects will operate at full capacity; its first cement plant could also see the first bags roll off the production line, and the company could very well be floated on the Egyptian Stock Exchange.
Company Information INDUSTRY
Building Materials HEADQUARTERS
Cairo, Egypt FOUNDED
2010 EMPLOYEES
Expected to reach 6,000 REVENUE
Not disclosed PRODUCTS/ SERVICES
Steel Production
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Lubrik Construction
Spearheading African Mega Projects Written By: Sam Jermy Produced By: Richard Deane
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LUBRIK CONSTRUCTION
The firm which has only been in existence since 2007, has now grown to the point where it is now the construction firm of choice for substantial works in Nigeria
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ubrik Construction recently won a $122 million contract to spearhead the development of Onne Port Complex in Rivers State, Nigeria, underlining how much the firm has thrived in just eight years. With headquarters based in nearby Port Harcourt and procurement offices in Lebanon and London as well as offices in the Nigerian cities of Abuja and Lagos, Lubrik has subsequently grown into a truly international operation and is taking on bigger projects each year. Now the Business Development Manager, Mark Robertson, is looking forward to continuing the progression already made. He said: “Our $122 million project for Indorama Petrochemicals in the Onne Port complex is far more than just a normal engineering, procurement and construction contract. We
The $122 million Onne Port Complex project under construction
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are also responsible for the training of client’s staff, commissioning of equipment as well as the start-up of export operations, as we have to hand over a fully operational and commissioned jetty with associated buildings and urea powder handling system at the end of the project. “Physically it consists of the jetty structure, container stacking area, a large general warehouse, and an array of facilities for export of urea fertilizer such as a truck unloading station, conveyors, bucket elevators and bulk reclaimers that handle the urea powder to its special warehouse and from there to the ship loading structures, all of which are protected from the elements due to the sensitive nature of the material.” With adjacent facilities such as workshops, administration buildings and so on there are 18 buildings of various sizes in total. This includes full equipping in terms of MEP (mechanical, electrical, plumbing), security and shipping services. The sheer size of content versus the size of the plot of only 6.8ha is a challenge in itself, while Lubrik also had to overcome challenges such as the bad quality of the soil in the port’s swampy area, and very strict timeframe for completion. Building a road anywhere is challenging enough, but when it goes through an area which is made up of dense vegetation, swamps, rocky outcrops and a river; it makes it even more challenging. With the help of a very cooperative local community and a proactive client, these
“Our $122 million project for Indorama Petrochemicals in the Onne Port complex is far more than just a normal engineering, procurement and construction contract. We are also responsible for the training of staff, commissioning of equipment as well as the start-up of export operations” – Mark Robertson, Business Development Manager
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LUBRIK CONSTRUCTION challenges were overcome by Lubrik when building the access roads for the Unicem cement plant; another standout project in its portfolio. This particular road will be one of the first roads in Nigeria constructed using a Slipform machine, which enables the road to be constructed faster, while being made of concrete it will be more durable and reduce maintenance costs for both the road and the vehicles using it. Expansion and diversification Current expansion plans include growing Lubrik’s core construction business in Rivers State. Management hope to achieve this by
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focusing on specific areas of construction, jetties, roads and high rise buildings. Currently, state government are a big source of construction work with multi-million dollar projects on offer. But the firm hopes to diversify by adding more revenue streams; thus keeping the organisation agile. Robertson said: “We already have our own quarry that supplies all of our aggregates and are now looking to open our ready-mix concrete plants and asphalt plants for the commercial market so this will provide another income stream. Our plans also include the execution of projects in Abuja and Lagos. “We believe that with our experience and reputation as a contractor that gets it right the first time we will offer a first class alternative to the current contractors in these markets. Our ability to react to market trends set us out from our competitors. We also like to ensure full dialogue with the community we are working with, making sure we deliver on their expectations as well as the client’s. “The biggest challenge in setting up a new business is obtaining work, in order to do this we had to invest money and time into the marketing of the company, starting with smaller projects and working our way up to where we are today. It takes years to build a solid reputation but only days to ruin it with poor management and poor workmanship, so employee retention and training is a very important function in this aspect”
Casting of concrete pavement structure
Casting of concrete pavement structure
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“In five years’ time we would like to be considered in the top five contractors in Nigeria. With our determination and loyal staff along with the leadership and drive of our Managing Director Gilbert Sassine, we are confident we will reach our goals” – Mark Robertson, Business Development Manager 58
July 2015
Materials where possible are purchased from the local area during a project, in order to put something back. Being ahead of competitors is one of the things that differentiate us from other contractors. Progressive ethos The name Lubrik is well known within the Port Harcourt area for the quality of work the company executes, and Robertson believes this has attracted several prospective employees its way. He said: “Our company views the development of its employees as one of the prerequisites
CONSTRUCTION
to succeeding in the Construction Industry. We therefore encourage our employees to develop themselves and assist them in any way we can. We conduct some in-house trainings where consultants are contracted to train our staff in different areas. We also conduct on the job training for employees interested in learning from other departments. “Our staff who have indicated their interest in furthering their education are given time off work for this purpose and some financial assistance where applicable. We offer apprenticeships in some departments too, and they are available to both members of the local community where we have a construction site and other Nigerians interested in developing themselves.” Lubrik continues to invest in new machinery in order to maintain its level of service following on from the company’s major capital investments in the last few years. Investments include a PLC system for concrete batching plants, Gomaco slipform machine, cranes lifting from 60 to 160 tonnes, a new concrete plant and fleet of 15 new tipper tricks, two fully mobile workshop for maintenance and a modern new crusher for quarry work. “In five years’ time we would like to be considered in the top five contractors in Nigeria. With our determination and loyal staff along with the leadership and drive of our Managing Director Gilbert Sassine, we are confident that we will reach our goals.” concluded Robertson.
Company Information INDUSTRY
Construction HEADQUARTERS
Nigeria FOUNDED
2007 PRODUCTS/ SERVICES
A Nigerian company that specialises in design, building and development of infrastructure, marine structures and other civil works.
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HOLCIM VIETNAM:
The foundation of sustainable construction Written by: John O’Hanlon Produced by: Kiron Chavda
Waste Heat Recovery Power plant at Hon Chong
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HOLCIM VIETNAM
Hon Chong Cement plant in Vietnam
Holcim Vietnam is a subsidiary of Holcim Ltd, one of the world’s leading building materials companies with a presence on five continents: it is committed to sustainability and working to establish a lead in green products and manufacturing
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olcim Vietnam Ltd. (HVL) is a wholly owned subsidiary of the Holcim Group, one of the world’s leading suppliers of cement and aggregates, ready-mix concrete, constructionrelated services, which operates in more than 70 countries. The licensed investment capital in Vietnam amounts to $495 million. Formerly known, until 2002, as Morning Star Cement Ltd, HVL was registered in February 1994 as a joint-venture company between Holcim Ltd. and Vietnam Cement Industry Corporation (VICEM) that respectively contributed in the Company 65 percent and 35 percent of its charter capital. Holcim Vietnam currently employs around 1,300 people at its four technologically advanced cement production sites and more than eight modern ready-mix concrete batching
ASIA
plants in addition to the HCMC Office. Sustainable Development is at the core of its business strategy embracing the Triple Bottom Line framework integrating economic growth, environmental performance and social responsibility. It seeks to balance those three aspects in everything it does. Holcim Vietnam’s holistic approach aims to create value for all its stakeholders. The launch of the Geocycle business unit in 2007 was a practical step towards the company’s sustainable development goals, providing waste management solutions to a diverse range of industries in Vietnam. Continuing on this path, the official launch of a Sustainable Development Department in early 2008 is testimony to Holcim Vietnam’s commitment to accompany Vietnam in its sustainable development journey. Founded in Switzerland more than a century ago, Holcim is going to be merged with Lafarge to create the world’s largest cement group with a production potential of 350 million tonnes per year. Holcim Vietnam is the leading supplier in that country of both bagged, dry cement powder and concrete, known as ready-mix or beton and supplied to contractors and building materials distributors in the country. It’s well known that Vietnam is a development success story. According to the World Bank, political and economic reforms (Doi Moi) launched in 1986 have transformed Vietnam from one of
Key Personnel
Mr. Nguyễn Công Minh Bảo
Holcim Sustainable Development Director Bảo holds a Master degree in Computer Sciences from Ecole Superieure d’informatique Paris, France. He has over 15 years international experience in France, UK and Asia in various management and consulting positions. Bảo moved to Vietnam in 2004. His bi-cultural background and professional experience in the private business sector, as well as non-government organisations, are a good combination for the position of Sustainable Development Director. He joined Holcim Vietnam at the end of 2007 to establish a fully Sustainable Development Department which integrates environmental, system compliance, corporate social responsibility, sustainable construction and corporate communication activities.
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Tu Phuong AD* Star Bag factory, branch of Plaschem is one of the leading block bottom bag suppliers in Vietnam Tu Phuong AD* Star was established in 2013 with the initial capital amounts to USD 15 million. With complete production lines from Starlinger- Austria, the factory produces 132 millions bags/ year and is yet still seeking for more opportunities. Having 23 years of experience in the plastic industry, we can ensure customers with quality and trust.
Refractory Castables • Refractory Anchors Insulating Materials • Tailor made monolithic refractories for Cement Kilns T +84 4 3543 0589 F +84 4 3543 0442 info@novaref.vn www.novaref.vn 11th floor • Lilama-10 tower • To Huu str • Hanoi • Vietnam
Phone + 84 72 3 55 00 11 Fax + 84 72 3 821 799 Mr. Bui To Dinh + 84 91 9485868 Ms. Bui Tu Phuong + 84 90 4357888 Ms. Dao Thi Thanh Nga + 84 93 7278664 Buitodinh_adstarbag@plaschem.vn
No. 6, Loi Binh Nhon Industrial Cluster, Loi Binh Nhon Commune, Tan An City, Long An Province, Viet Nam
SAFETY QUALITY EFFICIENCY We specialise in design, fabrication and installation of industrial equipment such as
• steel structures • pressure vessels • piping systems
info@noiluc.com www.noiluc.com
• • • • • •
T F E W
Process Automation Factory Automation Power Management System Electrical engineering Weighing - packaging Measurement and instrument +84 8 3736 0165 +84 8 3736 0166 info@dpta.com www.dpta.com
Duc Phong Technology and Automation Corporation 02 Duy Tan street Hiep Phu ward District 9 Ho Chi Minh city Vietnam
HOLCIM VIETNAM
ASIA
the poorest countries in the world, with per capita income below $100, to a lower middle income country within a quarter of a century with per capita income of over $2,000 by the end of 2014. Vietnam’s growth rate has averaged 6.4 percent per year for the last decade, but it has begun to slow recently. In 2014, GDP growth was 6 percent, projected to flatten in 2015 and to start to pick up in 2016. This is precisely reflected in the construction sector, says Nguyễn Công Minh Bảo, Sustainable Development Director: “Because of the general downturn economic situation, the demand for cement has been flat for most of this year, and it has been difficult to grow any part of the business because of overcapacity in the industry as a whole. Though some government projects are going ahead with lot of infrastructure development, the private sector has been stagnant due to lot of these projects going to SOE (State-own Enterprises). If anything the demand for beton has kept up better. Large construction EPC contractors will normally rely on Holcim because they know the company has the technical knowledge to provide them with the right high quality material for the job. They don’t have to look hard for proof. At the heart of Ho Chi Minh City stands the recently completed Times Square complex. At 163 metres it is one of the tallest buildings in Vietnam and the piled foundation slab had to be correspondingly tough. Holcim Vietnam provided a special solution comprising ‘mass beton’ concrete using low
Baghouse fillter at Hon Chong
“I think one of the biggest advantages of Holcim is that we have a very lean culture and a very efficient process” – Nguyễn Công Minh Bảo
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HOLCIM VIETNAM
Attendants taking WHR plant tour
“For us the waste management initiative is the perfect example of environmental responsibility in the service of productivity” – Nguyễn Công Minh Bảo
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heat ‘Holcim Mass Pour’ cement, and controlling the fresh concrete temperature with ice and chilled water to avoid any possibility of cracks. No other cement supplier could come close to that level of sophistication Minh Bảo points out. But the technical superiority of this company is internationally understood. One of its chief differentiating advantages in the local market is its sustainability policy. “Sustainable development is at the core of our business strategy: we try to integrate economic growth, environmental performance and social responsibility and to balance those three aspects in everything we do.” It’s a bold stance for a cement company to openly embrace the triple bottom line, and Holcim Vietnam had to take some bold steps to achieve it, he said, and was willing to put its money where its mouth is. “I think one of the biggest advantages of Holcim is that we have a very lean culture and a very efficient process. We have invested a lot in green manufacturing, and as a result we achieve better margins than our competitors.” Cement prices are pegged by the government, he points out, so the most competitive company will always be the one that controls its costs. The launch of the Geocycle business unit in 2007 was a turning point, and today Holcim provides waste management solutions to a diverse range of industries in Vietnam by co-processing their waste products in its cement kilns. In a single operation, a range of industries are able to dispose of their waste in an
ASIA
Waste heat recovery power plant from outside
environmentally friendly way, he explains. “The waste materials are collected and brought to our facilities at Cat Lai for temporary storage, pre-processing and laboratory test. Then transferred to our Hon Chong plant in Kien Giang province for mixing, shredding and coprocessing. In the kiln where the cement clinker is produced, temperatures up to 1,500 degrees are required to produce clinker, which means that even hazardous waste is safely consumed.� This has been a win-win operation for Holcim and the companies whose waste it processes alike. “We believe that if every company cleaned up its processes, it would work to their competitive advantage. For us the waste management initiative is the perfect example
1,300 Number of employees working for the Holcim Vietnam
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Auto grab crane operating without operator
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of environmental responsibility in the service of productivity.” In Holcim’s processes it reduces the dependence on coal, and consequently the cost of clinker production: at the same time, it cuts the amount of material going to landfill, reduces emissions of methane, and helps reduce the risk of soil or water pollution from landfill sites. Further investment last year saw the kilns upgraded, and the addition of a waste storage unit supplied by alternative solid fuels handling specialist Walter Materials Handling (part of the ATS Group). This is a highly automated facility that improves safety by minimising human contact with the waste stream. In 2012 the company started to build a 6.27MW waste heat recovery power plant (WHR) at its Hon Chong plant. This $18 million plant is one of the outstanding milestones in the company’s sustainable development journey, since as well as contributing 25 percent of the power the cement plant needs, the generating station eliminates approximately 25,000 tonnes of CO2, the equivalent of 9,300 tonnes of coal per year, releasing back to the national gird the equivalent of 18,000 households’ electricty use annually. Two waste heat sources are used: the kiln preheater exhaust gases and the clinker cooler exhaust. “It represents a huge saving in terms of our carbon footprint,” says Bảo. “And it saves lot of cash from the business because we reduce power outages and our dependence on the national.” Construction of the plant started in 2012 and was completed in October 2013.
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It should be noted too, he added , that CO2 is not the only environmental impact from cement plants, which used to be notoriously dusty. However in Holcim’s achievement context, Vietnamese law requires that industrial dust emissions should be below 100 milligrams per cubic metre (mg/Nm3). Since the decision was made to replace the existing electrostatic precipitator (which was the state-of the art technology when the plant was built), which achieved between 40 and 50 mg/Nm3, with a bag filter, dust emissions have been drastically reduced and are now well below Holcim’s corporate target of 20 mg/ Nm3 (between 2 to 8mg/Nm3). Hon Chong can now be considered a world class facility. So far we have just spoken about process improvements, but another part of Holcim Vietnam’s vision is to formulate green products, using recycled materials where possible, to assist customers in Lotus accreditation (the local equivalent of Leadership in Energy & Environmental Design, or LEED). Vietnam’s construction industry is not ready to embrace these principles fully, but Bảo is determined his company should be well ahead of the market here. As an example, Holcim Mass Pour cement, referred to earlier, contains up to 60 percent recycled slag, twice as much as is specified by LEED or Lotus. It and many other Holcim products are the only products referenced in the green building materials database by the Vietnam Green Building Council.
Company Information INDUSTRY
Construction HEADQUARTERS
HCMC FOUNDED
1994 EMPLOYEES
1,300 REVENUE
$500m PRODUCTS/ SERVICES
Cement: green energy
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Safety, Innovation And Qu
Shell Corrib Gas Terminal
uality: Building For The Future Written By: Abigail Phillips Produced By: Ben Walshe
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M E R C U RY E N G I N E E R I N G
Mercury Engineering was founded in 1972 by the late Frank O’Kane and Joe Morgan and over the past 42 years has grown into one of Europe’s largest independent engineering contractors.
T
he company has completed projects in 25 countries on four continents and has annual revenues that exceed €500 million. Since its inception, the company has focused on three core values (safety, innovation and quality) which guide the company today as it works with an ever expanding client base throughout the world. The key to every successful business is its staff and Mercury has always appreciated and valued its employees. The majority of its highly experienced team are long term direct employees who manage projects on behalf of its clients to the strictest codes of integrity and professionalism. Over the years, Mercury has grown organically to become a leading international multiservice contractor specialising in HVAC, Process, Electrical, I&C, Data & Telecoms and Fire Protection Installations. The
Bespoke interior fabrication for a Data Centre
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EUROPE
New Southern Glasgow Hospital & Royal Hospital for Sick Children
company also provides Project management, Design, Procurement, General contracting, Specialist Commissioning and Maintenance for specific clients and projects. Innovation and creativity at its core As a company, Mercury quickly adapts the latest building systems and services both through experience and the use of educational seminars. The company has extensive experience in modular construction, pods, prefabricated piping sections (design & build), IP controlled building management systems, energy management systems, as well as geothermal. Mercury has invested heavily in the use of
‘A prime challenge faced by the company is to ensure that globalisation becomes a positive force for the business’
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MECHANICAL & ELECTRICAL FIXINGS
t 0131 448 2525 f 0131 448 2526 e sales@mef.co.uk
Mechanical & Electrical Fixings Ltd. 10 Dryden Road Bilston Glen Industrial Estate Loanhead, Midlothian EH20 9LZ
www.mef.co.uk
EXPERTS IN ELECTRICAL COMPLIANCE
INSPECTION | TESTING | DOCUMENTATION | COMMISSIONING | SAFETY
• Fixed Wire Testing On New Build Projects • Electrical Installation Condition Reports (Periodic) • Independent Electrical Surveys • Witness Testing • Fault Finding and Rectification • Medical Location Inspections and Solutions • Final Circuit Terminations • Hazardous Area Solutions • Thermal Imaging Surveys • Special Location Verification and Testing • Modular Wiring System Testing • O&M Manual Requirements • Asset Registers • Commissioning Management T +44 (0) 845 226 7484 F +44 (0) 845 226 7485 info@groupmanagement.com www.groupmanagement.com
X X X
9 Lenziemill Road West Lenziemill Industrial Estate Cumbernauld, Glasgow G67 2RL Tel: 01236 735010 info@brysonbrown.co.uk
Thermal Insulation Sheet Metal Fabrication Heat Tracing Acoustic Insulation Noise Control Fire Protection
M A N U F A CETUURROI N PG E
Building Information Modelling (BIM) and now employs over 120 80 BIM modellers. Using this technology the company can reduce waste both in terms of time and materials which ultimately improves project delivery times and reduces project costs. Since day one Mercury has been committed to delivering state-of-the-art technology solutions to its clients and will always be one step ahead of the competition when it comes to innovation. In the construction industry, change is no longer an event; change is business as usual. Mercury believes that adaptability and innovation are keys to positive change. Clients are demanding, “better, faster, cheaper” and competition is fierce. Globalisation, turbulent economies and fast evolving technologies further increase the pressures to “do more with less.”
Using this technology the company can reduce waste both in terms of time and materials which ultimately improves project delivery times and reduces project costs
Mercury has invested heavily in the use of Building Information Modelling (BIM)
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M E R C U RY E N G I N E E R I N G
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Mercury works with a broad range of clients from various industries
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M E R C U RY E N G I N E E R I N G The company’s future success is dependent on keeping the work force educated and equipped with the best tools and business processes.
Off site fabrication
A culture of change “It’s a fact that rapidly evolving and pervasive technologies are impacting almost every aspect of the construction business and there’s no doubt that these technologies have turned the way we work and communicate on its head. Information technology has opened up previously unimaginable possibilities has given us new tools to manage our business more efficiently and increase the level of service we offer to
Proud to design and deliver an intelligent building solution to the New South Glasgow Hospital Campus
At RKD we offer a variety of services and facilities: - Pre fabricated pipework - Module fabrication - Mechanical Modules - Electrical Modules - Riser Modules - Steel Work - Welding - Design - Installation
Boston Networks is proud to have delivered a future proof, secure and highly resilient network communications and security infrastructure, to provide seamless connectivity and security to the new South Glasgow Hospital campus.
www.bostonnetworks.co.uk
Tel: 01724 851447 johngrayrkd@hotmail.com
M A N U F A CETUURROI N PG E
our clients,” said Ed McIntyre, Director UK . Mercury’s commitment to fostering a hightech working environment is demonstrated through the company’s use of the most up to date hardware and software coupled with ongoing training and support to all of their staff. The use of evolving technologies is also woven through the company’s future business plans. “Optimisation has always been a driving force in Mercury’s business. Every project the company undertakes is unique and has its own set of risks and challenges; however the company’s approach is the same; to optimise the engineering design, supply chain, installation techniques and management practices,” said McIntyre. In order to achieve this, the company puts a large emphasis on people and the culture of the business. With a long and varied history, Mercury has experienced both good and bad economic climates yet has managed to keep its head above water thanks largely to its commitment to technology and innovation. As McIntyre explained: “Relentless pressure by clients
Eoin Vaughan, Group Managing Director at Mercury Engineering
Ed McIntyre, Director at Mercury Engineering
‘Information technology has opened up previously unimaginable possibilities has given us new tools to manage our business more efficiently and increase the level of service we offer to our clients’ – Ed McIntyre, Director w w w. m e r c u r y e n g . c o m
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M E R C U RY E N G I N E E R I N G
Bespoke interior fabrication for a Data Centre in Ireland
for continual improvement led the company to invest in and adapt multidisciplinary management, increase use of IT, make use of the most modern materials and to develop more efficient Installation practices. Many of the company’s competitors who didn’t or couldn’t embrace change are no longer here today.” Management mobility Mercury began as a local business and has become an International entity. So what made that transition so successful? “A prime challenge faced by the company is ensuring that globalisation becomes a positive force for 80
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EUROPE
the business. Mercury began its International expansion programme in 2000 and to date has completed projects in 25 countries on four continents. Undoubtedly, key to this successful expansion was the company’s management mobility, the businesses multinational client base and integrated IT systems,” said McIntyre. In an increasingly competitive environment, attracting new talent into the company is crucial to the sustainability of the business. Mercury actively recruits new people from a large and diverse set of candidates from across all of areas of operations. The company actively promotes Graduate placement programmes and works with professional institutions endorsing the industry as a career opportunity for school leavers. Increasing globalisation is another factor facing us all and is inevitable and irreversible. 2013 was the year that emerging economies accounted for half of the world’s GDP. The mobility of the world’s major manufacturers and the opportunities created around them presents business opportunities to those prepared to adapt quickly.
Company Information INDUSTRY
Manufacturing HEADQUARTERS
Glasgow FOUNDED
1972 EMPLOYEES
3,558 REVENUE
€550M PRODUCTS/ SERVICES
Engineering
Looking to the future “Mercury aspires to be the most successful multidisciplinary engineering contractor in every sector and geographical area in which they operate. The management are committed to investing in the company’s future and to supporting their client’s projects across Europe,” concluded McIntyre. w w w. m e r c u r y e n g . c o m
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Cervini Painting & Decorating Ltd. Cervini Painting & Decorating Ltd. adds a little color to the city Cervini Painting & Decorating Ltd. has become one of the largest painting contractors within the Greater Toronto Area—here’s how. Written by: Cutter Slagle Produced by: Rich Gentile
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C E R V I N I PA I N T I N G & D E C O R AT I N G LT D .
Onsite management team
“
We’re very hands-on,” said Rocco Cervini, Vice President of Cervini Painting & Decorating Ltd.. Family owned and operated, Cervini Painting & Decorating Ltd. has been in business for over 30 years. During this time, the company has become one of the largest painting contractors for new highrise developments within the Greater Toronto Area. As many of their clients are the top new home developers in Canada, customer service is a main priority throughout the Cervini business. In fact, it’s just one of several factors that have allowed this painting and decorating 84
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company to distinguish itself from others in the industry. A Shade Brighter than the Competition “We’re both a big and a small company,” Cervini stated. “We’re still small in a sense of how we run, operate and are structured, but we do a lot of work and have done a lot of work. We’re a small company at heart, but have gotten bigger over the years.” Cervini has a goal of not only pleasing the client, but making sure that the contractor or customer becomes a repeat consumer. “We have a vision of doing the best we
CONSTRUCTION GLOBAL
Emilo Cervini, Anthony, Peter, Rocco Cervini
can, whether we’re making a lot of money or no money,” added Cervini. Cervini Painting & Decorating Ltd. is very thorough throughout the entire painting process—from the initial quoting stage, to the actual procedure and finally, to the closing of the project. As part of its focus on customer service, the company does everything in its power to be proactive. Cervini was brought up in this business with a certain mentality and still lives by it today: “No matter what you do, make sure you do the best job you can—whether you’re making a lot of money or no money.” After all, Cervini recognizes that it is the client that keeps him and his team in business: “At the end of the day, you’re working— and that’s a good thing.”
Hullmark Tridel
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C E R V I N I PA I N T I N G & D E C O R AT I N G LT D . Green is the New Norm Five years ago that the company made the conscious decision to “go green.” As Cervini explained, to “go green” is really not a new concept, but a normal method of the business. After doing the research and discovering how important it was to help the environment by recycling and reusing certain products, a valid effort was put into effect to help make the change. He said it was a “no brainer that the business was going to head this way.”
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While most jobs are LEED category jobs or “green” jobs, there are still many that don’t require this particular form. Instead of having separate supply and paint lines, however, Cervini utilizes just one line to comply with the LEED stipulations. “We try to make sure that whether it’s a LEED category job or not, that it’s green regardless— we’re using green as much as possible.” On top of being a “green” company, Cervini is in the process
CONSTRUCTION GLOBAL
of implementing the use of an intumescent fire safety coating. Steel structures are becoming more common in Toronto, and need to be treated with this intumescent coating for better protection on the chance that a fire breaks out. Cervini has traveled to New York and other markets where this process is already taking place. While Cervini knows that it is only a matter of time before the coating becomes mandatory, he’s decided to take a proactive approach and become familiar with the method now so that he has “time to learn it and run his business with it.” The sole purpose of this special coating is to keep the fire and heat away from a steel beam long enough for people to have an opportunity to evacuate the building during a fire. Depending on the fire rating or particular code of a structure, a certain amount of coating thickness is used on the metal. If a fire were to take a place, the coating expands to four or five times the actual surface it’s covering and acts as a barrier to keep the beam from getting too hot and collapsing under pressure. Cervini noted that, while this isn’t
an “aesthetically pleasing looking paint, it’s not meant for looks.” He did mention that in most cases the fire safety coating can be painted over with regular paint to better match the surroundings. Painting Their Way to the Top Cervini Painting & Decorating Ltd. is recognized as a “Top Specialty Contractor” in Toronto, as the company has worked on the most high-rise condominium projects in Toronto and the Greater Toronto Area over the last 20yrs—at one point in the last few years, Toronto had the most highirse projects in the world. “We’ve never lost a project because of quality,” said Cervini. “If we’ve lost a project, it’s more for budgets and costs than anything.” The majority of the jobs that the company is working on at the moment and the vast amount of clients are those associated with high-rise buildings. “We’ve been painted into being a high rise painter,” Cervini quipped. However, the team does have lots of experience doing commercial work. One of the most fascinating projects that Cervini has been a w w w. c e r v i n i p a i n t i n g . c o m
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C E R V I N I PA I N T I N G & D E C O R AT I N G LT D .
Studio - Aspen Ridge Homes
part of was the Absolute World Twin Towers, which have been dubbed the “Marilyn Monroe Towers” due to the curves of the structures. Each floor of the skyscrapers was shifted on an angle to give it the revolution effect. One reason these buildings are so well recognized is due to the fact that you can see for miles; even from the CN Tower in Toronto can be seen from this location, a good 50 or 60 miles away. 88
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One of Cervini’s current projects is the Aspen Ridge project. Cervini mentioned that its location helps to set it apart from other builds. “Two different worlds are within walking distance,” He said. Hospitals, the club scene, trendy areas and baseball fields can all be reached without the aid of a vehicle or bicycle. The building itself is not a typical tower, but has more of an art theme and has been designed
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to different exterior elevations. Hullmark Center is another example of the mulit type projects that Cervini has complete being a mix use of commercial, retail and residential in 2 stunning towers by Tridel.
Company Information INDUSTRY
Construction Global
The Colors the Future Holds for the Industry Cervini Painting & Decorating Ltd. is known for mixing its younger staff with its veteran employees. Cervini stated, “It’s important to find the person who wants to learn and who can put their pride in their back pocket.” New or younger employees can learn insight from workers who have been with Cervini longer. However, the older employees are not training the younger staff as their replacement. With this process, no one has to worry about losing their job. In fact, Cervini mentioned, “Attitude and the economy are what dictate the longevity of an employee’s job with us.” While no one can control the way of the economy, workers can control how they choose to behave. When discussing what’s in store for the industry, Cervini noted that there isn’t enough of the younger generation getting involved. With his company, he hopes to set an example and take the business back to what it used to be, with respect and appreciation for this specific trade. While too many people seem to be working without experience or knowledge, Cervini knows how important it is for him and his team to be “pure, know-how painters.”
HEADQUARTERS
21 Kenview Blvd. Unit #6 Brampton, Ontario, Canada FOUNDED
1984 EMPLOYEES
50 + PRODUCTS/ SERVICES
Not Disclosed
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Walsh Downtown Crossing Project
Paving the Way to Better Roads with Louisville’s Downtown Crossing Project Walsh Construction takes on I-65 traffic and Spaghetti Junction as part of the Louisville-Southern Indiana Ohio River Bridges Project Written by: Sasha Orman Produced by: Tom Venturo
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ouisville is a lively modern city with a challenging traffic problem. Built against the banks of the Ohio River, with only limited options of the I-64 and the I-65 bridges to cross the river to and from neighboring Indiana, traffic congestion is a constant problem for residents and commuters on both sides. That congestion is complicated even further by the tangled Kennedy Interchange— 92
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known locally as “Spaghetti Junction”—where the I-64, I-65, and I-71 merge on the Louisville side of the John F. Kennedy Memorial Bridge that currently carries the I-65 over the Ohio River to Jeffersonville, Indiana. In an attempt to solve this traffic problem, Kentucky and Indiana launched the Ohio River Bridges Project to build new pathways across the river and refurbish
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existing bridges. Chicago-based Walsh Construction Co. was selected to take on the ambitious $860 million Downtown Crossing project, which will add a new six-lane bridge to the I-65 crossing and streamline the Kennedy Interchange. Improving piece by piece The Downtown Crossing project will reconfigure the I-65 Ohio River crossing in a quite significant way. “Eventually we are going to have a new bridge that will carry six lanes of I-65 northbound
“The number one priority on any Walsh job is safety: we try and instill this in our workforce and everybody that comes to the job” – Joel Halterman, Project Manager
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traffic,” says Joel Halterman, Walsh Construction Project Manager for the Downtown Crossing project. “Then we are going to rehab the existing I-65 bridge to carry six lanes of southbound traffic. Essentially, we will be doubling the lanes across the river by the end of our project. It’s a massive project and it covers a lot of area, a big footprint.” To manage the scope of the project effectively, Walsh Group broke the Downtown Crossing project into three distinct sections—the “Spaghetti Junction” Kennedy Interchange section, the new bridge itself, and the section on the other side of the Ohio River where I-65 northbound drivers will land in Indiana. “We have Sections One, Two, and Three—with Section One in Kentucky, Section Two over the
SUPPLIER PROFILE
Indiana Pylons at Clark Memorial Bridge
CHICAGO JACK
CJS, Chicago Jack has been in business for over 50 years. Beginning with hydraulic lifting equipment, CJS has expanded its products and services to incorporate a broad line of hydraulic, mechanical, pneumatic tools and equipment as well as safety products. Our mission is to specify, recommend and deliver quality products for safe use and operation. In addition, we offer in house safety seminars on the safe care and use of lifting products. We also inspect, certify and repair like products. Website: www.chicagojack.com
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Design-Build? No Problem!
Louisville Downtown Crossing
15,000 + Tons of Fabricated Steel, 20 + Plate Girder Bridges
Stupp Bridge Company is a leader in steel plate girder bridge fabrication. Our Bowling Green, Kentucky manufacturing facility is AISC certified to Bridge Fabrication- Advanced (Major), with Fracture Critical and Sophisticated Paint Endorsements. The best bridges are Stupp-Built! w w w. s t u p p b r i d g e . c o m Phone: 314-638-5000 3800 Weber Road | St. Louis, MO 63125
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river, and Section Three in Indiana,” says Halterman. “We set the project up that way, where each section has its own management team. We all come together and there’s a lot of close coordination between the sections, but it is almost like three separate projects for us.”
the foundations, and 300,000 tons of asphalt,” says Halterman.
Placing a priority on safety: the Walsh way “The number one priority on any Walsh job is safety: we try and instill this in our workforce and everybody that comes to the job,” says Facing the challenges of Halterman. “For every employee construction that we have, our goal is that they With a signature six-lane bridge co- come and make a good living on the designed by Jacobs Engineering, job site, do a good job and go home featuring three sets of twin towers at the end of the day in the same and a cable stay structure to condition that they showed up in the highlight rather than impose on the morning. That’s what we strive for Louisville skyline, Section Two is every day.” the centerpiece of the Downtown From project to project, Walsh Crossing project. As strong and Group employs different methods to functional as it is visually stunning, uphold and enforce its prioritization the bridge will be supported with of safety. The Downtown Crossing 30,000 cubic yards of concrete, project, undertaken in a relatively 8 million pounds of rebar, and 12 new project area for Walsh, employs million pounds of structural steel. many workers who have never But Section One is unquestionably worked with the company before, the largest and most complicated putting the emphasis on quality section of the project, training above all. encompassing half of the project as “For every employee that comes a whole. “There are over 40 different through the job site, the first day is bridges on that section of the job, 21 an orientation,” says Halterman, MSE walls—plus 700,000 yards of explaining that this initial orientation fill, 500,000 feet of steel h-piling for consists of a 10 hour OSHA training kyinbridges.com/downtown-crossing
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session to get everyone up to speed on safety protocol tailored to the unique components of the Downtown Crossing project. In addition to this initial orientation, Walsh Group also offers a gamut of supplemental training seminars to its employees— to the point where the business has set up a dedicated safety trainingfocused conference room for the Downtown Crossing project. As Halterman explains, with the safety and well-being of hundreds at stake, that training is not limited to full time Walsh employees or subcontractors. Because every person involved with the project has 98
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the potential to interact with and affect operations, no one steps onto the Downtown Crossing job site without completing the initial 10 hour OSHA training session. “If we have 600 employees working here, I’d venture to say well over 1000 people in total have been through our safety orientation,” says Halterman. The benefits of growth The effort expended constructing the Ohio River Bridges projects is great, but the benefits that residents and businesses will stand to gain after completion is even greater. The Downtown Crossing project is
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expected to bring substantial improvements to congestion, especially the intense backup that tends to happen at rush hour. “It’s really the mobility across the river—for a river town, Louisville has limited river crossings here,” Halterman explains. “This will improve cross-river mobility, and really it’s going to improve congestion and it’s going to be a safer system.” The expected results of the work done on Section One in particular will be instrumental in improving traffic safety for drivers in Louisville. “There’s a lot of weaving where the interstates come together. Drivers have a short distance to make a choice, and may have to move over across three lanes,” says Halterman, explaining the dangerous maneuvers that many drivers have to make every day to navigate Spaghetti Junction as it stands today. “We’re taking a lot of that out with the new design of the interchange. That was a big motivation for the work in Section One.” Awarded the project in December of 2012, Walsh Construction broke ground on the Downtown Crossing project in July 2013. Two years later, the Louisville Downtown Bridge is 60 percent complete and on schedule for launch at the beginning of 2016—including refurbishment of the Kennedy Bridge and completion of the entire project. With this, Kentucky and Indiana residents and visitors can look forward to smoother commutes and safer travels.
Company Information INDUSTRY
Construction/ Contracting HEADQUARTERS
100 Witherspoon Street, Louisville, Kentucky USA, 40202 FOUNDED
2012 EMPLOYEES
600 BUDGET
$860 million PRODUCTS/ SERVICES
Construction/ Contracting
kyinbridges.com/downtown-crossing
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DPR Construction
BioMarin and DPR Construction collaborate to build greatness Discover how BioMarin and DPR have combined talents to expand a research and development facility, achieving greatness along the way Written by: Cutter Slagle
Produced by: Tom Venturo
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D
PR Construction and BioMarin applied for a building permit in June 2014, joining forces to expand BioMarin’s research and development facility in downtown San Rafael (ultimately bringing the developmental sciences group to BioMarin’s main administration campus). The project officially broke ground on the development in August of that same year—and it’s been on the fast track ever since. BioMarin Principal Engineering Project Manager Jim Redenbarger recently spoke about the collaboration and how BioMarin 102
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originally acquired DPR Construction’s assistance, stating: “DPR is known for doing excellent work and proved that they were best suited for this project.” “This type of project is in DPR’s core market,” DPR Construction Project Manager Tim Kueht said. “We are always searching for different projects that allow us to be collaborative and push forward in the industry, versus staying with old and traditional practices. We enjoy working with partners, subcontractors, and various people in the community to develop a relationship and joint understanding
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of the work process in order to complete a project.” While a structure to this degree often takes at least three years to complete from design to develop to build out, the center is slated to be finished in December 2015—just 18 months after starting. The factors behind this turnaround time can be contributed to a range of qualities, but collaboration is the one that seems to be the most significant. “When it comes to building, everyone is ready to go—every member of the team is completely onboard,” Kueht stated.
“We are always searching for different projects that allow us to be collaborative and push forward in the industry” – DPR Construction Project Manager Tim Kueht
Tackling challenges to the expansion This expansion project has been put into motion to create a facility that will accommodate all research needs. Most importantly, this is a solid w w w . d p r. c o m
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DPR CONSTRUCTION design that can help accomplish a magnitude of goals, including the ability for departments to be switched out and restacked and even turned into laboratories. Also due to this expansion, more collaboration within the building will be able to take place. Redenbarger noted that the various features of the building will be a way to bring people together. “This expansion is already proving its worth,” he stated. “Science equals change, and we are accommodating that change with this building.” The building is located in a very urban setting and there have been a few challenges— challenges that Redenbarger, Kueht and their
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respective teams have been able to overcome. For example, schedules have proven to be particularly daunting, as has the task of getting all of the right materials in order and in a timely manner. Then there’s finding the manpower—both Redenbarger and Kueht agreed that it’s not just about getting people, but the right people for the right job. “This entire project is a highly collaborative effort,” Kueht explained. “It takes everyone involved to help achieve overall goals.” Whether it’s been the challenge with the foundation, the various bay conditions or the different restrictions that were put into place, the team has been able to work together to overcome them. “DPR is very good at identifying challenges early on—sometimes even before they happen,” Redenbarger said. “They’ve resolved issues, which has ultimately saved the project time and money.” There is a central utility plant on the roof of the building that has been quite demanding due to the fact that a lot of equipment has to fit into such a tight space. It’s important for employees to work safely in the small quarters. This is where technology and having a model of the building came into great assistance.
“This entire project is a highly collaborative effort; it takes everyone involved to help achieve overall goals” – DPR Construction Project Manager Tim Kueht
Technology and the assistance of BIM Both Redenbarger and Kueht have acknowledged the importance of Building Information Modeling (BIM) and how this type of technology has w w w . d p r. c o m
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not only assisted all involved parties with efficiently handling the expansion, but also allowing workers to stay on track to complete the project on schedule. “Because of BIM, everyone has access to the model and all 106
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of the building information,” said Kueht “The designing and detailing information we have can be pushed through instantly, meaning BIM saves us a lot of time; BIM allows us to have a quicker and more efficient process.
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“With BIM, we are accurately building with the most current information,” he added. “We are finally able to see the value of technology, as well as understand it and like it.” Redenbarger agreed with Kueht’s positive feedback regarding BIM, adding, “BIM allows us to identify areas that need improvement so that we can then advance our skills and approach and move forward. We’re completely sold on the BIM process. It enhances the collaboration for all players on the project—everyone wins.” Both Redenbarger and Kueht plan to continue using BIM going forward in their careers. When asked about any other technological techniques being utilized, Kueht said, “We use the latest technology that is available, leveraging it and taking it the next level to produce faster and more accurate results.”
Company Information INDUSTRY
Construction Global HEADQUARTERS
945 Front Street, San Francisco, California , USA, 94111 FOUNDED
1990 EMPLOYEES
1860 REVENUE
Commitment to achieving milestones As with any project, one of the biggest—if not the biggest—goals is to deliver the build on time and on budget. And so far, this hasn’t been an issue with this expansion. As stated earlier, completion is looking to wrap up by year’s end; this is an aspect that everyone should be proud of accomplishing. “That’s our goal,” Kueht started, “to have everyone involved in the project walk away completely satisfied and proud of their work from all aspects. It’s important that everyone is happy and had a good time being part of the project.”
$2.9 billion PRODUCTS/ SERVICES
Construction
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Walsh Construction
Upgrading Quality of Life at Olson Pavilion Walsh Construction discusses some of the challenges and rewards in building the next chapter of the Olson Pavilion. Written by: Robert Spence Produced by: Tom Venturo
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Olson Pavilion exterior
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ounded in 1898, Walsh Construction is a familyowned and operated Chicago-based general contracting, construction management and design-build firm. The firm has extensive expertise in a wide variety of building, civil and transportation sectors including renovation, senior living, high-rise apartments, condominiums, affordable housing, educational facilities, warehouse/ distribution facilities, athletic facilities, correctional facilities, office, design-build, wastewater and water treatment plants, rapid transit, highway, bridgework and more. 110
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For over 115 years, Walsh Construction has built and maintained a strong base of repeat clients through its commitment to quality, craftsmanship, and delivery of projects in a timely manner. Recognized as one of the nation’s top 20 contractors, these values have never been more evident than Walsh’s latest project: the Olson Pavilion project at Lutheran Home in Arlington Heights, Illinois. Upgrading quality of life Since 1892, Lutheran Home has provided short-term rehabilitation, residential health care, in-home
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Olson Pavilion dining hall
services, adult day care services and child care. With the help of Walsh Construction, the campus’ skilled nursing facility, Olson Pavilion, is undergoing an extensive renovation and addition to provide the latest in senior care. The project aims to upgrade the existing 127,000-square foot facility along with adding 22,000sf of new space to Olson which includes reconfiguring of 252 rooms down to 162 private rooms with private baths. The new 83,000 sf shortterm rehabilitation facility known as MyRehab Center, which opened
in July 2014, is a 78 private room addition that accommodates expanded resident wellness and therapy programming. The first phase of construction, which commenced in October 2012, included the addition of 115 parking spaces on the east side of campus, as well as the construction of the three story rehab facility off the existing Olson building. For Walsh, one of main challenges of the project is the fact the campus remains open and operational during construction. “This is a very active campus with people coming and going at all w w w. w a l s h g ro u p . c o m
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PR O U D PA RT N ER WIT H WALSH CONSTRUCTION
w w w.new tecwindow.com 3159 W. 36th St., Chicago, IL 60632-2303
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• Local Manufacturing – We manufacture our own windows locally in Chicago and you get to deal direct with the factory – no middle men, dealers or distributors. That means short lead times, quick turn-around on emergency rush shipments; even same day glass replacement. No one else can provide our level of service. • Experience - We’ve been in business for 10 years and have done major projects for both large and small General Contractors. Our management team has well over 30 years of experience in the window business and our customer service department is professional, responsive and knowledgeable. • An Exceptional Product - Our commercial windows are far superior window to the typical cheap construction grade window. Our vinyl extrusions are state of the art, supplied by REHAU, a world-wide leader in window design. The owner will notice the difference and so will you. Unmatched service, advanced manufacturing and a superior product. It’s the best you can ask for.
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WA L S H C O N S T R U C T I O N
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times, so it requires special attention,” said Kevin Varrone, project manager. “The project team spent a lot of time with the facilities director and staff coordinating construction and facility operations on a daily basis. The goal was to minimize disruptions on the campus as much as possible. We wanted to ensure day-to-day living and safety of the resident’s wasn’t compromised during the renovations.” The relocation of residents into completed sections was just one challenging component faced by Lutheran Life Community and Walsh Construction. According to Varrone, the project presents a specialized work environment but it’s nothing new for Walsh.
SUPPLIER PROFILE
Eric Larsen
NEWTEC WINDOW
Newtec Windows and Doors was started over ten years ago by Jimmy Lei. His philosophy is to provide a superior product with unmatched service and support. With 35,000 sq. ft., five employees and some used equipment, Jimmy started a small manufacturing operation servicing contractors in the retrofit window market on the South Side of Chicago. He has grown the business into a modern window factory, producing everything from aluminum storefront systems to high-end, state of the art, architectural grade vinyl windows. Newtec now works with some of the largest General Contractors in Chicago, while still keeping a strong, loyal customer base of small contractors and walk-in business. www.newtecwindow.com
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Olson Pavilion dining hall
“We’ve been working on active campuses for years now and they all have different challenges and unique features. We’ve done a couple projects similar to this in the past--going in and moving belongings out of the rooms. The one thing that remains consistent is providing the highest quality of life for the people here,” said Varrone. Phase two and three consist of demolition and renovation of the existing Olson Pavilion. Completion of the project is expected in April 2016.
to address was the location of the project and putting neighborhood residents to ease. Lutheran Home is situated in a residential area, and many neighbors were concerned about the anticipated work, including construction traffic and noise levels. “From the very beginning we were very active with the community. We [the owner and Walsh] would have quarterly neighborhood meetings with residents to allow them insight into what’s going on,” said Varrone.
Unique approach Another obstacle Walsh needed
According to Project Director Eric Larsen, Walsh has worked
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extensively with the community to help keep them informed with the project and put an ease to their concerns. “When we work in neighborhoods or dense areas, we realize we’re guests. We understand and respect the fabric of each neighborhood and strive to minimize the impact of their daily routine. Unfortunately, construction is a necessary evil but we spend a lot of time with residents to coordinate and make the process less disruptive on their daily lives. Communication has been a big part of this project.” Keeping it in the family Walsh Construction is currently in its fourth generation operating the company as a family business. With over 6,000 employees, the company treats everyone like family and strives to keep everyone safe. “We’re not just employees, we’re family, and safety is the upmost importance,” said Larsen. “Our mission is to make sure everyone goes home from work safe and returns to their families. It’s part of our mission statement.” According to Varrone, the lion’s share of employees embrace the family bond and spend the majority of their entire careers with Walsh. “At Walsh Construction, it’s not just a job--it’s a career. Our goal for employees is to help them feel valued and ensure we take the necessary steps to put them in a position to succeed.”
Company Information INDUSTRY
Construction, contracting, HEADQUARTERS
929 West Adams Chicago, Illnois, United States, 60607 FOUNDED
1898
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Hessert Construction Group, LLC They Build It Like It’s Their Own The New Jersey-based construction company finds success in the industry with the assistance of good clients and employees. Written by: Cutter Slagle Produced by: Tom Venturo
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OPEX Array
W
hen it comes to the construction industry, it’s all about quality— this is especially true for Hessert Construction Group, LLC. For three generations, Hessert has provided innovative thinking and experience to Southern New Jersey and Greater Philadelphia, meeting a variety of institutional and commercial construction needs.
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About the Hessert experience For Hessert, the project comes first—period. No matter what particular project the construction company is working on, the management team is consistently on hand to provide innovating thinking and experience. The goal is to ultimately select the most appropriate approach to all elements of the development, including preconstruction, project management,
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and construction requirements. Hessert has cemented its reputation throughout the community and the industry by recognizing the importance of sustainability and the environment. The company has developed an expertise for sustainable design and renewable energy. Hessert has experience in a vast range of sectors, including commercial,
education, entertainment, healthcare, and public regions. Two key mantras According to Mark Heenan, president, Hessert can best be described through two of the company’s mantras: “We Build It Like It’s Our Own” and “Mind, Body, and Solar.” Embracing and following these mantras has allowed
Adventure Aquarium - Camden, NJ
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H E S S E R T C O N S T R U C T I O N G R O U P, L L C Hessert to stay a step ahead of its competition. “We’ve been fortunate enough to find a really good team of people who care about what they do,“ Heenan said. “It’s about passion. Every member of our team not only cares about how they perform as an individual, but how they perform as a team, too.” “We rely entirely on the team to build well and work together to achieve common objectives. We’re consistent and we’re all committed to
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Our number one priority is to provide quality service to our clients and doing so as a partner not just their contractor. Our goal is to make a mark from start to finish. Make such an impression that our clients want us to do their next project. Main Office 201 Allied Parkway West Berlin, NJ 08091 Phone: (856) 753-1600
Michael Cornwell Mike@BuckLLC.com Fax: (856) 753-1620
quality—across the board.” Heenan acknowledged that a huge investment is made when a client brings on his construction company, emphasizing the importance of having a good end result. “It’s a matter of caring,” he said, describing the process. “If we’re good at our job; if we build it like it’s our own, then there shouldn’t be a building owner who won’t be happy with our end result.” The bulk of Hessert’s projects revolve around the company’s
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second motto: primarily educational buildings (mind), health care facilities (body), and other opportunities that include renewable energy and sustainable green ability (solar). Hessert distinguishes themselves from other construction groups by getting involved with a wide range of other projects that include zoos, aquariums, and other projects within the entertainment sector. The growth of technology “Technology is catching up in the industry and it can be utilized to make everything faster,” Heenan said. In fact, Heenan and his team have determined different ways in which technology can be used. “We’re repurposing technology designs that were designed for different sectors of the industry,” Heenan continued. Heenan touched upon Hessert’s use of Building Information Modeling (BIM) technology, the technique of creating and using 3-D computer models of design drawings. “We can actually place owners in the desk they’re going to be sitting in,” Heenan noted. “Building owners now have the privilege of seeing their surrounding before a shovel is even put into the ground. The owner is able to see and actually feel changes, as well as see the end result.” Because of this technology, alterations can easily be made, meaning every party involved in the project—from subcontractors to owners—can
Rutgers College of Nursing
“It’s all about building—relying entirely on a team to build well and work together to achieve common objectives” – President Mark Heenan
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Big Cat Falls - Philadelphia Zoo
save money, time and resources. “There’s no ‘Oops! I wish we would have done that’ moment,” said Heenan. In the end, with the aid of BIM technology, projects move more smoothly for Hessert and the building owners. The client is not only happy, but usually then becomes a repeat client. Current projects and what the future holds Hessert recently finished work on the Sea Isle Municipal building in 122
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New Jersey, with a new City Hall, police station, and fire offices being added. In addition, Hessert will soon be starting an 8.2 mega watt solar project in Gloucester, New Jersey. Hessert knows and believes in the value of education: as New Jersey invests in building more educational institutions, Heenan noted various projects where he and his team are involved. Hessert, in partnership with Clarke Caton Hintz, is working on a design-build project for Rutgers University on its women’s campus.
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Specifically, Heenan and his team will be working on the student center and dorm building in the historic part of the women’s campus. As for the future of Hessert and the construction industry as a whole, Heenan is very hopeful and excited. “We’ve got plenty of goals,” he said. “Specifically, we want to maintain and build upon the reputation of ourselves and the industry in our geographic area. Not only do we want to express to clients that we’re quality contractors, but we also want to show that Hessert is a great place to work.” Heenan believes that the construction industry will continue to grow within the next five years, specifically in the technology region. “This has been a stubborn industry in regards to changing with technology,” Heenan said. “However, taking a different approach towards technology is becoming more common and should continue.” With this new application of technology, the way business is done will be revolutionized. “There will be different ways to build buildings,” Heenan said. “The entire process will change immensely with the assistance of virtual models of buildings.” “It’s exciting to think about change,” Heenan added. “The industry hasn’t really seen any significant change. With the ability to really apply computer technology, we’re going to be able to build things that couldn’t even be designed before because of the lack of technology.”
Company Information INDUSTRY
Construction Global HEADQUARTERS
15 W Stow Road Marlton, New Jersey, USA FOUNDED
1954 EMPLOYEES
25 REVENUE
$50 million PRODUCTS/ SERVICES
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Charter Hall/WATPAC:
A New Class of Workplace Evolving Sydney
With architectural, environmental and aesthetic considera above and beyond industry standards, the 333 George St the bar in Australia Written by: Laura Close Produced by: James Hayes
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ations that go t. project is raising
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Charter Hall’s 333 George St building in Sydney sets the bar high for other developers.
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n 2013, the average Australian worked 1,676 hours, according to statistics from the Organization for Economic Cooperation and Development. Countless studies indicate the quality of a workplace plays 126
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a major role in not only the job satisfaction of an employee, but their productivity as well, putting property developers in a race to design and construct the next generation of modern workplaces. In Sydney, there’s one project in
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the works that sets the bar high for other developers: Charter Hall’s 333 George Street building. Owned and developed by Charter Hall’s Core Plus Office Fund, when this building is finished in mid-2016 it will be one of the most modern-looking in the Sydney skyline. Constructed on a relatively small footprint of just 960 square meters, international architects Grimshaw and Crone Partners had to design every floor to utilize the maximum space per unit while not compromising the contemporary aesthetics of the building. Valued at $250 million, this project will be home to three floors of highend retail space with prominent street-facing units. Above that, the building is being constructed to accommodate 15 levels of office space with a combined floor space of 12,500 square meters. Probably the most eye-catching aspects of the project— and what Charter Hall believes will contribute to a strong sense of community among building tenants— are the five levels of cascading rooftop terraces “set within a fully glazed veil tiara overlooking the main
thoroughfare of Sydney’s business lifestyle epicentre.” “Those rooftop terraces are one of the greatest challenges of this project from a design perspective, but certainly one of the greatest features of the building,” said Chris Chapple, head of office and industrial property services at Charter Hall. “They provide not only a response to the design constraints of the building, but also a fantastic opportunity to bring the outside in for the tenants that are going to occupy that space.” A Cleaner, Greener Office Space Aesthetics are not the only major selling point for the cutting-edge office building: construction company WATPAC has been working hand-in-hand with the architects to deliver a five star Green Star rating. Awarded by the Green Building Council of Australia (GBCA), the Green Star rating is part of a major push to build more energy efficient buildings moving into the future. Some hallmarks of a Green Star rated building, according to the GBCA, include 66 percent
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C H A R T E R H A L L / WAT PA C less electrical consumption than other Australian buildings of similar size, 51 percent less potable water usage, and 62 percent fewer greenhouse gas emissions. As the public becomes more informed on the implications of climate change— and as the legislative future around potential carbon taxes remains undecided— these highly efficient measures become major points of interest for prospective tenants. “Ultimately, the goal for the fund is to deliver a high-quality, innovative asset with the intention to own the asset on completion,” Chapple said. “Making sure that the building is sustainable into 128
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Assuring a building is sustainable into the future from is a strong focus for Charter Hall.
the future, not only from an environmental perspective, but from an occupancy perspective, is definitely a strong focus for Charter Hall. We want to ensure that the design is well considered and that it responds to tenants’ needs, not only now, but also into the future.” Charter Hall is also looking to target a five star NABERS Energy Rating, indicating “excellent performance”. However, unlike the
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identified and selected in order to achieve the energy ratings that we’ve been contracted to make.”
an environmental and occupancy perspective
Green Star rating, which is awarded based on the specifications that a building is designed to, NABERS looks at the actual operational performance of a building once it’s been brought into service. “I suppose the project means different things for different people,” said Justin McGrath, WATPAC’s senior project manager. “ From a base building perspective, all the latest technology has been
In the Heart of Sydney The 333 George Street project finds itself in the company of a great deal of high-end retail and entertainment locations, as well as heritage buildings and other office spaces. While Charter Hall wants the project to cast a large shadow— metaphorically speaking— Chapple explained that the glass construction of the building would eliminate any overshadowing of other historic sites in the area, as the height and shape of the building has been modeled to
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Although being in a central location can be great for business, it also has its challenges.
conform within the solar access plane parameters While having a central location in such a thriving, historic environment is a major selling point, it also presents a significant challenge. With substantial traffic— both pedestrians and vehicles— construction efforts have been somewhat complicated. “We weren’t able to get any loading zone on George Street for construction purposes because 130
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there’s a public bus lane in front of the project. All our loading and unloading has to be done internally, within the site footprint,” McGrath said. “So this adds a complexity during construction to make sure there is access and out of the site.” As challenging as this was for early— and ongoing— construction efforts, WATPAC’s ability to adapt demonstrates another layer of the innovative thinking the project is rife with.
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“WATPAC is exceeding the key milestones,” Chapple said. “They’re working with the relevant authorities and managing their program and interaction with the surrounding properties while continuously reaching their milestones.” And that traffic that complicated the process in the first place? That should soon be mitigated too, with the addition of a light commuter rail that is planned to pass right through George Street. In mid-December, the city of Sydney announced that they’d awarded the contract for the $2.1 billion light rail system to ALTRAC Light Rail consortium, with services expected to commence in early 2019. George Street certainly doesn’t suffer now from a lack of consumers, but the light rail system has the potential to increase that number while decreasing the number of cars on the road. With fewer vehicles coming through, the project shouldn’t be plagued by typical congestion woes, such as lack of parking. With a bevy of selling points, including a unique space age-meets-open-air design, a nearby light rail system, a high customer volume and environmental consideration that should stand the test of time, Charter Hall should have extremely little challenge in finding tenants willing to make pre-commitments. In fact, though he couldn’t disclose who Charter Hall was already in talks with, Chapple seemed to indicate that task was moving right along.
Company Information INDUSTRY
Construction HEADQUARTERS
Sydney, NSW, Australia PRODUCTS/ SERVICES Located on one of Sydney’s most prominent corners, George Street and Martin Place, the iconic office space under construction at 333 George Street provides a distinct work environment unlike anything else in the CBD. Designed by international architects, Grimshaw and Crone Partners, 333 George Street offers 15 levels of contemporary office space across 12,500 square meters and three levels of statement retail across 2,100 square meters with extensive frontage to George Street, creating a flagship retail destination. The defining feature central to the building is its five levels of cascading rooftop terraces, set within a fully glazed tiara overlooking the main thoroughfare of Sydney’s business and lifestyle precinct. This space will provide a focal point for occupants of the building, allowing meeting and interaction within a light and airy space. With the opportunity to brand the building, 333 George Street provides an exceptional opportunity for a company to enhance its brand positioning and profile and make a confident statement about the future of their business. The project is close to announcing tenant pre-commitments to the retail and office space.
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Colliers International:
Colliers International Poised Major Industry Overhaul
Colliers International provides a sneak peak at the bevy o improved service offerings on the horizon. Written by: Ian Hanner Produced by: Bryan Giles
for
of new and
C O L L I E R S I N T E R N AT I O N A L
We enable our clients to make better, faster, more informed decisions
F
rom their seat in Australia, Colliers International is looking to change the property management business landscape in a fundamental way. Colliers got its start in 1976 in Australia when three of the country’s real estate services firms joined forces. According to the company website, it was only two 134
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short years before the company was expanding internationally. Today, the organization consists of more than 16,300 employees spread out across 67 countries. Managing thousands of different locations, the company is today known globally as a top 2 services provider in the field. But while Colliers has built a reputation for
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excellence of service, they’re not content to call it a day just yet. “We’ve really challenged the way we deliver our services— and the market is pretty vanilla, right?” said Andrew Bull, national director of engineering and operations at Colliers International. “Everyone’s got more or less the same offering. So we’ve really
challenged ourselves to come up with something special which really differentiates us from the rest of the competitors [while providing] our clients with a service that exceeds their expectations and helps their bottom line. As a result, we’ve made some changes in our business and are about to make some more which will really set us w w w. c o l l i e r s . c o m . a u
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Forbes | 2014
Smart, flexible elevator, escalator, building doors and access solutions for the buildings of today – and tomorrow Quick, comfortable movement combined with reliable security and access control. Meeting these conflicting demands is no easy task. Our answer? KONE People Flow Solutions – smart, flexible solutions for access and destination control, information communication and equipment monitoring.
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New KONE UltraRope™ elevator hoisting technology enables the next big leap in high-rise building design The latest in a long line of technological breakthroughs, KONE UltraRope™ sets a new benchmark for high-rise buildings. Released to the market in June 2013, the super-light KONE UltraRope technology provides unrivalled elevator eco-efficiency, reliability and durability, while also improving elevator performance. KONE UltraRope can enable future elevator travel heights up to 1,000 metres– twice as high as what is possible with today’s technology
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C O L L I E R S I N T E R N AT I O N A L apart from most of the field.” The Revolution to Come At face value, it’s difficult to imagine how a company could stand out in an industry where all companies have relatively small variations on the same service. But Colliers hasn’t grown to the size it is today by lack of imagination. And Bull meant it when he said the company has big plans for differentiation. “A really good example of that is our call center,” he said. “Traditionally call centres in the industry have have provided a reactive service.”
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The way most building management companies handle call centers goes something like this: one of the company’s many tenants will discover that an essential feature of a building is out of commission, such as an elevator being out of order. That tenant would then call the property management company, who would send someone out to remedy the issue. The process seems simple enough, but Colliers saw a means to improve the process. “What we’ve done is shifted the call center into an environment
The average tenure of a Colliers International call centre operator far exceeds the industry norm w w w. c o l l i e r s . c o m . a u
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C O L L I E R S I N T E R N AT I O N A L where they can monitor alarm outputs,” he said. “So now what we are doing is pushing alarm outputs from some of the building management systems into our call center environment.” In essence, this shifts a very large portion of the building’s maintenance requirements from a situation where someone is sent out after a tenant gets irritated over an issue to one where the company can be proactive. By allowing call center representatives to
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monitor alarm outputs in real-time, maintenance professionals can be dispatched long before the tenant even realizes there’s a problem. “This changes the entire paradigm for the industry— we’re moving from a very reactive approach to actually monitoring the building condition and trying to stop faults before they become tenant-related issues,” Bull said. This is all made possible by the information that “big data” provides. As the monitoring of
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systems is increasingly automated, the necessity of an individual to come out to the site for a routine inspection is greatly reduced, allowing for the most seamless tenant experience possible. It also means that tenants aren’t annoyed by essential building services regularly failing, and in the long term, this increases tenant retention for the landlord. “The key for me is how we present that information to our clients in a way that not only adds value to the process, but enables our clients to make better, faster decisions,” Bull said. “I read a statistic the other day which said that in 1976 the average supermarket or grocery store stocked 9,000 items and now the average store stocks about 40,000 items. But your average shopper only needs about 150, so you think about all of those snap decisions that they have to make, walking around the supermarket. I used that analogy in our market as well. If I know my client needs 150 things then I’m going to try and create an environment where they’re not faced with 40,000 items, they’re
faced with 150 that they do want.” Their call center optimization is only one of many changes Colliers is making to pass greater value on to their clients. Another is the total redesign of the company’s facilities management software, which governs day-to-day operations throughout the business. It manages a host of factors including workflow, procurement, risk management, contractor management and more. According to Bull, the change in platform for Colliers will allow them some exciting new capabilities. “[It] changes how we operate on a day-to-day basis because it’s optimized for use on mobile devices and now frees people up from their desks, enabling them to get out in the buildings in front of tenants and in front of clients,” Bull said. “It adopts things like producing QR codes for assets. So we can apply a QR code to an asset and someone can walk up to it, scan it, text it to a relevant person and straight into our facilities management platform where they can pull up information about that asset.” w w w. c o l l i e r s . c o m . a u
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C O L L I E R S I N T E R N AT I O N A L
Andrew Bull
“So it really does change the way that we interact with the building environment and the users of that environment,” he added. The Continuing Company Standard of Excellence When looking at the attention Colliers pays to passing value on to their clients, it’s no wonder the company has a veritable treasure trove of awards to point to. According to a 2013 Business Review Australia article on the company, Colliers was honored at 140
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the CoreNet Sydney 2008 Summit as a prime example of a company “developing a competitive advantage through a sustainable talent management program.” The company is also routinely ranked in the Global Outsourcing 100 top businesses and the World’s Best Outsourcing Advisors by the International Association of Outsourcing Professionals. It’s an area Colliers has some experience in. “We’re going through a
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procurement initiative at the moment which is really seeing us leverage our scale in the marketplace to the benefit of our clients, not only in dollar terms, but in terms of exposure to best practices and innovation,” Bull said. “And some of the things I’ve talked about wouldn’t be possible without finding the right partner, like in the call center, for example. “That’s not in-house. We outsourced that to E-Group and they have been absolutely fantastic. We’ve always outsourced our call center. I was fortunate enough to bring, I think, 75 percent of the call center team from one provider to E-Group. To put that into perspective, the average tenure for that call center team is over 10 years and that’s unheard of in a call center environment.” So with a host of loyal partners and a range of sophisticated updates coming soon to Colliers’ service offerings, the property management powerhouse looks well positioned for another 40 years of business.
“We’re moving from a very reactive approach to actually monitoring the building condition and trying to stop faults before they become tenant-related issues.”
Company Information INDUSTRY
Construction HEADQUARTERS
Sydney NSW, Australia FOUNDED
1976 EMPLOYEES
15,800 PRODUCTS/ SERVICES
Colliers International is one of the largest commercial real estate services in the world. Since its start in 1976, the company has grown to include 16,300 employees in 67 countries. With an emphasis on passing value on to their tenants while delivering dependable functionality at all of their facilities, Colliers is one of the most trusted names in the sector today.
– Andrew Bull, National Director, Engineering and Operations. w w w. c o l l i e r s . c o m . a u
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Schindler Lifts Singapore:
Schindler moves 1 billion peo per day
One of the world’s leaders in moving people, Schindler Singapore is a provider of premium elevator and escalators products. Written by: Stephanie C. Ocano Produced by: Bryan Giles
ople
r Lifts
SCHINDLER LIFTS SINGAPORE
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sia’s sixth busiest international airport—Changi Airport—handled more than 51.2 million passengers in 2012, and in 2017, that number is expected to increase to 82 million. Schindler Lifts Singapore—the international provider of quality elevators, escalators and moving walks—will be the first European brand to supply Changi with 58 lifts, escalators and moving walks that will move millions through its terminals. Established in 1975 to serve major businesses, Schindler has since become a global powerhouse with a team of dedicated employees, ensuring that projects are completed on time and under budget. “As with all major projects involving high-profile customers, it is about ensuring that we always keep in mind the client’s vision and expectation throughout the project,” said Steven Foster, Managing Director of Schindler Lifts Singapore, in a recent interview. Schindler manufactures, installs, services and modernizes elevators, escalators and moving walks for almost every type 144
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of urban infrastructure—from low-rise residential buildings to commercial and high-rise towers. Changi Airport is simply another name to be added to their extensive list of projects as the company continues to innovate design. Upcoming projects Project Jewel The Asia Pacific, including China, is the fastest growing part of the world in terms of infrastructure development. The rapid urbanization of the region—with rural communities transforming into cities—has created a need for more buildings and an effective way to handle the traffic. Schindler has stepped up to the plate to become the leader in project management and fulfillment. Developed from two of Singapore’s most respected names—Changi Airport Group and CapitaMalls Asia—Project Jewel is a unique design by one of the world’s leading architects that will integrate a shopping mall experience in an airport landscape. “The project is expected to be
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Jewel project for Changi Airport
completed in 2018,” commented Foster. Solar Impulse The Solar Impulse airplane and its ambitious objective to fly around the world is a showcase of just what can be achieved in terms of green technologies if passion and belief are driving the innovation. Schindler is a proud global partner of Solar Impulse, sharing the same ambitions to deliver energy-efficient solutions using green technology. “Whilst it is unlikely that this project will allow for solar planes to be commercialized, the use of
solar energy and its applications for everyday life has been clearly demonstrated,” said Foster. Advances in technology Elevators remain to be the most voluminous of the products provided by Schindler, and the growth in residential and commercial buildings is a testament to this. But what allows for the expansive production? In short, the advancements in technology. Destination Control has been a part of Schindler’s technology strategy for 20 years, but the
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“As with all major projects involving high-profile customers, it is about ensuring that we always keep in mind the client’s vision and expectation throughout the project.” – Steven Foster, Managing Director
SCHINDLER LIFTS SINGAPORE latest generation of transit management systems has been produced by the company. “PORT Technology is the latest in Destination Dispatch Technology which optimizes the traffic flow in the building whilst providing personalized access and control systems,” explained Foster. “At its core, PORT uses sophisticated algorithms that run around the clock to ensure the optimal utilization of an elevator group. PORT eliminates elevator runs and random stops at numerous floors, and transports passengers swiftly and efficiently.” The basis of the system is that it groups passengers going to the same or nearby floors in the same elevator. This cuts down on the time needed to reach a destination as there are less stops along the way. In fact, the system is able to increase traffic efficiency by as much as 30 percent, as compared to conventional elevator systems. PORT Technology provides buildings with the ability to cleverly increase traffichandling efficiency, as evident in international landmark buildings
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such as the International Commerce Centre in Hong Kong, HSBC in Singapore, Heron Tower in London and Barangaroo South in Sydney. “The response from customers who have moved from conventional lift system to PORT has been extremely positive,” said Foster. A unique advantage via green capabilities The design and industrialization of any type of product or technology has its own unique set of challenges—which makes it difficult to make a direct comparison. However, one thing that can be said about Schindler’s product design is that all new products have to have better eco-performance than their predecessor models. For example, the Schindler 7000 high-rise product line, which uses carefully selected materials in its design, was cleverly thought out right through to the end of its life cycle. The design of the new machines allows for the dismantling of all major parts and
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a compact design of components that uses less material. The low and mid-rise product lines have also made substantial progress. “Over the past 10 years, the environmental impact due to raw materials and energy consumption in these segments has been reduced by about 40 per cent,” said Foster. A good example is the Schindler 3300 AP elevator, which reduces the environmental impact of earlier models by about 40 per
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cent through energy savings from a more energy-efficient drive system and smart control that enables standby mode for inverter, controls and lighting. “Moreover, the materials that we use in this product are significantly lighter and components are smaller, as compared to its predecessors, requiring less energy to move the elevator,” added Foster. Schindler 3300 AP uses Schindler Traction Media (STM) technology which
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SERVICE LIFTS
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delivers significant space savings since the compact design of its gearless machine requires smaller shaft space. Its machine room-less (MRL) solution reduces building construction cost, time, manpower and material to build the elevator machine room. “Other important green features include careful building traffic planning to achieve a balance in terms of traffic increases versus energy consumption, Power Factor One converters that feedback
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energy generated by lift to the building power grid, permanent magnet motors, gearless drives and energy-saving modes on escalators including automatic start and stop control or automatic two-speed control—varies the escalator speed according to the passenger flow,” said Foster. “These modes are enabled by the presence or absence of passengers; hence energy can be saved during non-peak hours.” Looking ahead As space becomes even more of a premium in South East Asia, and in particular Singapore, the need for efficient dispatching of passengers will become even more necessary. “Destination-control systems in commercial buildings will become standard and over the next five years,” said Foster. “In addition, as the demand for greener buildings increases and the environment is ever more in the public eye, the need for energy-efficient mobility systems will be paramount. Furthermore, the emergence of digital technology as a business tool to improve efficiency and deliver on increasing customer satisfaction will play a key part in the industry dynamics.” “Schindler sits in a strong position and has been a pioneer in both fields and is poised to take advantage of these evolutions,” concluded Foster.
Company Information INDUSTRY
Construction HEADQUARTERS
Botany, Sydney NSW Australia FOUNDED
1975 EMPLOYEES
54,000 Employees Worldwide PRODUCTS/ SERVICES
Schindler Lifts Singapore is the Singapore operation of the Switzerlandbased Schindler Group, a leading global mobility provider with approximately 54,000 employees operating in more than 100 countries. Schindler supports sustainable urban development with safe, reliable and ecologically sound mobility solutions.
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Pavement and solid str
ENHANC
Industrias Aguayo does more than provide the finishing tou innovation in retaining walls. 152 July 2015
Written by: Mateo Rafael Tablado, Associate Editor Interview by: Rebecca Castrejon, Editor in Chief Produced by: Jassen Pintado, Director of Projects for WDM Group Interviewee: Jorge Aguayo, CEO of Industrias Aguayo, S.R.L.
ructure
CEMENT
uch for walls and pavement. They also bring
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I N D U S T R I A S A G U AY O D E C O N S T R U C C I O N , S . R . L .
R Ribbon cutting by Ruben Jimenez Bichara and the Aguayo family, in the solar energy plant
afael Aguayo opened Industrias Aguayo tile factory in 1948. As decades passed, the company’s production line, and hence its catalogue, expanded by producing cinder blocks and other concrete units for construction. During the mid-1980s, Aguayo was already producing cobblestone and other kinds of paving stone, and also building retaining walls with innovative materials.
opening ceremony
MESA retaining walls
Industrias Aguayo’s role goes far beyond that of a supplier for infrastructure and aesthetic finishes for key building projects in the Caribbean region. The company has earned prizes and awards for being a leading enterprise in sustainability. The local Corripio Foundation rewarded Industrias Aguayo in the “Entrepreneurship & Sustainable Enterprise” category. Industrias Aguayo is currently led by a thirdgeneration management team. It consists of Rafael Aguayo’s grandsons: Jorge and Raul Aguayo, CEO and CCO, respectively. Jorge, an industrial engineer, has worked in the family business for a longtime and also has experience in other trades and companies, and in the United States. “Grandpa died young. My father was 19 when he had to take care of business. Three years ago my father finally retired, so me and my brother Raul stayed in charge of the company,”
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L AT I N A M E R I C A
shared Jorge Aguayo, Chief Executive Officer for Industrias Aguayo.
Key People
One Large Facility Hosting All Production Plants Besides their commercial offices in the capital, Santo Domingo, Industrias Aguayo operates a huge production facility just a few miles to the west, in San Cristobal. Moving Aguayo’s manufacturing plants to this single location happened during the mid-2000s. The four manufacturing plants, where innovative materials and techniques are also deployed for improved product performance, are:
Ultraflex, flexible armor for construction used
Jorge Aguayo CEO Jorge Aguayo graduated as an industrial engineer from the Dominican Republic’s Mother and Teacher Pontifical Catholic University, where he also obtained a Master’s in HR management. Aguayo has also managed logistics for a Dominican tobacco grower. In the United Sates, he earned a Master’s in business management from Northwestern University’s Kellogg School of Management; and also in the States he worked as a consultant for ZS Associates’ Latin American branch. In 2002 he went back to Industrias Aguayo and in late 2013 was appointed the company’s CEO.
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Avant-gard tiles, from Aguayo
· Two cinder block production plants · One cobblestone and paving stone production plant · One cement tile production plant · A manufacturing facility for dry mortar
Split tablets: quality wall coating
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The company’s production rate and high demand for its products resulted in more than $5 million in investments during the last two years. This capital injection led to a new cement and mortar plant, the new cinder block plant and
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“Our leadership is based on innovation, providing our market with solutions previously unknown in our country
increasing assets in the cargo and transportation department. “Our leadership is based on innovation, providing our market with solutions previously unknown in our country,” the executive commented. Partnerships Resulting in Innovation
– Jorge Aguayo, CEO for Industrias Aguayo
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I N D U S T R I A S A G U AY O D E C O N S T R U C C I O N , S . R . L . Industrias Aguayo from striking profitable partnerships. The company became the first off-Europe licensee for French tile and paving company Girpav.
Avant-gard tiles, from Aguayo
Tensar International Corporation became a partner for construction of resistant, lasting MESA retaining walls with Aguayo’s concrete pieces, reinforced with Tensar’s geogrid. And in an effort to go beyond field operations, Industrias Aguayo and CEMEX Dominicana joined efforts to publish the “Cement Tile - Art and Evolution” book, a revision of this distinguishing element among Latin American and Caribbean architecture.
We are proud of our longstanding partnership with
Industrias Aguayo
Global supplier of systems for the production of the highest quality standard and architectural concrete block and hardscape units.
Local Representative: +1.809.909.2709 World Headquarters: +1.989.354.1000 besser.com
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Industrias Aguayo is not focused on arranging multiple partnerships, but rather on each association’s quality and mutual benefit. “Having few suppliers and establishing long tenures with them provides the best conditions to maintain our services’ and products’ quality,” Aguayo explained. The Power of Sustainability One of the most recent and important feats in Industrias Aguayo’s history is the opening, in 2014, of their power-generation plant. This resource is fed by solar energy and is able to supply Aguayo 65 percent of their required power quota. SOFOS Dominicana placed more than 2,000 solar panels on the roof of Industrias Aguayo’s plants. The original projected calculations considered this effort would help in providing 95 percent of the company’s total energy consumption, but an increase in Aguayo’s operations and demand for products were a factor to lower the set expectations. Currently, the photovoltaic power plant keeps more than 460 tons of carbon dioxide from entering the atmosphere “We will keep investing in these resources, increasing our own power supply,” the CEO stated.
Variblock: concrete cinder block with vertical slot facing opposite to notches
“We have recently been through an expansion process that we hadn’t experienced never before” – Jorge Aguayo, CEO for Industrias Aguayo
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I N D U S T R I A S A G U AY O D E C O N S T R U C C I O N , S . R . L . Satisfying Work Atmosphere
Aguayo mortars: highresistance mix for block, ceramic and fine plaster
The staff at Industrias Aguayo reports high satisfaction levels at their work place, where they are treated with respect and appreciation. The company strives to encourage its workers by organizing regular activities involving the staff’s families. “We are certain that bringing each employee’s family for recreational activities makes them feel fully taken care of,” Aguayo said.
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Exports and Increasing Presence Abroad Aguayo began exporting tiles to the U.S. in 2003, in what is now a regular operation for the company. Different tile collections from Aguayo are also present in the Swedish, Canadian and Panamanian market. But in the vicinity, the company’s management shares a feeling of lack of constant presence, as Industrias Aguayo’s cobblestone and tile installation services are usually on high demand for single, one-time projects in Jamaica, Trinidad & Tobago and in Puerto Rico. It is now one of the company’s priorities to constantly deploy their products to outlets all over the Caribbean and Europe. “We are pursuing a constant presence in the Caribbean with our entire product portfolio,” the executive stated.
Company Information NAME
Industrias Aguayo de Construccion, S.R.L. INDUSTRY
Construction: cement tile, cinder block, cobblestone, paving stone manufacturing; building of restraining walls HEADQUARTERS
Madre Vieja, San Cristobal, Republica Dominicana FOUNDED
1948
“We have invested in being
EMPLOYEES
prepared for upcoming growth and development happening in the entire
180+ WEBSITE
www.aguayo.com.do
Dominican Republic and hopefully the Caribbean region also” – Jorge Aguayo, CEO for Industrias Aguayo w w w. a g u a y o . c o m . d o
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Value from MINING invested in energy and infrastructure Grupo Mexico’s mining operations result in railways and other infrastructure resources to provide business and community development, with the sight on the opening of the energy sector.
Written by: Mateo Rafael Tablado, Associate Editor Interview by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations for WDM Group - LATAM Interviewee: Xavier Garcia de Quevedo Topete, President of the Infrastructure Division for Grupo Mexico
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GRUPO MEXICO
T
Social initiative: Providing healthcare services to the community
he key to Grupo Mexico’s burgeoning ventures is the integration of business units able to relate and support each other, taking part in a large, wholesome scheme. The construction company that started it all during the 1940s became a mining company after a quarter of a century. The mining operation evolved into surface mining, which brought Grupo Mexico the opportunity to invest abroad. Afterwards, the corporation broadened its reach toward the freight trains industry, experiencing constant growth from 9 to 25 percent, after investments of more than $5 billion over a 17-year span. Since the mid-2010s, Grupo Mexico is aware of upcoming business opportunities and other positive changes derived from the country’s energy reform, since its Infrastructure division already took part on the construction of a wind farm and two combined cycle power plants, among other ventures. Efforts by Grupo Mexico have resulted in taking the country up the ladder among the largest copper, silver, molybdenum and zinc producers, globally. “We believe in the Mexican energy reform, our organization has the capability to discover new oil fields and increase its production,” shared Xavier Garcia de Quevedo, President of the
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Infrastructure Division for Grupo Mexico. Garcia de Quevedo was first hired for Grupo Mexico in 1969; he has witnessed the corporation’s growth and diversification since the days in which mining was its only activity.
Key People
Business Units Benefitting Own Companies and Clients Grupo Mexico’s successful mining operations currently take place in Mexico (La Caridad and Cananea, both in the State of Sonora), in the U.S. (ASARCO surface mining operations, foundries and copper refineries in Arizona and Texas), and in Peru through Southern Copper Corp. (Toquepala, Cuajone and the Ilo metallurgy plant). The corporation trades as GMEXICO in its home country’s stock exchange. New extraction ventures are on their way in Argentina and
Xavier Garcia de Quevedo President of the Infrastructure Division for Grupo Mexico Garcia de Quevedo was first hired to Grupo Mexico as a production engineer in 1969. He’s been in charge of operations for the metal refinery, project manager at the zinc plant, supply manager and COO for a Mexicana de Cobre affiliate. During Garcia de Quevedo’s tenure as Chief Officer for Business Development the freight railroad business unit was created. In 1999 he became CEO for ASARCO mining operations in the U.S. He’s currently Grupo Mexico’s COO and his duties include being President of Southern Copper Corp., Minera Mexico and the Infrastructure division, besides being a member of the board for every other Grupo Mexico company. Outside the corporation, he has been president of Mexico’s Mining Chamber. Garcia de Quevedo constantly has been honored on multiple occasions by both the private and the public sectors for his career and leadership in business development.
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C O M PA N Y N A M E
Truck drivers in Buenavista del Cobre copper mine
Power generation plant
Ecuador, also; and most recently, Grupo Mexico was tendered the Aznalcollar extraction project in the Iberian Pyrite Belt, located between the south of Portugal to Sevilla, in southwestern Spain. These set of projects Grupo Mexico’s main assets to keep the corporation atop the three largest copper producers on the world. The freight railroad operation, settled mainly in Mexico’s northwest, is an important network quite by itself by extending into eight important cargo ports located in the Pacific Ocean, the Gulf of California and the Gulf of Mexico; it’s also a link to five border crossing stations to the U.S. This network provides Grupo Mexico of leadership among Mexican railways.
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Human resource at Buenavista del Cobre in Sonora
Grupo Mexico’s coveted stocks and satisfying financial reports for shareholders are the result of interrelated factors: operating in different business areas such as mining, freight trains, energy, infrastructure, gas and oil drilling, and industrial construction. These business units are driven by a constant increase in efficiency, cost reduction, and development and career advancement opportunities for its human resource. “To sustain our leadership, we must strive on continuous performance improvements, benchmarking, as well as relying on the best possible technology,” Garcia de Quevedo explained.
“Opportunities exist, but we must look and develop them... We are more satisfied when we create jobs and generate value” – Xavier Garcia de Quevedo, President of the Infrastructure Division at Grupo Mexico
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GRUPO MEXICO
State-of-the-art technology in mining
Energy Reform: More Than Hoping Into the Bandwagon
Sustainability in Grupo Mexico: entire families take part on
Grupo Mexico is serious about the country’s energy reform; the particular feel voiced by its high management about upcoming changes, is for mining to be granted the same relevance energy receives, considering similarities between both sectors.
reforestation efforts
The corporation’s experience in drilling trails back to 1959, both for oil and gas reservoirs located on land and sea. Recent investments of $1.2 billion were destined to six offshore platforms and three land rigs, enabling Grupo Mexico to take part in the opportunities brought by this reform. 168
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Grupo Mexico’s exploration
“Proper policies and regulations for the sector can create the best conditions to make the most out of these sectors,” the executive pointed. Environment and Community High management at Grupo Mexico shares the same philosophy with the rest of the organization: every business unit is concerned with finding a balance of compatibility between mining activities and a genuine care for the environment and surroundings.
“Mining grew in an important way due to suitable policies in recent years” – Xavier Garcia de Quevedo, President of the infrastructure Division at Grupo Mexico
Before beginning any new project, the company establishes a relationship with communities surrounding their projects; this way, Grupo Mexico gets to know the inhabitants’ needs and w w w. g m e x i c o . c o m . m x
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QUIMICA TEUTON, S.A. DE C.V. Qu铆mica Teut贸n is a 100% Mexican private Company with 27 years of history in operations serving the mining industry. Chemical products sales for ore concentration (Cu, Mo, Pb, Zn, Fe, Au, Ag, etc) Product portfolio applies to diverse unit operations in the mining industry such as grinding, floating, thickening, filtration and water treatment.
www.quimicateuton.com.mx
GRUPO MEXICO
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priorities in order to benefit the community and landowners. Some of the towns and villages near the corporation’s mining projects host a “Casa Grande” community center, where locals are able to share resources they would hardly have access to had Grupo Mexico chosen not to engage in a project in their area. Another priority for Grupo Mexico and its vast engineering staff is to continuously upgrade their machinery, as it is no secret that the latestgeneration equipment will inflict a less negative impact on the environment.
First class iInfrastructure
“It should be a priority to develop some kind of scheme in which mining and oil drilling coexist in protected environments,” the executive stressed. Required Skills for Candidates Each of Grupo Mexico’s business unit carefully detects and chooses highly skilled professionals. These individuals embark on successful careers, developing leadership and becoming fully involved in the company’s endeavors and projects. This selection process is a key factor to accomplish set goals in every business unit. “Much of our group’s success and growth owes to our efforts in developing the best elements a staff could have,” Garcia de Quevedo said.
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GRUPO MEXICO The Future Remains Positive for Grupo Mexico
Efforts of the Grupo Mexico Foundation
Having developed three successful business units in continuous growth, Grupo Mexico must maintain on top of every feat leading to new business opportunities which may contribute to its operations network, thus benefiting also other industry sectors. Mining operations are currently under expansion; the Buena Vista del Cobre project (in Sonora, Mexico) is expected to surpass the million tons of copper mark during 2015. The Tia
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Maria mine (Arequipa, Peru) is projected to deliver 120,000 tons of copper, once local authorities concede the required permits. Also in Peru, the Toquepala mine’s expansion received a $1.4 billion investment to maintain productivity at a 100,000 tons a year average.
Company Information NAME
Grupo Mexico INDUSTRY
Latest explorations include the “El Arco” copper deposit, in the Baja California peninsula; the area in which “El Arco” is located is being provided of the necessary infrastructure before beginning excavation and mineral extraction. The tender earned to work in the Iberian Pyrite Belt, along with current ongoing projects and production levels could triplicate Grupo Mexico’s zinc production.
Mining, Transportation, Energy, Construction, Infrastructure HEADQUARTERS
Mexico, Distrito Federal, Mexico FOUNDED
1942
The Infrastructure division is also involved in a very important project: the construction of a highway between the cities of Salamanca and Leon, both in the State of Guanajuato, of the “Bajio” zone, where an important industrial cluster (mainly automotive) is located, keeping busy all currently available routes.
EMPLOYEES
29,800 REVENUE
USD $10 billion WEBSITE
Upcoming business opportunities for Grupo Mexico would exist as a result of the current reforms and the grade in which the new laws could ease trade and infrastructure development. “We are seeking other companies that share our same values and goals, that share a desire to invest in Mexico,” Garcia de Quevedo concluded.
www.gmexico.com.mx
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