The merger of Montgomery
Watson (MW) of Broomfield, Colo., and Chicago-based Harza Engineering
was an inspired one, according to the leadership of the two companies,
blending MW's expertise and worldwide experience in environmental, water
and waste management projects and Harza's equivalent worldwide experience
in energy resources, particularly hydropower generation.
Its merger complete
since June 2001, and now known as MWH Global, Inc., the company's revenues
have jumped from $721 million in 2000, to $800 million in 2001 to an estimated
$930 million for 2002, according to its CEO, Robert Uhler.
Uhler has worked
for MWH for 25 years, coming up through the ranks as it accomplished some
eight mergers beginning in 1992 when James M. Montgomery Engineering acquired
Watson Hawksley of the U.K to become Montgomery Watson. Uhler was appointed
CEO in April, 2001, taking over the reins from Murli Tolaney, now Chairman
of the Board of Directors of MWH Global. When Tolaney took the job of
CEO in 1992, the company had annual revenues of $200 million.
Trained as an environmental
engineer, Uhler has a BS from the US Military Academy, an MS from the
University of Florida and completed the Advanced Management Program at
Harvard University's School of Business. Before being promoted to his
current position, he served as president for four years of MWH Americas,
a $400-million business unit with operations in North and Latin Americas.
Before that, Uhler had served as chief operating officer of the company's
industrial and federal operators, and director of strategy and marketing.
Earlier in his career at MWH, he serviced as program manager of the Walt
Disney EPCOT Living Seas Pavilion.
Uhler outlined the
qualities the two separate companies brought to the merger making for
some inspired synergies. He described Harza as a jobs company driven by
projects, specializing in major hydro and dam projects worldwide, which
it would design in its Chicago office. It would then transport personnel
to oversee project construction at locations scattered around the world.
MW, on the other
hand was organized by region and driven by local contacts. Water projects
said Uhler, by their very nature, are sponsored and paid for by local
agencies such as cities. MW found it could be successful by establishing
local offices and getting plugged into communities politically. It now
has 178 offices around the world which operate completely indigenously.
In recent developments
in some countries, project owners want to build local skills and ask,
as part of the contract, that MWH train local people. And the company
can do it, Uhler said, because it has established these relationships
in the local region.
Uhler noted that
these synergies, together with MW's highly developed skill for managing
large expensive projects, made possible the company's newest project expected
to start soon in the Dominican Republic. There the company is building
a water treatment plant, a dam, a hydro generation plant, power distribution
grid and water distribution system.
Worldwide, the market
for hydropower is stable, Uhler said, and three or four major companies
compete for the business, Harza having been one. Clearly, its merger with
MW will make the new company a much stronger competitor for these limited
projects. Most of the major rivers in highly populated countries have
already been damned and, beyond the environmental and sociological concerns,
building a new dam would require relocating large numbers of people, an
unlikely event in Europe or the US
For this reason,
China has become MWH's newest frontier for infrastructure. It has formed
an alliance with one of China's leading environmental firms, BODA and
one of its largest construction firms, Beijing Urban and Rural Construction
Group. The MWH-BODA Environmental Engineering Co., Ltd. now has a staff
of more than 100 professionals and a charter to tackle China's large and
rapidly growing market for environmental infrastructure.
Its first project
was a 600-cubic-meter-per-day wastewater treatment facility built in less
than six months for Intel for its new flash-memory facility in the Waigaoqiao
Free Trade Zone in Pudong, Shanghai.
Harza brought to
the newly merged company work on a privately built hydroelectric project
located in the foothills of the Cordillera Central mountain range on the
island of Luzon in the Philippines. For the past four years, Harza has
served as review and quality assurance engineers of record for the $1.2-billion
San Roque multipurpose hydropower project which will eventually produce
345 MW of peak power , as well as flood control, water quality improvements
and downstream rice irrigation. MWH is now providing off-site engineering
review during the design and construction phases of the project and on-site
quality assurance services.
Uhler plans to widen
MWH's scope of work. Its water clients are moving into pumped storage,
clearly within the capabilities Harza employees bring to the new company
- now 5,500 strong.. Its clients want pumped storage capability to push
water to a higher level at night when power costs are low and drop it
during peak daytime hours to generate electricity.
Information technology,
asset management and management consulting are other areas the company
is expanding into, according to Uhler. Its utility clients want schemes
that make the company more efficient, Uhler said, like automated decision-making
that optimize costs. This ability is made possible with the centralized
storage and use of large data collections from different departments of
a large organization or a city. Designing and building data warehouses
is difficult in that all assets must be combined in such a way that individual
pieces of information can be pulled out when needed.
"A lot of things
we do are (in the area of) emergency management," Uhler said, noting
that since September 11 work in this area has been expanding.
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