Industry publication, December 2001

NYC 9/11 Public Portal Document

Companies Pile Driving UPSTART MACTEC GANGED MACHINES TEST-DRIVEN GROWS BIGGER FOR YANGTZE RIVER PORT PROJECT MACTEC HAS TAKEN ANOTHER GIANT step toward its goal of becoming a $l-bil- A SUCCESSFUL PILE- lion company by announcing its intent driving test has cleared to purchase all of the outstanding shares the way for a U.S. man­ of Law Cos. Group’s common and pre­ ufacturer to participate ferred stock for $23.50 per share in cash.. in a project to create MACTEC, a Golden, Colo.-based engi­ a deepwater port for neer-contractor, has grown steadily over Shanghai. American the last five years from a company with Piledriving Equipment $50 million of annual revenue to one Inc. (APE), Kent, Wash., with $300 million. Adding Atlanta-based will gang four of its Law and its $200 million in revenue largest vibro pile-dri­ pushes the company over the $500-mil- vers to drive hundreds lion mark two years earlier than planned, of 40-ft-dia, steel­ says Scott State, MACTEC chairman and rimmed concrete cais­ CEO. “Our next objective is to be over $1 sons into the bed of i billion in the next two to three years,” he China’s Yangtze River i ............... says. in a hovel attempt to The new combination is an example tame the world’s third- IN SYNC Vibro drivers together drove demonstration pile. of what now defines “big” in this indus- largest river. The Chinese hope to deepen the Fan. But initial attempts to place the mouth to create a sustainable deepwater piles via a vacuum installation failed. port for fourth-generation container APE Chief Operating Officer John Firm could be $1 ships at Shanghai. APE has a $2-million White and CEO Pat Hughes convinced contract to deliver and assemble the the Chinese that his firm could effec- billion in next few equipment that will drive 530 piles, each lively gang four of its Model 400 King 60 to 80 ft long, into the soft clay bottom Kong vibro drivers to sink 40-ft-dia, KT years, backed by of the Yangtze in a first phase of a proj- in.-walled, L3-million-lb piles 40 ft into ect to create a 3-mile-long sediment- the river bottom. The trick, in part, was private equity retention wall. Eventually, the Chinese to synchronize four vibro hammers, each will spend $1.8 billion to deepen the driven by a 990-horsepower engine using mouth of the Yangtze to 12.5 meters. computer control systems by Controlled try, says Andrej Avelini, vice president of The Nov. 21 test at APE’s Kent site was Power Inc., Seattle. “When the idea was EFCG, a New York City-based environ­ observed by a Chinese delegation led by first proposed, I thought to myself, ‘How mental industry financial consultant. “It Fan Qi Jin, China’s deputy transporta- in the world are we going to drive a 40- raises the bar,” he says. MACTEC, which tion secretary and general manager of ft-dia pile?’” says White. APE ganged two State says has private equity backing its the Yangtze Estuary Waterway Construe- vibrating hammers in 1994 on a Bonne­ planned expansion to billion-dollar size, tion Co. Ltd. Chinese engineers consid- ville Power Administration project, but will continue as a private company. “If ered as many as seven strategies to solve has never before ganged four. “Now that growth is sustained at 25 to 30%, we may a thorny problem on what is thought to I’ve seen the equipment run, my stom­ consider a public offering,” he says. be the world’s largest dredging project. ach is feeling much better,” he says. MACTEC units specialize in engineer­ “Large piles were our best solution,” says ape’s ganged drivers will deliver the ing, government programs and nuclear _i equivalent of 58,000 plant decommissioning. Adding Law will It L in.-lb of force, accord- double the size of its engineering group, I I ing to Dave Yingling, I State says. “It also adds significant geo­ 1 B APE national equip- graphic expansion," he adds. _ ment manager. Their Law has turned around from massive performance while at losses to profitability and grew nearly 8% work in the Yangtze will this year, says Bruce Coles, its chairman 5 be monitored from APE and CEO. “Now we need to look beyond S headquarters in Kent that,” he adds. ‘This is a massive oppor­ Ui via satellite link, he tunity for our people.” I points out. “The Chinese drive Law is a “hybrid” public company, with stock that does not trade publicly I £ much larger piles than but which must report its activities to the anything we are accus­ Securities and Exchange Commission. I tomed to in the West,” The agreement still must be approved i —m! says White. □ by Law shareholders, but should be I PLE4SED Hughes (left) and White Impressed Fan at test. By Stephen Daniels complete by the end of the year. □

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