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TWST: What is The Shaw Group?
Mr. Sammons: The Shaw Group is a world-class engineering and
construction firm. Generally, we fall into the E&C category, but we also
provide proprietary technology, innovative engineering solutions and
construction and consulting to companies looking to build projects,
especially in the power, nuclear power and fossil fuel power business,
and the chemical processing business, much of which is the petrochemical
processing business, also the environmental and infrastructure business,
and that's the business of building structures that are for our
environment, such as public facilities, housing, water handling, and
other infrastructure around the world. So we are a worldwide business in
that standpoint. As for the history of our company, we began actually as
an industrial pipe company, and built the business from a one-shop
business, and then after six years we went public in 1993, and we were
able to then take those monies and continue to grow the business
organically, and as well as through acquisition. And in the year 2000 we
made a large acquisition of a worldwide industrial engineering firm '
Stone & Webster, of Boston. We integrated Stone & Webster into our firm,
and then in 2002, we made another large acquisition of IT Group,
primarily an environmental and infrastructure company. Over the last
four years, we've been integrating those businesses and are now a world-
class large New York Stock Exchange traded company, which brings
engineering, construction, and technology services to clients all over
the world. TWST: What's the agenda at this point? What are the priorities for the
next 12 months? What would make that time frame a success?
Mr. Sammons: Our customers and our markets are growing and very busy at
this time. Our customers are in the power business, fossil fuels and
nuclear power. Both of those parts of our business are growing. So we
are focused on growing our business to meet the needs of those
customers, which means adding capacity and ability to build power
plants, manage construction projects, engineer the jobs, and on the
nuclear side beginning the process of what we believe will be an
important part of the long-term power industry, the nuclear fueled power
plants. Twelve to 18 months ago, there were no specific plans for
nuclear power plant construction in the United States. Now there are
approximately 20 plants being planned as we speak, which is a huge
turnaround. The reason obviously has to do with high pricing of the
fossil fuels, oil and gas, and the need to diversify to other fuels '
nuclear, as well as coal. And speaking of coal for a moment, that's the
other big part of our business ' the coal plants: either new coal plants
to be built, or putting environmental emissions controls on existing
coal plants, such that we extend the life of those plants. Those are our
immediate plans on the power and the energy side. The other big area of
our business is ethylene and petro-chemical processing. With great
demand for plastics and the high cost of the primary raw material,
natural gas, there is a need for new ethylene production in areas where
the natural gas is cheap. So that new production we expect to see will
be in the Middle East and in the Far East, and we are seeing those
projects get planned and begin construction. We are one of only a few
companies that have the technology and the capabilities to actually
design and build an ethylene plant. So, with that technology, we are
very much in the mix of this new production, which will be substantial
over the next five to 10 years in those markets, Middle East and the Far
East primarily, where the natural gas raw material is most available.
Probably the third big area of our business and our focus is in rapid
response and emergency response. You've seen in the last year a
significant response needed to the hurricane activities in the Gulf
Coast, and Shaw was very much a leader in that response effort, and we
are prepared and continue to be prepared to respond to those types of
natural emergencies and natural disasters should they occur.
Tickers included in this excerpt: SGR
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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