Washington Group Awarded Construction Management Contract by Mercedes-Benz U.S. International, Inc.
BOISE, Idaho--Jan. 30, 2001--Washington Group International, Inc., , a leader in the engineering and construction industry, today announced that it has been awarded a contract for the construction management of a $600 million plant expansion for Mercedes-Benz U.S. International, Inc. (MBUSI) at the plant in Tuscaloosa, Alabama.The contract was awarded to Rust Constructors Inc., a unit of Washington Group International.
Based in Birmingham, Alabama since 1905, Rust Constructors was awarded the construction management contract for the expansion of the Mercedes-Benz M-Class facility. Rust Constructors will be responsible for the management of the building construction and equipment installation. Construction of the expansion is expected to begin mid-year and be completed by late 2003.
"We look forward to this exciting and challenging project for Rust Constructors, and we are equally excited about being a partner with Mercedes-Benz U.S. International," said Stephen G. Hanks, Washington Group President. "Washington Group has more than 30 years' experience in the automotive industry. We have the required experience for this project within our own company and don't have to partner with any other company for this project. We also have a well seasoned team in place ready to begin the work," said Hanks. "Like Mercedes-Benz U.S. International, we're a local company in Alabama, but also a global company. We also share the same proven record when it comes to safety and quality."
"Rust Constructors has strong automotive construction and equipment installation experience, an excellent safety record, and a thorough knowledge of Foreign Trade Zone requirements," said MBUSI President and CEO Bill Taylor. "In addition, they have a solid quality assurance program in place that is consistent with our corporate philosophy."
"We also felt a strong partnership with the team Rust assembled," said Taylor, "which is important as we realize this expansion while, at the same time, continue to operate our existing facility."
Some of the selection criteria MBUSI used to make its selection:
| -- | Construction experience with automotive facilities |
| -- | Foreign Trade zone experience |
| -- | Quality Assurance program in place; ISO certified |
| -- | Process and equipment installation experience |
| -- | Commitment to minority and women business enterprises |
| -- | Experienced and dedicated team |
In August 2000, DaimlerChrysler AG (DCAG) announced plans to invest $600 million in a major expansion in Tuscaloosa that would more than double the size of the existing facility. The expansion is expected to double production capacity from 80,000 units to roughly 160,000 units annually for the next generation Mercedes-Benz M-Class sport utility vehicle. In 2000, the M-Class was the top-selling Mercedes-Benz vehicle in the U.S.
Rust Constructors Inc., a Washington Group subsidiary, provides construction and maintenance services across all Washington Group-operating units. Rust Constructors is based in Birmingham, Alabama. Washington Group's automotive experience includes building the 4.2 million-square foot Saturn plant in Spring Hill, Tennessee as well as projects for General Motors in China, Thailand, and Michigan; Chrysler in Argentina and Brazil; Ford in Vietnam; and Nissan in California.
Washington Group International, Inc., is an international engineering & construction firm with more than $5.0 billion in annual revenues and a backlog of approximately $6.6 billion. With more than 39,000 employees at work in more than 40 countries, the company serves the automotive, energy, environmental, government, heavy-civil, industrial, mining, nuclear-services, operations and maintenance, petroleum and chemicals, process, pulp and paper, telecommunications, transportation, and water-resources markets as an engineer, constructor, program manager and developer.
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