The Shaw Group, Inc.

The Shaw Group Inc. was founded in 1987 as a fabrication shop in Baton Rouge. Since then, they have evolved into a huge engineering, construction, fabrication, enviromental and industrial services organization with over 19,500 employees in locations around the world.

History
The group was founded in 1987 by Jim Bernhard, the Chairman and Chief Executive Officer, and two individuals as a fabrication shop. The company was originally known as Shaw Industries Inc. The company grew by acquiring stock of Alloy Piping Products, Fronek A/DE, Inc, Naptech, Inc., Pipe Shields Inc., United States Crafts, Inc., Merit Industrial Constructors, Inc., Cojafex B.V., Prospect Industries plc, joined with Entergy Corporation to create EntergyShaw L.L.C., Stone & Webster Inc., The IT Group, Inc., Envirogen, Inc., MWR, Inc., Badger Technologies from Washington Group International, and Energy Delivery Services from Duke Energy Global Markets, Inc. In 2006 the company acquired a 20% interest in the Westinghouse Electric Company. The company has grown by 18,000 employees in 18 years.

Power portfolio
The Shaw Group did not own any power plants in 2005. However, Shaw's subsidiaries are currently developing a number of power projects, including the Cash Creek Generation project and the Taylorville Energy Center project.

Defense contracts
The Shaw Group is active in many areas of construction in the global market. As well, their services are called upon by the Department of Defense, ranking 83rd overall between 1998-2003 with a total of $1,139,031,714 in defense contracts. 

On January, 22, 2004, Shaw Group subsidiary, Shaw Enviromental & Infrastructure, won a $75,749,910 contract for renovations at the Al Kasik military base in Iraq.

Katrina
After Katrina hit, the Shaw group hired the former head of the Projects and Contracting Office in Baghdad, Charles Hess, who also had experience working at FEMA and the Army Corps of Engineers. 

As well, Shaw is one of several companies who won contracts from FEMA who are represented by former FEMA head, Joe Allbaugh. Other clients include Fluor Corporation and Kellogg Brown and Root. 

Shaw has been awarded seven contracts to assist in the post-Katrina recovery:


 * Contract 1: $77,162,809 through FEMA.
 * Contract 2: $100,000,000 through Army Corps for FEMA mission assignment.
 * Contract 3: $29,000,000 for Shaw Environmental through Army Corps for FEMA mission assignment.
 * Contract 4: $121,468,078 for Shaw Constructors through Army Corps for FEMA mission assignment.
 * Contract 5: $2,029,000 through Environmental Protection Agency as a mission assignment for FEMA.
 * Contract 6: $400,000 for Shaw Environmental through Army Corps for FEMA mission assignment.
 * Contract 7: $8,431,291 through Army Corp for FEMA mission assignment

Growth

 * The company was founded as Shaw Industries in 1987.


 * In 1993 Shaw Industries:


 * Formed Shaw Nass Middle East, WLL, a partnership with Abdulla Ahmed Nass, a Bahrainian entity, to operate a fabrication facility in Bahrain.


 * Formed Shaw-Formiconi, CA (now known as Manufacturas Shaw South America, CA), a partnership with Formiconi CA to operate a fabrication facility in Venezuela.


 * Acquired Shaw Sunland Fabricators, Inc which put the company's employee base just below 2,000.


 * Changed name to the Shaw Group Inc and went public with 3.125 million shares on the NASDAQ at $14.50.


 * In 1994 Shaw acquired the Fronek Compnay, Inc. and FCI Pipe Support Sales, Inc.


 * In 1996 they acquired Word Industries Fabricators, Naptech, Inc. and stock of Alloy Piping Products and Pipe Shields. Inc.


 * In 1997 Shaw acquired United Crafts, Inc., Merit Industrial Construction, Cojafex BV in Holland, Prospect Industries, plc, and Lancas, CA in Venezuela.


 * In 2000 Shaw joined with the Entergry Corporation to create EnetegryShaw LLC and acquired all assets of Stone and Webster, Inc..


 * In 2002 Shaw opened a facility in Cgina and acquired The IT Group, Inc., bringing the company's employee total to 18,000.


 * In 2003 Shaw acquired stock of Envirogen, Inc. and MWR, Inc., assets of Badger/P&C and stock of Energy Delivery Services.


 * In 2004 Shaw created a joint venture, Shaw CENTCOM Services, LLC, with construction companies in Iraq, Kuwait, and Saudi Arabia.


 * In 2005 Shaw was awarded contacts with FEMA and the Army Corps of Engineers to assist in Katrina related recoveries.

Management

 * James M. Bernhard, Jr.: Chairman and CEO
 * Timothy. A. Barfield, Jr.: President and COO
 * Robert L. Belk: CFO
 * David L. Chapman, Sr.: President, Fabrication & Manufacturing Division
 * Ebrahim Fatemizadeh: President Shaw Energy and Chemicals Division
 * Dorsey Ron McCall: President, Maintenance Division
 * G. Patrick Thompson, Jr.: Senior VP CIO & Administration
 * Jeffrey S. Merrifield: Senior VP, Shaw Power Group

Political connections

 * The founder of the company, Jim Bernhard, was the head of the Louisiana Democrat Party before stepping down to recently.


 * Edward Badolato, an executive VP of Shaw E&I has served at the Department of Energy and on the President's Commission on Critical Infrastructure.


 * Alfonso E. Lenhardt, a senior VP at Shaw E&I was the Sergeant at Arms in the US Senate.


 * Jeffery S. Merrifield, vice-president of the company's power group, was on the U.S. Nuclear Regulatory Commission two weeks before he joined the Shaw Group. In his last few months at the NRC, "Merrifield vigorously championed several major policy initiatives that directly benefited his future employer," including a change that reduced government and public oversight of new nuclear power plant construction, and changes to the approval process for new nuclear plant construction that scaled back public hearings and public comment periods.

Contact details
The Shaw Group Inc 4171 Essen Lane Baton Rouge, LA 70809 Phone: (225) 932 2500 Fax: (225) 932 2661 Website: http://www.shawgrp.com/

Related SourceWatch articles

 * Global warming
 * Government-industry revolving door
 * United States and coal

External articles

 * Press release, "Shaw to Participate in Upcoming Civil Nuclear Trade Mission to India as USIBC Member," The Shaw Group Inc., December 18, 2008.