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| MARKET
PUSH. Focus is on industrial treatment work. (Photos courtesy
of U.S. Filter Corp.) |
As a unified entity,
water services giant U.S. Filter Corp. and Germany’s industrial
conglomerate Siemens AG hope to conquer what they see as a growing
worldwide market for water and wastewater treatment, particularly
for industrial customers. Long stymied in working abroad by
its former French owners, USF is itching to market globally
now as part of the Siemens organization, says CEO Andrew D.
Seidel.
Siemens’ nearly $1-billion purchase of most of USF’s
water technology and services business, announced last spring,
closed in July. The deal marks the end of a topsy-turvy time
for the firm, caught up in moves by former owners Vivendi
and Veolia into other business areas, including an ill-fated
foray into moviemaking. Some observers say USF was affected
competitively by the corporate distractions.
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| SEIDEL |
In a Sept. 8 conference call, Seidel said that Veolia kept
much of USF’s former municipal privatization business,
while selling to Siemens the equipment, treatment and technology
units that can serve clients as water demand and regulation
both increase. He says Siemens only invests in global businesses
and that USF is set to become its "water platform"
worldwide.
"Under the French, USF could only participate in North
America," says Seidel. "That was a weakness. We
were artificially restricted in many markets, particularly
in Asia, where it was very painful." USF now hopes to
take advantage of crackdowns in levels of arsenic, perchloride,
nutrient discharges and disinfection byproducts, and not just
in the U.S. "The same thing is occurring in the European
Union and even in China," he says.
Seidel believes USF’s new owner is more amenable to
investing in new technology such as advanced membranes. "We
estimate that new products will generate $100 million in sales
in 2004," he says. The new USF, now based in Warrendale,
Pa., and known as "USF–a Siemens business,"
aims to be first or second in its key market sectors. Seidel
says Siemens’ industrial experience and client list will
boost USF’s own expertise in cost-efficient industrial
wastewater treatment and high-purity process water production.
Seidel is impressed with Siemens’ $80-billion revenue
last year "and no debt," he says. USF is a $1.2-billion
firm. "We now have an owner that understands the business
we’re in. It’s a nice cultural fit we didn’t
have before."
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