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|Sendirian Berhad / corporation|
|Headquarters||Shah Alam, Malaysia|
|Public areas waste collectian & areas cleansing:
Dato’ Sri Mohd Kamil bin Jamil, Chairman & Director
Mohd Zain Hassan, CEO
Number of employees
Alam Flora, Sdn Bhd. a subsidiary of DRB-HICOM is the largest waste management, public areas cleansing and environmental services company in Malaysia. Founded in 1995, the company is headquartered in the Persiaran Kerjaya, Glenmarie in Shah Alam, Selangor.
Currently, the company's operate within Kuala Lumpur, Putrajaya and Pahang supported by a fleet of over 600 vehicles, 3,500 personnel and 140 partners to cater for over 3.2 million populations. On a daily basis, Alam Flora collected over 3,400 tonnes of household waste of which 2,500 tonnes from Kuala Lumpur, 800 tonnes from Pahang and 100 tonnes from Putrajaya; cumulated into over 1.6 million tonnes a year (inclusive of collection from illegal dumping sites).
Initially since 1997, Alam Flora as one of the waste management companies in Malaysia offer its services under an interim contract arrangement with annual renewal contracts signed separately and individually with all 35 local authorities within Kuala Lumpur, Putrajaya, Pahang and Selangor. However, due to the high capital requirements for specialized equipments, manpower and support services. The arrangement was then deemed as of high business risk with low return yields by the financial industry that limiting waste management industry players' access to fund for both expansion and upgrades.
Malaysia's government then introduced an Act 672, a specific bill for the Management of Solid Waste and Public Cleansing in 2007 to officially consolidate the national's waste management industry and capitalize on the concept of economic of scale for better and cost effective services. Under the Act, Alam Flora are officially assigned to the management of non-hazardous waste collection and public areas cleansing within Kuala Lumpur, Putrajaya, Selangor, Pahang, Terengganu and Kelantan. Operationally, the Act was enforced with the official signing of a 22-year concession contract between Alam Flora and Malaysian government on September 2011.
Collectively with 2 others concessionaires under the Act 672, E-Idaman a subsidiary of UEM Group that operate within Kedah and Perlis and SWM Environment at Melaka, Negeri Sembilan and Johor, covers almost the entire peninsula Malaysia except Pulau Pinang, Perak & Selangor which chose not to participate while Sabah and Sarawak are not governed under the said Act.
- 1 History
- 2 Corporate structure and leadership
- 3 Recycling
- 4 Renewable Energy
- 5 International
- 6 Corporate issues
- 7 Labor relations
- 8 Environmental record
- 9 Marketing
- 10 Notes
- 11 External links
Modern and reliable household waste collection in Malaysia started in the 1970's with the introduction of Environmental Quality Act 1974 and Local Government Act 1976 where the Local Authorities take charge within their areas of jurisdiction and the federal government offers indirect support only when needed or necessary. In 1982, Malaysian government formulated an 'Action Plan for a Beautiful & Clean Malaysia' (ABC) and gave Local Authorities a direct technical and advisory support through the Ministry of Housing and Local Government.
In the 1990's, the government realizes that its needed to fast tracked the nation economic and infrastructure development and embarked on rapid privatization program. The Economic Planning Unit (EPU) invited 60 consortium to submit proposal for the privatization of National Solid Waste Management in 1994 and in 1995, 4 consortium were awarded a contract for implementation.
One of the successful bidder were Diversified Resources Berhad (DRB) led by Tan Sri Yahaya Sulong. DRB which then merged with The Heavy Industries Corporation of Malaysia Berhad (HICOM) to formed DRB-HICOM had created Alam Flora with substantial injection of fund to immediately start operation, incorporating existing municipal's employees and purchasing of asset to cover the areas of Kuala Lumpur, Selangor and Pahang.
The initial agreed term between EPU and DRB-HICOM was for Alam Flora to operate on 'interim' contract to enable immediate deployment in 1997 while waiting for approval from parliament of a more firm arrangement 'soon' after.
Parliament only passed the bill on National Solid Waste Management in 2007 under Act 672 named The Management of Solid Waste and Public Cleansing.
and the lead In the 1890s, Ham Huizenga, a Dutch immigrant, began hauling garbage at $1.25/wagon in Chicago. In 1968, Wayne Huizenga, Dean Buntrock, and Larry Beck founded Waste Management, Inc. and began aggressively purchasing many of the smaller garbage collection services across the country, as the descendant firm of Ham Huizenga. In 1971, Waste Management went public, and by 1972, the company had made 133 acquisitions with $82M in revenue. It had 60,000 commercial and industrial accounts and 600,000 residential customers in 19 states and the provinces of Ontario and Quebec. In the 1980s, Waste Management acquired Service Corporation of America (SCA) to become the largest waste hauler in the country.
Between the years of 1992 and 1997, the executive officers of Waste Management began "cooking" the accounting books by "Refusing to record expenses necessary to write off the costs of unsuccessful and abandoned landfill development projects, Establishing inflated environmental reserves (liabilities) in connection with acquisitions so that the excess reserves could be used to avoid recording unrelated operating expenses, improperly capitalizing a variety of expenses, failing to establish sufficient reserves (liabilities) to pay for income taxes and other expenses, avoiding depreciation expenses on their garbage trucks by both assigning unsupported and inflating salvage values and extending their useful lives, assigned arbitrary salvage values to other assets that previously had no salvage value, failed to record expenses for decreases in the value of landfills as they were filled with waste, used netting to eliminate approximately $490 million in current period operating expenses and accumulated prior period accounting misstatements by offsetting them against unrelated one-time gains on the sale or exchange of assets, and used geography entries to move tens of millions of dollars between various line items on the Company's income statement to, in Koenig's words, "make the financials look the way we want to show them."" according to the American Institute of Certified Public Accountants (2005).
When a new CEO took charge of the company in 1997, he ordered a review of the company's accounting practices in 1997. In 1998 Waste Management restated its 1992-1997 earnings by $1.7 billion, making it the largest restatement in history.
In 1998, in a pivotal development point, Waste Management merged with USA Waste and moved its headquarters from Chicago to Houston. The merged companies retained the Waste Management brand. However, that year also brought trouble for the newly expanded company, in the form of an accounting scandal.
In November 1999, turn-around CE was brought in to help Waste Management recover. The company has since implemented new technologies, safety standards, and operational practices, and is on a steady upward climb.
On July 14, 2008, Waste Management offered a $34 per share bid to acquire arch-competitor Republic Services, Inc. On August 11, 2008, the bid was raised to $37 per share. On August 15, 2008, Republic Services, Inc. denied Waste Management's bid for a second time. On October 13, 2008, Waste Management withdrew its bid for Republic Services, citing financial market turmoil.
In January 2009, a global economic crisis forced Waste Management to aggressively reduce and restructure its corporate workforce.
On February 7, 2010, CBS debuted a new TV series called Undercover Boss after the Super Bowl. Waste Management COO Lawrence O'Donnell III participated in this first episode and got a chance to see up close the inner workings of the company he helped run. O'Donnell left Waste Management on July 1, 2010.
Waste Management also sponsored the #14 car of Sterling Marlin in 2006 until 2007 in the NASCAR Sprint Cup Series.
Corporate structure and leadership
Waste Management is structured into the following units:
- Midwest Group
- Jeff Harris, Senior Vice President
- Western Group
- Duane C. Woods, Senior Vice President
- Eastern Group
- Brett Frazier, Senior Vice President
- Southern Group
- James E. Trevathan, Senior Vice President
Current members of the board of directors of Waste Management are: John C. "Jack" Pope, David P. Steiner, Dr. Pastora San Juan Cafferty, Frank M. Clark, Jr., Pat Gross, Thomas I. Morgan, W. Robert Reum, and Steven G. Rothmeier.
David P. Steiner is also the chief executive officer of the company (since 2004), succeeding A. Maurice Myers.
- Wheelabrator Technologies Inc.
- Mark A. Weidman, President
- Waste Management Recycle America
- Patrick J. DeRueda, President
Waste Management is North America’s largest residential recycler, currently managing more than 8.5 million tons of materials, including metal, plastic, glass, electronics and paper at 128 facilities.
One service provided by Waste Management, single-stream recycling, allows recyclable materials to be comingled, rather than separated by the customer and handled separately by the collection provider. The company currently operates 30 single-stream recycling facilities throughout North America. Because the single-stream recycling process eliminates the need for customers to separate items before they are collected, it usually leads to higher recycling participation rates in local communities.
Electronics recycling, or ecycling, is another focus for Waste Management. This refers to the proper disposal of electronic items like televisions, computers, microwave ovens, cellular phones, VCRs and DVDs and other such products. The U.S. Environmental Protection Agency (EPA) encourages consumers to reuse and recycle these valuable products to keep them out of the waste stream. With this in mind, Waste Management has partnered with several companies, like LG Electronics, to recycle electronics for reprocessing.
The company operates approximately 150 e-cycling centers throughout the country through its subsidiary, WM Recycle America. It January 2010, the company announced that WM Recycle America was implementing the Responsible Recycling (R2) Program for electronics recyclers, which establishes accepted practices to help protect the environment and workers’ health and safety while e-waste is handled. In addition these practices allow third parties to monitor activity and create greater transparency in the e-cycling sector.
Waste Management has also invested in new methods and technologies for reusing and recycling non-traditional materials, such as organic waste and construction debris. In 2010, Waste Management announced two strategic investments to advance recycling technologies in North America:
- In January 2010, Waste Management announced it would fund Boston-area company Harvest Power, which specializes in turning food and yard waste into compost. Harvest Power is also working to develop anaerobic digester technology that uses waste to create a biogas, which can produce electricity, heat or be converted to natural gas.
- In May 2010, Waste Management announced its investment in MicroGREEN Polymers Inc., which specializes in reducing the amount plastic required for production of consumer products, like plastic bottles.
In June 2009, Waste Management signed an agreement with BigBelly Solar to be the sole waste company distributor of BigBelly’s technology in North America. BigBelly compactors are self-powered by built-in solar panels and are capable of holding 180 gallons of waste. The compactors decrease the need for trash pickup by 80 percent, which reduces production costs, fuel use, and greenhouse gas emissions.
Waste Management Solar Compactors became a staple at the Waste Management Phoenix Open; the company replaced FBR as the title sponsor of this PGA TOUR tournament in December 2009. As title sponsor, Waste Management introduced a variety of technologies to make the Phoenix Open one of the most eco-friendly tournaments on the PGA TOUR. Waste Management has been working with other sports and music venues across the nation to increase recycling among patrons. It teamed up with Live Nation to forward the Recycling Rocks! campaign across the U.S.
Additionally, through its subsidiaries GreenOps, LLC and Greenopolis, Waste Management partnered with PepsiCo to develop the Dream Machine recycling initiative to increase beverage container recycling throughout the U.S. Dream Machine kiosks are computerized recycling receptacles that include a personal reward system that allows users to accumulate and redeem points for every item they recycle at www.greenopolis.com.
Through its subsidiary, Wheelabrator Technologies Inc., Waste Management owns and operates sixteen waste-to-energy facilities and five independent power-production facilities, which specialize in collecting municipal solid waste and transforming it into renewable electric power. Some of Wheelabrator’s facilities are also capable of generating electricity from materials such as waste wood, waste coal and natural gas.
Waste Management is also involved in landfill gas utilization, including landfill-gas-to-energy (LFGTE) production. The company has over 115 LFTGE facilities, and plans to add another 60 facilities by 2012. LFGTE facilities collect methane and carbon dioxide gases emitted during the natural anaerobic decomposition of organic waste in the landfill. These gases are then used to fuel engines or turbines that generate electricity to power surrounding areas.
In August 2009, Waste Management announced that it would join Valero Energy Corporation as a strategic investor in Terrabon L.L.C.’s waste-to-fuel conversion technology. Waste Management will also assist Terrabon in securing organic waste streams. Terrabon specializes in refining municipal solid wastes and sewage sludge into non-hazardous organic salts. The organic salts are then sent to Valero where it can be converted into gasoline, diesel or jet fuel.
Around this same time, Waste Management launched a joint venture with Oregon-based company InEnTec to form S4 Energy Solutions. S4 uses a process called plasma gasification (also known as plasma arc waste disposal) to heat waste materials until they break down to produce a synthesis gas, or syngas. The syngas can be converted into transportation fuels, such as ethanol or diesel, or can be used as a substitute for natural-gas heating and electricity.
In February 2010, Waste Management announced a strategic investment agreement with Enerkem Inc., a Canadian-based company that specializes in converting waste materials that are most often landfilled, such as carbon-based feedstock, municipal solid waste, construction and demolition wood and agricultural and forest residues, into biofuels like ethanol. The investment signifies Waste Management’s continued efforts to invest in upcoming green technologies and to double its renewable energy production.
In 2009, Waste Management purchased a 40-percent stake in Shanghai Environment Group Co Ltd, a wholly owned subsidiary of Shanghai Chengtou Holding Co Ltd. SEG sought Waste Management’s investment in order to benefit from Waste Management’s experience in the waste disposal field, as well as improve their technology for waste disposal.
In 1987, the US government accused Waste Management of violating antitrust laws by colluding with other waste haulers to allocate customers in two Florida counties.
Revelations of irregular accounting led to a major drop in stock price and to the replacement of top executives after a new CEO ordered a review of the company's accounting practices in 1998. The company had augmented the depreciation time length for their property, plant, and equipment, artificially inflating the company's after-tax profits by US$1.7 billion. Waste Management paid US$457 million to settle a shareholder class-action suit. The SEC fined Waste Management's independent auditor, Arthur Andersen, US$7 million for his role.
ERP software implementation failure
In 2005, Waste Management entered into a Software Licensing Agreement (SLA) with SAP AG. Under the agreement, SAP and its wholly owned subsidiary, Tomorrow Now, were to implement SAP's Enterprise Resource Planning software. The implementation began when an 8 months pilot program was established in Waste Management's New Mexico market area, the market-share area at the time. This initial implementation was to be followed in two months with a company-wide implementation from Waste Management's headquarters in Houston, Texas.
In December, 2007, Waste Management ended their ERP implementation effort. Waste Management characterized the ERP implementation as non-functional. An SAP sponsored "Solution Review" determined that a customized ERP, based upon an updated SAP ERP, would need to be made in order to accommodate a company-wide implementation.
Waste Management sued SAP for the US$100 million to recover the funds it had spent on the failed ERP implementation. In the lawsuit, Waste Management accused SAP of fraud and deception. SAP countered that Waste Management failed to present knowledgeable workers and accurate business models and failed to migrate data from legacy systems. The suit concluded in 2010 under confidential terms and a one time payment from SAP to Waste Management disclosed to the SEC.
In 2007, Waste Management locked out Teamsters at its largest hauling operation in Alameda County, CA. The lockout lasted a little less than a month and put 900 members of the Teamsters, ILWU and Machinists Union on picket lines and raised concerns over sanitary impact on the affected communities. The lockout was stopped when affected communities started legal actions against Waste Management. According to Waste Management officials, the company worked over the past three months to negotiate an agreement fair to both Waste Management and the union. The union did not want to negotiate over the company's proposals and refused to offer their own proposal unless Waste Management agreed to withdraw all proposals from the table. Oakland's City Council reached a settlement with Waste Management over the dispute in March, 2008. The company rebated more than $3 million to customers and Oakland customers will receive additional services over the next five years.
Waste Management's operations consist of environmental protection, groundwater protection, environmental engineering, and air and gas management. Waste Management currently operates ten full-scale waste treatment landfill projects in the U.S. and Canada. As a member of the Chicago Climate Exchange (CCX), Waste Management made a commitment during the pilot phase to reduce its greenhouse gas emissions by four percent below the average of its 1998–2001 baseline by 2006. They have also replaced nearly 500 diesel-fueled trucks with vehicles that run on 100 percent natural gas. These new garbage and recycling trucks comprise one of the nation’s largest fleets of heavy-duty trucks powered exclusively by natural gas.
In November 2009, at Waste Management's Altamont Landfill, a new plant began producing 13,000 gallons a day of clean-burning LNG fuel from methane gas from the landfill that had fueled an electric power plant since 1969. Waste Management has said that the plant, announced in April 2008, and built and operated by The Linde Group with state funding, is the world’s largest facility to convert landfill gas into vehicle fuel. 
Waste Management works with environmental groups in the U.S. to set aside land to create and manage wetlands and wildlife habitats. The company’s landfills currently provide approximately 21,000 acres (85 km2) of protected land for wildlife; 73 landfills are certified by the Wildlife Habitat Council.
In November 2010, some residents of Kettleman City, California complained to the EPA about Waste Management's plan to double the size of its Kettleman Hills Hazardous Waste Facility, a local dump that has been connected to hazardous waste such as asbestos, pesticides, and PCBs.
In May 2011, Waste Management's Wheelabrator division agreed to pay a record $7.5 million settlement with the Commonwealth of Massachusetts for a host of environmental violations at its plants in North Andover, Saugus, and Millbury, Massachusetts. The settlement was announced on May 2, 2011 by the Massachusetts Department of Environmental Protection and Attorney General Martha Coakley's office.
Waste Management used aggressive marketing to try to turn the company around in the 1990s, with slogans like: “What business do we have saying we help the environment? That is our business.“ and "Waste Management, helping the world dispose of its problems." The current slogan is “From everyday collection, to environmental protection, think green. Think Waste Management.“ They also are featured in a Walt Disney World Epcot attraction, Innoventions.
Waste Management has also tried to soften its impact on communities through public relations, such as its 2011 renaming of Mount Trashmore in northern Broward County, Florida, from the "North Broward County Resource Recovery and Central Disposal Sanitary Landfill" to the "Monarch Hill Renewable Energy Park."
In February 2010, Waste Management was the first company featured on CBS television series Undercover Boss. Chief Operating Officer Lawrence (Larry) O'Donnell, III learned of many policies he introduced but wished to change to improve the working environment of his employees. In one example, route supervisors sometimes observe garbage collecting to monitor quality, productivity and adherence to safety rules. Some garbage collectors perceived this as spying, a characterization that disturbed O'Donnell. In another example, O'Donnell chose to end the practice of deduction of pay for time clock rules violations during the lunch hour.
O'Donnell personally intervened in the career of an administrative assistant he met while filming the series. The administrative assistant had put her family's house up for sale due to lack of sufficient income despite working two jobs. O'Donnell promoted the employee to a supervisor position, which included a higher rate of pay and bonus eligibility, thus allowing her to keep the house.
The Waste Management brand is featured in several recent films. Waste Management vehicles and equipment are featured prominently in several scenes in Transformers: Dark of the Moon. In the film, one character transforms from a robot into a Waste Management collection vehicle. A Waste Management branded roll-off box can be seen in the background of a scene in the 2009 film Paul Blart: Mall Cop and a character dressed as a Waste Management employee appears in the film, The Spy Next Door.
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- Waste Management offers to buy Republic Services: Financial News - Yahoo! Finance[dead link]
- [dead link]
- [dead link]
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- "Single-stream system lifts recycling 39 percent in Stamford". Stamford Advocate. Retrieved 2010-07-26.
- "Reusing and Donating Electronics". Environmental Protection Agency. Retrieved 2010-08-20.
- "BRIEF: eCycling at State Fair Park". TMCnet.com. Retrieved 2010-08-18.
- "LG and Waste Management To e-Cycle LG Gear for Free". Earth2Tech. Retrieved 2008-08-05.
- "Responsible Recycling (R2) Practices for Use in Accredited Certification Programs". Environmental Protection Agency. Retrieved 2010-08-20.
- "Waste Management invests in Harvest Power". Biomass Magazine. Retrieved 2010-01-25.
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- "Waste Management invests in MicroGREEN". Bloomberg Businessweek. Retrieved 2010-05-19.
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- "Waste Management to distribute BigBelly solar-powered compactors". Houston Business Journal. 2009-06-12. Retrieved 2009-06-12.
- "Waste Management is new title sponsor of Phoenix Open". Arizona Central. Retrieved 2009-12-09.
- "Waste Management Phoenix Open". WasteManagementPhoenixOpen.com. Retrieved 2010-08-20.
- "Recycling Rocks". recyclingrocks.com. Retrieved 2010-08-20.
- "PepsiCo and Waste Management partner for on-the-go recycling". American Recycler. Retrieved 2010-06-01.
- "Wheelabrator". Wheelabrator.com. Retrieved 2010-08-20.
- "Waste Management LFGTE Facility at Superior Landfill Savannah, GA". MSW Management. Retrieved 2010-05-26.
- "Waste Management invests in waste-to-fuel conversion technology". Washington Examiner. Retrieved 2009-08-26.
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- "InEnTec". InEnTec.com. Retrieved 2010-08-20.
- "S4 Energy Solutions". s4energysolutions.com. Retrieved 2010-08-20.
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- "Waste Management Buys 40 Percent of Shanghai Environment Group". Waste Age. Retrieved 2009-08-06.
- "US waste manager nets 40% in SEG". China Daily. Retrieved 2009-08-06.
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- CIO. "10 Famous ERP Disasters, Dustups and Disappointments". Retrieved 2011-09-19.
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- Brian Messenger (May 3, 2011). "Wheelabrator agrees to pay $7.5 million for violations". Lawrence Eagle-Tribune. Retrieved June 22, 2011.
- Nolin, Robert (Apr. 11, 2011). "Mount Trashmore gets new name". South Florida Sun-Sentinel. Retrieved 2011-04-11. Unknown parameter
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Category:Companies listed on the New York Stock Exchange Category:Accounting scandals Category:Companies based in Houston Category:Companies established in 1894 Category:Multinational companies Category:Waste management companies of Canada Category:Waste management companies of the United States