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Michigan Corporate Moves

BF Staff — Wed, 01 Jun 2011 17:05:19 +0000

Diplomat Specialty Pharmacy Grows in Flint, MI

Diplomat Specialty Pharmacy, the nation’s largest privately held specialty pharmacy company servicing the needs of patients and physicians nationwide, announced today it has received an 18-year Michigan Economic Growth Authority (MEGA) tax credit for $61.5 million and $14 million in Career Alliance, Inc. workforce training funds.

Diplomat expects the bulk of its employees to be based in Flint, where the company plans to purchase a 340,000 square foot building at the Great Lakes Technology Centre complex on Saginaw Street. The company will invest $12 million in the building over the next five years and anticipates it will move from its current headquarters space in Flint Township to the Saginaw Street site on a phased-in basis beginning in 90 days, with all headquarters operations and employees relocated over the next 12 months.

Additional incentives will also be made by the City of Flint, MI that will allow the company to focus its immediate expansion efforts in Flint. Diplomat’s employee base, currently more than 400 company-wide, with approximately 350 employees in Michigan, is expected to add over 1000 new jobs in life sciences in five years and 4,000 by 2028.

The announcement was made by Diplomat Specialty Pharmacy President, CEO and co-founder, Phil Hagerman, Hagerman said the state tax incentives strengthen Diplomat’s future in Michigan.

“Diplomat Specialty Pharmacy is a leader and innovator in specialty pharmacy, a dynamic industry experiencing explosive growth. The tax credits awarded to Diplomat mean Michigan can further position itself as a life sciences leader, attracting new and complementary businesses that support the rejuvenation of the Flint business landscape and the appeal of Michigan as a hotbed of ingenuity and health care talent,” Hagerman said. “We thank [the governor’s office], the MEGA Board, the City of Flint and the Genesee Regional Chamber of Commerce for their support in assuring that Diplomat will remain a Michigan-based company.”

Diplomat Specialty Pharmacy was included on the INC. 500 list of fastest growing private companies in America. Of the 43 companies in the health care category, Diplomat ranked #1 in total revenue and sales growth. The company anticipates revenues of $600 million in 2010.

Specialty pharmacy refers to a branch of the pharmaceutical delivery system that focuses on comprehensive and coordinated systems of pharmacological care for patients with serious and chronic illnesses and complex medical conditions. Diplomat offers its services through contracts with prescription benefit managers and health plans, and through direct relationships with physicians and patients.

Diplomat also provides services to large retail pharmacies not equipped to handle the specialty pharmacy needs of patients requiring highly specialized drugs. Diplomat staff includes pharmacists, nurses and patient advocates who interact with patients to answer questions, offer support, ensure medication compliance and even try to find funding sources for those who cannot afford their prescriptions.

In 2009, Diplomat secured $12.1 million in funding for patients through outreach to various non-profit funding sources. As a result of its high touch-high tech patient model, Diplomat’s specialty patients average better than 90% adherence to their medications, while the national average is 50-70% for chronic medicines.

“Specialty pharmacy is a labor-intensive field. It’s a nearly $100 billion industry and a true growth area for Michigan,” Hagerman said. “Three of the top 10 drugs we provide today didn’t exist five years ago. There are hundreds of drugs in the specialty pharmacy pipeline and it is a likely scenario that half of the top 10 drugs we will provide in five years are not on the market today. In a rapidly expanding field like specialty pharmacy, we need top talent to remain industry leaders.

“The MEGA tax credits awarded to us today, along with the multi-million dollar federal training grant and anticipated City of Flint support, ensure that Michigan residents will have new opportunities in a life sciences arena that is not only growing, but one where we have the chance to make a difference every day,” he added.

Given the room for growth at the Saginaw Street site, Hagerman says the area shows great promise for building a life sciences corridor.

“With Diplomat Specialty Pharmacy as an anchor, we expect that businesses complementary to ours, whether they are our own vendors or other life sciences concerns, will see the attraction of creating a life sciences corridor here,” he said. “Diplomat will be reinventing itself in the future and we are thrilled that reinvention will take place in Flint, Michigan.”

‘New Blue Economy’ in Macomb County

Macomb County [MI] Executive Mark Hackel has announced the formation of a 22-member panel to support clean water, tourism, recreation and economic development along Lake St. Clair and the Clinton River. The panel members are from the tri-county area.

The Macomb County Water Resources Advisory Council will concentrate on the three cornerstones of Hackel’s New Blue Economy initiative: water quality, water access and water attraction. It also will work to attract smart water technology companies—one of the county’s targeted industry sectors.

“I’m extremely excited about this new direction,” Hackel said of the council. “There’s a lot more that they can help us with. It’s not enough to identify problems, but how to identify and find solutions.”

The council is made up of government representatives, including Hackel and Macomb County Commission Chairwoman Kathy Vosburg, and members of higher education, environmental agencies, economic development and private industry.

Last month, Hackel gave commissioners his organization plan, which detailed $2.5 million in cuts annually, including about $100,000 in savings from the elimination of seven of the county’s 38 boards, including the Water Quality Board. Hackel said he was considering advisory councils for some of the eliminated boards.

The volunteer council, which is expected to meet soon, is to work toward keeping waterways free of debris and pollution, and beaches open. Among the New Blue Economy’s short-term initiatives is opening the Clinton River for canoeing and kayaking between Utica and Rochester, and to erect promotional and location signage for Lake St. Clair along key roadways.

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Ohio Corporate Moves

BF Staff — Wed, 01 Jun 2011 17:03:52 +0000

Hamlet Protein Brings Animal Feed Production to Findlay

Hamlet Protein, a manufacturer of soy-based protein for animal feeds headquartered in Horsens, Denmark, will begin production in Findlay, OH in early 2012, creating 25 jobs.

Hamlet Protein is investing $20 million in Findlay: $15 million in machinery and equipment, $4 million to buy the plant and $1 million in renovations, according to Findlay-Hancock County Alliance Economic Development Director Anthony Iriti.

The Findlay site beat out competing locations in Indiana, Illinois and Iowa. A $2 million low-interest loan to Hamlet was approved by Ohio officials. The state also offered a $96,000 payroll tax credit over six years for the jobs to be created.

Also, Hancock Regional Planning Commission is making a $500,000 low-interest loan from its revolving loan fund. Hancock County JobSolutions is extending $369,000 in assistance, including $310,000 in worker training and $59,000 in recruitment and screening assistance.

Hamlet will operate in an 88,000-square-foot building constructed by A. Schulman in 2008 but never occupied, north of Tall Timbers Industrial Center at 5289 Invision Drive.

Hamlet Protein will buy its raw materials from soybean farmers in the area.

“Agriculture plays a major role in our county, and we’re happy to see this area of industry growing,” Hancock County Commissioner Ed Ingold told the Courier News. “The presence of Hamlet Protein will be a huge benefit for our agricultural sector and economy as a whole.”

Hamlet Protein’s supplements go mainly into feed for piglets. But Hamlet Protein officials see opportunities to sell more protein supplements to makers of food for poultry, calves and pets.

Hamlet Protein’s Findlay plant will employ people in operations, administrative and information technology jobs, the state Development Department reported. The average wage will be $22 per hour plus $10 per hour in benefits, the state reported.

Findlay Mayor Pete Sehnert called Hamlet Protein a great company with great values. “This organization will be a wonderful addition to our community,” Sehnert said.

Finnish Wireless Tech Company Lands in Akron

Akron Mayor Don Plusquellic has announced that Finland-based wireless network technology company, 7signal Ltd., is locating its sales offices and Network Operation Center in Akron’s Biomedical Corridor.

“In today’s world of health care,” said the Mayor, “one of the most critical missions is to develop computerized software and hardware that enhances the work of doctors and hospitals.”

The mission of 7signal is to make wireless LAN (WLAN) network work reliably in hospital settings. The company’s unique “Wireless Quality Assurance (WQA)” solution helps to ensure that end-users of the healthcare applications (doctors, nurses, medical records, and critical medical devices) connect reliably and stay connected all the time.

“With our solution, it is possible to continuously monitor and take preventive actions on the hospital’s wireless network services,” said Jukka-Pekka Sarkka, 7signal’s CEO. “This allows the wireless network manager to ensure that wirelessly enabled clinical and business processes are run smoothly 24 hours a day, 7 days a week, and 365 days a year.”

7signal has been operating successfully at Akron General Medical Center and Akron Children’s Hospital for the past four months. “7signal has a quality solution that aids us in the expansion of our wireless capabilities. We are always looking for ways to expand our high tech/high touch health care delivery systems,” said Akron Children’s Hospital CIO Tom Ogg. “We appreciate the efforts of the City of Akron and the Chamber of Commerce in bringing us new vendors like 7signal.”

“Everything we have done at Akron Global Business Accelerator including the BioFinland Technology Bridge Program has been to bring jobs to Akron,” the mayor said.

“Akron General is very pleased to partner with 7signal on this project,” said Dave Fiser, Vice President and CIO for Akron General Health System. “We are especially proud to help the City of Akron in expanding its Biomedical Corridor.”

7signal was founded in Helsinki, Finland by former Nokia Research & Development managers—turned entrepreneurs—in 2006, and located in the award-winning Akron Global Business Accelerator which has been a key partner in the development of the BioFinland Technology Bridge Program, established by Mayor Plusquellic in 2010 with the city of Helsinki.

BioFinland is a collaborative initiative between the city of Akron, the Akron Global Business Accelerator and the Helsinki Business and Science Park, Finland’s premier business incubator focused in life sciences.

Implementation of the BioFinland Technology Bridge has been coordinated by Bob Anthony of the Akron Global Accelerator, Raimo Vaintola, managing director of Radvisor Oy, and Antti Sekki, business development director of the Helsinki Business and Science Park.

Röchling Automotive To Open Parts Plant in Akron

Röchling Automotive AG of Germany plans to open a new U.S. manufacturing plant this year in Akron to supply fuel-saving engine and body undershields to Ford Motor Co. and General Motors Co.

Röchling said it would invest a double-digit-million-dollar amount in the 75,000-square-foot plant. The company said a third carmaker it would not identify will start sourcing parts from the plant in 2013.

The company specializes in aerodynamic underbody plastic components aimed at improving airflow, thus reducing noise, fuel consumption and emissions. The new plant would be Röchling’s seventh in the United States.

“We see good development prospects in North America for the future,” Georg Duffner, CEO of Röchling Automotive and its parent, the Röchling Group, said in a statement.

The Röchling Group, with headquarters in Mannheim, Germany, had sales of about $1.36 billion in 2010, according to company documents released last month.

Israeli Biotech Firms Flocking to Cleveland

Israeli biotechnology companies increasingly are reaching out to Ohio medical experts, clinics, and investors, and this is bringing lots of new biotech business to Cleveland.

Ohio’s health-care industry has doubled over the past four decades, to more than 600,000 employees. The state is home to the Cleveland Clinic, a leading research hospital. Israel has nearly 200 biotech companies, but it’s tough for them to raise capital or sell many products in their small home market.

Helped by state incentives and a Cleveland venture capital fund dedicated to investing in Israel, growing numbers of Israeli biotechs are moving to or finding partners in Ohio. In the past eight years, at least 14 such companies have raised funds from Ohio-based backers, and a half-dozen of these have opened offices in the state, according to Michael Goldberg, founder of the Cleveland-based Bridge Investment Fund, which has invested about some $5 million into Israeli biotech startups. Another five or biotechs based in Israel have plans to open offices in Ohio soon, according to Bloomberg Businessweek, and dozens more cooperate with Ohio groups in clinical research. Ohio has done more than other states to attract Israeli startups, Goldberg says.

BioEnterprise, founded by Cleveland hospitals and universities to support biosciences in the region, helps connect the Israeli companies with capital, medical expertise, and management teams in the state. The group helped Simbionix, a medical device maker that now employs 80 people, transfer its headquarters from Israel to Cleveland. The Global Cardiovascular Innovation Center, a partnership backed by the state of Ohio that funds development of health-related products, has invested in five Israeli biotechs, says GCIC director Thomas Sudow.

With an office in Tel Aviv, Goldberg’s Bridge fund has invested in five Israeli companies. IceCure Medical, based just north of Tel Aviv, will soon start U.S. sales of a device for treating benign tumors. And EarlySense, which is developing technology that helps nurses track crisis situations, has dispatched researchers to Cleveland.

IceCure Medical LTD., an Israeli medical device company providing physicians with minimally-invasive, office-based, cryoablation solutions for women’s health, will open its U.S. headquarters this month in Cleveland’s Global Cardiovascular Innovation Center (GCIC).

“The unique infrastructure for growing biomedical companies, the support we received from many organizations, and the progressive health care environment that includes world-class institutions such as the Cleveland Clinic and University Hospitals Case Medical Center, led us to choose Cleveland for our U.S. operations,” said Hezi Himelfarb, CEO of IceCure Medical.

The IceCure Cleveland-based staff will be launching U.S. marketing and sales of the new state-of-the-art IceSense3™ cryoablation system. The IceSense3 technology treats benign breast growths through freezing, as a quick, safe and successful alternative to invasive surgery. “We are thrilled to offer a patient-friendly, in office, minimally invasive treatment for benign breast disease,” said Mr. Himelfarb.

“We are pleased that IceCure has selected Ohio as the location for its U.S. operations,” said Jim Leftwich, the Director of the Ohio Department of Development. “The State of Ohio has strongly supported the development of a vibrant biomedical innovation environment.”

“The Health Tech Corridor builds on one of our region’s economic strengths and is an international destination for medical technology companies. Cleveland’s ability to attract companies like IceCure and help them develop their business is essential for the growth and success of the area,” said Mayor Frank G. Jackson. “We welcome them home to the City of Cleveland.”

“This is a testament to how well Northeast Ohio’s economic development partners work together to attract leading organizations into our growing biomedical cluster,” said Tom Waltermire, CEO of Team Northeast Ohio (NEO). “In the future, we anticipate that

IceCure Medical will bring 15 highly skilled jobs and roughly $1 million in annual payroll into the Cleveland Plus region.”

“IceCure Medical has strong growth potential,” said Baiju R. Shah, president and CEO of BioEnterprise, “It’s a testament to the state’s and region’s initiatives to attract foreign high-tech firms and support their business growth in the U.S, including Israeli companies such as MDG Medical, NI Medical, and Simbionix, that IceCure has selected Cleveland.”

Supported by the Ohio Capital Fund, Bridge Investment Fund LP has been instrumental in supporting Israeli companies with innovative technology set up operations in Cleveland. “Bridge works closely with its portfolio companies to address their specific needs to grow in the US market, and we look forward to IceCure opening shop here,” said Michael Goldberg, managing director of the Fund.

IceCure Medical will lease space in GCIC’s 50,000 sq. ft. facility adjacent to the Cleveland Clinic, which provides close proximity to world-class clinical researchers and clinicians along with extensive facility and business support services, according to GCIC Managing Director, Mark Low.

The BioOhio 2010 Growth Report, co-authored by Cleveland State University, showed that since 2000, Ohio’s 1345 bioscience employers have added 10,222 jobs, a 19.5% increase. Northeast Ohio continues to be the state’s hub of bioscience activity, leading in number of locations (714), direct employment (21,427), growth in new companies (189 since 2004), and direct economic output ($14 billion).

TechColumbus Nets Grant from Ohio Third Frontier

TechColumbus has been awarded $321,000 from the Ohio Third Frontier Internship Program. The program is designed to link college students with Ohio for-profit companies that are commercializing new products, technologies, and processes.

“This internship program is extremely valuable for the companies and young professionals involved. It’s a chance for the interns to grow in their chosen professions and see the employment opportunities that are available to them in Ohio,” said James A. Leftwich, Director of the Ohio Department of Development and Chairman of the Ohio Third Frontier Commission.

The program reimburses businesses in targeted industries up to 50 percent of the intern’s wage (no more than $3,000 for a 12-month period). Following an intern’s graduation, firms will have the opportunity to offer full-time employment to the individual, who is well prepared for a future career with the organization.

The Ohio Third Frontier Internship Program targets key areas of science and technology, engineering and math relating to the Ohio Third Frontier’s focus areas of Advanced Materials; Advanced Energy; Biomedical; Instruments, Controls, and Electronics; Advanced Propulsion; and, Information Technology.

Cleveland International Fund Eyes Foreign Investment

The Cleveland International Fund, which has amassed $45 million from 90 investors for the Flats East Bank project, now plans to attract wealthy individuals in China, India, Brazil and other countries to help finance the expansion of University Hospitals.

The hospital system is wrapping up more than $1.2 billion in projects, including a new cancer hospital in Cleveland and a freestanding hospital in Beachwood.

Consultant A. Eddy Zai, who runs the Cleveland International Fund, is betting on foreign investors to boost Northeast Ohio’s economy. In turn, the investors see Zai and his private-equity fund as a path to permanent residency in the United States. Zai would not say how many investors and dollars he hopes to assemble for UH. But in regulatory documents filed this week, the fund allowed for a hospital-related investment of $80 million.

Funding healthcare construction is a way to highlight a growing area of Northeast Ohio’s economy, to create potential international inroads for local companies and to pique the interest of foreign entrepreneurs, said Baiju Shah, a board member at the fund and chief executive of the biomedical-focused BioEnterprise organization.

Established in 2010, the Cleveland International Fund is quickly rising to prominence in a competitive field. In Cuyahoga County, each investor must put up $500,000 and create at least 10 jobs to gain American residency.

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Virginia Corporate Moves

BF Staff — Wed, 01 Jun 2011 17:02:14 +0000

International Paper Invests $83 million in Wight County Mill

International Paper is investing $83 million to repurpose a portion of its closed mill in Isle of Wight County as a fluff pulp mill capable of annually producing up to 270,000 metric tons of high quality fluff pulp for the global market. The project will create 213 new jobs.

Speaking about the recent announcement, Gov. Bob McDonnell said, “This project is tremendous news for Isle of Wight County and the entire region. After International Paper’s closure that resulted in a devastating job loss, it is hugely significant that the company has decided to make this $83 million investment in a fluff pulp operation at its former mill. This project is a great sign of the Commonwealth’s ongoing economic rebound. It will help offset the economic ripple effect caused by the company’s 2009 announcement and it is further evidence that Virginia is wide open for business. ”

“Isle of Wight County and the surrounding region have the available, trained workforce that is ready to fill these 213 new positions,” said Jim Cheng, Virginia Secretary of Commerce and Trade. “The mill’s current assets, transportation options and proximity to the Port of Virginia for product export all were factors that contributed to the company’s decision to re-invest in the repurposing of the property. In addition, the availability of U.S. Southern Pine in the area is ideal for the production of high-quality fluff pulp.”

International Paper is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company’s North American distribution company. Headquartered in Memphis, Tennessee, the company employs about 59,500 people in more than 24 countries and serves customers worldwide. 2010 net sales were more than $25 billion.

“IP is currently the third largest global supplier of fluff pulp and this investment gives us greater participation in a growing market,” said Mark Sutton, International Paper Senior Vice-President Printing and Communications Papers the Americas. “IP is a leader in the use of renewable energy. The Franklin fluff pulp facility will be 89% energy self-sufficient, utilizing power generated from carbon-neutral biomass on-site. The capability of producing energy from renewable biomass resources makes the remaining portions of the Franklin Mill site an ideal location for other partners looking for on-site green energy options.”

The Virginia Economic Development Partnership worked with Isle of Wight County to secure the project for Virginia. The Virginia Department of Environmental Quality also assisted with the project. Governor McDonnell approved a $350,000 grant from the Governor’s Opportunity Fund to assist Isle of Wight County. Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support the company’s recruitment and training activities.

“We would like to thank International Paper for its unprecedented efforts in repurposing the mill,” said Thomas J. Wright, III, Chairman, Isle of Wight County Board of Supervisors. “We appreciate the efforts of the Governor and VEDP in assisting the County with this deal. This announcement comes at a critical time for Isle of Wight County as we strive to maintain excellent schools and services in a difficult economic environment. Additionally, we would like to thank the displaced workers and our citizens for their confidence in our ability to attract desirable industrial partners.”

Cadence, Inc. To Expand Staunton Manufacturing Facility

Gov. Bob McDonnell recently announced that Cadence, Inc., a manufacturer of cutting and piercing instruments for industrial, medical, and life science applications, will invest $15.9 million to expand its operation in the City of Staunton and create 65 new jobs within three years. Virginia successfully competed against Costa Rica for the project.

“Cadence, formerly known as Specialty Blades, has thrived in Staunton for 25 years. We are pleased that Cadence decided to continue their long relationship with Virginia and the City of Staunton in choosing to expand their facility, rather than move to a new location,” Gov. McDonnell said. “The path of success continues with this significant investment, which will allow for a larger facility and increased manufacturing production to accommodate the company’s rapid growth. The addition of 65 new jobs is also tremendous news for the region.”

“It is always a pleasure to see a Virginia-based company continue to grow,” said Jim Cheng, Virginia Secretary of Commerce and Trade.

Cadence, Inc. began in 1985 as Specialty Blades to address the needs of industries, original surgical manufacturers, and medical design engineers who required high performance, razor sharp custom-made cutting blades. Cadence has emerged as a premier metals manufacturing company focused on new medical technologies, such as minimally invasive devices. Headquartered in the Green Hills Technology Center in Staunton, Virginia, Cadence now has more than 200 shareholders. Proprietary “sharps” and tube fabrication technologies enable Cadence to supply the most critical components and sub-assemblies for medical devices, scientific, and industrial applications.

“This major expansion represents another significant step on our journey of solid growth,” said Peter Harris, Cadence, Inc. CEO. “Partnering with our state and local officials to make this happen enables our ongoing commitment to precision and repeatability in everything we do for our customers, shareholders, and employees.”

The Virginia Economic Development Partnership worked with the City of Staunton to secure the project for Virginia. Gov. McDonnell approved a $150,000 grant from the Governor’s Opportunity Fund for the project. The company is eligible to receive benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance (VDBA) will provide funding and services to support the company’s recruitment and training activities.

Safety Technologies Creates Jobs in Lunenburg/Fairfax County

Safety Technologies, Inc. a technology leader in providing a permanent, cost-efficient solution for any type of fuel storage tank against explosions, blasts and fire, will invest $5.89 million to open a manufacturing facility in Lunenburg County, creating 46 new jobs; and expand its Administrative office in Fairfax County, where the company is based, creating 15 new jobs.

The company holds the exclusive marketing and manufacturing rights for the Detonation Suppression System (DSS™) within North America and marketing/distribution rights to a number of other countries. DSS™ is a unique patented technology developed to prevent explosions and mitigate blasts and the spread of fires in any fuel storage system. The DSS technology also provides significant environmental and energy savings. It cuts in half CO2 emissions into the environment and also it provides energy savings by reducing fuel loss in storage fuel tanks caused by fuel evaporation.

STI’s top markets include defense, homeland security, state and local government, energy, chemical, transportation and other government and industrial sectors. The company’s new operation in Lunenburg County will manufacture an aluminum foil product used in the DSS™. Virginia successfully competed against Alabama, Maryland, New Mexico and Pennsylvania for the project.

“This competitive project is tremendous news for the Commonwealth. STI also chose to locate its new manufacturing facility in Virginia, and Lunenburg County’s trained manufacturing workforce and proximity to the Port of Virginia for international sales sealed the deal. Fairfax County is the ideal base to expand STI’s administrative office due to its access to federal clients. An overall gain of 61 new jobs and the growth of a Virginia company is great news for our Commonwealth and our citizens.”

“Lunenburg County’s infrastructure and the availability of a shell building that could be outfitted to meet STI’s needs added to Virginia’s advantage over other states,” said Jim Cheng, Virginia Secretary of Commerce and Trade. “The company’s DSS™ product is one of a kind, and we are proud that a Virginia export helps protect both military troops and civilians nationally and overseas.”

STI’s explosion-suppression technology defeats conventional explosives, incendiary weapons or other attack modes that can have catastrophic consequences. In addition, it provides significant environmental benefits by reducing hydrocarbon emissions as well as energy savings by reducing fuel evaporation loss.

According to Dr. Nick Stergioulas, president and CEO of the company, “Virginia is an ideal location for business. The Commonwealth offers a strong manufacturing base, the best access to domestic and global markets, and the cost of doing business and quality of workforce are among the best in the country. We chose Lunenburg County for our manufacturing facility because of its location, its hardworking workforce and the overall support we got from the local community. We are also very appreciative of the tremendous support we have received from the Virginia Economic Development Partnership, Lunenburg County, Fairfax County, the Virginia Tobacco Indemnification and Community Revitalization Commission, and the Virginia Department of Business Assistance.”

The Virginia Economic Development Partnership worked with Lunenburg County and Fairfax County to secure the project for Virginia. Governor McDonnell approved a $100,000 grant from the Governor’s Opportunity Fund to assist Lunenburg County with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $160,000 in Tobacco Region Opportunity Funds for the project. The company is eligible to participate in the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support the company’s recruitment and training activities.

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Minnesota Corporate Moves

BF Staff — Sun, 01 May 2011 18:49:24 +0000

AGCO Expands Massey Ferguson Line in Jackson

An expansion of AGCO’s tractor plant in southwestern Minnesota is expected to generate up to 150 new jobs, many in production.

Gov. Mark Dayton arrived at the plant this month in a Massey Ferguson tractor to officially open the 75,000-square-foot addition in Jackson. Some 900 employees gathered to celebrate the expansion, which brings the Massey Ferguson product line back to the United States.

AGCO’s addition includes a visitor’s center with a showroom, dining area and movie theater.

The Fairmount Sentinel reports the Minnesota Department of Employment and Economic Development estimates Jackson’s economic output will grow by more than $2 million.

AGCO, a worldwide manufacturer and distributor of agricultural equipment, recently announced it plans to make investments in its North American manufacturing capabilities. “We are continuing to focus on increasing our manufacturing presence in North America, particularly with investments in our Hesston, Kansas and Jackson, Minnesota facilities,” said Martin Richenhagen, Chairman, President and CEO of AGCO. “We intend to make substantial investments in our North American plants over the next few years. These investments will reinforce our commitment to our North American customers and dealers.”

In a first step, AGCO will transfer its high horsepower, wheeled tractor assembly for tractors sold in North America from its tractor manufacturing facility in Beauvais, France to AGCO’s operations in Jackson, Minnesota. “The expansion of high horsepower tractor production will include an extension of the assembly line and investments in advanced material handling systems to efficiently deliver parts and material to the assembly line,” said Robert B. Crain, Senior Vice President and General Manager AGCO North America. “In addition, AGCO will build a state of the art visitor center in Jackson to significantly enhance the experience for our customers and dealers.” In total, the existing plant will be expanded by about 75,000 square feet. Plans are to begin assembly of AGCO’s high horsepower Massey Ferguson 8600 Series and Challenger MT600C Series tractors sold in the North American market in late 2011.

AGCO has made significant progress in improving its North American operating results, mainly driven by new products, factory productivity and logistics savings initiatives. “We see continued strong demand in the high horsepower tractor market sector driven by improving economics for the professional farmer,” explained Mr. Crain. “The production of high horsepower row crop tractors in Jackson will allow us to be more responsive to market demands and customer needs.”

AGCO’s Beauvais, France facility will also receive significant investment in 2011 in order to boost new model introductions, meet new market opportunities and complete the introduction of lean manufacturing improvements which began in 2010.

Minnesota-China Trade Bond: Strong and Getting Stronger

Minnesota’s relationship with China dates back to the 1870s, when the first Chinese immigrants traveled to the state, and is expertly chronicled in Sherri Gebert Fuller’s book, Chinese in Minnesota. Over the decades, the bond between China and Minnesota has grown significantly and today Minnesota enjoys many sister-state/city relationships, academic partnerships, business relationships, and cultural and humanitarian ties.

Minnesota and the Province of Shaanxi, home of the famous terra cotta warriors, established a sister-state relationship on October 19, 1982. Minnesota Governor Al Quie and Shaanxi Governor Yu Mingtao formally signed the agreement at a ceremony in St. Paul, Minnesota.

The Minnesota Trade Office and the U.S.-China Peoples Friendship Association of Minnesota USCPFA-MN jointly manage the relationship for Minnesota, with the (USCPFA-MN) acting as the executive agent. Contact: Dong Li, Chair, Minnesota-Shaanxi Sister-State Committee. Email: dongli2k@yahoo.com

Other sister relationships include:

• Minneapolis and Harbin (1992)
• St. Paul and Changsha (1987)
• Rochester and Xianyang (1993)
• Coon Rapids and Zhaoqing
• Red Wing and Quzhou
• Dakota County and Chengde
• City of Ramsey and Loudi (2005)
• Mankato and Tamsui Township (Taiwan)

The University of Minnesota, along with many Minnesota State Colleges and Universities (MnSCU) and Minnesota Private Colleges, host thousands of Chinese students and faculty annually, offer programs to study and teach in China, collaborate with Chinese universities on curriculum development and research, among other ventures. Currently, a comprehensive catalog of academic connections between Minnesota and China does not exist, but there is an ongoing initiative through the Minnesota-China Partnership to document the various connections. In addition to the abundant connections among institutions of higher learning, an increasing number of K-12 schools are beginning to establish relationships with Chinese schools.

While there are countless Minnesota companies doing business with China today, some of the more notable ones are 3M, Cargill, Northwest Airlines, Best Buy, Target, General Mills, Medtronic, Hormel, Imation, Ecolab, Thomson Legal & Regulatory, Carlson Companies, Turck, Hutchinson Technologies, Skyline Exhibits, Polaris, Satellite Industries, and Anderson Corp.

Today, Minnesota is the eighth-largest U.S. exporter of manufactured goods to China. Nearly 20,000 Minnesotans claim ancestral connections to China, which has helped foster numerous ties between Minnesota and China. These ties also are expanding through the growth of organizations such as the U.S.-China Peoples Friendship Association of Minnesota, Chinese American Association of Minnesota (CAAM), Center for Chinese Culture (3C), Children’s HeartLink, Global Volunteers, all of which work to make cultural and humanitarian ties deep-rooted and extensive.

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Mississippi Corporate Moves

BF Staff — Sun, 01 May 2011 18:45:36 +0000

Grenada Stamping & Assembly Expands in Mississippi

The Grenada County Economic Development District (EDD) has announced that Grenada Stamping and Assembly, supplier of parts to the appliance, automotive, HVAC/R and off-highway markets is expanding its operations in Grenada.

The project represents a $500,000 company investment and will create 40 new jobs. The company, which recently received ASME (American Society of Mechanical Engineers) certification, last expanded its operations in March of this year.

This latest expansion by Grenada Stamping accommodates the addition of an air tank production line that will manufacture tanks in a variety of sizes and for a number of applications, including those in the over-the-road, defense and aviation markets.

The City of Grenada will receive $135,000 in a Development Infrastructure (DIP) grant from the Mississippi Development Authority (MDA) to support the company’s diversification efforts. The City will provide a match of $15,000 and the funds will be used to modernize a city owned building that will host the new production line.

A subsidiary of Ice Industries, which is headquartered in Sylvania, Ohio, Grenada Stamping and Assembly has a broad menu of capabilities, including the ability to blank, form, weld and assemble a variety of materials of various strengths and thicknesses. In addition to serving a variety of OEMs in the U.S., ICE industries is a supplier to Electrolux® and First Solar Panels in Canada, provides parts to Ford Motor Company in Argentina, Copeland in Northern Ireland, Belgium, Thailand and China, and Nissan in Mexico and Japan.

Gary Houston, General Manager of Grenada Stamping, stated, “This new production line is a great leap forward in our diversification efforts for the Grenada plant. The Grenada County EDD successfully expedited all processes to get our project off the ground in record time and that made a huge difference in our ability to get to market expeditiously. We are most grateful to the EDD, the MDA and the City of Grenada for their unwavering support.”

Timothy Chism, a member of the Grenada City Council said, “We are thrilled to see Grenada Stamping diversify its business base in the community. The City is committed to supporting our existing companies and will continue to work closely with the EDD to expedite any projects that create jobs for our citizens.”

Darrell Robinson, County Supervisor for District 4 added, “The Board is excited to hear that Grenada Stamping will expand again and continue to create jobs in Grenada. We look forward to celebrating their future success in Grenada County.”

The EDD also announced that the Grenada County Board of Supervisors will receive $495,000 in a Community Development Block grant from the Mississippi Development Authority (MDA) to support the expansion of Grenada Stamping & Assembly. The County government will provide a local match of $50,000, and the funds will be used to make improvements to a county owned building currently leased by Grenada Stamping.

The actions taken by the Board will result in the creation of at least 40 new jobs and investment of $500,000 by the company.

Grenada Stamping and Assembly, Inc. is a Tier 1 supplier to Nissan in the U.S., Mexico and Japan; it is also a Tier 1 supplier to Ford Motor Co., a subsidiary of Ice Industries Inc. The company supplies stamped metal parts and assembled parts to the automotive, appliance, compressor, and solar panel markets.

Advanced Distributor Products Grows in Grenada

Advanced Distributor Products (ADP) will expand its facilities in Grenada to accommodate a new fabrication process. The process will be housed in a new 26,000 square foot facility to be built by ADP next to their existing facility in Grenada’s Air Industrial Park. ADP has been located at the Park since 1996.

The Grenada County Board of Supervisors was recently granted, a $135,000 Development Infrastructure Grant (DIP) from the Mississippi Development Authority to renovate an existing County-owned building that will support ADP’s expansion plans. The project will generate a minimum of 26 direct full time jobs in the community, plus an investment of $1.5 million dollars from Lennox Inc. in building, equipment and machinery.

“ADP’s decision to expand in Grenada further reinforces that Mississippi has a supportive business climate in place to help businesses grow,” said Gray Swoope, executive director of the Mississippi Development Authority (MDA). “I am pleased we were able to provide assistance for this project, and I thank ADP officials for their continued investment in Grenada, Grenada County and the state of Mississippi.”

“The new building and improvements to our current building will enhance our response to our customers and to the rapidly changing marketplace,” said Greg Goetzinger, Director, ADP Operations. “Our entire organization appreciates the support of the Grenada County EDD and Grenada County Board of Supervisors for expediting and coordinating this endeavor.”

A business unit of Lennox International Inc. (NYSE: LII), ADP is one of the world’s largest residential evaporator coil manufacturers involved in designing, producing and selling high efficiency air handlers, coils, and unit heaters. ADP’s production system is ISO 9001:2008 certified.

Pablo Diaz, Executive Director of the EDD stated, “When ADP started considering a new fabrication process, we knew Grenada had a unique opportunity. We worked very closely with state officials to show ADP all the advantages of bringing this expansion to Grenada. Today, we could not be happier with the results.”

Columbus Hankins, County Supervisor for District 3, said, “I am delighted to see ADP is bringing new jobs to Grenada and increasing its manufacturing footprint.”

“These jobs could be going anywhere else, instead, they are coming to Grenada because here they find the workforce and the support they need to succeed,” Hankins added.

The post Mississippi Corporate Moves appeared first on Business Facilities.

Colorado Corporate Moves

BF Staff — Fri, 01 Apr 2011 20:51:03 +0000

Vestas Opens World’s Largest Wind Tower Plant in Pueblo

Vestas Towers America, Inc. recently held the grand opening of what it says is the world’s largest wind tower manufacturing plant.

The new Pueblo, CO facility features nearly 13 million square feet of space and eight miles of on-site railway tracks for the transport of materials and finished tower components.

The opening of Vestas Towers gives Vestas, a global leader in wind turbine production, a substantial capability to address growing needs among North American wind power plants for reliable, high performance wind turbines. U.S. Secretary of the Interior Ken Salazar joined a host of regional and local Colorado dignitaries, as well as Vestas Towers President Knud Bjarne Hansen and Vestas Americas President Martha Wyrsch, during a ribbon cutting ceremony.

Participants at the grand opening ceremony recognized a factory that currently employs more than 400 workers and is capable, at peak production, of producing 1,090 towers per year. The event also kicked off Secretary Salazar’s national renewable energy tour, which spans Colorado, Nevada and California.

The steel industry has and will continue to play a large role in Pueblo’s identity, but as seen here today, the renewable energy industry is carving its own path into the city and state’s history, said Secretary Salazar. Colorado is committed to the development of a clean energy economy, and I applaud Vestas for recognizing the potential of Colorado’s landscape and workforce.

Vestas Towers America, Inc. has the ability to process more than 200,000 tons of steel per year— enough to build two bridges the size of the Golden Gate every year, or the equivalent of 28 Eiffel Towers.

Locating the factory along major highway and railroad lines provides Vestas with the ability to meet customers’ needs with locally managed logistical efficiencies, which translates directly to cost and environmental benefits.

“We are extremely pleased to simultaneously provide job opportunities for the local community and outstanding product for our customers made right here in Colorado,” said Hansen. “We have deliberately located our factories in a central region in the U.S.– including our towers, nacelles and blades plants—because regional centralization allows Vestas to build and ship locally in any direction needed in North America, and that translated to a direct competitive advantage for all of our stakeholders.”

In the past few months, Vestas Towers America, Inc., has been actively recruiting and hiring people who are skilled in a range of desirable jobs ranging from engineering to human resources and from welding to painting. The company has attended numerous local job fairs in over the summer seeking highly skilled employees who have been turned loose from other industries, such as the industrial products and construction fields.

“We’ve hired people in a number of functions related to tower building, including steel fabricators, finishers, welders, assemblers and maintenance personnel,” said Anthony J. Knopp, vice president, Vestas Towers America, Inc. “It is amazing how many traditional manufacturing job skills are directly transferable to Vestas. This translates to a win-win for our company and the people who live in this region.”

Vestas, the world leader in producing high-tech wind power systems, has supplied more than 40,500 turbines globally since 1979. Vestas sold its first wind turbine in North America in 1981 and since has supplied more than 11,000 turbines to the United States and Canada.

The company’s North American manufacturing operations are based in Colorado, including a blade factory in Windsor, a nacelle factory in Brighton and a tower factory—the world’s largest—in Pueblo. Sales and service operations are based in Portland, Ore. Vestas has research and development offices in Texas, Wisconsin, Massachusetts and Colorado.

Solar Roast Plans New Distribution/Wholesale Center

With assistance from the Pueblo City Council, coffee retailer Solar Roast, which owns several retail locations in Pueblo, has announced it will move its roasting operation and a new wholesale and distribution division to a new facility in the city’s downtown.

According to owner Mike Hartkop, Solar Roast Coffee will be the only direct-use solar-thermal industry of its kind in the world.

Negotiations are underway to acquire an existing building in the downtown area. The City of Pueblo and the Pueblo Economic Development Corporation (PEDCO) are assisting the company in their expansion efforts.

The city is providing financial support to assist the company with equipment purchases for its newest coffee roaster. The company may also be eligible for Enterprise Zone tax credits which are administered through Pueblo County. Dan Centa, PEDCO president, stated that it is always important for PEDCO to not only work to attract new companies to Pueblo but to support the expansion of primary jobs through the support of local companies.

“Working with small business and in particular Mike and Dave at Solar Roast has been great and PEDCO is proud to support their entrepreneurial spirit and their willingness to commit to creating new jobs for the Pueblo community,” he said.

Weld County Approves Niobrara Energy Park

On March 16, Weld County Commissioners unanimously approved Harrison Resource Corporation’s plans for development of Niobrara Energy Park, a 640-acre project that will integrate natural gas and renewable energy generation facilities, including solar and wind energy, with data centers and energy research. With zoning approvals in place, the greenfield project is now process-shove-ready.

Commissioner Dave Long said of the park, “I’ve said in the past that Weld County is the energy center of Colorado, but this may make Weld County the energy center of the West, if not the nation.” Niobrara Energy Park has received widespread support from researchers, government officials, and many others in the energy industry, including Dag Nummedal, director of the Colorado Energy Research Institute at the Colorado School of Mines, and David Hiller, executive director of the Colorado Renewable Energy Collaboratory. Nummedal stated in a letter of support, “Your proposed energy park could become a national center of learning in how to best manage the hybrid fossil plus renewable energy infrastructure.” He added that the park concept “moves beyond anything planned elsewhere in the U.S.” due to its planned onsite energy storage facilities.

“Our next step is working with the various companies, institutions, and other organizations that have expressed enthusiasm for Niobrara Energy Park,” said Craig Harrison, president of Harrison Resource. “This area of Colorado is already home to numerous clean energy initiatives, projects, and businesses, and we are excited to plan one of the country’s first hybrid energy parks here.”

Niobrara Energy Park will use on and offsite renewable energy and clean natural gas from the Niobrara, one of the hottest oil and gas shale areas in the country. The park will have a research facility for scientists, engineers, institutions, and others to research energy systems integration, renewable energy, smart grid, and energy storage. The proposal also includes plans for a gas gathering and processing facility, a gas-fired electric power plant, a 200-acre solar farm, and a mega data center, which would take advantage of the energy park’s remote location and natural cooling during certain times of the year.

“Niobrara Energy Park is situated in the perfect location, strategically between gas and electric hubs, allowing for stabilization of grid energy and peak demands,” said Harrison. “Upstream from the park is the Cheyenne hub, which delivers five to seven percent of the daily flow of gas in America, as well as intermittent alternative energy sources, including hydro and wind. Downstream from the park, we have the largest electric trading hub in Colorado. By combining alternative energy generation and a new alternative and clean fossil electricity, along with the connection to the adjoining national fiber highway, this is the ideal site for a mega data center of national importance.” Altogether, the park has more than 40 zoning-approved energy land uses, Harrison added. “It will be interesting to watch the evolution of the park. I’m very excited to bring such an important and historic center to Colorado,” he said.

Space Ops Center Makes Denver Gateway to the Stars

Lockheed Martin recently unveiled the first Orion spacecraft and a state-of-the-art Space Operations Simulation Center (SOSC). These two major projects, located at Lockheed Martin’s Waterton Facility near Denver, CO, showcase the NASA-industry teams’ progress for human space flight, the Orion Project and NASA’s Multi-Purpose Crew Vehicle.

The spacecraft will undergo rigorous testing in Denver to validate Orion’s ability to endure the harsh environments of deep space. The Orion crew exploration vehicle is on schedule to conduct its first orbital flight test as early as 2013 and provide initial operational flights by 2016 as required by the NASA Authorization Act of 2010.

“Our nation’s next bold step in exploration could begin by 2016,” said John Karas, vice president and general manager for Lockheed Martin’s Human Space Flight programs. “Orion was designed from inception to fly multiple, deep-space missions. The spacecraft is an incredibly robust, technically advanced vehicle capable of safely transporting humans to asteroids, Lagrange Points and other deep space destinations that will put us on an affordable and sustainable path to Mars.”

The SOSC represents part of Lockheed Martin’s multi-million dollar investment in testing and validating future human spaceflight programs to ensure safe, affordable and sustainable space exploration. Today’s demonstrations at the SOSC featured simulated missions to an asteroid and the International Space Station using laser and optically guided robotic navigation systems. This system and other cutting edge capabilities demonstrate how Lockheed Martin employs full-scale motion to test and verify multiple mission scenarios.

The SOSC currently supports integrated testing of Orion’s Relative Navigation System, which includes STORRM (Sensor Test for Orion RelNav Risk Mitigation)—a new and innovative navigation and docking system that will be tested on the upcoming STS-134 shuttle mission to the International Space Station. STORRM is one of the major subsystem tests that will be completed before Orion’s first orbital flight test in 2013, that will conduct high-altitude orbits and a high-energy reentry that simulate the environments of a deep space mission.

SOSC operations support critical development, evaluation and testing necessary to ensure safe, successful human and robotic missions to Earth-orbiting platforms, planets, moons or other bodies in our solar system. In addition, the center tests ranging, rendezvous, docking, proximity operations, imaging, descent and landing systems.

“Lockheed Martin built this remarkable facility to develop and test spacecraft systems, further demonstrating our commitment to improve safety and advance capabilities for future U.S. human spaceflight,” said Karas.

The SOSC is built upon a 1,700-foot-deep Colorado bedrock formation and is isolated from local seismic disturbances. This foundation provides an ultra-stable environment for testing precision instruments and accurate navigation systems needed for space vehicles. The 41,000-square-foot facility also holds a Leadership in Energy and Environment Design (LEED) Gold rating for its high efficiency environmental controls, energy-saving lighting systems, and native vegetation landscaping.

The post Colorado Corporate Moves appeared first on Business Facilities.

California Corporate Moves

BF Staff — Fri, 01 Apr 2011 19:44:16 +0000

Report: Southern California has Largest U.S. Manufacturing
Economy

A report prepared by the Los Angeles County Economic
Development Corp. (LAEDC) puts Southern California at the top of U.S. manufacturing hubs, employing 389,300 workers.

LAEDC’s report, called “Manufacturing: Still a Force in Southern California” and published in March, dispels the myths that manufacturing in the region is disappearing and that all manufacturing is moving to low-cost countries.

Nationally, the U.S. is still the world’s largest manufacturing economy, producing 21 percent of the global manufactured products in 2009. U.S. manufacturing generated $1.6 trillion worth of output, which represented 11 percent of total U.S. GDP. Productivity in the American manufacturing sector also is very high, with manufacturing jobs often paying premium wages and benefits, the LAEDC report says.

“Industrial restructuring has intensified, making U.S. manufacturing more competitive than ever,” said LAEDC’s Chief Economist and report author Nancy D. Sidhu, Ph.D. “The U.S. share of global manufacturing has remained at or above 20 percent for most of the past two decades.”

Locally, in Los Angeles County, the manufacturing sector employed 389,300 people in 2009, while the value of manufacturing shipments in the county was $153 billion in 2007 (latest data available). Manufacturing is a “high-multiplier” activity, supporting many local area businesses and jobs in supplier industries such as energy, freight transportation, and business and professional services.

The top five industries in L.A. County (measured by dollar revenues in 2007) were: Petroleum Refining, Computer and Electronic Products, Food Products, Aerospace and Fabricated Metal Products.

Of the manufacturing employment in the county, 56 percent of the workers produced durable goods such as computers, transportation equipment and metal products, while the other 44 percent produced nondurable goods such as apparel and food.

The largest manufacturing sector in the County (measured by employment in 2009) is computer and electronic Products, with 51,323 jobs. The apparel sector had the second highest number of employees, with 48,107 jobs. However, the sectors suffering the largest employment declines over the past decade were computers and peripherals, furniture and textile product mills.

The LAEDC study also reported that the value of total manufacturers’ shipment in the six Southern California counties was approximately $271 billion in 2007, which was up by 32 percent from $206 billion in 2002. In L.A. County, the total value of manufacturing shipments (excluding oil refining) increased by 21 percent between 2002-2007, though the gains varied by sector.

A similar pattern of growth held across the rest of Southern California. In Orange County, over the same period, the total value of manufacturing shipments grew by 26 percent. Riverside and San Bernardino counties both saw increases in manufacturing shipments as well, of 76 percent and 62 percent, respectively. San Diego and Ventura counties boasted gains of 24 percent 42 percent, respectively.

While many believe that manufacturing is destined for low-cost countries with a lower cost of labor, manufacturing in the U.S. has been an attractive investment for foreign investors.

The greater Los Angeles area’s appeal includes some significant advantages. Manufacturers in the region have ready access to global markets and suppliers through the Ports of Los Angeles and Long Beach, as well as Los Angeles and Ontario International Airports. The region also has a wide network of ground and air infrastructure which means fast, efficient connections to the rest of the U.S. And perhaps most importantly, Southern California possesses a large work force, many of whom are highly educated.

The manufacturing report covers Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties, and can be downloaded at: http://www.laedc.org/report /Manufacturing_2011.pdf

March FTZ Includes Skechers Distribution Center

The March Joint Powers Authority recently received written approval to include the Skechers distribution warehouse inside the Foreign Trade Zone (FTZ) it administers for an area surrounding the March Air Reserve Base near Riverside, CA.

Activating and expanding the FTZ at the former March Air Force Base got a big push forward a few months ago, when U.S. Customs and Border Protection agreed to provide a customs agent at no cost. At press time, the March FTZ was awaiting final approval from the U.S. Department of Commerce.

Until this recent concession, the federal agency had said it would cost $150,000 plus use of an office and transportation costs to have a customs agent serve businesses inside the Inland zone. Any foreign trade zone that sits more than 60 miles or 90 minutes away from the outside radius of the Los Angeles ports is required to pay for an agent, according to the agency. The regulation dictated both requirements be met.

In March 2009, when the Customs and Border Protection agency denied an application from the March Joint Powers Authority to activate the Inland foreign trade zone, the region was considered barely inside the 60 miles, but farther than a 90-minute commute. It would have to pay, the federal agency said.

The March Joint Powers Authority, the agency overseeing redevelopment at the former March Air Force Base and the operator of the Foreign Trade Zone, balked at paying the $150,000 and teamed up with Riverside County economic development agency officials to convince the agency to give them an agent for free.

Foreign trade zones can make importing and exporting cheaper for businesses inside them. One program allows importers to pay a flat weekly fee of $485 regardless of the number of shipments or their value. Outside a zone, the same business could end up paying up to $485 per shipment in fees. For a business importing 10 shipments a week, it could cost $252,200 annually versus the business inside the zone which would pay $25,220.

Since mid-2009, JPA and county officials met with local customs officials in Los Angeles and more recently combined lobbying efforts to convince Customs and Border Protection to relax the regulation. The authority had also been meeting with the U.S. Department of Commerce.

Late last year, the headquarters for Customs and Border Protection changed the policy so that a location farther than 90 minutes away but still inside the 60-mile radius, could have use of a customs agent for free, said Sherri Hoffman, assistant director of trade for the agency’s field office in Los Angeles.

Hoffman said the Inland zone would share a customs agent with LAX or the Los Angeles or Long Beach ports. The agent could also be shared with Ontario International Airport since that airport and LAX are both owned and operated by Los Angeles World Airports.

Lori Stone, executive director of the March Joint Powers Authority, said she would like to think the agency’s lobbying efforts in conjunction with the county caused Customs and Border Protection to change its mind.

“We made a big push with the federal government in the last few months on all fronts,” she said. “I think we made enough noise that headquarters looked at it.”

The March JPA has proposed having a bank of 2,000 acres that could be used for businesses within the boundary who apply for foreign trade zone status. Customs and Border Protection has said that it wouldn’t be able to serve businesses farther south than Perris into Murrieta and Temecula because it would be outside the 60-mile radius, said Danielle Wheeler, assistant director of the March JPA.

Customs has toured the area to define the zone’s boundaries, which could reach as far west as Corona, Wheeler said.

The authority application to the Department of Commerce, which approves foreign trade zones if the authority’s elected commissioners sign off on the plan at its June 16 meeting, Wheeler said.

“We feel very fortunate now to have had this about-face,” said Tom Freeman, spokesman for the Riverside County Economic Development Agency and county foreign trade commissioner. “No single entity should claim victory for this.”

Freeman said the foreign trade zone would put the Inland area on a level playing field with other Southern California cities that were able to offer companies free Customs services and incentives within the zone.

Fresno County EZ Extends to Clovis

Several Industrial and commercial areas of the City of Clovis have recently been approved for addition to the Fresno County Regional Enterprise Zone.

The Fresno County Enterprise Zone is a geographical area in which companies are eligible for exclusive tax state incentives and programs. A business may be entitled to receive up to $37,400 in state tax credits over a five year period for each employee hired.

Other benefits include:

Tax credits for sales and use taxes paid on qualified machinery purchases;
Interest deductions for lenders on loans to firms within the areas;
Accelerated expenses, deductions; and
Priority for various state programs, such as state contracts

The Fresno County Regional Enterprise Zone Tax Credit helps businesses create additional jobs, access more resources and increase overall profitability through tax savings.

The Enterprise Zone (EZ) Tax Credit was established by the state of California to provide businesses the opportunity to create additional jobs, access more resources and increase overall profitability through tax savings. Other features of Enterprise Zone Tax Credits include:

Sales & Use Tax Credit
Net Operating Loss Carryover
Business Expense Deduction
Net Interest Deduction for Lenders

The post California Corporate Moves appeared first on Business Facilities.

Indiana Corporate Moves

BF Staff — Tue, 01 Feb 2011 16:11:54 +0000

Four Southern Indiana Businesses Plan Expansions

More than $6 million in investment and the creation of up to 92 jobs by 2013 was promised by four Southern Indiana area businesses that recently announced expansion plans.

Jeffersonville-based G.F. Munich Welding, Shoe Sensation, and Nexgen Mold & Tool in New Albany and Talon Logistics Services of Clarksville declared more than $3 million in new annual payroll will be added through job creation, according to a press release from One Southern Indiana, also known as 1si.

“We hope this pattern of growth is indicative of a new year full of more success stories like these,” said Michael Dalby, president and CEO of 1si, which aided the businesses in securing various state and local tax abatements and credits.

G.F. Munich Welding is a steel fabricator of wastewater machinery, and the company aims to invest more than $2.2 million in equipment and additional real estate and create up to 30 jobs at its Jeffersonville location, according to the release. Joseph Papalia, president of G.F. Munich Welding, said Indiana has been a business-friendly environment and the benefits received by the company from the state encouraged the local expansion.

Shoe Sensation is looking to add up to 20 jobs and invest close to $700,000 to lease and improve additional space at the regional retailer’s Jeffersonville headquarters and distribution. Company CEO Michael Zawoysky credited the state and Jeffersonville for being “invaluable partners” in Shoe Sensation’s plans to grow in Clark County.

Shoe Sensation and G.F. Munich Welding are also applying for benefits through the Jeffersonville Urban Enterprise Zone.

“The [UEZ] was created by the city of Jeffersonville to encourage reinvestment and job growth within its boundaries and these projects are a testament to the continued fulfillment of the zone’s mission,” Jeffersonville Mayor Tom Galligan said.

Talon Logistics Services intends to consolidate its Louisville operations into its Clarksville distribution center, which would create up to 30 jobs. The company provides distribution, warehousing and brokered freight services.

“This further cements Southern Indiana as a logistics hub and speaks volumes about our ability to move product,” Clarksville Town Council President Greg Isgrigg said.

The council approved local incentives for Talon Logistics.

The region’s proximity to Kentucky makes it incumbent on the state to retain businesses and entice new industries, Indiana Secretary of Commerce Mitch Roob said.

“We are in constant competition with our neighbors for new investment and nowhere is that more evident than Southeast Indiana,” he said in a press release. “The announcement of four companies investing and creating new opportunities in Indiana shows that we are winning those competitions.”

Nexgen Mold & Tool plans to invest more than $3.1 million in construction of additional production space that company officials said will create up to 12 new jobs at the New Albany manufacturer.

The company is located in the Grant Line Industrial Park, and yields plastic injection molding and contract manufacturing services.

“We are delighted Nexgen is expanding here in New Albany,” New Albany Mayor Doug England commented. “As some businesses still struggle to emerge from this recession, this growth is especially welcomed news.”

The New Albany City Council approved a tax abatement for Nexgen Mold & Tool last year.

ACCENT Relocates to Jeffersonville

ACCENT Marketing Services LLC, announced today that it will grow two of its Southeast Indiana operations, creating up to 215 combined new jobs by 2013.

The company, which provides customer engagement solutions across phone, online and social media channels, will relocate its existing New Albany contact center to Jeffersonville, providing the company with the opportunity to add up to 175 new jobs to its workforce. The current property owner will assist with the move which will make room for the expansion of one of the New Albany facility’s existing tenants.

In addition, ACCENT will make investments at its existing headquarters facility in Clarksville, providing the opportunity to create up to 40 new jobs. In total, ACCENT will invest more than $4.5 million between the two properties to lease, relocate and add technology and equipment.

ACCENT, which currently employs more than 400 associates in New Albany, plans to begin hiring additional customer engagement specialists based on projected growth from existing and future clients as operations at the engagement center are shifted to Jeffersonville. Existing employees will all be transferred to the new facility, which is expected to be completed next spring.

The Indiana Economic Development Corporation offered ACCENT Marketing Services up to $1,325,000 in performance-based tax credits and up to $100,000 in training grants for both projects based on the company’s job creation plans. The city of Jeffersonville will consider additional property tax abatement.

The post Indiana Corporate Moves appeared first on Business Facilities.

Alabama Corporate Moves

BF Staff — Tue, 01 Feb 2011 20:44:15 +0000

Royal Tech, Cash Acme Open Cullman Facilities

Two major industrial projects are bringing hundreds of new jobs to the Cullman, AL area.

Cash Acme broke ground late last year on a new distribution plant in Cullman, a move that should create up to 100 jobs in 2011.

Michigan-based Royal Technologies, a plastic molding injection company, also expanded into Cullman in 2010.

The new 200,000-square-foot Royal Technologies plant is located at the corner of Alabama Highways 157 and 278, and will function as a manufacturing facility for injection molding, urethane foam and light assembly parts for office furniture and interior trim for automobiles. The project was first announced in February 2009, and construction was completed a few months ago.

Royal Technologies president Jim Vander Kolk told the Cullman Times he was impressed by the efficiency of the planning and construction for the company’s new manufacturing facility in Alabama.

“Honestly, we had a lot of options when we were in the process of looking for somewhere in the south to expand to,” Vander Kolk said. “We made the decision to come here in the fall of 2008, and I’m happy to say every day that has gone by has confirmed we made the right call. Our experience with local government on every level has been excellent and exactly what we were promised coming in.”

Royal Technologies manufactures injection molding, urethane foam and light assembly parts for office furniture and interior trim for automobiles.

The new facility opened with 85 employees. Within a year, Vander Kolk said that number could rise to around 200. The company could employ more than 300 people within two years, according to projections released when the plant was announced last year.

“This building is built for the needs of today, but we do plan to grow,” Vander Kolk said Wednesday, while touring the site. “If we work hard, are honest, and do a good job, we plan to add a lot of new jobs. We’re working hard to embrace this community and be a lasting part of Cullman and Cullman County.”

Throughout the construction process for the new plant, Royal Technologies facilities director Doug Oosterbaan said the company made a concerted effort to use local contractors from the Cullman area.

“We’ve used Apel Steel, Manning Construction, Goss Electric, Hardy Mechanical and other local companies,” he said. “They have been really great to work with.”

“We are especially grateful to have been selected by a quality company like Royal Technologies for their southeast operation.” Cullman Economic Development Agency Director Peggy Smith said.

Smith also noted the company’s $30 million five-year investment for the project should create some lasting, positive effects in Cullman County.

“They’ll be working with local businesses, increasing our tax base, providing critical additional revenue for our schools and much needed jobs for our citizens,” she said. “The money they’re investing is going to turn over so much that people sometimes just don’t see how much of an impact it has on the area.”

The company has teamed up with the Alabama Career Center and Wallace State in Hanceville to ensure there are trained, local employees available when the plant is ready to open.

“We have started doing a tool and die program, and their company uses a lot of skills developed through that program,” Wallace State dean of technical education Dr. Philip Cleveland said. “They have also offered to partner with us as an industry to provide some die to use for training purposes for the program. We’re really excited and think this will be a great partnership.”

Some job placement for the company will also take place through the Alabama Career Center, located on the college campus.

“We’ll be working with them hand in hand to hopefully help with getting highly qualified applicants in there,” Cleveland said. “We’re all working hard to provide proper workforce programs and placement.”

Royal Technologies was founded in 1987 and operates three other manufacturing locations, as well as a corporate center.

Dollar General Plans Distribution Center in Bessemer

Dollar General Corp. plans to build a 1-million-square-foot distribution center in Bessemer, AL, creating 650 jobs.

The new $60 million facility will be built on a 106-acre site owned by USS Real Estate at Alabama 150 and Lakeshore Parkway. The facility will have 550 jobs working in the large warehouse and offices with another 100 dedicated trucker jobs.

A spokeswoman with Goodlettsville, TN-based Dollar General said its 10th center is needed to support the retailer’s rapid growth.

“We believe the Birmingham region is a great fit for our needs,” said Tawn Earnest, senior director of corporate communications. “We already serve shoppers in this region with more than 100 neighborhood stores, and we have supported Alabama organizations and schools through grants totaling $380,000 in 2010 alone.”

Dollar General reportedly negotiated incentives including, $550,000 in occupational tax refunds; 10 years of property tax abatements (except for the portion earmarked for education); Sales and use tax abatements during the construction phase; and capping permit fees at $150,000.

The state approved a new $1.4 million access road for the property. “Whenever you have a development that is going to encompass 106 acres, there is going to be a lot of spinoff,” Bessemer Mayor Ken Gulley said.

In addition to state, county and city officials, economic developers at the Alabama Development Office as well as officials with Alabama Power Co., Alagasco and AT&T Alabama were involved in the recruitment of Dollar General to the metro area.

The post Alabama Corporate Moves appeared first on Business Facilities.

Washington Corporate Moves

BF Staff — Tue, 01 Feb 2011 20:44:15 +0000

SeaTac Sustains Robust Growth

The City of SeaTac, WA, enjoyed outstanding success with commercial real estate and economic development in 2010.

Even in the face of a continuing recession the city proved to be an attractive location for a wide variety of new businesses. Tens of thousands of square feet of vacant space was leased and many new jobs were created in the city. A new hotel is under construction and several new restaurants opened, reflecting the expanding appeal of the community.

“Each new business increases the retail, service and dining opportunities for residents, employees and travelers in the City of SeaTac,” said Jeff Robinson of the City of SeaTac. “We are pleased that so many companies added to the diversity of our community and increased the opportunities for jobs and revenue within the city.”

These new businesses represent almost every sector of the economy ranging from retail and service to warehousing, distribution, light industry and hospitality. One of the properties currently under construction is the Hampton Inn and Suites, the first new hotel built in the city in the past decade.

“This will be our fourth hotel in the City of SeaTac,” said Faruq Ramzanalli of Hotel Concepts. “We are very impressed with how every department within the city works with developers. They are extremely friendly and knowledgeable and we are on a first-name basis with everyone there.”

WallyPark has operated parking garages to serve Seattle-Tacoma International Airport in SeaTac since 2003. A new premier parking garage opened in November 2010 that is a mixed-use property with retail and commercial space on the ground floor.

“We are pleased to bring a new standard of airport parking to the Puget Sound area,” said Charles Bassett, WallyPark’s chief operating officer. “Our third location represents our long-term commitment to providing travelers with a convenient, world-class parking experience.”

New retail stores include the Cinco de Mayo Market, International Market and Saran African Market. A new O’Reilly Auto Parts is under construction, and a new AutoZone is in the permitting process. Among the new restaurants to open their doors are India Pabla Bistro, Tacqueria El Rinconsito and Las Palmas, a Salvadoran restaurant.

“I want to bring something new to the community,” said Jose Paulino, owner of Las Palmas. “We have a large population in SeaTac and our surrounding neighborhoods that will appreciate our menu.”

The Department of Homeland Security consolidated and expanded some of its operations to the City of SeaTac. New tenants in our warehouse, distribution and light industrial sectors include NW Crane Worldwide, Denali, Stat Medical and Europa Sports.

“It is very gratifying to be able to give our customers in the Northwest even better service than before,” said Eric Hillman, CEO of Europa. “SeaTac is strategically placed on the I-5 corridor, allowing us to serve our customers more efficiently, providing them an even higher level of service.”

Finally, the United States Government is searching for several hundred thousand square feet of office space to house the regional FAA (Federal Aviation Administration) headquarters.

“The City of SeaTac is pleased to have four viable locations that have been proposed that fit all of the FAA’s initial requirements; most importantly those related to transportation options for FAA staff and visitors,” said Robinson. “We will continue to work with the property owners and development teams to do whatever we can to secure this important economic development catalyst.”

Looking ahead to 2011, a number of new hotels and mixed-use projects are in the planning stages and the decision of Sound Transit to move forward with the accelerated light rail extension to the southern border of the city will help spur redevelopment in the not-too-distant future.

SoundTransit Expands Light Rail in Seattle

SoundTransit is undertaking several extension projects for its light rail system in the Seattle area.

East Link is Sound Transit’s voter-approved project to build light rail between Seattle and Overlake Transit Center in Redmond. SoundTransit is also conducting environmental review on the future extension between Overlake and downtown Redmond. The Sound Transit Board of Directors has identified a preferred East Link alternative with eastside stations serving Mercer Island, south Bellevue, downtown Bellevue, Bel-Red, Overlake, and downtown Redmond, connecting to Seattle via I-90.

By 2030, East Link light rail will connect the Eastside’s biggest population and employment centers, serving up to 50,000 daily riders on one of the region’s most congested travel corridors.

University Link will serve the three largest urban centers in the state of Washington—Downtown Seattle, Capitol Hill and the University District. By 2030, the University Link line alone is projected to add 70,000 boardings a day to the light rail system.

University Link is a 3.15-mile light rail extension that will run in twin-bored tunnels from Downtown Seattle north to the University of Washington, with stations at Capitol Hill and on the University of Washington campus near Husky Stadium.

University link construction is being paid for by a combination of federal grants, MVET, and local sales tax (.4%). The total cost for University Link is $1.9 billion.

Sound Transit has completed the Environmental Impact Study, real estate acquisition and final design work on University Link. Construction began on the two stations and tunnel track in 2009. Construction will continue over the next seven years until University link opens for service in 2016.

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