IAMC Dispatch
Vol. 6, No. 1, January 2007

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IAMC member firm Coca-Cola Enterprises (CCE), subsidiary of Coca-Cola Co., is investing in both ends of its French operations. To the north, the bottling company is investing US$32.5 million (25 million euros) in a new production line at its plant in the port city of Dunkirk, which serves the Benelux region. The aseptic line will produce non-carbonated drinks like Powerads and Minute Maid beverages. To the south, the company is investing $14 million in a new logistics facility adjacent to its production site near Marseilles. Matthew Fanoe, director of real estate for CCE, is an IAMC member.




Mark Parker, CEO and president, Nike, Inc.
You’ve heard more than one company express its concern about how a given territory’s education system affects its work force. IAMC member firm Nike is one company that’s doing something about it. In early January the company announced the creation of the Nike School Innovation Fund (NSIF), a five-year, $9-million commitment to help Portland, Hillsboro and Beaverton public schools in Oregon.

"Innovation is our lifeblood at Nike," said Nike President and CEO Mark Parker, "and we want to support the major school districts that serve our community as they pursue their own creative ideas about improving the education our kids receive." In addition to the funding, Nike leaders will lend their time and expertise to assist school and district leaders with leadership, coaching and training as requested by school leaders.

Among the three grants totaling $1 million that are going to all levels of the Portland Public School District is $250,000 toward a school business managers program, which "will help high school principals by supporting a pilot project to recruit and train school business managers. This initiative will give principals more time to focus on educational leadership to support, mentor and coach teachers — instead of spending the majority of their time on day-to-day administrative and operational issues."

"There is one idea that underlies the whole enterprise: helping kids reach their potential," Parker said. "Our hope is that innovative practices springing out of this fund will reach thousands more through the sharing of new best practices across Oregon and beyond."




In December, Boston-based IAMC member firm Iron Mountain Inc. announced a definitive agreement with Transnational Company Pte. Ltd. to create a joint venture that will expand Iron Mountain's presence in the Asia Pacific region. Iron Mountain will have controlling interest in the JV. The expansion brings Iron Mountain's operational footprint to six more countries, for a total of 33 across five continents.

Established in 1978, Transnational Company Pte. Ltd. is headquartered in Singapore and is a provider of information protection and storage services in Singapore, Hong Kong-SAR, China, Indonesia, Sri Lanka, Taiwan, and Malaysia. Iron Mountain entered the Asia Pacific region for the first time in December of 2005 through the acquisition of the Australian and New Zealand operations of Pickfords Records Management. In May 2006, Iron Mountain entered India when it formed a joint venture with Mody Access. And in June 2006, Iron Mountain expanded its presence in Australia and New Zealand with the acquisition of Melbourne-based DigiGuard.




Nearly two months after the Dec. 6 explosion that killed three people at the Milwaukee plant of precision industrial gear maker Falk Corp., the division of IAMC member company Rexnord Industries is nearly back at full capacity as it continues to fill orders at the same time it rebuilds. Both the company’s progress and its storied history can be tracked via ongoing coverage by the Milwaukee Journal Sentinel. One article asserts that "gear manufacturers could probably add several more plants and still be running at full capacity," according to Alfred Spada, spokesman for the American Foundry Society.




Omaha, Neb.-based IAMC member company ConAgra Foods announced in late January several facility moves to streamline production within its Popcorn and Seeds platform. The moves follow the September 2006 announcement of the closure of five plants. "To ensure the long-term growth of ConAgra Foods, we are committed to identifying and implementing business processes that will maximize our investments in the production, storage and transportation of our products and ingredients," said Jim Hardy, executive vice president, Product Supply. "By realigning production in our Popcorn and Seeds platform, we have taken yet another important step toward achieving a more efficient business model and building a stronger manufacturing base for growth, innovation and continued success." The following moves are expected to be completed within the next nine months, with a work force reduction of 200 employees.

  • The closure of the ConAgra Foods microwave popcorn plant in Edina, Minn. Beginning in late April 2007, equipment and production capability will be transferred to plants in Rensselaer, Ind., and Irapuato, Mexico, where ConAgra Foods will be able to better meet customer demand while also maximizing efficiencies in warehousing, storage, and transportation.

  • The expansion of the Rensselaer, Ind., facility, where the company will increase production capacity and reorganize warehousing operations for improved efficiency in storing and distributing products.

  • The partial closure of the ConAgra Foods plant in Lake View, Iowa, which supplies bulk popcorn in tins and tote bags among other popcorn products. Production of bulk popcorn in tins and totes will halt in late May 2007. Going forward, ConAgra Foods will produce popping corn and popcorn seed at its Lake View facility.

  • The closure of the ConAgra Foods South St. Paul, Minn., plant, which produces popcorn balls, and the transfer of its production capability to the ConAgra Foods plant in Lakeville, Minn. By moving the seasonal production of popcorn balls to Lakeville, ConAgra Foods will be able to expand this business to meet increasing consumer demand for this product.
  • ConAgra Foods will sell its property in Edina and South St. Paul, Minn. Equipment will be moved from those locations to other ConAgra Foods facilities.

The company says the total moves announced in September and in January will help achieve a reduction of $100 million annually in fixed costs.




On January 23, IAMC member company Dell launched operation of its 200,000-sq.-ft. Global Business Center in Cyberjaya, near Kuala Lumpur, Malaysia. Expected to employ 1,000 people after five years, the facility expects to hire 600 by the end of 2007. In addition to providing around-the-clock worldwide IT support and maintenance through remote monitoring and resolution, engineering and applications support, the facility is also home to local sales and marketing functions. Dell has had operations in the country since 1995, and currently employs 5,000 people there.

"We chose Malaysia for this global operation because we have a long, firsthand experience with the country’s skilled work force, conducive business environment, robust infrastructure and government committed to information and communications technology for the benefit of its people," said then-Dell CEO Kevin B. Rollins, who resigned Jan. 31 from the post. "We very much appreciate and place high value on the government’s pro-business initiatives."

A few days later, at an event at Peking University, Rollins expressed similar admiration for the pro-business policies that have enabled the company’s growth in the People’s Republic.

Cyberjaya was passed over in 2005 for a similar business center by fellow IAMC member company BASF, which chose instead to invest in Kuala Lumpur itself. Read why in this Site Selection project profile from the March 2006 issue’s Southeast Asia Spotlight.




Major assemblies to be used in manufacturing the 787 Dreamliner are unloaded at Boeing partner Global Aeronautica’s facilities in Charleston, S.C.
photo used by permission of Global Aeronautica
Elsewhere in the Asia Pacific, Alteon Training, a subsidiary of IAMC member company Boeing, in late January opened the region’s largest aviation training center at Changi Airport in Singapore. The facility has the capacity to train 6,000 pilots, mechanics and flight attendants annually. Meanwhile, one week earlier, Japan-made components of the aerospace company’s 787 Dreamliner were making their way west: A modified 747-400 dubbed the Dreamlifter delivered the first assemblies to partner Global Aeronautica in Charleston, S.C. The load consisted of section 43, a forward fuselage section made by Kawasaki Heavy Industries, and section 11/45, the center wheel well and center wing tank made by KHI and Fuji Heavy Industries and joined at FHI. "The Dreamlifter proved beyond a doubt that it is the right transportation solution for the lean, global production system we are using to build the 787," said Scott Strode, vice president of Airplane Development and Production for the 787 program. "We can now do in hours what used to take weeks. This is good news for us, our partners and ultimately, our airline customers." ( Read a project profile of the Global Aeronautica site selection process.)




One bright spot in Pfizer’s plan to eliminate 10,000 jobs and $2 billion in global costs is Belgium. According to Belgian newspaper L’Echo, as part of the restructuring, Pfizer will invest $51 million in production at its Louvain-la-Neuve site, $14 million in opthalmology medicine production at its site in Puur and $27 million in an EMEA data center in Brussels. According to The Wall Street Journal, Pfizer plans to close up to five research centers, and intends to operate 48 plants by the end of 2008, "about half the 93 factories running in 2003."




The Macmillian Business Park in Lancaster Co., S.C., will be home to Kennametal's new shared services center. The area of York and Lancaster counties, just across the state line from the Charlotte metro, has seen an influx of project activity in the past two years, led by financial services.
On January 16, the South Carolina Dept. of Commerce, an IAMC member organization, welcomed a shared services center groundbreaking in Lancaster County’s MacMillian Business Park from IAMC member company Kennametal Inc. The 22,000-sq.-ft. shared services center will be located at the MacMillian Business Park in Lancaster, S.C., just south of Charlotte. The operation is expected to create 100 jobs in customer service, sales and human resources.

"We are very excited to break ground on this new facility which will become a key Center of Excellence leveraging our people, our processes and our technology to enhance our ability to serve and expand our business in North America," commented Brian Rabe, Kennametal Director Global Metalworking Solutions and Services Group (MSSG) Services & Corporate Customer Satisfaction. "This new center is one of many strategic investments that we are making globally to increase our competitiveness in the marketplace by enabling us to provide industry leading products, service and technology to our customers and distribution partners."

"Kennametal has been a longtime manufacturer in the Upstate and we look forward to furthering our relationship with Kennametal as they expand their presence in South Carolina," said South Caroline Secretary of Commerce Joe Taylor.

The 7.5-acre MacMillian Business Park is located in the fast-growing Indian Land "panhandle" area of Lancaster County, just south of Charlotte and the North Carolina/South Carolina state line.

"Kennametal’s new facility will be a significant addition to MacMillian Business Park and significant job creator for Lancaster County and the Charlotte metropolitan region," said Tom McKittrick, President of Forsite Development, Inc.

 
 
 
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