North American Business in Luxembourg - Luxemburger Wort ...

Special editionOctober 20, 2010NhAmericaNorth American Business in LuxembourgL1

ContentInterview with H.R.H. Crown Prince Guillaume 2The US and Luxembourg:An enduring strategic partnership 3Husky receives LuxembourgAmerican Business Award 4Recognition for long-term commitment 5Numerous corporate groups from theUS operate in Luxembourg 6+7Luxembourg and the United States: a fund story 8American investments and laws helped createthe Financial Center 9LACC: Luxembourgs bridge head in “Big Apple” 10Survey: How important is theUSA for Luxembourg? 11, 12, 13Interview with Jeannot Krecké,Minister for Economic Affairs 14Challenges and opportunities forTrade and Investment promotion 15Launch of the Alternative InvestmentFund Manager Directive 16Cargolux and Boeing Make Industrial History 17Tax competitiveness for U.S. Investors 18Living the Dream – Luxembourg a Safe Heaven 19An Eldorado for Internet giants 20Acquisition of Americom turned SESinto major global player 21From Pre-School to MBA 22The first immigrant 23Editor:Luxemburger Wort2, rue Christophe Plantin, L-2988 LuxembourgConcept:Paul LenertCoordination:Andreas HolpertContribution:Georges Bock, Cordelia Chaton, Petra Garnjost, FaustoGardini, Daniela Hockelmann, Andreas Holpert, FrançoisKnaff, Pierre Leyers, Frank Muntendam, Pierre Oberlé, NadiaDi Pillo, Tatjana Schäfer, Cynthia Stroum, Camille Thommesand Ronny WolffPhotos:Anouk Antony, Serge Waldbillig, Marc Wilwert, Paul Lenert,Gaston Roderes, Joseph Lorent, Shutterstock, AFP, JoséCorreia, AP, Charles Caratini, Gerry Huberty, Boeing, Delphi,Advertisement:Saint-Paul Luxembourg/régie publicité-annoncesLayout:Sabina Palanca, Michèle Zeyen-WinandyInterview with H.R.H. Crown Prince Guillaume, Honorary President ofthe Luxembourg Board of Economic DevelopmentThe US Remains the MostImportant Trading PartnerH.R.H. Crown Prince Guillaume serves ashonorary president of the Luxembourg Boardof Economic Development once every twoyears at the Luxembourg American BusinessAwards ceremony in New York City. The H.R.H.Crown Prince has been traveling regularly tothe US since his childhood. He particularlyadmires the American people for theirspontaneity, openness, and straightforwarddemeanor. The US is Luxembourg’s mostimportant trading partner outside of the EU.For North American companies, the GrandDuchy is in turn a gateway to the internalEuropean market. “We also need to focus onsectors with high added value, for which theEU remains attractive,” explains H.R.H. CrownPrince Guillaume to the LW.Your Royal Highness, 65 years after the endof World War II, a major worldwide changehas taken place from an economic perspective,which is giving rise to new trends. Whatis the significance of this radically alteredglobal environment for Luxembourg-Americaneconomic relations?The US remains Luxembourg’s most important trading partneroutside of the European Union. Now as before, most directinvestment in Luxembourg comes from the US, which in turnis also the preferred destination for direct investments fromLuxembourgian companies. What is increasingly connectingour two countries is our shared economic challenge of assertingourselves in the global economy with creative and innovativeideas and concepts. Moreover, numerous US companieshave long recognized that Luxembourg is a superb gateway tothe internal EU market.What active role does the Board of EconomicDevelopment, which you head, play in furtheringeconomic ties between the US andLuxembourg?The BED is a committee where actors from the public andprivate sector discuss their shared concerns regarding economicdevelopment. The executive secretary of the BED andthe nine Luxembourg Trade and Investment Offices are underthe Ministry of Economic Affairs. For the meantime, only theby Joseph Lorentbrand ‘Luxembourg for Business’ will be used, in the interestsof a unified presence in the outside world. We have two Tradeand Investment Offices in the US: one in New York and one inSan Francisco. These offices actively seek out local companieswith an interest in European markets, in order to highlightLuxembourg’ benefits. In addition to this, they also helpLuxembourgian companies get a foothold in the US.What arguments do you use to try to convinceinvestors to choose Luxemburg whenyou are on promotional trips in the US?In Luxembourg today, we can hardly solicit for aid anymore.The arguments have become much more nuanced and are oftenbased on so-called ‘soft’ criteria. The Grand Duchy mostlywins people over with its geographic location and its multilingualism.Naturally, our infrastructure and our legal systemare also major factors in our success. Aside from those, ourhigh standard of living is important, to attract managers andtheir families, and their companies along with them, whichbuild new workplaces. However, it is also true that it takesa great deal of effort to convince a company’s directors tosettle in Luxembourg.In the past, it was mainly American industrialistsand investors who came to Luxembourg,so there has been an accelerated shiftto other sectors recently. In which areas,generally speaking, is further expansion andcooperation possible?It is getting noticeably more difficult to attract industrialcompanies to Luxembourg or Western Europe. We also needto focus on sectors with high added value, for which the EUremains attractive. Luxembourg has very strong argumentsin its favor for some promising sectors. In the ICT and e-commercesectors, some large US companies, as well as somesmaller ones, have established themselves in our country.We enjoy close collaborations between American and Luxembourgianscientists in the field of medical technology. Thiskind of collaborative relationship seems entirely plausible inthe area of environmental technology as well. We should bearin mind however, that companies from these sectors do notcreate hundreds of new workplaces overnight. In any case, weneed to get closer “to the client”.What are your personal ties to the UnitedStates, and what impresses you the mostwhen you travel there?I have been traveling to the States in a personal context sinceI was a child, especially since I had family living and studyingthere. I feel very much at ease in the US: privately, but also intouch with the business community. I particularly admire theAmerican people for their spontaneity, openness, and straightforwarddemeanor. Their often quite distinctive spirit of entrepreneurshipis certainly the source of their innovative power.In your view what is the significance of theLuxembourg American Business Award, whichyou will present in New York on October 20th?Getting new companies to settle in Luxembourg is absolutelyvital. Nevertheless, we should not lose sight of the fact that thecompanies that are already established here are playing a supportingrole in Luxembourg’s economic development. The BusinessAward bestows a distinction upon a North American companythat has played an important role in Luxembourg in thepast, and which will assuredly continue to do so in the future.The ceremony serves to reinforce the amicable ties betweenLuxembourg and the upper management of key US companies.In this way, the Grand Duchy can make itself a personal referencepoint on the world map for American companies.The United States of America and The Grand Duchy of LuxembourgAn enduring strategic partnership… with more to look forward to inthe years to come!by Cynthia Stroum*The destinies of my country, the United Statesof America, and my currently “adopted” homeof the Grand Duchy of Luxembourg, have beenforged in partnership together – whether it beeconomically, politically or just plainemotionally – since the resolution of WorldWar II. From General Patton’s eternal restingplace at the American Military Cemetery inHamm, to the new Cargolux Airlines hangaracross the road ready to welcome the newgeneration Boeing 747-8F aircraft to its fleet,and across the fast-growing universe of thePlateau de Kirchberg, the vibrantLuxembourg-American collaboration is evermore omnipresent and multidimensional.Luxembourg has been a key trade and business ally of theUnited States of America for over fifty years, shaped andcontinually reinvented by a shared vision of developingeconomic vitality through hard work, skills training and diversification.The two countries enjoy a unique and enduringpartnership stretching over generations of people and acrossall facets of life. The upcoming biannual Luxembourg-AmericanBusiness Award, presented to a North American companyoperating in Luxembourg, in recognition of outstanding corporatecitizenship and bilateral trade success, is certainly aprime example of this alliance!In the educational sector, Luxembourg and the U.S. have establisheda scholarship exchange program at the fast-growingUniversity of Luxembourg to support Luxembourg students’study abroad in the U.S. for cultural and academic immersion– a vote for a common future of growth and understanding.On foreign policy, Luxembourg supports many of the UnitedStates’ priorities in Europe and beyond. Luxembourg donateshumanitarian assistance to nearly a dozen lesser developedcountries, and Luxembourg’s per capita Overseas Direct Assistance(ODA) ranks as one of the highest in the world. Luxembourgalso remains a leader in the EU’s efforts to combatmoney-laundering.Even in the midst of the world financial crisis over the pasttwo years, Luxembourg has maintained fiscal stability andrelative strength in productivity and growth as compared toother EU countries. In considering business in particular, Luxembourgand the U.S. share a common attractiveness for foreigndirect investment and bilateral trade. This year PresidentObama launched the National Export Initiative (NEI) whichaims to double U.S. exports over the next five years. This effortincludes educating U.S. companies about opportunitiesoverseas, directly connecting them with new customers.Bilateral trade between our nations practically doubled from451.9 million dollars in 2008 to 849.2 million dollars in 2009.Both Luxembourg and the U.S. are now projected to return topositive GDP growth in 2011 thanks to extraordinary and boldeconomic stimulus programs implemented swiftly and efficiently.Both countries have recognized the critical role playedby infrastructure in economic development and have made orare making significant investments to benefit the long-term– whether it be in transportation to improve roads, bridgesand tunnels (like the Howald renovation project going on rightnow!) or to expand and modernize the railway system (as inthe case of the U.S.), or in schools and health-care facilities– and to provide higher attractiveness in quality of life andefficiency of doing business. In Luxembourg, the opennessand accessibility of government officials and decision-makersand their ability to coordinate a harmonious vision for thecountry’s future development has furthered a diversificationof the economy over the past five years – from the dominantfinancial services industry into new areas of growth, such aslogistics, health research and technologies and e-commerceand information technology, the linchpin of all business operationsnow. Many prominent American e-commerce firmssuch as Amazon, Digital River, PayPal and Skype now havetheir European headquarters in Luxembourg and are takingadvantage of the government’s actions to increase electronicconnectivity and speed through state-of-the-art datacentersand fiber-optic networks.Luxembourg and the U.S. have also worked closely togetherin recent years toward a stronger bilateral relationship in thefinancial sector. The signing in 2009 of an amended doubletaxationtreaty for information exchange was a critical factorin solidifying this relationship. As U.S. Commerce SecretaryGary Locke said earlier this year when he unveiled detailsof the National Export Initiative, “Trade starts with the understandingthat it only works in a system of rules where allparties live up to their obligations. The United States is committedto a rules-based trading system where the Americanpeople – and the Congress – can feel confident that when wesign an agreement that gives foreign countries the privilegeof free and fair access to our domestic market, we are goingto be treated the same in their country.”It is clear that the future is bright for both our countries, individuallyand in tandem . It is essential now not only to continueon the path of economic recovery and renewed growththrough strong public as well as private initiatives, but also tocapitalize on the major investments already made toward increasingattractiveness for business and bilateral trade. WhenI fly into the magnificent, expansive new Luxembourg Airportin Findel, I dream of filling it with more activity, especiallydirect flights to the United States which would be hugelybeneficial to the American businesses here as well as to theAmerican community and the millions of travelers from theGrande Region wanting to travel to the U.S. who could easilycome into Findel to travel. When I see the amazing plans fornew shopping mall projects, to make Luxembourg the shoppinghub of the Grande Region, I dream of filling them in partwith great American retail outlets!Working together and in friendship, as the United States andthe Grand Duchy have successfully accomplished for so manydecades, is the best way to continue on the road to economicrecovery and renewed growth. Our enduring friendship benefitsnot only our bilateral trade but also, and more importantly,supports our shared visions of world peace, growthand sustainability.* Cynthia Stroum is U.S. Ambassador to Luxembourg3

World’s leading provider of injection molding systems and services receives award4Every two years the Luxembourg AmericanChamber of Commerce confers its BusinessAward. This year Husky was the winner. Theinjection molding plant manufacturer fromDüdelingen has struggled well through thecrisis and despite everything hasn’t forgottenabout training and the environment.Every 10 seconds the injection molding machine opens andspits out a remarkable structure: in front a screw closuremade of transparent plastic, at the rear a mold roughly 10centimeters in length. “These parts are called preforms,” saysStefano Mirti. “In a second stage the rear part is heated andthen blown up,” explains the employee at Husky Injection MoldingSystems. And the 1.5-liter coke bottle is finished.Mirti is the General Manager for Sales & Service in WesternEurope. The injection molding specialist based in Canada, withproduction centers worldwide, has resided in Düdelingen since1985 – unknown to most Luxembourgers, however, since thecustomers come only from industry: Manufacturers of softdrinks, vodka, mineral water, ketchup and detergent need packaging.And Husky supplies the molds. “Usually the bottle ismore expensive than the contents,” Mirti says with a grin. Thesecond pillar of the Group is the heating ducts that inject theAnd the winner is... Husky!plastic into the molds. In addition Husky provides all servicesrelated to injection molding.The molds from Husky have to withstand a lot. For example, upto 250 million preforms are manufactured each year in such aPET preform system. “Even a tiny problem here would mean acatastrophe,” Mirti notes.But he can afford to joke – in Düdelingen everything runs perfectly.And on top of that his company has received a covetedprize: the Luxembourg American Chamber of Commerce BusinessAward. On October 20th Mirti will receive the award onbehalf of the work force from the hands of Grand Duke Guillaumeat a gala dinner in New York. Several hundred guests willbe attending the event, held every two years.The purpose of the award is to strengthen the trade relations inexistence for decades between the USA and Luxembourg, andto promote the development of the company in the USA. “Ofcourse, we’re very pleased,” beams Mirti. “We’ll be discussingthe award at our monthly meeting with the employees.”For Mirti, Luxembourg is not just a great location because it’shis home. “Our work here is very automated. We’re one of themost efficient factories in the entire Group. And on the managementlevel Luxembourg is considered a springboard to theExecutive Board of the Group,” the engineer confides.John Galt, President and CEO of Husky, agrees: “Husky InjectionMolding Systems has resided in Luxembourg since 1985. Thathas geographic advantages. Moreover, the employees here aremultilingual, the government is flexible,the quality of life is high and theeconomy is healthy.” As the facts show:the 750 employees in Luxembourg havealtogether 20 nationalities and speak26 languages.Today Husky is present throughout theworld; from Canada to Moscow andSingapore. Around 40 service centersserve customers in over a hundredcountries. Products are manufacturedin Canada, the USA, Luxembourg andChina. More than 70 percent of all plasticbottles worldwide come from Husky.Finished and packed: From Luxembourggoods are shipped round theclock to customers between Helsinkiand Johannesburg. Goods totaling 20million euros in value are stockpiled.by Cordelia ChatonBesides production, the Luxembourg location is also responsiblefor service and sales in Europe, the Middle East and Africa. “Wemaintain a 24-hour hotline so we can answer customer inquiriesat any time,” Mirti explains. Parts are also shipped aroundthe clock. “Our customs clearance is so exemplary that we’vebecome a model for other companies,” the General Managerreports. Goods totaling 20 million euros in value are stockpiled.10,000 moldsMirti next takes us through the factory, which has been locatedfor 25 years in the “Riedchen” industrial district next to theDüdelingen freeway. It’s evident that the company received theaward for many reasons. In a giant hall work is carried out behindclosed curtains. “Here we’re setting up a production linefor a customer,” Mirti explains. This will take a few weeks. Developmentrequires more than a year, followed by half a year oftesting. Ultimately the machine will be producing up to 300 millionparts each year. Husky doesn’t sell everything, but adviseson the assembly of such complex constructions.Meanwhile the customer structure has changed. “We have moreand more detergent manufacturers selling one liter of concentrateinstead of 5 liters. And they need good-looking packaging,”Mirti explains. At the end of the month the Husky Group will bepresenting a new machine platform for medical technology asone new trade fair item, among others.The models are constantly changing. Worldwide there are about10,000 different bottles and containers for which Husky hasproduced the molds: from the 0.5-liter mineral water bottle todetergent packaging. Large customers like Unilever, Coca Colaand Procter & Gamble demand the highest quality.“Of course, this poses a challenge to our employees. It’s noteasy to find good people,” Mirti notes. The people working atHusky can have liquid refreshment at the “Main Street Café”during their breaks, or work out in the fitness room under atrainer’s supervision. A physician is available once a week. Thefactory operates between five and seven days a week, so themood of the employees should be good.Whoever has suggestions for improvement can present his orher ideas on a monitor. “We’re also committed to SOS villages.As an employer, we have to go with the times and meet theneeds of people,” says Mirti, who’s been on board since 1995.Recycling also plays a role. According to Mirti, more than halfthe PET bottles are recycled in Europe. “But most end up inclothing,” he notes. Husky tries to produce increasingly lighterand sturdy containers. “Developments at Husky are aimed atsimplifying the recycling of PET bottles. The first industrial testsare already in progress,” Mirti reports. It’s still exciting ...The Luxembourg American Chamber of CommerceHas Been Awarding the Prize Since 1999Recognition for Long-TermCommitmentby Andreas HolpertSince 1999, the Luxembourg AmericanChamber of Commerce (LACC) has beengiving out an award to acknowledge thecommitments of US and Canadian companiesin Luxembourg. Since 2002, the trophy hasbeen presented at a bi-annual awardsceremony in New York City. This year theprize goes to Husky.The winner of the first Luxembourg American BusinessAward, back in 1999, was tire producer Goodyear, inrecognition of their 50-year presence in Luxembourg.“It was a unanimous decision,” recalls Fernand Lamesch,then president of the Luxembourg American Chamber ofCommerce. The award was presented by Grand Duke Henri,who in 1999 was still Crown Prince. Since then, his eldest son,Guillaume, has taken over the distinguished duty of presentingthe award, in his capacity as H.R.H. Crown Prince.Samir Gibara, at that time the general director and presidentof Goodyear Tire & Rubber Company of Akron, Ohio, called it aprivilege to be able to lead the company in a time of so manychallenges.In 2002, the prize went to technology giant DuPont. In thatyear, the company was celebrating its 200th birthday, as wellas its 40th year in Luxembourg. This long-term commitmentmerited a Business Award, which was presented to William O.Walker, then head of DuPont in Luxembourg, by H.R.H. CrownPrince Guillaume in his capacity as honorary president of theLuxembourg Board of Economic Development.New York City Mayor Michael Bloomberg attended the 2004awards ceremony as a special guest. The prize was awarded1999: Grand Duke Henri – then still Crown Prince –presents the prize to the President of Goodyear,Samir G. Gibara. Networking Special purpose committees Seminars PublicationsInterested? Join us atwww.amcham.lu2004: Guardian CEO William Davidson acceptsthe award from H.R.H. Crown Prince Guillaume.At center: Fernand Lamesch, President of the LACCto Guardian. William Davidson, president of the glass producer,accepted the award with enthusiasm. Six years ago,in front of over 350 of New York’s public figures and businesselites, Davidson imparted that the company’s success wasprimarily the result of the close partnership between the Luxembourggovernment and Guardian.In 2006, Avery Dennison took home the Luxembourg AmericanBusiness Award. Dean A. Scarborough, President andCEO of this producer of adhesive office supplies based inPasadena, California, expressed his pride at the recognitionof their factory in Rodange, which he characterized as one ofthe group’s most profitable production sites. The trophy wascrafted by Luxembourgian Artist Victorine Hinger.Finally, in 2008 the honor was bestowed upon automotiveparts supplier Delphi. Group President and CEO Rodney O’Nealinsisted on traveling to New York in person, even though twoyears ago the US auto industry was experiencing intensefallout from the severe economic and financial crisis. In hisspeech, H.R.H. Crown Prince Guillaume also recalled the longand mutually beneficial history of the company, at that time asubsidiary of GM, in Luxembourg.The American Chamber of Commerce in Luxembourg A.S.B.L. (AMCHAM)is an international voluntary organization of business and professional personscommitted to fostering business relations between the U.S. and Luxembourg,promoting cross-cultural understanding and enhancing the quality of life ofAmericans and other expatriates who live and work in the Grand Duchy.6, rue Antoine de Saint-Exupéry, | L-1432 Luxembourg | Tel. (+352) 43 17 56 | Fax: (+352) 26 09 47 04 | Email: info@amcham.luwww.amcham.lu

US companies are important employersin LuxembourgFrom Grooved Tiresto Protective Glassby Cordelia ChatonBut a lot has changed since the first US companiescame to Luxembourg after the war. Onthe one hand, Asia has become more attractivefor production. On the other hand, othercountries are also intensively courting investors.That’s why Luxembourg is relying on researchas a field less susceptible to crisis. Minister forEconomic Affairs Krecké accordingly broughtthe SurfMat Cluster into being in 2002 for thecooperation between companies and researchinstitutes engaged in surface coating. 60 ofthe 50 SurfMat members are companies.In addition, the government brings companiesalong on economic missions in order toestablish contacts and advertise for Luxembourg,Inc. On this year’s economic mission toMoscow participants met at the local officesof Husky and the production centers of Guardian.The US companies on their part then oftenpromote the Grand Duchy, to the latter’s profit.Admittedly, not only do many Luxembourgersnot know which US companies are here, manyAmericans don’t even know where Luxembourgis located, and what can be producedand invented there.Plate glass from Guardian is used inmany banks, the European Court ofJustice and Mudam – here part ofthe facade.UThey go by the names of Goodyear, Delphi,Avery Dennison and Guardian Luxguard, forexample. Not every person is familiar withthese names. But they enjoy good reputationsin the business world: Over thirty companiesfrom the USA are active in Luxembourg. Theyemploy nearly 9000 people. Their productsare to be found throughout the country – andworldwide.DuPont de Nemoursis represented inLuxembourg byaltogether four companies,including theEuropean ResearchCenter.Driving over the Kirchberg, you’ll see glass facades. Onlyfew people suspect that the glass mostly comes fromthe US plate glass manufacturer Guardian.Whenever you drink from a plastic water bottle, there’s a 70percent chance you’ll be holding a product from Husky. ThisNorth American company has been operating in Luxembourgfor 25 years.If you write on tiny Post-its to remind you of things, you’veprobably been using products from Avery Dennison. Items likethese have made the Californian company one of America’sFortune 500 companies. It’s been coating films for all types oflabels in Rodange for decades.All companies have one thing in common: they are amongthe 31 companies from USA operating in Luxembourg. The listranges from A as in Airtech to V as in Viking. They employaround 9000 people in Luxembourg, making them a very importanteconomic factor – one often overlooked.One reason for this low profile lies with the nature of theircustomers, often companies located in all parts of the world.Another reason is that many companies are often perceivedas Luxembourgian. Goodyear simply belongs to Colmar-Berg.Some produce here, while others conduct research or haveestablished their service centers in Luxembourg. Still othersuse Luxembourg as their European Headquarters. The multilingualismof the Luxembourgers facilitates such decisionmaking,as does the flexible government.Luxembourg’s Minister for Economic Affairs, Jeannot Krecké,never tires of stressing the important developmental roleplayed by these companies after the Second World War. Andhe makes a point of maintaining good relations by making visits– and of promoting the settlement of new companies here.“I’m often the first minister for economic affairs who goes toa company,” he remarks with a smile. That’s well received.Airtech is an example of a company that became convinced.Since 1991 this vacuum specialist has maintained its Europeanheadquarters in Luxembourg. The company sells kits thatcan contain vacuum bags, separating foil, absorbent non-wovenmaterial and peel plies, sealing tape, adhesive tape andtemperature sensors, to allow the complete production ofspecific components. In 2007 the company expanded its basein Differdange a third time to encompass over 6000 squaremeters. Today the Airtech composite mixtures are even beinginstalled in the Airbus A380.Goodyear, on the other hand, is a name familiar to many, withits Technology Center in Colmar-Berg. Luxembourg is the locationof the tire research and development department forEurope and Asia. There the second largest tire manufacturerin Europe develops tires for nearly every type of vehicle thatare sold worldwide in over 180 countries. In recognition ofits achievement, two years ago the company received the innovationprize of the Luxembourg Industry Association FEDIL.In 2004 Guardian Luxguard was similarly honored. At thattime the plate glass manufacturer had put a new windshieldon the market that according to the manufacturer’s informationreflected over 30 percent of the direct insolation,resulting in less heating of the car. The company with itsheadquarters in Auburn Hills near Detroit, Michigan, has beenoperating in Luxembourg for nearly 30 years – with productionsites in Niederkerschen, Dudelange and Grevenmacher,and headquarters in Bascharage.Its wide range of products extends from picture frame glassto elaborately coated glass. Glass from Guardian is used inthe European Court of Justice, the Chamber of Commerce,the Mudam and the Philharmonie. The commitment to Luxembourgalso has financial consequences: Since the openingof the Niederkerschen plant the plate glass manufacturer hasinvested nearly half a billion euro in the continued developmentof its business in Luxembourg. Besides the training ofsome 500 employees, this includes above all research.The latter also plays a crucial role for the automotive supplierDelphi. The former GM subsidiary has been operating inLuxembourg since 1971. In 2006 it was decided to relocatethe research center for power train systems to Luxembourg.Corporate Head Rodney O’Neal emphasizes: “This is the firsttime that Delphi has moved one of its division overseas.” Heexplained the decision by noting, among other things, the“pro-business government, the wonderful quality of life andthe superbly trained workers.”In the meantime the Group was struggling in Detroit withcreditor-protection proceedings and had to report reducedworking hours in Luxembourg. In recognition of having nonethelessstuck with Luxembourg, the company received theLuxembourg American Business Award two years ago.Many Luxembourgers don’t even know that the parent companyof Dupont de Nemours lies in Wilmington, Delaware. Operatingin 70 countries, the chemical giant turns out specialpolyester and polymer products as well as chemicals, filmsand foil used the world over in industry and in consumables.This year the company received the Technology InnovationAward from the Wall Street Journal. In Luxembourg the companyfrom Contern already received the Environmental Awardfrom FEDIL five years ago.Founded in 1802, the company operates in nearly 80 countriesworldwide. The DuPont location in Luxembourg manufacturespolyester films, spunbonded fabrics and technicalplastics. It’s also a European business center for DuPont TeijinFilms, DuPont Protection Technologies, DuPont ElectronicTechnologies and DuPont Chemical Solutions. Nearly 1200people from twenty different nationalities work here; altogetherthe corporate group employs 58,000 people.Like many other companies, it too suffered during the crisis –and was glad about the reduced working hours. Luxembourg’sgovernment in turn needs companies like this one, in order tooffer people employment who cannot be placed in the financeindustry.Robert Dennewald,President of FEDIL,the LuxembourgBusiness FederationMr. Dennewald, are there still goodprospects for strong US/Luxembourg ties –or are they on the decline?We should bear two things in mind: the Americans werethe first to invest here in Luxembourg on a large scale. Theymade diversification possible here first. Many names cometo mind: Goodyear, Cleveland, DuPont, Avery Dennison, Delphi,and at that time also Monsanto ... It is vital that weexpand our ties. Because – and this is the second point –something has changed here in Luxembourg. We’ve lostsome of our competitiveness. It is precisely for this reasonthat our ties are so important. That is why I am also happyto attend the presentation of the Business Award.What does an event like the Business Awardhave to offer?Decision-makers need role models, in business as muchas any other area. The award offers a good opportunity tobring together a large number of people at the same timeand place. I attend the event to represent the LuxembourgIn the early 1950s Goodyear was one of the first UScompanies to produce in Luxembourg. Pneumatic tireswere manufactured on Colmar-Berg.business community,as well as my owncompany of course.As president of FEDILand a businessman, Imake contacts andrepresent my company.I believe weneed to create abroader foundationfor building contactswith the US businessworld.What’s your assessment of the future forties with the US?We aren’t limited to just the US. There are certainly othercountries, such as Turkey, China, or Brazil, that are also importantto build contacts with.The American companies that are here today should stayhere as well. We certainly would not come by another partnerlike Goodyear very easily. In such a case, prospectivenew partners would prefer to go wherever wages are morecost-effective, typically elsewhere. We do not have a verygood hand at the moment when it comes to traditionalindustry. Wages are high and indexation is a burden onbusiness growth. Americans in particular find this counterintuitive.On the other hand, high-tech businesses would bea possible option for the future.by Cordelia Chaton6 7

The Luxembourg AmericanChamber of Commerce in New YorkLuxembourgsbridge headin “Big Apple”by Tatjana Schaefer *How important is theUSA for Luxembourg?In terms of size, Luxembourg ranks 170th inthe world. The USA is the world’s largesteconomy and politically a super power aswell. Luxembourg’s financial center is thethird largest in Europe. The Grand Duchy isthe domicile of the world’s largest steelproducer, largest satellite operator andEurope’s biggest media corporation – not badfor tiny Luxembourg! To list the superlativesof the United States would burst the confinesof this article; a comparison between the twocountries is pointless. Why then is theAmerican giant interested in the tiny GrandDuchy at all? What makes the USA soimportant for the little state of Luxembourg?In surveying numerous personalities frompolitics, industry and society we sought andfound answers to these questions.The good relations between the two countriesare the result of a historical development. TheAmericans liberated the Grand Duchy fromNazi German occupation. Afterwards, the USAprovided important aid in rebuilding economicstructures. Today, Luxembourg is animportant bridgehead for numerous UScorporate groups in Continental Europe, andnot only in the financial sector. Both sides areintensively endeavoring to maintain thesegood relations – through Luxembourgianemissaries to North America and through USrepresentatives in the Grand Duchy.Andreas HolpertThe ideal location in Europefor U.S. companiesNew York City is without doubt among thebusiest cities in the world: more than 8million people originating from over 200nationalities live and work in this metropolis,creating the vibrant energy which is so typicalfor New York. It therefore is an ideal locationto establish and foster economic relations andto guarantee an intense exchange of ideas. Inthis context the Luxembourg AmericanChamber of Commerce was founded in thepresence of then Crown Prince, now GrandDuke Henri in 1991. For the past several yearsthe chamber has been located at the so-called“Luxembourg House”, a building which boastsa highly interesting history, situated only astone´s throw away from the United Nations.Until 1989 it was home to renownedcomposer Irving Berlin and his family; alltime favorites such as “White Christmas”were composed on site.Since its inception the Luxembourg American Chamberof Commerce (LACC) has created a platform andinfrastructure which is open to the Luxembourg businesscommunity in the United States and the Grand Duchyalike. None of the work could be accomplished without thesupport of the Chamber´s members; the 80 members whichcomprise Luxembourgish, French, Dutch, Belgian nationals aswell as Americans, therefore constitute the backbone of theorganization. The leading positions of the Board of Directorsand the Executive Committee are held by personalities fromthe business community who dedicate their time as volunteers:Fernand Lamesch (Chairman), Michel Franck (President/Spacesmith Architects), Cynthia Kalathas (Secretary/ Arendt & Medernach) and François Knaff (Consul General)are committed to the Chamber with great enthusiasm andcompetence.In close cooperation with the Luxembourg „Board of EconomicDevelopment“, which has offices in New York and SanFrancisco, requests for detailed information on Luxembourgas a business location are being answered.Furthermore the LACC organizes seminars on a regular basis,covering topics from cyber security, tax law to intellectualproperty. At these seminars participants have the opportunityto receive an update from experts of the subject and todiscuss matters in more detail at the following networkingreceptions.The LACC is an active member of the European AmericanChamber of Commerce in New York which opens the perspectiveto pan European aspects. In this framework the 15bilateral chambers have been jointly hosting very successfulevents. For Luxembourg as founding member of the EuropeanUnion, the link to the European level is of high relevance.The activities of the LACC are reflected in the quarterlymagazine „Luxembourg Business Journal“ which reviews theevents held in previous months and offers members a platformto showcase current developments and to further covereconomic trends in the Grand Duchy and North America. Thedistribution on both sides of the Atlantic supports the exchangeof information and fosters close ties between NorthAmerica and Luxembourg.Every two years the aspect of close economic cooperation isat the center of attention: The “Luxembourg American BusinessAward” recognizes the outstanding commitment of aNorth American company in regards to trade and investmentin Luxembourg. In 2010 the award will be bestowed upon theCEO and President of Husky Injection Molding Systems, Mr.John Galt. The Chamber is especially pleased that this year aCanadian company is the award winner, as this expands thegeographic reach of the LACC and to showcase Canada.In conclusion the LACC is dedicated to promote Luxembourgas ideal gateway to Europe. Especially in the context of theglobal economic and financial crisis an international chambercan offer a platform for an exchange of ideas. The LACC issupporting Luxembourgish companies located in New Yorkand continuously communicates the key advantages of Luxembourgas a business location. Analogies to New York areevident: Luxembourg equally boasts a cultural diversity of thepeople living and working in the Grand Duchy, furthermoreit’s an economic engine for the Greater Region, which attractspeople from the neighboring countries.The entire LACC team is committed to foster the transatlanticeconomic relations in the “Big Apple” and beyond.www.luxembourgbusiness.org* Tatjana Schaefer is Executive Director of the LACCPaul Michael Schonenberg,Chairman and CEO of theAmerican Chamber of Commercein Luxembourg (AMCHAM)David Gomez,Production director,Goodyear Tire Plant LuxembourgRick Minor,the former CEO of AOLLuxembourgTies between Luxembourg and the U.S. are historically strong and deep. Formany years, Luxembourg and the U.S. have been allies, friends and businesspartners. Due to immigration during the 1800s, more people with Luxembourgishheritage are living in the U.S. than now live in Luxembourg. There haseven been a rise in the number of people learning Luxembourgish in the U.S.,with new partnerships being created between organizations in both countriesto serve this need. Indeed, the U.S. is serving as a guardian of Luxembourgishculture.Both countries share the same abiding interests and values such as freedomand respect for human rights. During World War II, the U.S. provided a place ofrefuge for the royal family. In addition, General George S. Patton’s forces helpedliberate Luxembourg; such sacrifices are evident even today at the U.S. MilitaryCemetery in Hamm, Luxembourg. After the war, companies such as Goodyear,Delphi, DuPont and others came to Luxembourg, helping redevelop and restart“Center of Excellence”Goodyear settled down in Luxembourg in 1949, shortly after World War II. Thetire maker, based in Akron, Ohio, was looking for a footprint on the Europeancontinent and elected Luxembourg due to its geographically centralized location,its political and social stability and the availability of the workforce. The facilityin Colmar-Berg quickly gained in reputation and expansion projects madethe company grow over the decades. Today, Goodyear Luxembourg counts morethan 3250 associates, has a truck tire building plant with a European distributioncenter, an R&D facility responsible for the European, Asian and Africanmarkets and several plants producing intermediate components for the tirebuilding process.The importance of the Luxembourg facilities has always been valued by theGoodyear headquarters, which plans for Luxembourg to play an even more vitalrole in the European region and beyond. All Goodyear countries are currentlyA valuable economic clusterhas emergedThe other day I was welcoming the family of the third American e.commerceexecutive to move into our street in Luxembourg City. As I was explaining thebenefits of living in the City it reminded me that Luxembourg’s relationship tothe US today is very different from 10 years ago when I moved here to set upthe AOL Luxembourg office. Before 2003, Luxembourg was known in the USprimarily as an established, global finance center which rivaled in its own wayLondon, Paris and Frankfurt.When we arrived, the only Americans we encountered in town were tourists.The “new” Americans in Luxembourg are coming to town to live and work,thanks to the significant investment by US e.commerce companies in Luxembourg.It is possibly the greatest influx of Americans into Luxembourg sinceWorld War II and will be of more than just economic benefit to the two countries.American accents can be heard everywhere: in the restaurants, coffeethe economy of the Grand Duchy. The U.S. has thus historically helped protectLuxembourg’s interests and values.In modern times, there remain industrial companies which are the pillars ofthe Luxembourgish economy, along with a full range of U.S. banks and financialinstitutions—Citigroup, J.P. Morgan, State Street Bank, Chase and more—withestablished EU headquarters and operating centers in Luxembourg. These U.S.business interests have guaranteed continuing business ties and promoted localeconomic prosperity as a result of direct U.S. business investment. Suchinvestments are not only very helpful to Luxembourg, they also show the abidingappreciation Americans have of the Grand Duchy. Luxembourg is the ideallocation in Europe for U.S. companies to have their headquarters as well asshow support between the two countries which exists at all levels, includingthrough AMCHAM. AMCHAM members and staff are fully committed to promotingLuxembourg as a prime location and business center.reviewing their organizational structures and processes in order to move tohigher standardization, simplification, adaptability to meet the demands andexternal focuses in a more cost efficient way. Luxembourg will play a centralrole, in taking over the responsibilities for supplying all tire plants with raw materialsand dispatching all finished products towards the end user. A centralizedmanagement will considerably simplify administrative tasks while improvingthe efficiency of existing Goodyear systems. By capitalizing on efficiencies,Goodyear will be able to further invest in areas such as research and development,manufacturing and marketing, enabling the company to further developin the European market place. This challenging project was initiated three yearsago and will be finalized by the end of this year. 13 countries will then be operatingon a new business model, using new processes while being supported by acomplete new systems environment, with Goodyear Luxembourg as its Centerof Excellence.bars, shops, and in the schools. In a relatively short time, Luxembourg is nowrecognized by the major e.commerce companies in Silicon Valley as one of themost attractive, if not logical, jurisdictions in the EU in which to set up centralizedoperations for EU expansion. From the arrival of the first major player,AOL, 10 years ago, a valuable economic cluster has emerged, leading to thecreation of local jobs, the introduction of new skills and ideas into the economy,the generation of tax revenues and a greater demand for high value serviceslocally. But success can be fleeting. Given its importance to the economy, thee.commerce cluster must continue to be supported by the Companies and theGovernment alike. It is hoped that both Americans and Luxembourgers willcontinue to cherish and promote the US-Luxembourg economic and culturalrelationships through this bridge across the Atlantic. There is a solid foundationin place on which to build.10 11

Luc Frieden,Minister of FinanceJean Calmes,Honorary President of theAmerican Society Luxembourg,former President of the AmericanBusiness Club of Luxembourgand Director of the LuxembourgAmerican Cultural Society,WisconsinUnprecedented Opportunityfor Long-Term PartnershipThe US and Europe have been and still are close political allies. Both stand forfreedom and justice. The US and Europe made historically unprecedented commitmentsto these ideals in the First and Second World Wars. Moreover, theUnites States’ decision not to withdraw itself immediately after the World WarII contributed to the stabilization of Europe and enabled the war-torn Europeancountries to forge closer ties in freedom and prosperity. So it was also onlynatural – in light of our shared values on the two sides of the Atlantic – that asuccessful internal market would develop over time, which today provides forthe free movement of people, goods, and capital.From an economic point of view, the EU and the US are the most interconnectedregions in the world. As is attested by the presence of so many US corporationsin Luxembourg, the Grand Duchy is playing a key role in this relationship.Luxembourg’s international connections and our level of professionalism andservice quality are held in high regard by our resident American companies.This has prompted a wide array of major US companies to choose Luxembourgas their hub for cross-border European services.I was fortunate to follow-up over a period of 40 years the establishment of U.S.companies in the Grand Duchy, mainly through the activities of the European-American group created by H.J. Leir (COC / IMC/ S.A. des Minerais etc.). Amongthe most significant are industrial investments such as Continental Alloys SA,Dommeldange, a joint venture of our group with the Arbed-group after integrationof patents and equipment generated from our research facility La ContinentaleNucléaire SA , Bascharage; National Luxalum, Dudelange, today undercontrol of Novelis group, created by one of our U.S. shareholders. Our grouphas contributed in the set-up of several commercial organizations, companymanagement and consulting firms (assisting the beginnings of Ernst & Whinney,now Ernst & Young Luxembourg) and several banks, including Wells Fargo,California and Republic National Bank of New York (now part of HSBC).One must realize that all U.S. investments in Luxembourg (from the first and stillmost important one, Good Year founded in 1951, to the smallest one, not to forgetthe shining example of Guardian, were generated from a relationship of businessconfidence between man and man, before being quickly endorsed and embodiedin the framework of efficient structures like the Board of Economic Development,Ministries of Foreign Affairs and Economy, embassies / consulates etc..Particularly in the financial sector, Luxembourg has made itself indispensableto the US as a ‘Gateway to Europe’. It has also made the US indispensable toLuxembourg as a key business partner. This is particularly evident in the investmentfund sector, in which Luxembourg and the United States are the twoworld leaders. With current figures of 10 trillion dollars in managed assets, theUS and Luxembourg markets in this sector are roughly of equal size. WhereasAmerican mutual funds are primarily offered to domestic clients, Luxembourghas developed itself into a truly international market: investment funds issuedin Luxembourg are sold throughout Europe and even the rest of the world.This fundamental difference also provides an excellent opportunity for longtermpartnerships. With a 20% market share, the US is the top fund promoterin Luxembourg. Furthermore, the most renowned fund manages and custodianbanks are all present on site. New legal requirements in retail and in the alternativefund sector will enable the US to continue enjoying the benefits ofour financial center and its characteristic openness. Arguably, the associateddevelopments in pension funds and hedge funds in particular ensure a long andpromising future for our partnership.As a student in the US 20 years ago, and later as Minister of Justice and Ministerof Finance, I have always felt and valued the American people’s friendshipand loyalty to Luxembourg. I am confident that a strong transatlantic partnershipwill provide a foundation for solutions to the major challenges our worldis facing.The voice of a small country is asimportant as that of a larger countryThe moral basis for this “system”? It is, in my opinion, on-going internationalcredibility and a reputation of high integrity that our country enjoys in the UnitedStates, which is obviously not a function of its size or any element of power.Precisely because of these facts, the voice of a small country, often conciliatoryand directly disinterested, is as important as that of a larger country. It isthis image, rooted in the subconscious collective memory of both partners fornearly a hundred years and most carefully maintained with great efforts sincethe beginning of the 2nd World War, which is the keystone of a rather unusualand unmatched situation. The challenge for our dynasty and our local politicalsystem is to preserve that particular relationship.Today the main contribution of the U.S. economy in the Grand Duchy consistsof abt. forty industrial investments totalling more than EUR 5 billion; this representsapproximately 25% of foreign industrial investment in Luxembourg andputs the US ahead of our powerful neighbours.The financial sector is characterized by the domiciliation of investment fundsin excess of EUR 1.5 trillion, representing the largest market after the UnitedStates itself. 20% of the centers’ funds originate from the United States; it isthe largest part and similar to that of Germany. There are currently 6 U.S. banksin Luxembourg; also many insurance companies, trustees and lawyers’ officesassociated with Luxembourg partners .One can argue without exaggeration that the Luxembourg economy has beenstrongly influenced, if not sculpted, by U.S. presence. In addition to the U.S. economiccontribution, many interesting side developments in the field of culture,education and philanthropy emerged over time. There is no limit to develop allthese relations to infinity.Georges Schmit,Consul General and head of the“Trade and Investment Office” inSan FranciscoJean-Paul Senninger,Luxembourg’s Ambassadorto the USEver deeper, intensified relationshipsThe celebration of the exemplary contribution of a North-American corporationto the economic, technological, and social development of Luxembourg by theAmerican-Luxembourg business community, on October 20, 2010, in New York,is the opportunity for an updated focus on the economic relationships betweenthe largest economic power and one of the smallest national economies onthe planet.These relationships far exceed the usual statistics, such as the hundred Americancompanies present in Luxembourg or the dozen Luxembourg companiesoperating on the North-American continent.They are not limited to the US contribution to employment in the Grand Duchyof approximately 4%, or to the 10% of direct foreign investment shares in Luxembourgheld by American investors, or even to the three billion Euro investedby Luxembourg companies in their US branches. Additionally, the content ofthese relationships far exceeds the few billion Euros of annual exchanges ofgoods and services as shown in the current Luxembourg foreign trade balance.Last but not least, these relationships are only imperfectly illustrated by theAn Integral Part of Our LivesIf you ask about the importance of ties between the United States and Luxembourg,you have answered your own question. We hardly ever think about themin our daily lives because they are an integral part of our lives: our stability hasbecome our well-being.It is true that the European Union is the framework of reference in which weshape our economic and social development, and to a large degree our politicaland cultural development as well. However, this does not impair our transatlanticfriendship or the closeness of our ties in any way. Quite the opposite in fact,as this partnership gives our country and our society a second base of supportfor our stability.This is particularly evident in the area of global security. In a time of global insecurity,our security is bound up with the only global superpower that is willingto play the role of stabilizer, from the war on terror and the freedom of the searoutes, to the war on drugs and cyber crime.Our sudden closeness to the US should come as a surprise to no one. We sharethe same values and pursue the same goals. Our freedom is based on theseshared values and this US commitment to freedom - including our own - andover 20% share held by American promoters on the Luxembourg investmentfund market.Beyond these usual figures describing bilateral economic relationships, the economicrelationships between the United States and Luxembourg benefit from astable foundation and enjoy deep exchange dynamics in the fields of technologies,know-how, innovation, and people skills, generated by a long history of mutualopenness and trust between the two countries. While they were one-way for along time, these exchanges are more and more two-way, with Luxembourg companiesbringing their share of skills and know-how to their American subsidiaries orpartners. The growing relationships between academic and research institutionson both sides of the Atlantic are reinforcing this foundation and these dynamics.The deepening and consistency of economic relationships result, not only fromscientific, commercial or financial exchange structures, but also and most importantlyfrom the choice made by men and women to live, study, and work ‘onthe other side of the Atlantic’ to become ‘proximity players’ in ever deepeningand intensifying relationships!the human, economic, and social development it affords. Without America’sintervention in the two World Wars, there would be no free, independent, andprosperous Luxembourg.Today, our economy has been successfully integrated into the global economy.This opening-up to the outside is due in large part to early investmentsby American industrial and service companies, which have and will continueto make up a decisive portion of the growth in our economic performancefollowing the end of World War II. In addition to this, the US market is stillan integral part of every business plan, for all of our businesses and serviceproviders.Despite all our differences in size and population, this gives us a strong bondof friendship, which naturally works to deepen and expand our older connections,arising in the years of Luxembourgian emigration to the United States.The Luxembourg American Cultural Center in Wisconsin, which celebrated itsofficial grand opening this past summer, is living proof of the complexity anddepth of the ties between our countries and the importance of our exceptionalpartnership and friendship.One moment.One satellite network.Infinite connections.Our satellite fleet reaches 99% of the world’spopulation, offering our customersregional strength and expertiseon a global scale.Arsene Schiltz,Managing Director and WorksDirector DuPont de Nemours(Luxembourg)An integrated Europeanmanufacturing and business centreDuPont was founded in 1802 by a French immigrant in Delaware, U.S.A. Thecompany diversified during its more than 200 years of history to become oneof the most advanced science companies supplying science-based solutions forthe present expectations and needs of society.So as to be present in the market of the newly founded European Communities,DuPont invested in Luxembourg as of 1962. The first contacts betweenLuxembourg and DuPont were established by Prince Charles, first chairmanof the Luxembourg Board of Industrial Development (BID), and actively supportedby Paul Elvinger and Pierre Werner. At that time, Luxembourg neededto diversify its economy, and the DuPont investment was the second largestinvestment by a US company after the establishment of Goodyear at Colmar-Berg.The Contern site started up in 1965 with two polyester film production lines.Over the years, DuPont invested more and more into other production lines atthe Luxembourg site: Hytrel® thermoplast mainly used for automotive applications;Typar® spunbonded polypropylene (nonwoven) used in geotextiles, drainage,carpet as well as in displays; Tyvek® spunbonded polyethylene (nonwoven)used for house wrapping, roofing, in protective clothing, graphics and medicalpackaging; as well as into other polyester production lines.Since the year 2000 the polyester production is operated by a joint venturebetween DuPont and Teijin Films.DuPont Luxembourg grew into an integrated European manufacturing andbusiness centre with its Research & Development, engineering, manufacturingdevelopment, marketing, sales and customer services activities. With 1100employees, DuPont is today the fourth industrial player in Luxembourg.What makes DuPont stand out is our ability to take scientific discovery andtransform it into products that correspond to needs of society. The company isalso well known for its leadership in safety that has even become a business.This is the basis to Sustainable Growth.As a market-driven science company, DuPont provides solutions that help theworld addressing the needs for more, better and healthier food, reducing ourdependency on fossil fuels, protecting people and the environment and servinggrowing populations in developing markets.Recent innovations at the DuPont Luxembourg site include: solar back sheetfilms for photovoltaic applications, solar modules that are directly integratedinto the roof in replacement of tiles, DuPont Energain® the solution to thermalmass in low inertia buildings, new temperature resistant capacitor films withhigh electric properties for hybrid car applications, elastomers for automotiveairducts, renewable sourced elastomers, the new extra-strong and fully recyclableprinting substrate DuPont Imvelo® and finally a new process to diversifya substrate such as Tyvek® by metalizing the surface and/or applying variousfunctional coatings in a vacuum.12 www.ses.com13www.bizart.lu25 yearsBringing people together through thepower of satellites since 1985.In 2010 SES celebrates 25 yearsFounded in 1985, SES launched its first satellite in 1988. Since then, we’veexpanded to become a global operator with a fleet of more than 40 satellitescovering 99% of the world’s population. Today, we are reaching out beyond ourcore markets of Europe and North America and investing in new capacityto meet the growing demand in Asia, Africa, the Middle East and Latin America.With our ongoing fleet expansion programme, SES will continue to beYour Satellite Connection to the World.

North America remains an important partner, emphasizes Jeannot Krecké,Minister for Economic AffairsA privileged relationshipby Ronny WolffChallenges and opportunitiesfor Trade and Investment promotionStay ahead of changesby François Knaff *The diversification policy of the 1960s and 1970sattracted many American companies, emphasizes Ministerfor Economic Affairs Jeannot Krecké. Luxembourg mustcontinue remaining attractiveThe relationship between the USA andLuxembourg continues to be good,emphasizes Minister for Economic AffairsJeannot Krecké. Nevertheless, Luxembourgmust endeavor to continue being attractivefor these companies. But Canada also haspotential. The Minister plans in the future tovisit this gigantic and little known country,which harbors many resources and alsomaintains a strong presence in theautomotive industry.What is the relationship with the US?We continue to have a privileged relationship with the US,also economically. In the 1960s and 1970s we pursued a policyof diversification, and at the time the US companies werethe first ones wanting to avail themselves of the new opportunitiesin Luxembourg. I personally have hardly any contactwith the US government. The cooperation proceeds primarilywith the companies. The US government doesn’t want to influencethe companies or dictate what they have to do. That’sa big difference from the other countries, but it works well.And the relationship with Canada?We’ve been neglecting Canada a little, spending more timedealing with the USA. I’ve been in Montreal and Toronto; it’s avery interesting terrain, but a small country like Luxembourgcan’t cover everything. I plan to devote more time to Canadain the immediate future, but it’s a very big country, and I’llhave to concentrate on two or three cities. The country mustnot be underestimated, with its very many opportunities, andit will remain successful, also because of those resources,which we no longer have in Europe.Are we on these countries’ radar?We’re probably better known there than in other countries.The big groups know Luxembourg, but the smaller the operation,the less the companies know about Luxembourg. Theconsulting firms working for these companies have had Luxembourgon their radar for a long time now and are enteringinto discussions with us.Why is the US of interest to Luxembourgcompanies?Despite everything, the USA remains the greatest economicpower in the world. It’s still the case that nothing happenswithout US support. And when America coughs, the rest ofthe world also coughs, especially Europe. The USA is home tothe big companies, but there are also many small companiesthat are extremely active and innovative. So it remains a veryinteresting target area for Luxembourg.Which Luxembourg companies are alreadyoperating in North America? Which ones wantto in the future?We’re not so widely deployed in the USA. Particularly thevery large companies like Cargolux and ArcelorMittal are veryactive there. Smaller companies have a hard time getting afoothold. Many companies in the automotive sector supplyparts to US car makers. But there isn’t a big rush to set upoperations in the US.Are there new companies daring to make theleap to Luxembourg?In California activities have greatly intensified. It was a bitquieter in the past, but the interest in Luxembourg has revivedon the West coast. Recently it’s been relatively smallcompanies that have come into question.What role is played by the representativeoffices?The representative offices in New York and San Franciscoregularly provide me with information when companies wantto relocate in Europe. If a company fits our framework, we tryto persuade it to come to Luxembourg. The Consul Generalsof Luxembourg and Directors of the Luxembourg “Trade andInvestment Office” François Knaff (New York) and GeorgesSchmit (San Francisco) contact the companies and presentLuxembourg as a location. It’s then analyzed what is doableand what is not. If there’s an interest, I try to visit the companyin the next economic mission.Can you tell us more about the economicmissions to the US?I go at least twice a year to the US in order to visit the East orWest coast. In October I’ll be there again, when the BusinessAward will be conferred in New York. This year the honor willgo to Husky; two years ago it was Delphi. I’ll also be makingcontact with companies at this event.Do US companies also say why they’vechosen Luxembourg?For companies operating in e-commerce, for example, our lowvalue-added tax was the starting point. That’s no longer thecase. Today, these companies come to Luxembourg becausewe have superb infrastructures and can offer them interestingopportunities. Our central location in Europe is also important,so we must keep an eye on our connections to the otherEuropean economic centers. We’ve endeavored to expand ourcommunication networks, and quite successfully, too. Theavailable data center and the readiness of Enovos in mattersof energy supply must also not be underestimated. So wehave a few things to offer. In addition, each company wantingto come to Luxembourg is assigned a contact person in theMinistry who attends to its concerns.Would those large companies which havealready been here for years again chooseLuxembourg today?We’ve never discussed this with the companies. But we mustcontinue remaining attractive. The other countries aren’tsleeping. We have strong competition from the Netherlands,Ireland and Switzerland. Especially the Netherlands, with itsgood positioning in logistics, is always on the short list of foreigncompanies.What is being done to strengthen therelationship between Luxembourg andNorth America?Luxembourg has a good reputation in America. While we suffereda small blow related to problems in the banking world,having always been under pressure from the G8, I hope thatour good relationship with the US will persist.Do Americans really perceive Europe as the“old world”?They perceive Europe above all as a world that is not verydynamic. The growth prospects here are also not of great interest.One senses among the companies that while Europeremains a target region, it’s no longer their first choice. Itseems to me that many companies are redefining their prioritiesin order to work more with Southeast Asia, and that’salarming.CA constant challenge for a Trade andInvestment office is to remain current with,and also to stay ahead of changes in the hostcountry’s economic landscape. This is evenmore so the case when the local economy isdriven not just by market forces, but also bycreative thinking and acceleration intechnological innovation.Our country has kept pace through a portfolio of offeringsthat arise to meet, and even anticipate, thedemands of new types of businesses. Three currentexamples of innovative technologies demonstrate the strategicadvantages that the Luxembourg Trade and InvestmentOffices can deploy on behalf of American companies:Cloud Computing – The move by technology providers tomigrate software applications and data from the desktopto a server environment has spawned a host of new companies,and fostered innovation by traditional leaders, includingGoogle, Microsoft, Amazon, Oracle and IBM. Virtualizingcomputer hardware and moving office and database applications“to the cloud” plays into the hands of a countrylike Luxembourg, which provides a secure data center environmentfor everything from financial information to multimedia.In fact, Luxembourg is early to providing a home forcloud-based businesses: a founding member of Eurocloud, itwas home to the first European cloud computing conference.Cloud computing complements and in many cases facilitates,e-commerce, where again Luxembourg has strong offerings inboth infrastructure and regulatory framework.Life sciences – Biotechnology has emerged as a significantindustry sector within the United States during the past 20years. It has incubated several large scientific-industrial companies,but more significantly, thousands of smaller biotechcompanies and their unique service providers [equipmentmanufacturers; bioinformatic software developers, etc.] havearisen as part of an embedded industry base. Because of theunique positioning that Luxembourg has developed as a centerof excellence in personalized medicine, including a biobank,incubator, and affiliations and relationships with scientificinstitutes worldwide, our country is strongly positionedto support biotech companies as a platform for scientificdevelopment and European expansion.Financial Services – While the world struggled to regain itsequilibrium following the meltdown of several Western financialinstitutions, and the drastic measures instituted topreserve the American economy and those of other nations,Luxembourg, while not entirely unscathed, remained a seatof financial stability, and ultimately even sound innovation.Funds and financial service companies have continued tolook to Luxembourg as a safe, secure, legitimate venue fortheir product and service offerings, where both the quality ofthe support infrastructure, and the stable regulatory environmentprovide necessary advantages for clients. Even in themidst of financial uncertainty, Luxembourg has continued toinnovate, with a forward-looking regulatory orientation thatenables domiciled funds to take advantage of the benefits ofthe new UCITS IV directive.The U.S. still maintains a fairly robust industrial base, whichLuxembourg has, and certainly will continue to, support witha talented workforce and a world-class logistics capability.Our Trade and Investment professionals can thus credibly addressthe needs of the ever-growing “knowledge economy,”where media, finance, communications and science converge,now and in the future.www.investinluxembourg.us* François Knaff is Consul general of Luxembourg in New York14 15

Cargolux and Boeing Make Industrial HistoryA Cargo Jumbo Jet forLuxembourgby Andreas HolpertIntense negotiations about the proposedAlternative Investment Fund Managers (AIFM)Directive are currently under way to reachconsensus between the EU’s legislativeinstitutions.16Luxembourg as a favored domicile for funds - an opportunityfor US-based managers and offshore fundsLaunch of the AlternativeInvestment Fund Manager DirectiveThe finalization of the Directive is expected to take placein the coming weeks and the Directive should come intoeffect in 2012.The Directive is aimed at establishing a harmonized frameworkfor regulating alternative investment funds (AIFs) suchas hedge funds, real estate and private equity funds that arenot registered as Undertakings for Collective Investment inTransferable Securities (UCITS).The Directive has a broad scope and applies to EU and non-EUAIFMs, AIFs, service providers to these funds and their investors.One of the most controversial areas of the Directive relatesto the third country provision, namely the access of non-EUfunds to the European market. The EU Parliament favors an EUpassport with the ultimate face out of national private placementregimes, whereas the EU Council believes a passport isimpracticable and that private practices should be retainedindefinitely.Non-EU AIFMs have to consider whether and under what conditionsthey may be able to access European investors withoffshore funds in the future. For instance, US managers couldseek relocation in the EU in order to benefit from the EU passportfor the distribution of their funds. At the same time, theymay choose to repatriate their funds from offshore jurisdictionssuch as Cayman Islands and the British Virgin Islands toonshore European jurisdictions.by Georges Bock et Bastien Voisin*Luxembourg, as the world’s second largest investment fundcenter after the US, is lined up to be the destination of choicein Europe for the switch from offshore to onshore vehicles.Additionally, as the market leader in Europe for UCITS, Luxembourgis ideally placed to accommodate the new trend amongmanagers to offer AIF strategies via UCITS vehicles due to theconcerns over the implications of the AIFM Directive. Amongthe frontrunners to this trend, Apex Fund Services, the independentand leading global fund administration businessheadquartered in Bermuda, opened an office in Luxembourg inAugust while New York based and world’s third largest hedgefund, Paulson & Co, is planning to set up a UCITS fund in Luxembourglater this year.According to a survey conducted by KPMG earlier this year,half of the managers interviewed confirmed that they arewaiting for the final outcome of the negotiations before definitelycommitting to the location of their funds and their managementbusinesses.On October 4th, the Belgian Presidency of the EU Council publisheda draft compromise of the Directive proposing a dualapproach solution to third country rules in an attempt to satisfycompeting EU Parliament and Council proposals.Luxembourg has always been opened to the world economyand has continuously played his role as a gate to Europe fornon-EU players. With its actual regulatory framework forUCITS, specialized in INVESTMENT FUNDS (SIF) as well as itsventure capital funds. The countries provide already todaya solid infrastructure to operate investment funds platformsaiming at international products distribution. The Luxembourggovernment will do all necessary effort to ensure thatEurope is not ending up in a fortress.* Georges Bock, Head of Tax KPMG Luxembourg. Bastien Voisin, LuxembourgCenter of Excellence (KPMG New York)BGL BNP PARIBAS S.A. (50, avenue JF Kennedy, L-2951 Luxembourg, R.C.S. Luxembourg : B 6481) October 2010 Marketing CommunicationThe long-term partnership between US aircraft manufacturerBoeing and Luxembourg cargo airline Cargoluxis an excellent example of the close ties between theGrand Duchy and the United States. The partnership certainlygoes far beyond a typical economic relationship. Together, thetwo companies have made industrial history.Back in 1993, the US group delivered the first Boeing 747F. Atthat time, Cargolux was the first official operator of the cargojumbo jet. Originally, Air France was supposed to acquire thefirst one.In 2011, history will repeat itself. This time, the Luxembourgiancargo airline is the official ‘launch customer’ for thesuccessor model to the 747F. Next summer – two years earlierthan announced – the first Boeing type 747-8F aircraft isscheduled to land at Luxembourg’s Findel airport.Yet the partnership with this US aircraft group extends furtherback than 1993. In December of 1977, Cargolux announced itsfirst order for a Boeing 747-200 freighter. The LX-DCV arrivedin Luxembourg on February 1st, 1979 and was christened the‘City of Luxembourg’ on February 2nd, 1979 by Mayor ColletteFlesch before the presence of Grand Duke Jean. On February5th, 1979, the aircraft set off on its maiden voyage forCargolux, destination Hong Kong. At the time, it was thelargest aircraft ever registered in Luxembourg, and the firstB747 freighter in service in a European all-cargo airline. Upto the present day, Cargolux has operated more than thirty747-200 type aircraft. In anticipation of the delivery ofthe new cargo jumbo jet next year, the fleet will be reducedby one aircraft a month over January, February, and March.Business owners& entrepreneursBuild value withBGL BNP ParibasADVICE SUPPORT FINANCING INSURANCEIF YOU’VE GOT PROJECTS IN THE PIPELINE, TALK TO US FIRSTCall now: (+352) 42 42-20 08 or entreprises@bgl.luCargolux started off with one CL-44 that it acquired fromIcelandic airline, Loftleidir Icelandic. Only 39 of these Canadianaircraft were ever built, four of which were extended by4.5 meters immediately following delivery. The extendedversions could transport greater volumes at the same load.Of the 39 models built, Cargolux operated the four extendedmodels and two standard models. Cargolux’s first CL-44 wasregistered in Iceland as TF-LLJ.Cargolux fitted out the CL-44s with internal cargoequipment that was highly advanced at thetime, including special equipment for transportingall kinds of animals. In 1973, Cargolux ascended into thejet age with the introduction of its first DC-8 (type DC-8-61).The DC-8-61 was joined by a DC-8-55 in 1974, soon to be followedby the DC-8-63 aircraft. Whereas the extended versionof the CL-44 had a maximum vehicle payload of 27 metrictons, the DC-8 could now transport loads of up to 47 metrictons.www.bgl.lu

Tax competitiveness for U.S. InvestorsWhat will the future bringfor Luxembourg?by Frank Muntendam and Daniela Hockelmann*Living the Dream –Luxembourg a Safe Haven!by Brigitte Goergen*Among the common phrases quoted byAmericans travelling to Europe is theunawareness of the proximity of Luxembourgto other European cities. Luxembourg is notnecessarily located on their bucket list,though once you have triggered their curiositythey are eager to learn more whatLuxembourg has to offer.Than again, you have Americans who have had many returnsto Luxembourg due to our shared history duringWorld War II.Over the past years, American Tour Operators have shown astrong interest in promoting Luxembourg’s unique features,its rich history and culture by adding Luxembourg to theirEuropean travel itinerary.After a busy and exhausting visit to a European city, an easyride will land them in Luxembourg.The size of Rhode Island, the population tops the 500.000inhabitants. Luxembourg is a country of history and culture,it’s a Gourmet Delight, it’s rich in colors and flavors and thepeople are friendly and inviting, Luxembourg is a safe heavento visit and live.As a country and city, Luxembourg has more to offer than anyother European destination. It holds big surprises for Americanswith a wide selection of prestigious concerts, theatershows and art exhibitions, offered within a small scale on aninternational level. The old town inthe city of Luxembourg is classifiedas a UNESCO World Heritagesite and art at public space is influencedby some of America’s mostprominent contemporary artistsand architects.Americans have long history withLuxembourg, new businesses betweenthe countries have flourishedover the years and manyAmericans have made Luxembourgtheir permanent home.Being small is a of a great advantage,it allows easy access to anyEuropean City, it’s manageable andsafe. After all, size matters!* Brigitte Goergen is Director of the LuxembourgNational Tourist Office in NewYorkAs one of the world’s leading financialcenters, Luxembourg is not only home toalmost 150 banks and the second largestinvestment fund sector in the world after theU.S., it is also a key location for theestablishment of operations, headquartersand holding companies of U.S. basedmultinationals (e.g. Guardian, DuPont deNemours, Goodyear and eBay). In 2009,Luxembourg was involved in the discussionabout clamping down on so-called “taxhavens”. Moreover, major changes of theEuropean VAT rules may affect certain U.S.investors into Luxembourg. Which effect maythese developments have on Luxembourg’sattractiveness for U.S. investors?The key success factorsThe reasons for Luxembourg’s attractiveness to U.S. investorsare manifold. They include Luxembourg’s strategic geographicallocation, its business-friendly legal and regulatory framework,easy access to decision makers as well as the stablesocial environment and the state-of the-art infrastructure.Beyond doubt, Luxembourg’s fiscal environment is also key toits attractiveness for U.S. investors. This includes in particularstable tax legislation, the ability to benefit from EU Directivesand Luxembourg’s extensive and constantly expanding taxtreaty network. Effective as from 2009, Luxembourg introduceda full withholding tax exemption for dividends distributedby a Luxembourg company to its corporate shareholdersin treaty countries, which is particularly interesting for U.S.shareholders.Recent and upcoming challengesIn 2009, the OECD (backed by the Obama Administration)put pressure on countries which provide for an attractive taxframework (including Luxembourg), having potential influenceon the decision of U.S. companies to invest in Luxembourg.After having been classified as a financial center nothaving substantially implemented the internationally agreedstandard on information exchange, Luxembourg has taken action.It has renegotiated a substantial number of its tax treaties(including its treaty with the U.S.) and was, as a result,the first country to be removed from the so-called “grey list”and moved to the so-called “white list”.However, in the U.S. various lists of offshore secrecy jurisdictionsare still circulating. The “Stop Tax Haven Abuse Act”provides an initial list which also includes Luxembourg. Inpractice, the list of tax havens produced by the GovernmentAccountability Office (GAO) is perhaps even more important.Luxembourg is on this list. The list, included in a December2008 GAO report, was created by combining three listsprepared by others, never mind that even the GAO acknowledgedthat these three lists were outdated (one of the lists isbased on 1982 information!). The U.S. Treasury Departmentcriticized the GAO list and specifically warned that such listis likely to be regarded as a blacklist and may be used as thebasis for the imposition of sanctions and other negative measures.Although none of these lists has been used in the U.S.legislation enacted in 2010, legislators may be tempted to usethem for future legislation. In addition, the inclusion of Luxembourgin the GAO list may influence U.S. investors in theirdecision to invest in Luxembourg. Luxembourg would be welladvised to monitor potential ramifications which arise fromLuxembourg’s inclusion in such lists and to lobby for its exclusionfrom the lists given the positive 2009 developments.Another factor potentially impacting Luxembourg’s attractivenessis the so-called 2008 EU “VAT package”. This packageincludes significant changes to the place of supply rules.Under the old rules, it was favorable for businesses providingservices to private individuals to be established in an EUMember State with a low VAT rate. Considering that Luxembourghas the lowest VAT rate within the EU (i.e., 15%), variousU.S. e-commerce and ICT companies have chosen Luxembourgto establish their business (e.g. Amazon, iTunes, eBayand Skype). As from 2015, VAT on e-commerce services willbe due (and at the rate of) where the customer (rather thanthe supplier) is located. Consequently, Luxembourg basedsuppliers will not have the above-mentioned competitive advantageanymore. However, it is much to be hoped that theexisting infrastructure and stable environment in Luxembourgare compelling arguments for U.S. investors to continue theiractivities out of Luxembourg.In our view, Luxembourg is still an excellent location for U.S.multinationals to invest in. There are indeed some clouds onthe horizon (like the GAO list and the VAT package), but wehope that Luxembourg can continue to be a first choice locationfor U.S. investors.* Frank Muntendam is Partner and Daniela Hockelmann Manager at Ernst& Young Luxembourg – International Tax Services18

Acquisition of Americom Turned SES Group into MajorGlobal PlayerTransatlantic MergerIn the late nineties, the government sensedthat Luxembourg had the potential to becomea preferred location for e-commerce. With thearrival of American multinationalcorporations, the country is now worldrenownedin the field of e-commerce. Let’stake a closer look at this success story thatshows no signs of slowing down.iTunes, Amazon, PayPal or Skype, the online telephone service.Within a few years, the Grand Duchy has become thenew Eldorado for American e-commerce giants. It all beganin 1999 when AOL Europe Services settled in Luxembourg. Afew years later, AOL added a Network Operation Center to itsEuropean headquarters. The center manages and monitorsthe communication flow between Europe and the head officein the United States. Around the same time, Microsoft decidedto reinforce its presence in Luxembourg by converting itsbranch, which opened there in 2002, into a fully independentsubsidiary for online services.In July 2003, Amazon ( the book, CD, DVD and video distributor)opened a branch in the Grand Duchy. Moreover, the USonline commerce leader decided, in December of 2004, toopen its European headquarters in Luxembourg. In his speechat the official opening of the branch, Diego Piacentinit, AmazonSenior Vice-President, emphasized the many assets offeredby the Grand Duchy for “a company like ours”: location,social climate, and multilingualism.In 2005, Apple opened iTunes Music Store in Luxembourg, itsEuropean platform for online music commerce.In May 2007, a new victory for the Luxembourg economy: theMinisters in charge of negotiations - Luc Frieden, Finance, andJean-Louis Schiltz, Communication Technologies - announcedthat PayPal will settle in Luxembourg. The American companyintends to operate all its European activities from Luxembourg.It has been granted a Luxembourg bank license to thiseffect. PayPal is the world leader for online payment services.In 2007, Paypal had, according to its own release, 143 millionuser accounts and 11 billion dollars payment volume for thefirst quarter of 2007 alone. These figures illustrate the extentof online payment activities.Finally, Skype, a company created in 2003, offers free calls betweenusers and low-cost calls to third parties. In September2005, the company was purchased by the giant eBay. Then, inSeptember 2009, the group sold 65 % of its Skype subsidiaryto a consortium of investors led by the Silver Lake PartnersFund for 1.9 billion dollars.With these American multinational corporations, the GrandDuchy of Luxembourg has earned a valuable place on the e-commerce world map. It should be mentioned that, for thelast decade, the government has implemented a consistentstrategy favoring the growth of e-commerce. “By combiningan appropriate infrastructure, a qualified workforce, an attractivetax system, and specific measures in favor of e-commerce,Luxembourg has succeeded in becoming a center forthe development of e-commerce in Europe,” indicated a reportto Greenwich Consulting commissioned by Jean Arthuis,President of the Finance commission of the French Senate.It is important to note that over a hundred small or mid-sizecompanies gravitate around the American “major players”and offer numerous services to corporations and individuals.The assets of LuxembourgSo, what is the recipe for success in Luxembourg? “Thisenthusiasm can be explained in part by an attractive fiscalenvironment, a business environment paving the way forthe emergence of start-ups, and the existence of excellenttechnological infrastructures such as a reinforced high bandwidthconnectivity, as well as the legal acknowledgement ofelectronic signature along with the creation of a certificationauthority who issues and manages certificates with a veryhigh level of security”, explains the government on its website.According to the Greenwich Consulting report, the main assetof Luxembourg is its high quality high bandwidth Internetnetwork. All households have access to ADSL: according toEurostat, 61% of the households had high bandwidth accessin 2008.In 2005, the Luxembourg State and several important playersin the private and public sectors created LuxTrust, a Luxembourgcorporation intended to meet the growing needs insecurity and confidentiality in e-commerce, including in theelectronic communications between citizens, administrations,and corporations.According to Greenwich Consulting, Luxembourg also has asignificant advantage in terms of workforce and skills. Luxembourgis the OECD country with the largest activity sharein NICTs, with 31%. Ultimately, Luxembourg ranks 7th in theworld for Internet and telecommunication technology development,according to ITU’s IDI (ICT development Index).Another significant asset is Luxembourg’s fiscal competitiveness,a “significant factor contributing to the country’s attractiveness”,according to the Greenwich report. Luxembourghas the lowest normal VAT rate in the European Union, with15% compared to 19.6% in France.In addition, several sectors of the Luxembourg economybenefit from the super low rate of 3%: food products, booksand newspapers, pay TV, medical and dental care, etc. Thepersonal income tax and corporate income tax are also “veryattractive”.But this is not all. The tax system on brands, patents, software,design, and models enables Luxembourg to be theThe Grand Duchy of Luxembourg is hostto the US leaders of global e-commerceAn Eldorado forInternet giantsby Nadia Di Pillocountry of choice for all suppliers of immaterial products.For instance, according to the report, “the 80% exemptionfor income generated by downloads was a deciding factor forApple’s decision to locate iTunes Europe in Luxembourg”.New regulations after 2015In 2015, new EC regulations will apply to VAT. The EcofinCouncil has ratified the end of the system in 2019 (with aninterim period from 2015 to 2019): from that date on, VAT willbe paid to the consumer’s State.This change will result in a progressive decline in budgetaryrevenues generated by this activity in Luxembourg. It is importantto note that the Luxembourg State reaps over 300million Euros per year in VAT for this sector.The Minister of Finance Luc Frieden, had confirmed this factin an interview to the newspaper “La Tribune”. “Of course,this will affect our fiscal income, but it should not changethe settlement location of these companies. These Americancorporations settled in our country for fiscal reasons, but notonly for that. They know they will enjoy a stable economic,social, and political environment. Therefore, they will continueto operate from Luxembourg”, he said.Richard G. Minor, former CEO of AOL Europe Services, agreeswith this analysis. Even though the company permanentlyclosed its Luxembourg branch this year, Richard Minor isconfident in the future of Luxembourg as a location for corporations.In an interview to LW in April, he said that “thegovernment still has plenty of time to be ready for the newregulatory environment and to continue to attract new corporationsto Luxembourg”. The “success story” does not endhere...In 2005, Apple opened in Luxembourg iTunesMusic Store for online music commerce.“This acquisition gives us access to US orbital positions andfrequency ranges, which in our sector is what you mightcall raw material for future growth,” explains SES PresidentRomain Bausch.Acquisition of the satellite division ofAmerican conglomerate GE in 2001 turnedLuxembourg’s SES into a global heavyweight‘overnight’ on the world market for satellitesupportedtelecom services. In terms ofturnover, gross operating results, and numberof satellites in their fleet, SES, an exchangelistedcompany, has become the largestsatellite operator in the world. In themeantime, its geographic diversification hasbecome so advanced that SES, with Astra inEurope and SES World Skies, bundling non-European operations, is the only satelliteoperator aside from Intelsat with globalcoverage.by Andreas HolpertWhy did SES set its sights onacquiring Americom in 2001?In those days, SES was covering only one market, albeit a verylarge one, i.e. Europe, with one product, satellite television.That was where SES had enjoyed most of its success, but weneeded to broaden our strategic approach. To this end, we setabout expanding our product line and our range of activity.The acquisition of Americom enabled us not only to conquerthe crucial North American market, but at the same time tolay the foundations for today’s global SES group.What was the economic significanceof the transaction?At 4.3 billion dollars, the acquisition of Americom is the singlelargest transaction in SES’s 25-year history. Moreover, withinthe framework of the transaction, the company brought in anew strategic shareholder, GE Capital, which actively supportedthe company’s further development into a global player upuntil 2007.What difficulties did you encounterin this transatlantic acquisition?The required approval process was quite protracted, going onfor months, but there were no serious difficulties to speak of.Eight full months passed from announcement to final completionof the transaction, which is nothing out of the ordinary.After all, if nothing else this acquisition gives us access to USorbital positions and frequency ranges. And in our sector, thatis what you might call raw material for future growth.Was it easier as a ‘Luxembourgian’company to purchase a company thatis also strategically critical to the US?At the least, it was certainly not a disadvantage that we arefrom one of the smallest countries in the world. In addition tothis, relations between the US and Luxembourg have traditionallybeen tension-free, unlike many other countries.Was there any political supportfor the “2001 Deal of the Year”?Of course. The government of Luxembourg is not in any wayinvolved, either directly or indirectly (via the SNCI or BCCE)in the SES, nor does it actively intervene in the Board of Directors.Having said that, I would like to stress that we havealways been able to count on the support of the governmentof Luxembourg in matters concerning SES’s strategic directionand further development.Did you experience any difficultiesintegrating their employees?From the very beginning of the transaction, we treated itmore like a merger of two successful companies, rather thanan acquisition. Americom was the market leader in the US,as was Astra in Europe. What’s more, we were vocal from theoutset about retaining most of the Americom sites in the US,and we put together a management team for the umbrellagroup consisting of both Americans and Europeans.Has the deal paid off, in retrospect?What is Americom’s share today?Americom was merged into New Skies Satellites, acquiredin 2006, and is now part of SES World Skies, which bundlesour non-European activities. That is why we no longer publishseparate figures for Americom. However, we can say thatSES is now generating 44% of its approximately €1.6 billionturnover outside of Europe. Just like the European market, theNorth American market is currently exhibiting limited growthin comparison to the ‘emerging markets’, or even no growthat all. Nevertheless, the North American market is vital to usand is an integral part of our global coverage: a worldwidepresence, something which only SES and our competitor,Intelsat, can boast out of all of the satellite providers. Thus,for instance, SES is sending TV program feeds to all US cablenetworks, is active in the area of business applications, andregularly collaborates with US government agencies on satellitecapacity planning.In your opinion, what doesthe US mean for Luxembourg?The US has traditionally been a reliable partner to Luxembourg,and since World War II it is been a friend above all.20 21

Luxembourg is a very attractive location forNorth American companies, but it has notalways been easy for these companies to findtraining and education opportunities for theirexpatriates. However, that has changed.Lifelong learning opportunities in Luxembourgno longer have language barriers.Training opportunitiesNorth American banks and financial institutions can find abroad selection of seminars, trainings, and conferences inEnglish tailored for Luxembourg’s finance community. IFBL,for example, is one of the largest providers of these trainingopportunities, offering some certificates (e.g. Private Banking,Islamic Finance) entirely in English (www.ifbl.lu). Opencourses covering similar content can also be found at PWCAcademy (http://www.pwcacademy.lu). Training providersprimarily addressing the service and industry sectors, suchas Luxembourg School for Commerce (LSC) and Chambre deSalaries, do not offer the same diversity and variety when itcomes to technical skills and management competencies.However, it is worth reviewing their programs and that ofother management training institutions to see what is available(www.lifelong-learning.lu).Higher Education in ManagementThe gap in management training is closed through certificateand degree programs offered from different Universi-Luxembourg offers a wide range of training andeducation opportunities for expatriatesFrom Pre-School to MBAties. The John F. Welch College of Business at Sacred HeartUniversity (SHU), is AACSB accredited and has been presentin Luxembourg for nearly 20 years. SHU cooperates withLuxembourg-based North American companies providingMBA and Certificate programs for working professionals. Thisyear, SHU has launched its post-crisis designed WelchMBA,an 18-month part-time program. Current managementchallenges are analyzed with a project-oriented, interdisciplinaryapproach. In addition, 4 certificate programs areoffered in the areas of Leadership, Business Management,Corporate Finance and Global Investments (www.shu.lu).The Open University, one of the largest providersof blended learning programs, offers variouscertificates, bachelor’s and master’s programs exclusivelyin English, online (www.open.ac.uk).The University of Luxembourg offers a full-time “Master in Entrepreneurshipand Innovation” program, and a part-time MScBanking and Finance program (www.uni.lu).Education for childrenAll families living in Luxembourg can enroll their children inpublic schools. However, as Luxembourg is officially trilingual,this can be quiet challenging for children advanced in theirschooling. There are three private schools in Luxembourg whoaccommodate English speaking families, St George’s InternationalSchool Luxembourg, the International School of Luxembourg(ISL) and the European School Luxembourg. Theseschools offer curriculums, based on British/North Americaneducational systems for children aged 2.5 to 18 years.* Petra Garnjost is director at Sacred Heart Universitiy in Luxembourg.by Petra Garnjost*The first immigrantby Fausto GardiniFor decades historians have speculated aboutthe identity of the first immigrant fromLuxembourg to the New World. NicholasGonner 1 , Roger Krieps 2 , and others refer to astatement found in a book by Anton Eickhoff 3published in 1884:The first enduring agricultural colonization of New Netherlandbegan in the spring of the year 1623 under theauthority of the West India Company, as thirty familiesemigrated from Amsterdam aboard the ship ‘New Niederland’to the new world for that purpose. Cornelius Jakobsen Mayled this expedition as the director of the new colony on Manhatas.The original intentions of the West India Company werefocused on trade purposes; however one had recognized theneed of establishing settlements for the promotion of thesame. The colonists who came over on the first ship accompanyingdirector May were mostly Walloons, Luxemburgersand inhabitants of other countries bordering on France, ofwhich eight families settled near Fort Orange, a few remainedon the island of Manhatas, others near Fort Nassau at theSouth River and the remainder on the south side of the EastRiver, where Brooklyn lies today 4 .Eickhoff did not give a source for his statement. The 1860Gazetteer of New York states the following about the settlementon the island of Manhattan:A settlement was made upon Manhattan Island by a companyof Dutch traders, under the auspices of the West India Co., in1612; but no permanent agricultural occupation began until1623. During this year 30 families of Walloons from the Flemishfrontiers, and a number of domestic animals, were sentover to form the nucleus for the permanent occupation of thecountry 5 . Regrettably, some but not all the names of the 110members of the thirty families who landed in the New Worldaboard the New Niederland or Nieu Nederlandt are known.Researchers from Luxembourg like to associate Philippe deLannoy (1602-1681), a confirmed ancestor of President FranklinDelano Roosevelt, with the de Lannoy family of Clervaux,Luxembourg, as the first Luxembourger to immigrate to NorthAmerica. Philippe de Lannoy, also referred to as Philippe de laNoye, was born in Leyden, Holland in 1602 of French parents,who had him baptized in the Walloon Church in 1603 6 . He wasamong the thirty-five passengers aboard the ship Fortune arrivingat Plymouth in November of 1621. To this day, a connectionbetween the presidential ancestor and Luxembourg‘s deLannoy family could not be positively confirmed.Actually, Luxembourg City-born Dr. Claude-Auguste Neyen(1809-1882), identified the first Luxembourger to emigrateto the New World in his remarkable work entitled BiographieLuxembourgeoise, wherein he writes 7 :Hotton…….. native of the village by the same name in the Ardennes8 lived towards the end of the sixteenth and the firstquarter of the seventeenth century. Admitted to the priesthood,he was a priest for some time, probably in his place ofbirth. Later, he entered the Jesuit order, and went to the WestIndies, becoming its missionary 9 . Various documents confirmGuillaume Hotton (1577-1629) traveling to the New World allowingto locate his whereabouts there.It is thus in 1616, one hundred and twenty-four years afterChristopher Columbus (1451-1506) discovery of America in1492 that we find the first confirmed Luxembourger in theNew World. Two surviving letters by the previously mentionedFather Martin (de/from) Bruges (Martinus de Brugis) containreferences to Guillaume Hotton. The first letter is dated Mexico,February 20, 1617, wherein he mentions Father GuillaumeHotton from the Gallo-Belgica province who left Belgium withhim. The second letter is dated Mexico, April 21, 1617. It mentionsthat Father Hotton resides at Cinaloa (Sinaloa)10. Twoletters by Guillaume Hotton himself are on record. The firstone is dated Mexico, October 24, 1617 and the second letter isdated Cynaloa (Sinaloa), January 9, 161811.1 Die Luxemburger in der Neuen Welt, Dubuque, Iowa 1889.2 Luxemburger in Amerika, Bourg-Bourger, Luxemburg, 1962.3 Translation. Original German text in: In der Neuen Heimath: geschichtlicheMittheilungen über die deutschen Einwanderer in allen Theilender Union; Steiger & Co., New York City 1884.4 Some publications infer that the New Niederland or Nieu Nederlandtarrived in the New World in 1624.5 Historical and Statistical Gazetteer of New York State, R.P. Smith Publisher,Syracuse, 1860.6 Franklin D. Roosevelt’s Colonial Ancestors, Alvin Page Johnson, Lothrop,Lee & Shepard Co., Boston, 1933.7 Biographie Luxembourgeoise. Histoire des Hommes Distingués Originairesde ce Pays considéré à l’époque de sa plus grande étendue,Pierre Bruck, Luxembourg 1860-1861.8 Hotton near Marche-en-Famenne came to Luxembourg under CountessErmesinde (1186-1247). In the third partition of Luxembourg in 1839 thearea devolved to Belgium as the Province du Luxembourg Belge.9 Original Text: Hotton …… originaire du village de même nom dans lesArdennes, vivait vers la fin du seizième et le premier quart du dix-septièmesiècles. Admis à la prêtrise, il fut pendant quelque temps curé,vraisemblablement de son endroit natal. Plus tard, il embrassa l’ordredes Jésuites et passa dans les Indes occidentals, dont il devint l’apôtre.L’auteur du manuscrit des Viri illustres repète les mêmes faits dans lestermes suivants: ‘Hotton ex eodem pago in Arduenna Luxemburgicaet ex pastore animarum in Soc. Jesu missus in Indiam occidentalemprecibus multis impetratam illius apostolus.This special edition about North American businessin Luxembourg is also available at the iTunes-Storewith the -app from October 20th onwards.More pictures andbackground information:24 Stunden am Tag, 7 Tage die Woche22

Name Products Employment Parent CompanyAIRTECH EUROPE S.A.AMAZON ServicesEurope S.à r.l.AMER-SIL S.A.Manufacturing of vacuumbagging materials, compositetooling materialsSales of various productsand services on the worldwide webIndustrial battery separatorsand non-woven polyestergauntlets68 AIRTECH ADVANCEDMATERIALS GROUP72 Amazon.com Inc.74 THE MOORE COMPANYAMPACET EUROPE s.a. European headquarters 80 AMPACET CORPORATIONAVERY DENNISONLUXEMBOURG s.à r.l.CALUMITE s.a.CISCO SYSTEMS LuxembourgDELPHI AUTOMOTIVESYSTEMS LUXEMBOURG s.a.DIGITAL RIVER INTERNATIONALs.à r.l.DU PONT DE NEMOURS,(LUXEMBOURG) s.à r.l.DU PONT TEIJIN FILMSLUXEMBOURG s.a.Base materials for selfadhesiveapplicationsRaw material for the glassindustryNetworking andCommunication devicesTechnical center:development of automotivesystems and componentsInternet software andservices390 AVERY DENNISON MILLERCORPORATE CENTER19 CALUMITE INTERNATIONALInc.10 CISCO SYSTEMS Inc.690 DELPHI CORPORATION5 DIGITAL RIVER Inc.Typar® 1.207 E.I. DU PONT DE NEMOURSAND COMPANYMYLAR, MELINEXpolyester filmsE.I. DU PONT DE NEMOURSAND COMPANYDYNABRADE EUROPE s.à r.l. Industrial tools 21 DYNABRADE Inc.EXXONMOBIL CHEMICAL FILMSEUROPE, division de EXXON-MOBILGOODYEAR S.A.GOODYEARLuxembourg s.a.GUARDIAN LUXGUARD I s.a.GUARDIAN LUXGUARD II s.a.GUARDIAN EUROPE s.à r.lCENTRE LUXEMBOURGEOIS DERECHERCHE POUR LE VERRE ETLA CÉRAMIQUE (C.R.V.C.) s.a.European headquarters,films divisionTire technical centermolds, steelcordFloatglass, coated and temperedglassFloatglass, tempered, mirrorand laminated glassManagement of participations,ancillary activitiesEngineering, research anddevelopment for the glassindustry112 EXXONMOBIL Corp.3.229 THE GOODYEAR TYRE ANDRUBBER COMPANY351 GUARDIAN INDUSTRIESCORPORATIONGUARDIAN AUTOMOTIVE- Automotive glass 523EUROPE s.a.GUARDIAN LUXCOATING s.a. Coated glass 80Hewlett-Packard Luxembourgs.c.a.41 Hewlett-Packard CompanyHUSKY INJECTION MOLDINGSYSTEMS s.a.2843039Injection molding systems 816 HUSKY INJECTION MOLDINGSYSTEMS LTDIBM Belgium s.p.r.l. 91 International BusinessMachines Corp.iTunes Store s.à r.l.Software applications, Digital 6 APPLE Inc.media applicationsMULTISERV s.a. Services for the steel industry 169 HARSCO Corp.JOHN ZINK INTERNATIONALLUXEMBOURG s.à r.l.LUXPET s.a.MASCO EUROPE s.à r.l.Verizon Business BelgiumLuxembourg s.a.MICROSOFT LUXEMBOURGs.à r.l.MOOG HYDROLUX s.à r.l.Paypal (Europe) s.à r.l.CATALYST RECOVERYEUROPE s.a.Rovi InternationalSolutions s.à r.l.VIKING s.a.Industrial burners, flares,thermal oxidizersPET performs and injectionmoldingsManagement of the group’sEuropean activitiesComputer software andhardware productsPrecision motion controlcomponentsRegeneration and presulfurizationof petrochemicalcatalystsDigital entertainmentservicesFire protection sprinklerproducts, security seals232 KOCH CHEMICALTECHNOLOGY83 PLASTIPAK HOLDINGS Inc.25 Masco Corp.59 Verizon12 MICROSOFT CORPORATION92 MOOG Inc.Paypal47 THE ALUCHEM GROUP LLCn.i.Rovi International Solutions46 THE VIKING CORPORATIONRodangeWashingtonCaliforniaBascharageDifferdangeWindhofKehlenFoetzEsch/AlzetteKansasTexasPréizerdaulColmar-BergCapellenMinnesotaNameLuxembourgDudelangeBettembourgOntario (Canada)MichiganHesperangeOhioNew YorkVirginiaFloridaGrevenmacherJ.P. Morgan Bank 503John Deere Bank 51The Bank of New York Mellon 181State Street Bank 558Brown Brothers Harriman 391MunsbachWormeldangeConternRhode IslandNew JerseyDelawarePennsylvaniaEmploymentCitibank 235Source: Ministery of the economy and foreign trade, Luxembourg for Business. This list is not exhaustive.