North American Business in Luxembourg - Luxemburger Wort ...

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