Coca-Cola, Ford and Motorola: 1994's Corporate Location Leaders

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Coca-Cola, Ford and Motorola: 1994's Corporate Location Leaders

  1. 1. Coca-Cola, Ford and Motorola: 1994’s Corporate Location Leaders by Tim Venable total of 17. Three U.S. companies in the food, automotive and Coca-Cola was particularly aggres- electronics industries led the corporate world last year sive in penetrating the former Soviet Union and East Bloc nations in 1994. in numbers of new and expanded facilities. But a New plants were built in Albania, the Czech Republic, Romania and Russia, plethora of other firms also were extremely active in and an existing facility in Moscow was facility investment. expanded. An equally bold location strategy is ccording to Conway Data’s investments by this year’s group of top unfolding in China, where the compa- A comprehensive New Plant data- base, more than 4,000 companies established a new facility or expanded 10 companies. Still, some of those firms’ recent location decisions have a dis- tinctly global flavor. Coca-Cola Co., for ny has already established some 13 bot- tling plants, with 10 more factories slat- ed to come on line by 1996. A new $18 million, 200-employee plant was an existing one in 1994. And around instance, placed more facility invest- 200 of those firms recorded two or more ments in Europe than any other global recently built in Zhengzhou. facility investments. region, and Compaq Computer Corp. “This new plant is an integral part of But a select group was really hot in placed almost half of its new projects in the Coca-Cola Co.’s plan to expand our facility location last year (see the the Asia-Pacific. operations into the central and western accompanying chart). At the top of that Here’s a review of the facility-loca- provinces of China,” says Douglas list are Coca-Cola Co. (17 facilities), tion moves of 1994’s most active com- Daft, president of the company’s Pacif- Ford Motor Co. (17) and Motorola (14). panies. ic Group. Joining those companies in the top 10 Coca-Cola Co.: Big Moves Ford’s North American Focus for 1994 are Pepsi-Cola Co. (12 facili- ties); 3M, Chrysler Corp., Compaq In the Asia-Pacific, Europe Have you driven a Ford — lately? Computer Corp. and General Motors The Coca-Cola logo is one of the Apparently, lots of people have. The Corp. (each with 10 facilities); and most widely recognized symbols any- No. 2 automaker is in a robust expan- AT&T, Boise Cascade Corp. and Geor- where in the world. Considering Coca- sion mode, establishing some 17 major gia-Pacific (each with nine facilities). Cola’s bold expansion into Europe and new and expanded factories, research It’s a given that booming companies the Asia-Pacific in 1994, it seems likely centers and other facilities in 1994 (see usually are found in booming indus- that Coke is destined to become even accompanying chart). tries, and Site Selection’s 1994 list of most more widely known. North America reaped the bulk of active companies is no exception. The In fact, Coca-Cola made eight major Ford’s 1994 bumper crop (14 facilities in auto, electronics and forest products facility investments in Europe last year, the USA, one in Canada and one in industries are experiencing particular- and three in the Asia-Pacific (see Mexico). ly robust growth. accompanying chart). Six more new Ford’s biggest capital investment of In terms of geography, North Amer- and expanded facilities in the USA the year was a $700 million expansion ica received the lion’s share of facility round out the company’s pace-setting of its Lima, Ohio, USA, engines plant. © Conway Data, Inc. No part of this document may be reproduced without express written permission from the publisher. Document #43167 1 Site Selection, February 1995
  2. 2. LEADING THE WAY: TOP COMPANIES IN FACILITY LOCATION, 1994 Rank Company No. Facilities/Global Locations 1. Coca-Cola Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 (Europe, 8; North America, 6; Asia-Pacific, 3) 1. Ford Motor Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 (North America, 16; Asia-Pacific, 1) 3. Motorola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 (North America, 8; Europe, 5; Asia-Pacific, 1) 4. Pepsi-Cola Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 (North America, 10; Asia-Pacific, 1; Europe, 1) 5. 3M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 (North America, 9; Asia-Pacific, 1) 5. Chrysler Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 (North America, 9; Europe, 1) 5. Compaq Computer Corp. . 10 (Asia-Pacific, 4; Europe, 2; North America, 3; Central and South America, 1) 5. General Motors Corp. . . . . . . . . . . . . . . . . 10 (North America, 8; Central and South America, 1; Europe, 1) 9. AT&T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 (North America, 6; Europe, 2; Asia-Pacific, 1) 9. Boise Cascade Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 (North America, 9) 9. Georgia-Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 (North America, 9) Note: Data reflect both new and expanded facilities and include facilities from the parent company’s divisions and subsidiaries. Source: Conway Data’s New Plant database. But an expansion of its Lorain, Ohio, $400 million to boost capacity at its USA, truck plant created more new jobs truck plant in Oakville, Ontario, Cana- EXECUTIVE SUMMARY than any other project — 1,000. da, by 44 percent. In other North American moves, “This new expenditure increases Coca-Cola Co., Ford and Ford revealed plans last year to spend Ford’s investment in Canadian plants Motorola were the most active com- announced over the last 24 months to a panies worldwide in facility location record $3 billion,” says Mark Hutchins, last year. Coca-Cola and Ford each For More Information president and chief executive of Ford established 17 new and expanded Canada. “This shows our confidence in facilities, while Motorola recorded If you would like more information on 14 facilities. the quality and competence of Canadi- the companies featured in this article, Other companies with nine or an workers and Canadian plants.” please call GeoFax, Conway Data’s com- more facility investments in 1994 Ford’s location activity goes well prehensive fax-on-demand research ser- include 3M; ATT; Boise Cascade beyond North America, though. A $1 vice, at 1-404-453-4200 (USA). Order Corp.; Chrysler Corp.; Compaq billion joint-venture manufacturing reports using the numbers below. (Some Computer Corp.; General Motors project with Volkswagen to make mini- of these reports require a small fee Corp.; Georgia-Pacific; and Pepsi- vans in Palmela, Portugal, started pro- charged to your credit card.) Cola Co. duction in January 1995. And a $40 mil- For a free menu of all available reports, lion technology center will be estab- request document #1234. lished in Yokohama, Japan, to help ure in the next several years,” says • ATT: #40080. boost parts sales to Japanese auto man- Frank Macher, vice president and gen- • Auto industry: #41240, #42340, ufacturers. eral manager of Ford’s components #42588, #43065 and #56255. “Ford parts sales to Japanese division. • Electronics industry: #42495. automakers currently run at more than • Ford Motor Co.: #40440. $300 million annually, primarily to Motorola: Big Projects • General Motors Corp.: #43125. transplant operations in the United In the USA, Europe • Motorola: #43000. States, and we plan to double that fig- Electronics giant Motorola is grow- Document #43167 2 Site Selection, February 1995
  3. 3. In other big location moves, the com- pany’s new rechargeable battery packs COCA-COLA CO.: NO. 1 FOR 1994 plant in Lawrenceville, Ga., USA, even- tually will employ 1,000 workers. The (figures in U.S. dollars; size of facility described first in square feet, with corresponding size in square meters in parentheses) facility also will serve as headquarters for the administrative and research Columbus, Ohio, USA; carbonated beverages, expansion . . . . . . $2 million Duyen Thai, Vietnam; soft drinks, new . . . . . . . . . . . . . . . . . . . . . $20 million operations of Motorola’s Energy Prod- Greer, S.C., USA; soft drinks, new . . . . . . . . . . . . . 20,000 sq. ft. (1,858 sq. m.) ucts Division. Harahan, La., USA; soft drinks, new . . . . . . . . . . . . . . . . . . . . . . . . $65 million Kunming, China; soft drinks, new . . . . . . . . . . . . . . . . . . . . . . . . . . $22 million Other Location Leaders in ’94 Moscow, Russia; soft drinks, expansion . . . . . . . . . . . . . . . . . . . . . $30 million Numerous other firms also were Moscow, Russia; soft drinks, new . . . . . . . . . . . . . . . . . . . . . . . . . . $35 million bullish on the future last year, placing Oostkamp, Belgium; soft drinks distribution, new . . . . . . . . 100 employees major facility investments around the Pembroke Pines, Fla., USA; soft drinks, expansion . . . . . . . . . 50 employees Ploiesti, Romania; soft drinks, new . . . . . . . . . . $20 million, 300 employees globe. Prague, Czech Republic; soft drinks, new . . . . . . . . . . . . . . . . . . . $28 million For instance, Pepsi-Cola Co. estab- St. Petersburg, Russia; soft drinks, new . . . . . . . . . . . . . . . . . . . . . $30 million lished 12 new and expanded facilities, St. Petersburg, Russia; soft drinks, new . . . . . . . $50 million, 200 employees while 3M, Chrysler Corp., Compaq Tallahassee, Fla., USA; office/warehouse complex, new . . . . . . $1.5 million Computer Corp. and General Motors Tirana, Albania; soft drinks, new . . . . . . . . . . . . . . . . . . . . . . . . . . . $10 million Corp. recorded 10 each (see this issue’s Waco, Texas, USA; non-carbonated beverages, new . . . . . . . 125 employees cover feature for more on Compaq). Zhengzhou, China; soft drinks, new . . . . . . . . . . $18 million, 200 employees Rounding out the top 10 are ATT, Note: Chart data reflect both new and expanded facilities and include facil- Boise Cascade Corp. and Georgia- ities from the parent company’s divisions, subsidiaries, etc. Pacific (nine facilities each). Source: Conway Data’s New Plant database. Here are examples of those location ing by leaps and bounds, and it’s play- ing out its strategy for growth on a global stage. That’s evident in the 14 FORD MOTOR CO.: NO. 1 FOR 1994 new and expanded facilities it scattered across the USA (eight facilities), Europe (figures in U.S. dollars; size of facility described first in square feet, with corresponding size in square meters in parentheses) (five) and the Asia-Pacific (one) in 1994 (see accompanying chart). Avon Lake, Ohio, USA; minivans, expansion . . 35,000 sq. ft. (3,252 sq. m.) Batavia, Ohio, USA; auto transmissions, expansion . . . . . . . . 75 employees Motorola’s biggest facility capital Brook Park, Ohio, USA; auto engines, expansion . . . . . . . . . . . $470 million investment last year was a $387 million Cuautitlan, Mexico; automobiles, expansion . . . . . . . . . . . . . . . . $60 million expansion of its East Kilbride, Scotland, Dearborn, Mich., USA; automobile research and design, new $150 million UK, manufacturing plant. That move Lima, Ohio, USA; auto engines, expansion . . $700 million, 175 employees will create 250 jobs and allow Motorola Lima, Ohio, USA; training center, new . . . . . . . . . . . . . . . . . . . . . $4.3 million to make the most powerful silicon Livonia, Mich., USA; automotive components, expansion . 100 employees wafers ever produced in Europe. Lorain, Ohio, USA; automobiles, expansion . . . . . . . . . . . . 1,000 employees Norfolk, Va., USA; pickup trucks, expansion . $290 million, 400 employees The company already employs some Oakville, Ontario, Can.; trucks, expansion . . . . . . . . . . . . . . . . . $400 million 2,300 in East Kilbride, and other Sandusky, Ohio, USA; headlamps and other auto parts, expansion . . . $65 Motorola plants in nearby Easter Inch million and Livingston employ another 2,000. Sharonville, Ohio, USA; transmissions, expansion . . . . . . . . . . . $95 million Motorola’s biggest job-producing Sterling Heights, Mich., USA; auto transmissions, expansion 100 employ- facility of the year was its announce- ees ment of a 3,000-employee cellular Sterling Heights, Mich., USA; truck axles, expansion . . . . . . . $115 million Wayne, Mich., USA; trucks, expansion . . . . . . . . . . . . . . . . . . 900 employees phones factory in Harvard, Ill., USA, a Yokohama, Japan; automotive technology center, new . . . . . . . . $40 million rural area 60 miles (97 km.) northwest Note: Chart data reflect both new and expanded facilities and include facil- of Chicago. Now under construction ities from the parent company’s divisions, subsidiaries, etc. on a 300-acre (121-hectare) site, the Source: Conway Data’s New Plant database. plant will begin operating in 1996. Document #43167 3 Site Selection, February 1995
  4. 4. employee customer service center in MOTOROLA: NO. 3 FOR 1994 Dallas, USA; • Boise Cascade’s $220 million (figures in U.S. dollars; size of facility described first in square feet, with expansion of its Jackson, Ala., USA, corresponding size in square meters in parentheses) paper recycling and de-inking facility, Angers, France; auto electronic components, expansion . . . . . . . . $4 million and new $49 million wood products Boynton Beach, Fla., USA; paging products, expansion . . . . . . $1.9 million plant in Alexandria, La., USA; Dublin, Ireland; electronics, expansion . . . . $159 million, 2,000 employees • Chrysler’s new $300 million, 3,500- Durham, N.C., USA; electronics, new . . . . . . . . . $39 million, 60 employees employee auto plant in Saltillo, Mexico, East Kilbride, Scotland, UK; electronics, expansion . . . . . $387 million, 250 and $300 million, 1,500-employee employees expansion of its Fenton, Mo., USA, auto Elma, N.Y., USA; electronics, expansion . $8 million, 37,000 sq. ft. (3,437 sq. factory; m.) Fort Worth, Texas, USA; pagers, expansion . . . 150,000 sq. ft. (13,900 sq. m.) • Compaq’s $150 million expansion Harvard, Ill., USA; cellular phones, new . . . . $93 million, 3,000 employees of its Singapore personal computers Lawrenceville, Ga., USA; battery packs, new . . . . . . . . . . . . . 900 employees plant, and 300-employee expansion of Phoenix, Ariz., USA; semiconductors, expansion . . . . . . . . . . . $100 million its Erskine, Scotland, UK, printed cir- Plantation, Fla., USA; communications products, new . . . . 300 employees cuit boards factory; Singapore; printed ciruit boards and related research, new . . . . $44 million • General Motors’ new 1,200- Swords, Ireland; pagers, two-way radios and other products, expansion employee wiring harnesses plant in . . . . . . . . . . . . . . $77 million, 2,000 employees, 300,000 sq. ft. (27,870 sq. m.) Toulouse, France; integrated-power circuits, new . . . . . . . . . . . . $50 million Gadsden, Ala., USA, and new $100 mil- lion truck plant in Cordoba, Argentina; Note: Chart data reflect both new and expanded facilities and include facil- ities from the parent company’s divisions, subsidiaries, etc. • Georgia-Pacific’s $60 million expansion of its Port Hudson, La., USA, Source: Conway Data’s New Plant database. pulp and paper mill, and new $75 mil- lion oriented strand board plant in leaders’ new and expanded facility pro- expansion of its Menomonie, Wis., Brookneal, Va., USA; and jects from 1994: USA, optical film factory; • Pepsi-Cola’s new $85 million bev- • 3M’s $35 million expansion of its • ATT’s $40 million expansion of erage plant in Prague, Czech Republic, Decatur, Ala., USA, specialty adhesives its Mesa, Ariz., USA, telecommunica- and $4 million expansion of its soft and chemicals plant, and $10 million tions equipment plant, and new 1,100- drinks plant in Corbin, Ky., USA. SS Document #43167 4 Site Selection, February 1995

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