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Georgia Has SKC Ltd. on its Mind

Korean industrial giant SKC Ltd. is building a $1.5 billion manufacturing plant in Covington, just southeast of Atlanta.

  [ 3/28/1997 ]  By: Gordon L. Heft   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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It's not hard to look back at the past 12 months of Georgia manufacturing activity and pick
out the hottest single topic.

The "b" in billion tends to stand out, as SKC Ltd. of Korea announced the largest manufacturing investment in the state's history -- a $1.5 billion plant to produce polyester
film for the video and audio tape markets.

Construction has already begun in Covington, about 35 miles southeast of Atlanta, and the
first phase of the plant is expected to open in October 1998. The 400-acre site will initially
start with 250 employees, but will jump to about 1,000 as all stages of the plant are built
during the next 10 years.

Covington was just one of 70 sites that vied for the project in a 16-state area. Key to landing such a huge project was $7.1 million appropriated from the state legislature to be used for acquisition of the land, and the reputation of government leaders in Newton and Walton counties for being "problem solvers."

"In the end, the deal is done at the local level," said Randy Cardoza, commissioner of Georgia's Department of Industry, Trade and Tourism.

"Most companies like to be the big fish in the small pond," said Kip Purvis, president of the Covington-Newton County Chamber of Commerce. "We got our big fish."

SKC Ltd. is part of the Sunkyong Group of Korea, with operations in 30 countries and
annual sales of $25 billion. Worldwide, the company employs 22,000 people.

While SKC's investment is huge, there was still plenty of other activity in Georgia's manufacturing sector during 1996. According to Gov. Zell Miller's office, $6.3 billion of investments from businesses and industry were committed, creating 33,324 new jobs when completed.

Georgia has enjoyed a spurt of business activity over the past six years, with 736 new plants opening their doors, 2,688 companies expanding, and more than 86,000 manufacturing jobs created.

The appeal of Atlanta

The international flavor of Atlanta was one compelling reason the Philips Consumer Electronics Co. (PCEC) will bring about 300 jobs from Knoxville, Tenn., to the Peach State in the spring of 1997.

The huge TV manufacturer, which is part of the $40 billion Philips Electronics, will be moving its top executives, sales and marketing forces to Atlanta. Georgian officials hope that other divisions, including manufacturing sectors, will soon follow.

"This has the potential to be one of those deals that grows over time," Cardoza commented.

"Our move coincides with Philips' greater emphasis on marketing and sales to leverage new digital technologies," said Robert Minkhorst, president and CEO of PCEC. "Atlanta's reputation as a growing international business community makes it an ideal choice for a multi-national, customer-driven company like Philips."

Digital technology is moving the firm to develop new types of televisions with clearer pictures, as well as WebTV boxes for exploring the Internet.

Atlanta apparently won out over sites in Dallas and Charlotte.

Another 300-job project is scheduled to open in the first quarter of 1997 in Peachtree City, about 25 miles south of Atlanta. Cooper Lighting has built a 485,000 square foot facility that will house a regional sales office, a national customer service center, and will consolidate warehousing and distribution functions into one location.

Cooper Lighting is a division of Cooper Industries, a $4.6 billion global manufacturer of electrical and automotive products, as well as tools and hardware. The new facility represents
a $20 million investment.

QuickStart Training Program

Both Cooper Lighting and SKC Ltd. share a common reason for selecting Georgia as home to their operations.

They are just two of 2,500 businesses that over the past three decades have implemented Georgia's QuickStart Training Program, which has been singled out by Fortune Magazine as providing one of the most comprehensive and advanced training job programs in the nation.

Virtually every state offers some form of training assistance or reimbursement, but QuickStart stands out because there is no charge for the service to the company. The program covers manufacturing, warehousing, distribution, back office, information distribution and customer service.

Specifically, workers can get on-site training in robotics and sensory devices, as well as in computerized control systems, distributive control systems, and solid-state control systems. There are courses for ISO 9000, TQM, Just-in-Time inventory control, and problem-solving. The QuickStart program also instructs employees in interpersonal skills, self-directed team management, and work culture.

A feature many employers like is that the QuickStart can include pre-employment training, so companies have an opportunity to preview the skills, aptitudes, attitudes and work habits of prospective employees before they actually hire them.

All training is designed specifically for the employer, and includes orientation to that company's policies, as well as its history and background.

The state also has a program called BEST (Business Expansion and Support Act), which provides for a $500 to $2,500 job tax credit, depending upon location of the new site.

Activity in Augusta

Although Atlanta got the majority of the press coverage in 1996 -- it was the focus of the world's eye during the Summer Olympics -- other cities had their share of business activity.

Augusta will have 120 new jobs open by 1999 when production begins at an animal pharmaceutical plant by Monsanto Corp.

Monsanto will begin manufacturing posilac, the trademark name for bovine somatotropin, a protein hormone that improves the efficiency of milk production in cows. The chemical also helps young cattle grow faster.

Augusta won the bid against seven other sites partly because Monsanto already owned the land, and the company operates two other companies in the city; Searle, a pharmaceutical manufacturer, and NutraSweet, makers of aspartame, used in soft drinks and foods.

"We were looking to locate in a place where we already had a facility in the area," said Stacey Soble, spokeswoman for Monsanto. She said the large layoff from the Savannah River Site and the high unemployment in Augusta will help to provide for a sizable, highly skilled work force.

Early this year, Peridot Chemicals announced they would build a new sulfuric acid plant in Augusta to replace the current facility built 30 years ago. This expansion will boost capacity to 700 tons per day, up from the current 400 tons. Gary Randles, president, said because of new efficiencies, the total emissions would be cut by 70 percent, despite the 75 percent increase in output. He said the company will spend $20 million on the new plant, which should be operating by the end of 1997.

Savannah port is bustling

Nestled at the mouth of the Savannah River and the Atlantic Ocean is Savannah, which in 1996 had 23 new companies make business investments creating more than 500 new jobs.

Savannah is building much of its future around its diversified transportation sector. It has two deepwater ship terminals, and its expanding the number of berths. A seventh container berth will be completed early next year, and another is slated for construction by 2001.

Two major railroads, CSX Transportation and Norfolk Southern serve the area, as well as the Georgia Central Railroad. Air cargo is increasing at the airport, and more than 100 truck lines serve the region. Two major interstate highways also intersect the city.

 

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