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Seagate Technology and Celestica Inc. Expand in Minnesota

Quality of life and state initiatives mean prosperous times for business.

  [ 5/1/2000 ]  By: Ann Morris   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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In February, Seagate Technology, a manufacturer of computer disk drives and other storage hardware and software, decided to open a facility in Rochester to develop systems for businesses to manage files stored on computers. The company will hire up to 20 people at its new site.

"I think that Seagate is forward-thinking in moving the work to the people rather than forcing people to move to the work," Brian Nass, executive director of Seagate's Rochester facility, told the Rochester Post-Bulletin. "They realize what an asset the community of Rochester has in terms of technical talent."

Celestica Inc., the world's largest manufacturer of electronics, is growing in Rochester, Minn. The company plans to buy IBM's electronic card assembly and test operations in Rochester, transferring 1,800 IBM employees to the Celestica payroll.

In addition, Celestica will hire 500 regular employees and 200 contract workers.

IBM has been a Celestica customer for years. The new arrangement will bring approximately $1.5 billion in IBM business to Celestica.

Rochester's growth can be partially credited to the Rochester Area Economic Development Inc. Seed Fund, which was formed in 1989, has invested $665,000 in nine area businesses and created more than 1,200 new jobs.

When it comes to state rankings, Minnesota comes out near the top in a lot of categories. Morgan Quitno Press (a publisher of annual reference books) ranked Minnesota the most livable state in the nation from 1996 to 1999.

Industry Week magazine identified Minnesota as home to five of the top 100 best-managed public companies in the world.

As unemployment shrinks, economic development continues to soar. One of the most widely-recognized businesses in Minnesota is the world-renowned Mayo Clinic.

It is currently adding 1 million square feet of space to its downtown campus in Rochester, and it recently announced plans to add an additional seven stories to its 11-story Gonda Building currently under construction.

The Mayo Clinic also decided to purchase a 250,000 square foot facility in Rochester. The clinic will convert the former laboratory into offices.

Investment fund spurs growth

A state initiative - the Minnesota Investment Fund - serves as a very effective economic development tool. A $21,000 Minnesota Investment Fund grant to Jackson County is partially credited with creating 10 jobs at B&H Manufacturing Inc.

B&H manufactures farm machinery and equipment and is doubling its facility size to 30,000 square feet. It recently acquired Shweiss Manufacturer, which makes industrial and home lawn mowers and commercial snow blower equipment. B&H will incorporate Shweiss into its enlarged operation.

Another example of the Minnesota Investment Fund's success is in the community of Cook where Hill Wood Products Inc., is expanding. The fund will provide a $96,000 grant to Cook, helping to retain 28 jobs and creating four new ones.

The Minnesota Department of Trade and Economic Development played a significant role in the growth of the biotechnology firm Solvay Pharmaceutical.

Over the last few years, the state assisted the company in developing a wastewater system and securing training grants to help the company meet Food and Drug Administration guidelines.

Solvay is a Belgium-based chemical and pharmaceutical manufacturer with facilities in the northern Minnesota community of Baudette.

 

— Ann Morris









 

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