When it comes to attracting European capital investment and jobs, Richmond, Va., is second to none, heading the list of this year's Top 50 U.S. metros for European business expansion.

Since April 2000, Infineon Technologies, a German semiconductor manufacturer, has invested $1.1 billion in its Richmond facility, creating 1,100 new jobs, while Switzerland's ENRI Components Inc. invested $98.4 million in its Richmond electronic connectors plant.

All told, European manufactures have invested more than $1.3 billion in the Richmond metro area during the past two years.

Following Richmond are Tuscaloosa, Ala., with $622.5 million in European capital investment; Chicago, Ill., with $600 million; Binghamton, N.Y., with $510 million; and the Greenville-Spartanburg-Anderson, SC metro, with $471.5 million.

Mercedes-Benz provided much of Tuscaloosa's foreign investment, while UK aerospace company BAE Systems was Binghamton's major European expansion.

Rounding out the Top 10 are Buffalo-Niagara Falls, N.Y., Columbia, S.C., Stamford-Norwalk, Conn., Charleston-North Charleston, S.C., and Pittsburgh, Pa.

As in years past, we surveyed all 50 state economic development agencies and asked for a list of European-based business expansions that occurred in the last 24 months to the tune of at least $1 million in capital investment and 10 new jobs.

Ohio, with six metros making the list, has been the most successful state in terms of broad-based attraction for European companies.

Ohio is followed by Pennsylvania, with 5 metros, and New York, South Carolina, Tennessee and Virginia, with 4 metros each.

One trend that seems to continue throughout all of our surveys is that, once a state or metro area has established itself by attracting a major international company, other companies from that country seem sure to follow.

European executives are able to talk with their fellow countrymen who have already taken the plunge and who are able to provide first-hand knowledge of the pros and cons of operating a facility in that particular metro.

If the experience has been a positive one for previous European companies, the decision to follow suit becomes much easier for subsequent European executives.

After all, there is a certain amount of security in knowing that so many others from their homeland have already met with success there.

Richmond offers path to Infineon's future

Germany's Infineon Technologies still takes top honors when it comes to noteworthy European manufacturing projects. The project led this year's Top European Deals list. While the Richmond-Petersburg, Va. metro - Infineon's East Coast home - came in second place last year in our Top 50 Cities for European Investment list, it achieved the No. 1 spot this year.

Infineon's expansion plans for the facility, formerly known as White Oak Semiconductor, call for 500,000 square feet of additional space including a wafer fabrication building.

Currently, Infineon's fab has been constructed and tools and equipment should be installed by year's end. Infineon will produce semiconductors using new 300 millimeter technology that is slowly evolving into an industry standard.

When all is said and done, the expansion will result in 1,100 new jobs.

Palmetto State is favorite for European

auto companies

Year after year, South Carolina has been a big winner in our study, boasting several metros that offer market access, prime real estate and other locational advantages for European companies establishing a new American home.

The metros of Greenville-Spartanburg-Anderson (No. 5), Columbia (No. 7), Charleston-North Charleston (No.9), and Barnwell County (No. 20) graced the first 20 of our top 50 cities this year.

Expansion projects by companies such as Germany-based BMW and Robert Bosch, as well as other automotive players, and Swiss-owned Krono Group helped propel South Carolina metros to the top echelon of U.S. cities selected by European companies over the past two years.

BMW's facility has been a major catalyst over the last several years for automotive investment - acting as a magnet for waves of suppliers. Of course the company's own history of growth in the state has contributed much to South Carolina's economy.

The company's latest expansion, announced mid-year 2000, created 500 new jobs. The automaker has invested more than $1.4 million in its 2.3 million square foot facility near Greer since 1992.

Fellow German company Seeber USA , a supplier to BMW, broke ground in mid-2001 on a second expansion at its Spartanburg County facility. The expansion is nearing completion and has resulted in a $17 million investment.

Slovenian firm TOMOS USA also made headlines when it established a two-wheel moped manufacturing center in Greenville, S.C. The $2 million investment brought 20 new jobs to the area in 2001.

The Koper, Slovenia-based company considered several cities throughout the East Coast and Gulf States.

"Greenville is geographically well-positioned and has a good logistics infrastructure," said Edvard Svetlik, president of TOMOS' holding company, Hidria. "We have found a friendly business environment here, as well as a skilled work force. Greenville offers a good quality of life. Therefore, it does not surprise me as to why many European companies have chosen Greenville as their location in the United States."

Proximity to markets is key consideration

As many European companies contemplate expanding into the United States, they generally have one

primary goal in mind: getting cozier with the markets they serve.

Such was the case for animal health company Intervet, a subsidiary of the Netherlands-based Akzo Nobel.

In 2001, Delaware-headquartered Intervet chose DeSoto, Kan., in the greater Kansas City Metro (No. 33), as the site for a new campus that will serve as its regional administrative, manufacturing and R&D center.

"Intervet is excited to bring this new facility to the Kansas City area," said Klaus Olbers, president of Intervet. "The region is central to a significant portion of our customer base and has long held a strong association with agriculture and the animal health industry. With this project, our operations will be further streamlined and we will meet both current and future needs."

The Kansas City Metro's logistical assets were also advantageous to Baader North America Corp., a subsidiary of Germany-rooted Baader Group.

In the spring of 2002, the company selected Kansas City, Kan., for its North American headquarters, which will bring 50 new jobs and a $3.5 million investment to the area.

"From Kansas City, we are close to the poultry, red meat and dairy industries, and can effectively serve the Pacific and Atlantic-based seafood industry as well as the growing catfish industry," said Andy Miller, president of Baader North America Corp. and Baader-Johnson.

For The Perrier Group, an abundant water supply wasn't the only thing that made Macon County, Tenn., (No. 22) a great location for its new bottling facility.

"There are so many things that made this right for us," said Kim Jeffery, president and CEO for The Perrier Group, a division of Switzerland-headquartered Nestle. "Bennett Hill Spring offers an abundant high-quality source of water, meeting our company's high standards. Macon County give us easy access to the south-central U.S. consumer markets, and there is a skilled, quality work force in the area."

Making sense of your site needs

Granted, there is no one factor that makes a site decision the right decision for European companies growing their operations on U.S. turf. While it might be a nice thought, no location decision is ever that simple.

Proximity to markets and a quality labor force will always be attractive advantages, but other factors such as incentives and the business environment will play into the decision too.

No matter what cities made our list, the real question is what site makes the most sense for your company? Hopefully, our survey can help show you where and why others like you have gone before and met with success.

While a growing company must do its due diligence during a site search, it never hurts to consider where others in "your boat" have found safe harbor.