Historically and geographically, Belgium has always been at the crossroads of Europe. The fact this European Union nation was ranked No. 1 in the world in terms of productivity per worker, boasts a stable economy, is home to Brussels — the European Union's capital city —and is well positioned in the heart of Europe's most populous and prosperous location, is attractive to top companies such as Coca-Cola , Baxter Healthcare, Pfizer, Dana Corp. and footwear manufacture Skechers USA Inc.

Belgium is the fourth most prosperous country in the world, according to the Human Development Report released by the United Nations. The report, published annually by the United Nations Development Program (UNDP), analyses the political, social and economic development in 173 countries.

Coca-Cola announced it is buying the water springs industry of Chaudfontaine in Liege from the Iranian Abbas Bayat. The company employs 260 people.

Skechers USA signed a 25-year lease with ProLogis , a distribution/logistics leasing company that provides European customers facilities designed for modern, high-volume distribution. The facility at ProLogis Park Liege in Liege, Wallonia, will serve as its distribution center for Skechers product throughout Europe.

Since Skechers took direct control of its product in Germany in 2001, the company has begun selling, marketing and distributing our footwear directly to seven European markets: United Kingdom, France, Spain, Italy, Switzerland, Austria, and, most recently, the Benelux region.

The company discovered it could to take full control of its distribution thanks to the success the company has had in Europe.

"The move from a third-party 130,000 square foot facility in Gent, Belgium, to the more than 240,000 square foot Liege warehouse (which is expandable to 1 million square feet) will serve our current needs and allow us the flexibility to grow on an as-needed basis in an efficient manner, and at a moderate cost over the lease period," said David Weinberg, chief financial officer for Skechers USA.

The company chose Liege and the ProLogis Park Liege because it is ideally situated on a major European motor interchange, several hours from Paris and Frankfurt, near Liege Airport, and easily accessible to the Port of Antwerp.

Transportation Infrastructure is Strength

The story is one commonly told. Belgium was ranked the best country in Europe for logistics and distribution by global real estate service company Healey and Baker.

The Port of Antwerp is Europe's second busiest seaport, and the fourth largest in the world. More than 16,000 ships under more than 100 countries' flags call at the port annually.

Liege Airport has built strengths by becoming the European base for TNT Airways. TNT Airways recently entered into an agreement with KLM Cargo to make it the exclusive supplier of freight transport services to KLM in Europe.

Cargo carrier Atlas Air has also committed to Liege Airport, adding it to its strategic hubs at Anchorage, Alaska, and Miami, and the Polar Air network in East Asia.

Atlas Air subsidiary, Polar Air Cargo, began its new scheduled service from Chicago and New York to Leige last year. It operates six weekly services, connecting with partners, such as Emirates, Africa West, Race Cargo and China Southern from other European, African and Asian countries.

A Leading Automotive Producer

Belgium will soon become Europe's No. 1 automobile producer per inhabitant when in 2004 Volvo completes transferring its automobile production from the Netherlands to Ghent.

The Ghent factory, which is undergoing a $425 million expansion, will be Volvo's largest and only manufacturing facility outside of Sweden.

The Flemish Service for Employment and Vocational Training (VDAB) is helping Volvo recruit 1,400 new employees for the plant. Wisconsin-based Johnson Controls and Flanders-based ECA have announced a joint venture to deliver car seats to Volvo Cars in Ghent.

The country is also seeing a host of other automotive-related activity. Also in Ghent, Ford is investing more than $794 million to transform its plant there into a state-of-the-art facility enabling it to build at least four new models.

Daimler-Chrysler has hired Belgium-based LMS International to build a $1 million virtual lab that will eliminate the need to develop expensive test models. LMS is a producer of test equipment, virtual simulation software and engineering services.

U.S. automotive supplier Dana Corp. is opening a 16,200 square foot state-of-the-art Spicer Off-Highway Systems Technology Center in Brugge. The center will test new parts, modules and complete transmission systems.

"Our new research and development facility, designed to provide the industry with the most advanced off-highway transmissions and electronic controls, further strengthens Dana's position as a technological leader," said Nick Cole, president of the Heavy Vehicle Technologies and Systems Group.

Opel Belgium is investing $490.3 million in its Antwerp plant during the next five years for the production of its new Astra model. Production will begin in 2004.

Marrying automotive and distribution, Bridgestone/Firestone Europe is doubling the size of its central warehouse in the port of Zeebruge, thereby enabling the facility to become the European storage and distribution base for the company's line of imported tires.

"After careful consideration, we concluded that Zeebrugge continues to offer the most efficient location for the European Distribution Center," said Dennis Shea, company director, logistics and supply chain management.

Pharmaceuticals a Booming Business

Pharmaceuticals and biotech are big business in Belgium. Pfizer now imports and exports more pharmaceuticals in and out of Belgium than any other company because of the expansion of its distribution center in Zaventem, Flanders. Pfizer imports and exports have increased about $1.5 billion a month in the past year.

Nearby in Lessines, Wallonia, Baxter has made huge investments in extending its production and customer desk. Among the reasons cited are the location's good productivity, substantial incentives and multilingual staff.

Baxter Healthcare operates a large distribution center in Lessines, which serves the European market.

- Karen E. Thuermer