The expansion of Daimler-Chrysler’s automotive complex in Kokomo, Ind., has propelled that city to the top of Expansion Management’s 5th annual survey of European capital investment in the U.S. manufacturing sector. The automaker began production in a new $378 million transmission plant in December.

The automaker began production in a new $378 million transmission plant in December.

In order to be included in the survey, a European-based company must make a brick-and-mortar expansion in the United States that involves a capital investment of at least $1 million, create at least 10 new jobs, and must have taken place within the past two years.

Detroit-Warren-Livonia, Mich.; Spartanburg, S.C.; Greenville, S.C.; and Richmond-Petersburg, Va., round out the top five.

Daimler-Chrysler operates two transmission plants totaling 1.8 million square feet in Kokomo. The facilities employ about 2,000 workers and have the capacity to produce 710,000 units annually. (The automaker also operates two other facilities in Kokomo that predate the merger between Daimler-Benz AG and Chrysler Corp. in 1998.)

The state of Indiana has provided numerous incentives to DaimlerChrysler for the Kokomo complex. The latest incentive is $2 million in work force training funds.

The majority of the funding, more than $1.3 million, comes in the form of grants from the state’s Skills Enhancement Fund. The grants help the company train existing workers.

The Indiana Department of Workforce Development is providing additional support through its Incumbent Worker Training Fund.

The funds can be used to train the 8,000 employees at all four DaimlerChrysler facilities.

“The DaimlerChrysler expansion is more evidence that the state’s economic development initiative is having a positive impact on our economy,” said Tim Monger, executive director of the Indiana Department of Commerce. “Advanced manufacturing operations like DaimlerChrysler are a core component of Indiana’s economy, and we are pleased with the investment it has made in Kokomo.”

DaimlerChrysler is also eligible for tax abatements on real property, and machinery and equipment in the new facility.

“I believe DaimlerChrysler’s selection of Kokomo for its capital investment is because of our community’s support, work force and the incentives provided,” said Greg Aaron, president of the Kokomo/Howard County Development Corp. “Kokomo is recognized as a world class manufacturing community with a highly productive work force.”

Other U.S. Cities Attract European Expansions

Nearly 30 European companies have invested in the Detroit-Warren-Livonia, Mich., metro during the past two years, making it No. 2 on this year’s list. Many of the expansions are related to the automobile industry. Germany-based Karmann Manufacturing received a single business tax credit valued at more than $2.9 million to build its first U.S. manufacturing facility in Plymouth Township. The project is expected to create more than 250 jobs.

The automotive supplier plans will $13 million to build a plant near its existing technical center for the manufacture of convertible roof systems for two automakers.

Another company based in Germany, ZF Lemforder, plans to expand its operations in Lapeer. The company will invest nearly $35 million in the project, creating 219 new jobs.

ZF Lemforder is the car chassis division of ZF Friedrichshafen AG, a worldwide supplier of driveline and chassis technology. Based in Friedrichshafen, Germany, ZF is among the 15 largest automotive suppliers in the world.

The company considered North Carolina, Kentucky and South Carolina as potential sites for the expansion. A single business tax credit worth $1.1 million during the next 10 years helped convince ZF Lemforder to expand in Lapeer.

(subhed)L’Oreal USA Expands in Ohio

Other industries have seen their share of expansions in the United States.

Beauty care products company L’Oreal USA Inc., a wholly owned subsidiary of Paris-based L’Oreal SA, is expanding its operations in Streetsboro, Ohio, in the Akron metro (No. 25). The beauty icon is expanding its distribution center capacity in support of its professional products division.

The company looked at sites in Kentucky and Ohio but ultimately chose Streetsboro for the 650,000 square foot warehouse and distribution facility. L’Oreal plans to consolidate operations from its Hebron, Ky., and Solon, Ohio, facilities at the new site.

The $9.5 million project is expected to create close to 70 jobs and retain about 190 positions.

The state of Ohio provided the company with a $50,000 Business Development grant to help offset the costs associated with acquiring and installing new machinery and equipment for the project.

One state over, more than 285 companies in the Pittsburgh metro (No. 35) are based in Europe or owned by a European entity.

The Pittsburgh Regional Alliance (PRA) maintains bilateral partnerships with economic development organizations in France, Germany and the United Kingdom.

If one of its European partner organizations is working with a local company seeking to enter the United States, PRA will create a “soft landing” for that company in the Pittsburgh region by assisting with introductions to peer companies, identifying real estate options and professional service providers, and seeking funding assistance and work force training services, said Ronnie L. Bryant, president and chief operating officer of PRA.

One of those companies, medical device manufacturer Medrad Inc., has expanded its operations in the Pittsburgh metro.

Medrad, a subsidiary of Germany-based Schering A.G., has invested $2.8 million to further automate production of one of its core products, disposable syringes that are used to inject patients with contrast media needed to produce diagnostic images.

The company employs more than 1,000 workers at a 154,000 square foot manufacturing facility in O’Hara Township.

Ken Krizner is the managing editor of Expansion Management and can be reached at kkrizner@penton.com. Rachael Hedgcoth is a freelance writer based in Overland Park, Kan., and was formerly a senior editor with Expansion Management.