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Good news for Ontario’s auto sector: Ford Motor Company will re-open an engine plant in Windsor that it closed in November 2006. Over 300 employees will return, based on seniority, following the negotiation of an operating agreement between Ford and the Canadian Auto Workers. The province of Ontario is providing $17million in incentives to assist Ford which is investing $170 million to re-start the facility. There’s good news for South Carolina’s auto sector too – another major expansion by BMW Group at its Greer assembly plant in the Upstate region. This time, BMW is planning a $750 million project that will add 1.5 million square feet of space and create another 500 jobs by 2012. The facility already employs 4,500 – and studies have shown that each BMW worker generates almost three additional spin-off jobs. The expansion will allow BMW to ultimately produce a hybrid model based on its X6 sports activity coupe. To date, BMW has invested $4 billion in South Carolina – in fact, the new investment exceeds BMW’s $600 million investment for the original facility. The firm plans to increase production from 160,000 to 240,000 vehicles. BMW has been good for the state: 52 supplier companies have located in South Carolina and are distributed across 17 of the state’s counties. The insurance industry is a key economic driver in the state of Connecticut so it’s not surprising that Governor M. Jodi Rell stepped up to the plate to facilitate an expansion by Hartford-based Prudential Retirement Insurance and Annuity Company. After looking at other out-of-state options, the firm will invest $10 million to expand and improve its current facilities in downtown Hartford. The project is being aided with a $4.6 million loan from the state and $900,000 in sales and use tax exemptions. The project retains over 700 jobs and will create another 275 positions. The alternative energy sector is bringing jobs to Pocatello ID. California-based Nordic Windpower is establishing a wind turbine manufacturing plant in Pocatello where it expects to produce 20 turbines per month. The project will create 160 technical, engineering and administrative jobs. Nordic produces twin-blade turbines that were originally developed with a $75 million research and development grant from the Swedish government. Defense contractor BAE Systems is in the midst of a $40 million expansion of its manufacturing operations in York PA and Fayette County PA. Over 600 jobs will be created as the firm increase production of its Mine-Resistant, Ambush-Protected vehicles (MRAPs) currently used in Iraq. Pennsylvania Governor Ed Rendell is providing a $2.5 million grant and a $1.8 million tax credit package to assist in the expansion. North Carolina is adding over 450 high tech jobs with expansion projects recently announced by two firms. Health care company Becton, Dickinson & Co. is investing $135 million its Durham operations and a new manufacturing plant in Wilson. The two projects are expected to create 274 jobs over five years. The health care firm already employs 700 in the state. North Carolina is providing $3.39 million over nine years, contingent upon meeting job, investment and wage requirements. Becton, Dickinson is also receiving $3.5 million in local incentives. Tessera Technologies, a California-based firm, is planning a $30 million expansion of its Charlotte operations, adding 185 jobs to its current workforce of 100. The new jobs are primarily in engineering with an average salary of $72,000. North Carolina provided a $2.64 million grant to facilitate the expansion. Dell Inc. surprised many in Central Texas with its plans to close its massive North Austin TX desktop computer factory. The closing is part of the company’s program to reduce costs globally by $3 billion. Dell has already cut 3,200 jobs world-wide as part of this restructuring. 900 jobs will be lost, the single largest job cut by Dell in Central Texas since 2001 when it eliminated 5,700 jobs as part of the tech downturn. Production from the North Austin plant is expected to be consolidated at its newer facility in Winston-Salem NC. Dell employs 17,500 in Central Texas. Over 400 jobs will be lost when Union Tank Car Company closes its 40-year old manufacturing facility in East Chicago IL. The firm cites declining sales but union representatives believe that the firm simply wants to move production to non-union plants in the U.S. South where labor costs are lower. 70 salaried and 375 hourly workers will be affected by the decision. Western Union Company is moving operations from Missouri and Texas to offshore facilities. The firm will consolidate services at existing facilities in Costa Rica, the Philippines and Mexico. The $60 million cost-cutting move will eliminate 650 union jobs at its offices in the two states. A spokesperson for the Communications Workers of America vowed to oppose the closings, noting, “When you move work offshore, the first thing that happens is service quality declines.” | ||
Source: “Ford to reopen Canadian engine plant” by Bernadine Williams. Crain’s Detroit Business. March 31, 2008. “BMW to add plant, create wave of jobs across state” by Jenny Munro. The Greenville SC News. March 11, 2008. “Governor Rell: State Loan to Assist Prudential Retirement’s Expansion in Hartfor.d.” Press release from the State of Connecticut. March 19, 2008. “Pocatello turbine plant to create more than 160 jobs.” The Boise ID Statesman. March 11, 2008. “BAE gets $4.3 million from state” by Brent Burkey. The York PA Daily Record. March 14, 2008. “State to gain 459 jobs from two companies” by Jonathan B. Cox. The Raleigh-Durham NC News & Observer. March 14, 2008. “Dell to close Austin plant, cutting more than 800 jobs” by Kirk Ladendorf. The Austin TX American-Statesman. March 31, 2008. “Union Tank to close EC plant, cutting 445 workers” by Andrea Holecek. The NorthWest Indiana Times. March 28, 2008. “Western Union cuts 650 union jobs in Missouri, Texas” by Hugh Son. Bloomberg News Service. As seen in the Denver Post. March 20, 2008. |
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