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Braselton, Georgia Scores Two Major Economic Development Projects

Braselton, Georgia Scores Two Major Economic Development Projects

Braselton, GA – Two Japanese companies – Hitachi Power Tools (HPT) and sports equipment maker Mizuno USA – have announced plans to relocate some or all of their North American operations to the northeast Georgia community of Braselton.

HPT said it will relocate its headquarters there later this year “to consolidate warehouses on the east coast, improve workplace efficiency as well as prepare for expected future growth.”

The company will operate out of a new 540,000-square foot facility featuring a state-of-the-art cross dock facility with access to both the north and southbound I-85 Highway and the newly rerouted State Route 124.

HPT, a subsidiary of Tokyo-based Hitachi Ltd., manufactures professional grade power tools and accessories for woodworking, metalworking, drilling and fastening, concrete drilling and cutting, outdoor power equipment products, as well as a complete line of pneumatic nailers, staplers, compressors and collated fasteners.

“This new location is ideal to maximize warehousing efficiency and provide the over 100 current Hitachi employees with a professional work environment in an exciting area of Georgia that is experiencing its own growth and development,” the company said.

By the end of this year, Mizuno USA will relocate all of its distribution and manufacturing operations to a new 520,000 square-foot facility “that will significantly increase the current supply chain footprint to meet emerging and future supply chain needs.”

“Mizuno USA has seen strong growth, tripling sales since 2000,” said Bob Puccini, President of Mizuno USA, Inc. and Director of Mizuno Corporation. “Our growth expectations are even higher for the next five years with award-winning innovations and increased spending in brand marketing initiatives. This investment is a critical next step for our business to be able to service the omni-channel supply needs of our customers and consumers.”

The new facility will merge the company’s two distribution facilities to service all Mizuno USA divisions, including running, golf, and team sports, and relocate its golf manufacturing center from Norcross, Georgia, increasing its custom golf club production capabilities two-fold.

Current Mizuno employees will transition to the new facility later this year following renovations to the new facility.

The distribution center will have 150 full time positions and bring seasonal work opportunities starting in 2015, while the company’s US corporate offices will remain in Norcross.

06/26/2014

 

The Most Tax Friendly Country? Canada, Says Report

Ontario, Canada – Canada remains the world’s most tax friendly country for global business, according to KPMG’s Competitive Alternatives 2014: Focus on Tax report.

Canada’s top international ranking, the international business consultancy said, “is mainly due to low effective corporate income tax policy combined with moderate statutory labor costs, as well as the country’s system of harmonized sales taxes.”

The United Kingdom ranked in second spot with Mexico landing in third in terms of tax competitiveness. The study also revealed there is no standard approach in setting tax policy among the countries analyzed.

Although the types of taxes used to raise government revenues are more or less similar among countries, it found that “there is a large range in how these taxes are weighted and applied.”

Some countries, it said, “have a tax policy focused on delivering a low corporate income tax rate in order to compete for more businesses. Those countries may need to rely more heavily on other taxes, such as sales or payroll taxes, to derive their tax revenues.”

Similarly, other countries “use their tax policies to attract certain types of businesses with targeted incentives for activities such as manufacturing or research and development.”

The countries were scored based on their TTI, or Total Tax Index, with the US, which ranked fifth on the list, providing the benchmark at 100.0.

For example, an overall TTI number of 51.6 means total tax costs are 48.4 percent lower in that country than in the US.

Spotlighted countries given as examples were Canada (53.6 percent); the UK (66.6 percent); Mexico (70.2 percent); The Netherlands (74.5 percent); the US ( —); Australia (112.9 percent); Germany (116.3 percent); Japan (118.6 percent); Italy (135.8 percent); and France (163.3 percent).

 

06/26/2014

“Basic Framework” in Place for Global Services Pact

Washington, DC – Negotiators will meet next week to work on what US Trade Representative Michael Froman has called a “basic framework” of the proposed working on the Trade in Services Agreement (TISA).

“The basic framework of the agreement is in place, initial market access offers have been exchanged, and sector-specific work in areas like telecommunications and financial services is in full swing,” said Froman.

The TISA, which seeks to free up trade in services from cross-border data flows and monopolies by state-owned enterprises to air pollution monitoring, shipping and postal services, is being negotiated among 50 countries that make up nearly two-thirds of global services trade.

In 2013, US exports of private services measured nearly $659 billion, and the sale of services through foreign affiliates were nearly $1.3 trillion.
Combined then, international sales of services by US companies amount to approximately $1.8 trillion per year with the sector currently generating some 80 percent of the country’s private sector jobs.

According to the European Commission in Brussels, the EU’s service sector accounts for almost 75 percent of gross domestic product and employment.
Taking into account the value added by services such as transport, logistics, finance and communication, the services sector contributes around half the value of total exports in the US, the United Kingdom, France, Germany and Italy, according to the World Trade Organization in Geneva.

In China, where services make up only about 10 percent of gross exports, services value-added amounts are worth nearly one-third of the total.
The WTO estimates that services account for more than 40 percent of world trade, if measured in value-added terms, and two-thirds of the world’s foreign direct investment stock.

The seventh round of TISA talks will take place next week, involving the US, the EU, Australia, Canada, Chile, Colombia, Costa Rica, Hong Kong, Israel, Japan, South Korea, Mexico, New Zealand, Norway, Panama, Paraguay, Pakistan, Peru, Switzerland and several other countries.

Combined, the fifty nations represent nearly two-thirds of global trade in services and a combined services market exceeding $30 trillion.

06/25/2014

 

Portugal’s Frulact to Built Idaho Processing Plant

Rupert, Idaho – Frulact, the Portugal-based international fruit processor, has signed a Development Agreement with the city of Rupert, Idaho, to build a 200,000-sq-ft fruit preparation and processing plant there.

The new plant is slated to open for business in the last quarter of this year with more than 100 employees.

Frulact’s new Rupert facility is the first manufacturing Foreign Direct Investment (FDI) in Idaho and the company’s first entry into the US.

The family-owned company, founded in 1987, currently operates plants in Portugal, France, Morocco, and Algeria, develops custom-made fruit preparations for leading food labels in the dairy, beverages, ice-cream and industrial pastry sectors throughout Europe, Africa and the Middle East.

Frulact is among the Top 5 food processors in Europe and is expected to generate more than $204 million in 2013, the company said.

06/25/2014

Investigation of Steel Pipe Imports from Korea Urged

Washington, DC – More than 150 members of the House of Representatives have signed a letter to US Commerce Secretary Penny Pritzker urging a “thorough investigation of the dumping of Oil Country Tubular Goods (OCTG) steel pipe in the US market by South Korea.”

The bipartisan group behind the letter was jointly organized by Reps. Tim Murphy (R-Pennsylvania) and Pete Visclosky (D-Indiana). The correspondence comes a month after a similar letter was sent to the Commerce Secretary by a majority of members of the US Senate.

The same month, a preliminary ruling was issued by the Commerce Department (DOC) charging that eight countries are dumping OCTG pipe in the US at below fair-market value in response to a filing by US Steel and several other US-based steel makers and manufacturers.

“Notably absent, however, in the Commerce Department determination was any finding of wrongdoing by South Korea, the primary source of imported OCTG products,” the latest letter read. “With no market of its own, South Korea exports nearly all of its OCTG production – often at well-below market prices – to the United States.”

With a final decision set for July, the House letter is urging Pritzger “to fully investigate concerns regarding the accuracy of data submitted by South Korean steel companies.”

“As the surge continues, domestic steelmakers’ production, capacity utilization, shipments, and sales all fell in the first quarter of 2013, with operating income slashed by nearly $191 million,” the letter read.

Last week, the U.S. Steel Corp. announced it would “indefinitely” shutter its seamless tubular manufacturing facilities in McKeesport, Pennsylvania, and Bellville, Texas, as “unfairly traded tubular products imported into the US has affected business conditions.”

The company said it “remains committed to the tubular products business and to serving its tubular customers and has taken this decision so that the company can return to sustainable profitability.”

According to industry sources, OCTG imports from South Korea and the eight other countries targeted in the DOC determination more than doubled since 2008 and have grown by 61 percent thus far in 2014 compared to 2013.

Seamless OCTG pipes are primarily used for domestic oil exploration, including shale development.

06/24/2014

Ragu and Bertoli Sold to Japan’s Mizkan Group

Amsterdam, The Netherlands – Europe-based Unilever PLC has sold North America’s iconic Ragu and Bertoli brand name spaghetti sauces to Japan’s Mizkan Group for $2.15 billion.

Mizkan is a privately held maker of condiments and sauces that started as a rice vinegar maker in central Japan more than 200 years ago.

The deal reportedly includes the acquisition and operation of a sauce processing and packaging facility in Owensboro, Kentucky, and a tomato processing plant in Stockton, California.

Ragu is currently the best-selling pasta sauce in the US. Both Ragu and Bertoli have combined annual North American sales exceeding $600 million.

Mizkan announced the acquisition saying that it is “seeking to expand its international businesses to counterbalance poor prospects in its domestic market due to Japan’s aging population.”

The deal is expected to close within the next few weeks.

06/23/2014

 

Wells Fargo International Business Indicator

httpv://youtu.be/VdfJpmRJJOg

According to the latest Wells Fargo International Business Indicator survey,  nearly 70 percent of the US companies surveyed expect to see their international business activity increase over the next year. Additionally, more than half anticipate that their global business will be more important to their company’s overall financial success, both in terms of revenue and profit contributions.

Export-Import Bank Reauthorization Endangered

Washington, DC – The Export-Import Bank of the US (EXIM) is in danger of extinction as incoming House Majority Leader Kevin McCarthy (R-California) has said that he would not support reauthorizing its charter once it expires in September.

McCarthy, speaking on a Sunday news program, said he felt EXIM’s role in guaranteeing loans made to help US companies export their goods “is something that the private sector can be able to do.”

His comments echoed critics of the bank who say the bank creates too much interference in private markets.

According to McCarthy, “One of the biggest problems with government is they go and take hard-earned money so others do things the private sector can do. That’s what the EXIM does.”

If the bank’s charter isn’t reauthorized, it could continue servicing the loans it already has made and backed, but it wouldn’t be able to authorize new loans.

The bank, created 80 years ago, borrows money from the Treasury Department and pays interest on the funds to the Treasury. It then lends that money out and charges a higher interest rate, plus a fee, that generate its revenue.

EXIM has been technically self- sustaining since fiscal 2008, though Congress provides funding for the bank’s Office of Inspector General and sets the bank’s lending limit.

In 2012, lawmakers raised the bank’s lending limit to $140 billion from $100 billion. In fiscal 2013, the bank authorized $27 billion to support an estimated $37.4 billion in US export sales.

EXIM also sent $1.06 billion to the US Treasury, money it earned from interest and fees it charged its customers.

The White House has said that EXIM is critical to helping sustain US exports. Close to 60 other countries have agencies to help finance exports, and supporters of the bank have said that ending the Export-Import Bank would put U.S. companies at a competitive disadvantage.

A number of organizations including the National Association of Manufacturers, the Business Roundtable and the US Chamber of Commerce, as well as a number of large- and small-sized US exporters that have been assisted by the bank are joining forces to push for its reauthorization.

06/23/2014

TRACE Expands into Ghana, Hungary and Turkey

Annapolis, MD – TRACE International, the global anti-bribery association, has expanded its worldwide presence with new partnerships announced in Ghana, Hungary, and Turkey.

The latest organizations to partner with TRACE are CommerceGhana, an organization committed to facilitating investment in Ghana; EuCham CEE, a private, non-governmental institution working to enhance the business environment for companies operating in Europe; and the Ethics and Reputation Society, or TEID, a nonprofit organization dedicated to building a robust and ethical business culture in Turkey.

In the past 12 months, TRACE’s global footprint has expanded significantly, with a new on-the-ground presence in Dubai, Manila and New Delhi and new partnerships established with American Chambers of Commerce in Zambia and Libya and the Makati Business Club in the Philippines.

TRACE International is a non-profit membership association that pools resources to provide practical and cost-effective anti-bribery compliance solutions for multinational companies and their commercial intermediaries.

Founded in 2001, the association is one of the world’s leading non-profit organizations dedicated to anti-bribery compliance with hundreds of corporate members and thousands of intermediary members around the world.

06/23/2014

Global Licensed Merchandise Sales Increase

New York, NY – Retail sales of licensed merchandise worldwide increased 1.7 percent in 2013, rising to $155.8 billion from $153.2 billion in 2013, according to The Licensing Letter.

The US and Canada, the largest territory by far, with a 62.5 percent share of the global market for licensed goods, drove much of the growth, rising 2.2 percent to $97.5 billion.

However, many smaller licensing markets grew at a faster pace with China up 9.2 percent, India up 8.3 percent, Russia up 6.1 percent, and Brazil up 3.9 percent.

Sales of licensed consumer products in Western Europe declined 0.9 percent, with ‘Benelux’ and France seeing their rates of decline worsen compared to 2012.

Western Europe is the second largest territory for licensed merchandise, with retail sales of $31.3 billion in 2013.

“Japan was essentially flat — up 0.2 percent to $10.1 billion, but that represents an important turnaround as licensing there was 31.5 percent greater in 2008 than in 2013, with 2013 the first year in that period to see an increase,” the publication said.

06/21/2014