optimizing success of - gaccmidwest.org€¦optimizing success of munich trade fairs [6] german...
TRANSCRIPT
Optimizing Success ofMunich Trade Fairs [6]
GERMAN AMERICANGERMAN AMERICAN
What German EmployeesMust Know When Coming toWork in the U.S. Part II
WindEnergy Business 2007
Facilitating Secure TradeAcross the Atlantic
ThyssenKrupp Breaks Groundon it’s New Facility
Optimizing Success ofMunich Trade Fairs [6]
GACC • 75 Broad St • NY, NY 10004 • USA
Vo
lu
me
18
· N
um
be
r 1
0 ·
De
ce
mb
er
20
07
· $
5.0
0M
ag
az
ine
of t
he
Ge
rm
an
Am
er
ica
n C
ha
mb
er
of C
om
me
rc
e
TRADETRADE
PRSRT STDUS POSTAGE
PAIDCLEVELAND,OHIOPERMIT #1890
59987_GACC_ACG 11/23/07 11:08 AM Page 1
OFFICES THROUGHOUT THE UNITED STATES, CANADA AND 35 MORE COUNTRIES100 Park Avenue, 24th Floor New York, New York 10017 212.758.3131 www.cresapartners.com
59987_GACC_ACG 11/23/07 11:08 AM Page 2
Viewpoint
German American Trade · Vol. 18 · No. 10 3
The United States is the
most important trade
and investment partner
of the European Union. Bilater-
al trade volume last year
amounted to over 600 billion
Euro (about $800 billion); bilat-
eral investment volume roughly
to 1.5 trillion Euro (that is sig-
nificantly more than $2
trillion). Yet we have far from
realized the full potential of
European-American economic
relations. Differing standards
and bureaucratic hurdles con-
tinue to hamper unlimited
trade in goods and services as
well as direct investments.
Companies on both sides of the
Atlantic are therefore rightfully
calling for existing and future
regulations to be harmonized or
mutually recognized.
German Chancellor Merkel
took up this challenge and
made it a priority during Ger-
many’s EU presidency in the
first half of this year to remove
remaining nontariff trade and
investment barriers in both
economic regions. At the EU-
U.S. Summit in Washington on
April 30, 2007, the Framework
for Advancing Transatlantic
Economic Integration was
signed. Its successful imple-
mentation should give new
momentum to EU-U.S. eco-
nomic relations. It can
contribute to accelerating eco-
nomic growth in Europe and
the United States, securing
existing jobs, and creating new
ones. It will mean lower costs
for industry, improved oppor-
tunities for business sales, and
lower prices for consumers.
The Transatlantic Economic
Council (TEC), led by EU
industry commissioner Günter
Verheugen and Allan B. Hub-
bard, economic-policy adviser
to the U.S. President, will form
the core of future regulatory
cooperation. The Council com-
menced its work in Berlin late
last June. On November 9, the
full body met for the first time
in Washington. The Transat-
lantic Economic Council will
also meet twice annually in the
future to identify priority
action areas and evaluate
progress in the transatlantic
economic relationship.
Among the “lighthouse pri-
ority projects” which have
already been taken up are pro-
tection of intellectual property,
common standards for secure
trade, mutual recognition of
accounting standards no later
than 2009, deeper cooperation
in the field of innovation and
technology, and elimination of
investment barriers.
The product groups partic-
ularly targeted for speedy
harmonization of regulations
include cosmetics, medica-
tions and medical products,
automotives, chemicals, and
electronic articles.
The business community
should continue to support the
integration of both the EU and
U.S. economic areas by articulat-
ing its concerns and proposals to
governments on both sides of the
Atlantic and to the EU Commis-
sion on a regular basis and within
existing structures, particularly
via the Transatlantic Business
Dialogue, and by actively collab-
orating on implementation. �
Strengthening TransatlanticEconomic Relations –Transatlantic Economic Council
Dr. Klaus Scharioth
German Ambassador
to the United States
59987_GACC_ACG 11/23/07 11:08 AM Page 3
German American Trade · Vol. 18 · No. 1044
Advertisement
Present a gift of luxury this season…TT HH EE WW ÖÖ LL FF FF EE RR CC OO RR PP OO RR AA TT EE GG II FF TT PP RR OO GG RR AA MM
139 Sagg Road, P.O. Box 9002Sagaponack, Long Island, NY 11962
631.537.5106www.wolffer.com [email protected]
Whether for your valued clients or loyal
staff, our Corporate Collection offers a
wide range of luxury wine gifts for this
holiday season. Each gift is delightfully
presented in a hand-crafted wooden box.
59987_GACC_ACG 11/23/07 11:08 AM Page 4
Contents
5
Contents
German American Trade · Vol. 18 · No. 10
Feature
11 Honorary Consul Series:E.B. Robinson, Jr.
Part 9 of a 9-part series.
14 Düsseldorf – an ExcitingMix of Christmas Marketsand Shopping
With Delta Air Lines’ dailynon-stop service fromAtlanta to Düsseldorf it hasnever been easier to visitthe city during its mostatmospheric time.
16 Terms of Assignment
Part Two of Two
What German EmployeesMust Know When Comingto Work in the U.S.
Regions
20 Midwest
WindEnergy Business 2007
US-German Opportunitiesfor Cooperation inWindEnergy
24 Washington
Facilitating Secure TradeAcross the Atlantic
The Federation of GermanIndustries (BDI), RGIT andthe TransAtlantic BusinessDialogue (TABD) hosted aconference on facilitatingsecure transatlantic trade.
26 Atlanta
ThyssenKrupp BreaksGround On the Site of itsSteel and Stainless SteelFacility
Member Profiles
30 Thermamax
American Engine MeetsGerman High-Tech-Coat
Regulars
3 Viewpoint
Dr. Klaus Scharioth
Strengthening TransatlanticEconomic Relations –Transatlantic EconomicCouncil
32 Transatlantic Ticker
German AmericanCompany News
33 Economic Indicators
34 Masthead
Cover Story
6 Cover Story
Optimizing Success ofMunich Trade Fairs viaExpansion of theInternational Network
Munich International TradeFairs Group (MMI) hasrisen to become a globalplayer since its founding in1964. Today it is one of thefive largest trade fair com-panies in Germany and oneof the leading trade fairorganizers worldwide. MMIfocuses on topics of thefuture and has developed acompetitive event portfoliosince its founding withapproximately 40 of itsown international tradefairs today.
59987_GACC_ACG 11/23/07 11:08 AM Page 5
6 German American Trade · Vol. 18 · No. 10
Cover Story
Optimizing Success ofMunich Trade Fairsvia Expansion of the International Network
Munich International Trade Fairs Group (MMI)
has risen to become a global player since its
founding in 1964. Today it is one of the
five largest trade fair companies in Germany
and one of the leading trade fair organizers
worldwide. MMI focuses on topics of the future
and has developed a competitive event portfolio
since its founding with approximately 40 of its
own international trade fairs today.
59987_GACC_ACG 11/23/07 11:09 AM Page 6
German American Trade · Vol. 18 · No. 10 7
Cover Story
The focal points of MMI
include leading interna-
tional trade fairs for
capital goods; for example, the
construction industry, beverage
technology, transport and
logistics, environmental tech-
nology, the ceramics industry,
skilled trades and commercial
real estate. In consumer goods,
for example, it has trade fairs
for sports and fashion, watches
and jewelry and tourism. It also
has leading trade fairs in the
areas of electronics and com-
munication and information
technology.
Building up a comprehensive
trade fair program was possible
because Munich International
Trade Fairs Group continuously
expanded its infrastructure.
Since 1998, exhibitors and visi-
tors from throughout the world
meet at the extremely modern
New Munich Trade Fair Centre.
These trade fair grounds have
more than 180,000 square
meters of hall space and
360,000 square meters of open-
air exhibition grounds. The
International Congress Center
Munich (ICM), integrated into
the trade fair grounds, is
among the five largest congress
centers in Germany with a
capacity of 6,000 seats.
Every year, more than 30,000
exhibitors and approximately
two million visitors from
almost 200 countries attend
the events in Munich. Howev-
er, the trade fairs in Germany
have not just been platforms
for international exhibitors
and visitors as German organiz-
ers also hold numerous trade
fairs in many international
markets as well.
Munich International Trade
Fairs Group recognized the
potential of its events for inter-
national markets at an early
stage and has expanded its
international trade fair net-
work in other countries since
the end of the 1980s.
In the wake of its interna-
tionalization strategy, the
company has exported core
topics of its trade fair program
into selected, high-growth
markets worldwide. It can take
advantage of the 60 years of
experience of its subsidiary
IMAG – Internationaler Messe-
und Ausstellungsdienst GmbH
(International Trade Fair and
Exhibition Service Company)
in other countries. IMAG has
been organizing more than 60
trade fairs and trade fair partic-
ipation in more than 25
countries annually since 1946,
and IMAG has organized more
than 4,000 trade fairs and trade
fair participation throughout
the world since its founding.
Munich International Trade
Fairs Group has been placing
emphasis on expanding its
international network for
many years to support
exhibitors and visitors alike not
only with professional skills,
but also by holding events
close to where they are located.
In addition, MMI has 66
representatives covering 89
countries. One of those repre-
sentatives is the German
American Chamber of Com-
merce in New York. As
representative of Munich Inter-
national Trade Fairs Group in
the USA, it has acted as an
experienced and capable
contact and partner for
American exhibitors and visi-
tors for many years. In
addition to overseas represen-
tatives, Munich International
Trade Fairs Group has six sub-
sidiaries, which are located in
Singapore, Shanghai, Beijing,
Hong Kong, Vienna and – since
July 2007 – in Mumbai.
The expansion of Munich
International Trade Fairs Group
is not just limited to its sub-
sidiaries and their events. Its
involvement in China in build-
ing and operating the Shanghai
New International Expo Center
(SNIEC) was a significant mile-
stone for MMI. This joint
venture of the three trade fair
companies from Munich, Dus-
seldorf and Hanover as well as
a Chinese partner attracted
more than 52,000 exhibitors
and approximately 2.7 million
visitors to a total of 75 events
in 2006.
In the expansion of Munich
International Trade Fairs
Group’s international network
and programs the core compe-
tence areas at Munich are
established in important mar-
kets on other continents. For
example, a global trade fair
concept was developed for elec-
59987_GACC_ACG 11/23/07 11:09 AM Page 7
8 German American Trade · Vol. 18 · No. 10
Cover Story
Interview with Manfred Wutzlhofer, Chairman & CEO of Munich International Trade Fairs Group
How satisfied are you with the trade fair
year 2007?
The year 2007 was a very strong trade
fair year which was characterized by lead-
ing international trade fairs such as BAU
and bauma for the construction industry,
ISPO Winter for the area of sporting
goods and sports fashion, ITMA –
International Exhibition of Textile
Machinery – and PRODUCTRONICA for
electronics production. We were able to
record new all-time records in the events
cited for the numbers of exhibitors and
visitors. The tendency to increasing
exhibitor and visitor figures at our trade
fairs in the first half of 2007 has continued
at the fall trade fairs held till now. Overall,
we had 45 large international events in
Munich as well as other large internation-
al congresses and guest events. We
expect the best result in the history of the
Munich International Trade Fairs Group in
2007.
What is the outlook for the year 2008 and
what will be the innovations?
We want to prove our quality with cre-
ative continuity in 2008 too. This is the
basis for maintaining and developing the
acceptance of our products and services
on their existing high level by our cus-
tomers.
We have again been able to acquire
interesting new guest events for Munich
for the upcoming trade fair year 2008.
These include the largest European solar
energy trade fair INTERSOLAR, which
deals with renewable energy sources in
times of climate change. It fits perfectly
into our trade fair program, because the
topic of environmental and climate pro-
tection is also dealt with at BAU, IFAT and
even ELECTRONICA for example. Another
new topic is the GPEC, the International
Exhibition & Conference for Police and
Special Equipment. And finally, we recent-
ly signed a contract for the European
Attractions Show EAS 2008, which deals
with the topic of equipment for carnivals
and amusement parks, among other
things, and which will take place during
Oktoberfest 2008.
Of course, we will maintain and expand
further all of our services for our complete
trade fair program on their current high
level. Our newly developed central mar-
keting service will also be pushed ahead.
What is the significance of your involve-
ment in India?
In addition to China, India is one of the
focal point countries for our trade fair
activities in Asia due to its increasing eco-
nomic significance. This is being reflected
in the growing offers of our own events in
this country, where investments in infra-
structure, education, health and environ-
mental protection are primary objectives
due to the country's development. At the
same time, India offers international
investors a young population, specialists
who speak English, legal security, politi-
cal stability and increasing buying power
of the middle class. All of these factors
were decisive in our decision to become
involved in India.
In the future, Vietnam will also play an
increasingly strong role, both with
respect to exhibitors and visitors in
Munich as well as a site for our own
trade fairs in the country.
Are you planning additional
joint projects with part-
ners in other countries?
The expansion of our
international trade fair
program will also be con-
tinued dynamically. It is
the logical consequence of
our efforts to support our
customers from the
exhibiting industry worldwide, especially
within the framework of our leading trade
fairs, to acquire new customers and con-
sequently to maintain our competitive-
ness in Germany too. Our activities
extend particularly to all of Asia with the
focal points of China, India and Vietnam
as well as to the Middle East, North Africa,
Latin America and especially to Eastern
Europe. We always work with local part-
ners on site to this end.
What do you think could make it easier for
international exhibitors and visitors to
take part in trade fairs in Munich?
We would like to see the elimination of
the duty to pay value-add tax on invoices
for our international exhibitors. This
would make things much easier both for
the these customers and for the trade fair
companies. Fast granting of visas for
trade fairs by the German embassies is
also extremely significant for our interna-
tional trade fairs. Exhibitors and visitors
expect that their international business
partners are represented completely at
trade fairs and not just those, who can
travel to Germany without a visa.
59987_GACC_ACG 11/23/07 11:09 AM Page 8
German American Trade · Vol. 18 · No. 10 9
Cover Story
tronics trade fairs, which cov-
ers events in East Asia, India
and South Ameri-
ca. This concept is
also used for other
industries repre-
sented at Munich
such as the con-
struction industry,
beverage technolo-
gy, environmental
technology and
transport. Trade
fair schedules can
be coordinated
better thanks to a
combination of
leading international and
regional trade fairs. Trade fair
offers can be adapted better to
respective markets and the
marketing activities of
exhibitors, visitors, associa-
tions and the press can also be
coordinated. One essential
objective of the Munich trade
fair business is systematic sup-
port of industries in this
context, including in markets
far from Munich with their
own conditions.
The example of China
showed that the transfer of
leading world trade fairs such
as bauma, IFAT and Analytica
creates positive synergies both
for the German and Chinese
versions of these events. For
the events in Munich, this
means that the number of
exhibitors and visitors from
China has increased continual-
ly since the Chinese
counterpart was held for the
first time. The number of Chi-
nese visitors increased for
bauma in Munich alone from
173 in 1995 to 2,259 at this
year’s event.
The growth in India is even
better news, where MMI and its
subsidiary IMAG
have achieved great
success for some
years with their own
events such as ANA-
LYTICA ANACON,
TEXMAC, AUTOMA-
TION and AUTO
EXPO thanks to the
increasing economic
significance of the
country. While only
495 visitors from
India came to
Munich in 1994,
Munich International Trade
Fairs Group was able to wel-
come more than 11,000
visitors from there this year.
India is already one of the
biggest economies in the
world. Above-average growth is
predicted for the Indian econo-
my in the near future
compared to Europe and the
USA. According to these fore-
casts, India will become the
third largest economy in the
world following China and the
USA.
Based on these economic
forecasts and the good experi-
ence in China, Munich
International Trade Fairs Group
founded its own subsidiary in
India in July 2007. With head-
quarters in Mumbai, the
central economic region of the
whole subcontinent, this
organization fits perfectly with-
in MMI’s strategy for
international countries. MMI
and its subsidiary MMI Asia in
Singapore are the stockholders,
each with a share of 50 percent.
The business goal is the organ-
izing and holding of trade fairs
in India and Munich Interna-
tional Trade Fairs Group was
able to recruit Manmeet Sabar-
wal an experienced India trade
fair and media expert as gener-
al manager.
The first task will be the new
development of electronicIndia
at Bangalore, the center of the
Indian IT and electronics
industry. There is currently no
event for this sector in South-
ern India, but there is a big
market with a corresponding
demand. The first electronicIn-
dia will take place from
September 2 to 5, 2008.
Manfred Wutzlhofer, CEO of
Munich International Trade
Fairs Group, stated with respect
to the expansion of the interna-
tional network: “The expansion
of our international trade fair
program will also be continued
dynamically in the future. It is
the logical consequence of our
efforts to support our customers
from the exhibiting industry
worldwide, especially within
the framework of our leading
trade fairs, to acquire new cus-
tomers and consequently to
maintain our competitiveness
Every year, more
than 30,000
exhibitors and
approximately
two million
visitors from
almost 200
countries attend
the events
in Munich.
59987_GACC_ACG 11/23/07 11:09 AM Page 9
10 German American Trade · Vol. 18 · No. 10
Cover Story
in Germany too. Our activities
extend particularly to all of Asia
with the focal points of China,
India and Vietnam as well as to
the Middle East, North Africa,
Latin America and especially to
Eastern Europe. We always
work with local partners on site
to this end. In addition to Chi-
na, India is one of the focal
point countries for our trade
fair activities in Asia due to its
increasing economic signifi-
cance. This is being reflected in
the growing offers of its own
events in this country, where
investments in infrastructure,
education, health and environ-
mental protection are primary
objectives due to the country’s
development. At the same time,
India offers international
investors a young population,
specialists who speak English,
legal security, political stability
and increasing buying power
of the middle class. All of
these factors were crucial in
our decision to become
involved in India.”
Munich International Trade
Fairs Group has continued its
strategy in international coun-
tries consistently with the
founding of the subsidiary in
Mumbai. The objective has
been defined clearly. The suc-
cessful concept from China – to
build even closer relations to
the market and customers and
consequently expand the posi-
tive results at Munich with an
owned company – will now be
applied to all of Asia and espe-
cially to India.
In addition to global expan-
sion, of course new and self-
developed events, as well as
renowned guest events in
Munich are focal points of
MMI’s attention.
In November 2007, oils +
fats, International Trade Fair for
the Production and Processing
of Oils and Fats from Renew-
able Resources, will take place
in the M,O,C, Event Center
Munich for the first time. With
this event and following Auto-
matica and Maintain, Munich
International Trade Fairs Group
is again demonstrating its com-
petence and innovation
potential in developing new
events, which it has started
over the past three years.
MMI has also been able to
acquire interesting new guest
events for the upcoming trade
fair year 2008. These include the
largest European solar energy
trade fair INTERSOLAR from
June 12 to 14, 2008, which deals
with renewable energy sources
in times of climate change.
Another new topic is the GPEC
from June 3 to 5, 2008, the
International Exhibition &
Conference for Police and Spe-
cial Equipment. Munich
International Trade Fairs Group
also signed a contract in Octo-
ber for the European Attractions
Show EAS 2008, which deals
with the topic of equipment for
carnivals and amusement parks,
among other things, and which
will take place during Oktober-
fest 2008.
With these new events
the wide-ranging event portfo-
lio of Munich International
Trade Fairs Group is being
expanded by additional, top-
rate trade fairs. �
59987_GACC_ACG 11/23/07 11:09 AM Page 10
German American Trade · Vol. 18 · No. 10 11
Features
For over 32 years I was with the largest bank holding company based in Mississippi, serving as its CEO for over a decade prior to my retirement in 1999
from that organization. The contacts and knowledge of Mississippi from those 32 years have been useful
in carrying out my duties as honorary consul, particularly in times of crisis such as the recent hurricane devastation.
How would you characterize both
your relationship to Germany
and Germany’s importance to you?
Germany to me is the most
important foreign relationship
the U.S. has and vice versa. There
is much in common from a cul-
tural standpoint and a business
one. In Mississippi, the Stennis
Space Center on the Mississippi
Gulf Coast wouldn’t be in exis-
tence but for the former German
scientists who helped propel the
U.S. into space.
Why have you agreed to serve
Germany as an unsalaried
honorary consul?
I want to aid German citizens
and businesses in Mississippi
and to promote cultural and
economic ties between Ger-
many and the U.S.
What do you value most
about Germany and its people,
what less so?
I value the German people’s
ingenuity, cleverness, and
exactness. I am also encour-
aged to see the citizens of
Germany acting more individ-
ually and not as much as a
group unwilling to be different
from the German norm.
What do you value most
about the United States
and Americans, what less so?
I value the American people’s
individuality and entrepre-
neurship. I also value the
willingness of Americans to let
other Americans speak up on
issues they may not agree with
out of respect for the right of
free speech and thought.
What comes to mind when you
hear the word Heimat?
Heimat makes me think of
the German homeland, its cul-
ture, spirit, traditions, regional
dress and food.
In what respect is Germany
important to your region
of the United States?
German companies are
major employers in the
region, and, particularly in
the automotive field, are mak-
ing the South an automotive
manufacturing center.
How would you describe your role
as a link between Germany
and the United States?
My role as honorary consul
is to provide some consular
services to German citizens in
Mississippi. Additionally, my
role is to promote goodwill
between Germany and the
U.S. As an example: Mississip-
pi was fortunate to have the
‘Glory of Baroque Dresden’
Exhibition, which brought
the wonderful art of that mar-
velous German city to the U.S.
I helped make this possible as
honorary consul and as chair
of the group that was respon-
Honorary Consul Series: Part 9/9
E.B. Robinson, Jr.
59987_GACC_ACG 11/23/07 11:09 AM Page 11
sible for having the exhibi-
tion. A much greater
understanding of Germany
and Germany’s great art and
cultural history was the result.
The period and history sur-
rounding the objects in the
exhibition were taught in
Mississippi schools, and
the opening was broadcast
statewide on Public Televi-
sion. There was nation-
wide media coverage of Chan-
cellor Schröder’s visit to
the exhibition.
What impact do the political
relations between the two coun-
tries have on your work?
Political relations have a
tremendous impact on public
perception of each other in
both countries.
How does your community
respond to you as German
Honorary Consul?
The community responds
very favorably to my role as
honorary consul.
What official act that you carried
out as Honorary Consul has
influenced or engaged you most?
Perhaps the most rewarding
accomplishment recently in my
work as honorary consul was
searching for and helping Ger-
man citizens who were impacted
by Hurricane Katrina on the Mis-
sissippi Gulf Coast. With help
from the Embassy in Washing-
ton and the Atlanta Consulate,
as a team we were able to locate
all German nationals who had
not been heard from in the days
immediately following Katrina
and deliver some aid to those
who needed it. Since then, the
German Government has con-
tinued to offer assistance and aid
to the citizens and communities
on the Mississippi Gulf Coast
who are still in dire straits.
What do you wish for Germany
and the United States
in the future?
I wish for continued close ties
between Germany and the Unit-
ed States. Since the United States
is decreasing its military presence
in Central Europe and moving it
further East, the relationship will
have to be continually worked
on, for there will not be as much
military personnel returning to
the United States from Germany
with a favorable impression of
Germany as in the past. �
12 German American Trade · Vol. 18 · No. 10
Features
Advertisement
59987_GACC_ACG 11/23/07 11:09 AM Page 12
German American Trade · Vol. 18 · No. 10 13
www.bbraunusa.com
B. Braun’s 34,000 employees provide products and
services to 68,000 hospitals in over 50 countries worldwide.
We’ve been a leader in anesthesia, pharmacy and infusion
systems for 168 years, making patient care safer, more
efficient and more cost-effective.
Rx only. ©2007 B. Braun Medical Inc., Bethlehem, PA. All rights reserved. HB807 JH
Dialysis
Drug Delivery
Infusion Systems
Interventional
Irrigation/Urology
IV Sets & Access Devices
Needlefree IV Systems
Nutrition & Solutions
Pain Control
Pharmacy Admixture
Products & Services
Vascular Access
59987_GACC_ACG 11/23/07 11:09 AM Page 13
German American Trade · Vol. 18 · No. 1014
Features
DüsseldorfAn Exciting Mix of Christmas
Markets and Shopping
59987_GACC_ACG 11/23/07 11:09 AM Page 14
German American Trade · Vol. 18 · No. 10 15
With Delta Air Lines’
daily non-stop serv-
ice from Atlanta to
Düsseldorf it has never been
easier to visit the city during its
most atmospheric time.
Santa Claus loaded with
presents, shopping bags full to
bursting. Mulled wine and
red-hot credit cards – Düssel-
dorf in the Advent season is
an exciting mix of Christmas
market and shopping. Around
Königsallee, the new
Sternchenmarkt and five oth-
er theme markets along the
most popular shopping streets
are waiting to be discovered.
In the pre-Christmas sea-
son, a stroll through
Düsseldorf’s cen-
tre is a wonderful experience.
Atmospheric Christmas markets
with individual themes are
staged at different places in the
lively city centre: this year, the
Sternchenmarkt has its premiere
at Stadtbrückchen, where giant
crystals and twinkling stars
bathe sky-blue market stalls in
the light of an impressive winter
landscape. On Marktplatz in
front of the historic town hall,
numerous nostalgic huts offer
arts and crafts. The Engelchen-
markt in art-nouveau style
claims the attention on Hein-
rich-Heine-Platz in the Old
Town. On Flinger Straße, Christ-
mas goods are presented in
small hand-painted reproduc-
tions of historic middle-class
houses. Schadowplatz is particu-
larly family-friendly with a
merry-go-round and special
activities for children. XXL-
sized Santa-Claus hats, reindeer
and coloured lights adorn the
huts on Schadowstrasse.
A walk along world-famous
Königsallee is particularly worth-
while. A thousand brilliant lights
illuminate the giant chestnut
trees lining the boulevard.
Opening times of the Christ-
mas market: November 22 to
December 23 daily from 11
a.m. to 8 p.m. Sunday to Thurs-
day, and to 9 p.m. Friday and
Saturday. Closed on Sunday,
November 25. Shops open for
business on Sunday, December
2 (1 p.m. to 6 p.m.)
Travelling to Düsseldorf is
very convenient. Delta Air
Lines, Northwest, LTU / Air
Berlin and Lufthansa offer
numerous direct flights from
various destinations within the
US to Düsseldorf – your Gate-
way to Europe. �
For hotel offers and further
information please go to
www.duesseldorf-weihnachtsmarkt.de
and www.duesseldorf-tourismus.de.
More Information
Features
59987_GACC_ACG 11/23/07 11:09 AM Page 15
German American Trade · Vol. 18 · No. 1016
Features
Terms ofAssignment
What German Employees Must Know When Coming to Work in the U.S.
By Wendi S. Lazar, Esq., with Ian M. Maywald
Part Two of Two
59987_GACC_ACG 11/23/07 11:09 AM Page 16
It is important for German
employees considering
employment in the U.S. to
have a fairly negotiated contract
of employment (expatriate or
secondment agreement) prior to
their relocation. However, since
most U.S. companies shy away
from these agreements and
prefer at-will employment to
any contract guaranteeing
employment and severance,
often the employee is offered
only an assignment policy to
refer to or a letter outlining the
terms of the expatriation.
Knowing the differences
between working and living in
Germany versus the U.S., and
what is essential for the compa-
ny to provide an employee
during the assignment, can
prevent hardship and dis-
appointment later on. A U.S.
lawyer, skilled in representing
expatriates, can negotiate
assignment terms prior to
employment and make sure
they are memorialized in a let-
ter signed by both parties.
Also, once an expatriate is
employed in the U.S. or even
before she arrives, the company
will present her with its human
resources policy in a handbook
or code of conduct. Often, an
employee will be asked to sign for
the receipt of this policy, and vio-
lating it can subject an employee
to disciplinary procedures includ-
ing suspension or, worse,
termination. Notably, U.S. work-
place policies vary greatly from
German codes of conduct and
should be read carefully.
The following is a list of the
10 most important things to
negotiate when coming to the
U.S. to work.
Immigration Issues
A German employee plan-
ning to work in the U.S. will
most likely need to attain
employment authorization
before coming to the U.S. Usu-
ally, the employer will hire a
U.S. immigration lawyer and
pay any legal and processing
fees to file a petition with the
U.S. government for an
employee to work abroad on a
non-immigrant temporary work
visa and for the employee’s
family if needed. The types of
applicable visas include H, L,
O, P, or Q visas that vary
depending on the expatriate’s
position and level of education.
Tax Equalization
Generally, every expatriate
agreement should provide that
the employer pays for tax
advice and tax equalization
during and after U.S. employ-
ment. This ensures that the
German expatriate is made
financially “whole” while work-
ing in the U.S, preventing any
additional tax liability and pro-
viding her with tax assistance
in order to comply with both
German and U.S. tax laws.
R. Scott Jones of Goldstein
Jones LLP, an international tax
lawyer in New York, advises
that a German employee work-
ing in the U.S. is generally
subject to federal and applica-
ble state income taxes on
compensation for services per-
formed in the U.S. Any
German employee will be sub-
ject to U.S. taxes, even if the
individual is not a resident for
U.S. tax purposes, unless she
is exempt under the U.S./
Germany Income Tax Treaty as
a qualifying short-term visitor
for less than 184 days in the
calendar year. Jones further
advises that a German employ-
ee who is assigned to the U.S.
on a temporary basis remains a
resident of Germany for tax
purposes. If the German tax res-
idence is “broken” and the
expatriate working in the U.S.
German American Trade · Vol. 18 · No. 10 17
Features
Wendi S. Lazar, Attorney
at Law of Outten & Golden
LLP, an employment law
firm in New York City
represents employees,
both in the US and abroad.
She is co-head of the firm’s
Executives & Professionals
Practice Group and has
years of experience
representing expatriates
and senior level executives
worldwide. She regularly
writes and lectures
on expatriate rights
and executive agreements.
Outten & Golden LLP,
Advocates for
Workplace Fairness
3 Park Ave., 29th Floor,
New York, NY 10016
United States of America
Tel: +1 212-245-1000
Fax: +1 212-977-4005
www.outtengolden.com
About the Author
59987_GACC_ACG 11/23/07 11:09 AM Page 17
meets the definition of a U.S. tax
resident, the individual becomes
subject to income taxation in
the U.S. on a worldwide basis.
Social Security
Under the U.S./German
Social Security Totalization
Agreement, expatriates working
in the U.S. may participate in
both German and U.S. social
security systems. In those
instances, the amounts paid
over time from both German
and U.S. social security systems
are adjusted, and they “totalize”
each system’s benefits to better
approximate full benefits.
Under this treaty, German
expatriates are exempt from
paying social security taxes in
the U.S., provided the individ-
ual remains a German employee
and is sent to the U.S. for a peri-
od of five years or less. Further,
the expatriate remains insured
with the German pension insur-
ance system. A certificate of
coverage issued by Germany
serves as proof of exemption
from Social Security taxes on
the same earnings in the U.S.
Therefore, it is imperative that
the expatriate understand and
the U.S. employer agree to limit
the period of expatriation if the
German employee is unwilling
to sacrifice the German social
security and pension benefits.
Benefits
German expatriates coming to
the U.S. can choose to keep their
German benefits and send reim-
bursement forms to Germany or
they can negotiate with the
employer to be covered by a U.S.
plan. Depending on whether the
expatriate uses statutory or a pri-
vately owned insurance plan in
Germany, the employee will take
different actions with regard to
keeping her German insurance
effective while she is covered by
a U.S. plan. If the expatriate has
private insurance, she can pay
a minimal fee and keep her
status in the private insurance
(“freeze” the status). However,
she can always go back to the
statutory insurance.
Vacation
In Germany the statutory
number of vacation days is sig-
nificantly higher than in the
U.S., and expatriates should
negotiate to keep the same vaca-
tion days while abroad. In terms
of holidays, the employee will
have to follow the U.S. holiday
schedule and negotiate some
personal days to return home
for important German holidays
not celebrated in the U.S. In this
regard, periods of home leave as
well as emergency leave and
reimbursement for emergency
travel costs should be provided
by the U.S. employer.
Cost of living adjustment (“COLA”)
Usually, the employer will pro-
vide expatriates with additional
compensation to help offset cost
differentials for living in the U.S.,
if any. This extra compensation
is determined using the employ-
ee’s base salary, and using
changes due to fluctuations in
cost differentials between Ger-
many and the U.S. and
fluctuations in the exchange
rate. COLA is usually paid once
the employee moves into perma-
nent housing and is dis-
continued when she moves out
of that housing at the end
of the assignment. COLA
allowances typically end if an
employee changes from expatri-
ate status to local status.
Moving
The employee and her family
should request a relocation
allowance for additional expens-
es incurred on account of the
move from Germany to the U.S.
At times, the employee may be
expected to repay the relocation
allowance if her assignment ends
earlier than anticipated. This is
an important point to negotiate
in an employment agreement or
assignment letter, depending on
the cause for the termination of
employment. Similarly, employ-
ees are customarily reimbursed
for shipment costs to cover per-
sonal belongings, but policies
vary, and some may contain
unreasonable limits on the
amount that will be reimbursed.
Leave
Generally, the employee and
her family will be eligible for one
or two home leaves per year to
travel back to Germany to visit
family and/or friends. Some
employers recommend that, if
possible, these trips be combined
with business trips to Germany.
Usually, non-working days dur-
ing home leave are counted as
vacation. The employee and her
family are reimbursed for actual
and reasonable transportation
costs in accordance with the
employer’s travel policy.
Reassignment/Repatriation
It is highly recommended
that any expatriate assignment
letter or agreement contain full
reimbursement of moving
German American Trade · Vol. 18 · No. 1018
Features
59987_GACC_ACG 11/23/07 11:09 AM Page 18
expenses for relocating the
German expatriate back to Ger-
many after his assignment
ends. The employer should
make an employee ¨whole¨ by
paying all relocation and repa-
triation expenses even if the
employment is terminated.
Children
The employer will often pay
for private education in the U.S.,
particularly if the expatriate has
school-age children who need
language assistance. The differ-
ence between the German and
U.S. school system is vast. While
the quality of public education
in Germany is fairly high, in the
U.S. the quality of the public
schools varies from district to
district. The expatriate should
make sure that her attorney
negotiates this essential point
into her agreement or offer letter
and that a specific school or dol-
lar amount is allocated for
private or international school.
Codes of Conduct
Once an employee arrives in
the U.S. and begins work, the
company will usually hand the
new employee a handbook or
code of conduct. U.S. compa-
nies often expect their
employees to abide by these
codes, a practice that is still
unknown to the vast majority
of employees in Germany. Typ-
ically, codes of conduct contain
workplace policies or rules
regarding such issues as social
conduct, discrimination, priva-
cy and fraternization among
employees in and outside the
workplace. They often include
guidelines concerning bans on
smoking and the use of alcohol
and drugs in the workplace. In
various companies there are
very specific rules concerning a
company’s confidential and
proprietary information. Final-
ly, the codes usually contain a
provision imposing a duty to
report employee misconduct.
Although many of these
codes contain rules that are for-
eign and in many ways
repugnant to German employ-
ees (and would violate post-
Holocaust privacy statutes in
Germany), they should be tak-
en seriously, as a violation of
these rules can lead to termina-
tion of employment.
In addition, in the U.S.,
employees do not have a right
to privacy in the workplace,
and while there are laws in
place for protecting medical
records, there are few laws pre-
venting other kinds of data
collection, workplace monitor-
ing or email monitoring. In
fact, an expatriate moving to
the U.S. should be aware that
she may need to provide the
company with extensive per-
sonal information for a
background check and to take a
drug test, and she should
assume that her work email
may be monitored.
Conclusion
Working in the U.S. can be a
positive and rewarding experi-
ence for the internationally
mobile employee. However,
winding up in the U.S. without
a job and no contractual pro-
tections that would otherwise
guarantee rent, tuition, med-
ical care and relocation may be
the alternative reality if these
matters are not negotiated in
advance of employment. With
few statutory protections in the
U.S. under federal, state and
local law, an expatriate can be
in a compromised situation
with little relief. Seeking legal
counsel early in the process can
alleviate the stress of moving
and relocating and insure that
the expatriate experience is a
good one for the employee as
well as for the whole family. �
Ian Marc Maywald, Wissenschaftlicher
Mitarbeiter of CMS Hasche Sigle
in Cologne, Germany is doing a legal
training program at Outten & Golden
LLP in New York City. Besides his
practical work he is writing on his Ph.D.
thesis in law on employment law issues
in matrix-organized multinational
companies at the University
of Mannheim, Germany.
CMS Hasche Sigle
Theodor-Heuss-Ring 19-21
50668 Köln, Germany
Tel: +49 (0)221 7716-140
Fax: +49 (0)221 7716-110
www.cms-hs.com
CMS Hasche Sigle Partnerschaft
von Rechtsanwälten
und Steuerberatern
Registerangaben / Liste der Partner:
www.cms-hs.com
About the German Law Consultant
German American Trade · Vol. 18 · No. 10 19
Features
59987_GACC_ACG 11/23/07 11:09 AM Page 19
German American Trade · Vol. 18 · No. 1020
M I D W E S T
Regions
WindEnergyBusiness 2007US-German Opportunities for Cooperation in WindEnergy
Over 160 Participants Attend Des Moines Conference
MidAmerican Wind Farm
North of Des Moines, Iowa
59987_GACC_ACG 11/23/07 11:09 AM Page 20
German American Trade · Vol. 18 · No. 10 21
Regions
M I D W E S T
The German American
Chamber of Commerce
of the Midwest (GAC-
CoM) brought together over
190 companies and leaders in
WindEnergy from both sides
of the Atlantic on Tuesday,
November 6th, 2007, in Des
Moines, Iowa. Eight innova-
tive German companies also
presented their technologies
at the conference. This
demontstrated Germany’s
leadership position in devel-
oping major commercial wind
energy systems, which are
well-positioned to take
advantage of the enormous
market potential in the next
ten years in the Upper Mid-
west and Great Plains of the
United States.
The conference was high-
lighted by keynote speeches by
Iowa Governor Chet Culver
and Bob Gates, the President of
the American Wind Energy
Association and Senior Vice
President of Clipper Windpow-
er. Governor Culver recounted
his recent visit to the
HusumWind fair in Germany,
and reconfirmed Iowa’s goals
and position as the leading
state in the nation for renew-
able energy, citing Iowa’s
position as the largest producer
of ethanol, biodiesel, and hav-
ing the third largest installed
capacity of wind turbines in the
US. In his speech, he called on
Congress to set a national
Renewable Portfolio Standard
and for all presidential candi-
dates to embrace and commit
their support to renewable
energy. Bob Gates opened the
conference with an overview of
the explosive growth in the cur-
rent wind energy market and
challenges facing the industry
moving forward. He highlight-
ed a key shortage of critical
turbine components such as
large forgings and bearings,
which are in short supply due
to high demand for cranes and
other heavy equipment used in
booming construction markets
in the Middle East and Asia.
Two panels focused in more
detail on the German and US
markets. Dr. Christine
Woerlen, Head of Renewable
Energies at the German Energy
Agency (DENA), described pub-
lic policy initiatives such as
Germany’s feed-in tariff pro-
gram and other support that
has positioned Germany as by
far the world’s leading produc-
er of electric power from wind.
The US panel discussed the
increasing boom of wind tur-
bine development in the Upper
Midwest and plans for power
grid development to support
this growth, as well as commu-
nity-based wind development.
The grid issues are particularly
important, as Iowa is located in
the middle of a region that has
unprecedented wind resources,
which one panelist cited as the
“OPEC of Wind”, with enough
energy to easily meet the entire
US electricity demand. Howev-
er, this vast power resource
must be transmitted to major
population centers. Another
speaker cited that for next six
years, the sales forecast for tur-
bines and related components
within one day’s drive of the
center of the state is conserva-
tively valued at over $3.2
Representatives from the companies Asmus GmbH
and DRTS GmbH receive a tour of the control room
from the Iowa Lakes Electric Cooperative
German Delegation with Governor Culver
“There are incredible things happening in Iowa
related to renewable energy, and I am thrilled
to have the opportunity to promote our state
to renewable energy industry leaders
from Germany,” said Iowa Governor Chet Culver.
“With our leadership in ethanol, biodiesel
and wind power, Iowa is proud to be known
as the renewable energy capital of the U.S.
Iowa’s strong wind and workforce and make
it one of the best places in the world for wind
turbine manufacturing and wind power
production. As Governor, I will do everything
I can to form international business
partnerships, increase renewable energy
production and bring high-quality
21st century jobs to Iowa.”
59987_GACC_ACG 11/23/07 11:09 AM Page 21
Billion annually, as six of the
top 10 states ranked by wind
potential are also located in
the region.
Over 50 one-on-one meet-
ings between the German
companies and US businesses
were organized both before and
after the event, in addition to a
Roundtable Discussion, on the
Monday preceding the confer-
ence. At the roundtable, the
German delegation was briefed
by industry experts on a wide
range of developments and
opportunities in the Wind
Energy market in the Upper
Midwest. One highlight was
the presence of senior develop-
ment executives from major
independent developers of
wind energy projects like
Invenergy and Clipper Wind-
power, who shared their
experiences and plans for new
wind developments.
The top wind energy execu-
tives from MidAmerican and
Alliant Energy, two major regu-
lated utilities explained their
commitment to developing
their own wind parks. Tom
Budler of MidAmerican high-
lighted the fact that
MidAmerican owns more wind
turbines than any other public
utility in the US.
Executives from Holmes
Murphy and XL Insurance dis-
cussed what companies need to
do to protect themselves from
risks related to supply chain
delays, weather risk or equip-
ment failure. The wind
workforce was also addressed
by a pioneering program at
Iowa Lakes Community Col-
lege to educate future wind
energy technicians.
Several members of the dele-
gation concluded their visit
with a trip to Iowa’s wind coun-
try, visiting a cooperative that is
starting a new wind project, as
well as a stop at a MidAmerican
wind farm, and a tour of the
Wind Energy & Turbine Tech-
nology program at Iowa Lakes
Community College.
The conference was sponsored
by the German Ministry of Eco-
nomics and Technology, and was
supported by several organiza-
tions including the American
Wind Energy Association, the
Iowa Department of Economic
Development, Windustry, DENA,
and the Institute for Renewable
Energy and the Environment. �
German American Trade · Vol. 18 · No. 1022
M I D W E S T
Regions
Iowa Governor Chet Culver
delivering his keynote
speech on Iowa’s activities
in renewable energy
Advertisement
59987_GACC_ACG 11/23/07 11:09 AM Page 22
The Germanistic Society of America and the Committeeof the Quadrille Ball are delighted to announce the
48th Annual
Quadrille Ball
We look forward to welcoming you on January 19. And
we invite you to continue the support for scholarship
programs for German and American students, funded
through the Quadrille Ball. Your participation is vital to the young
men and women who benefit from the transatlantic academic
exchange the Quadrille provides. Through education, your sup-
port strengthens the German American relationship, helps bridge
cultural differences and deepens international understanding.
Quadrille Ball Committee
Co-Chairs: Heide Herz, Roswitha Keppler-Junius,
Michaela Leopold Clary, Jennifer Baron, Sabine Collins,
Alan Z. Feuer, Heide von Hardtmuth, Lizabeth Heimsoeth,
Irmintraud Jost, Annedoris Korallus, Dr. Markus Launer,
Katherine A. Pfeiffer, Dr. Ingrid Scheide-Fischer,
Susanne Nienaber von Türk
Germanistic Society
Chair: Dr. Barbara Elling
Treasurer: Lya Pfeifer
Diamond Sponsorship
Table of ten $10,000
Platinum Sponsorship
Table of six $6,000
Gold Sponsorship
Pair of tickets $3,000
Advertising Rates
for Quadrille Ball Journal:
$650 – $2,950
For information, please see the
website www.quadrilleball.org
or contact Mrs. Heide Herz
phone: 917 318 9340
email: [email protected]
Sponsor Information
Regions
N E W Y O R K
January 19, 2008
The Pierre Hotel, New York
German American Trade · Vol. 18 · No. 10 23
59987_GACC_ACG 11/23/07 11:09 AM Page 23
German American Trade · Vol. 18 · No. 1024
W A S H I N G T O N
Regions
With a view to the
first meeting of
the Transatlantic
Economic Council on Novem-
ber 9, the Federation of
German Industries (BDI), RGIT
and the TransAtlantic Business
Dialogue (TABD) hosted a con-
ference on facilitating secure
transatlantic trade.
In April, President Bush, EU
Commission President Barroso
and Chancellor Merkel, as EU
Council President, signed the
Framework for Advancing
Transatlantic Economic Inte-
gration between the European
Union and the United States.
Secure Trade was identified as a
priority Lighthouse Project.
To advance the Secure Trade
agenda, the BDI gathered key
players from the public and pri-
vate sectors to share practical
experiences in handling cus-
toms initiatives, and to debate
mutual recognition of the pri-
mary secure trade programs: the
U.S. Customs-Trade Partnership
Against Terrorism (C-TPAT) and
the EU Authorized Economic
Operator (AEO).
Opening speaker Dr. Huber-
tus Erlen, Vice-Chair of the
Supervisory Board of Bayer
Schering Pharma AG, set the
tone, affirming transatlantic
business is prepared to invest
in security but needs solutions
that are “efficient and reason-
able, not over-reactions.”
Citing the strength of transat-
lantic trade – $600 billion in
goods annually, 40 percent of
global trade – that supports 14
million jobs, Dr. Erlen pointed
to the risk of burdening these
connections with cumbersome,
expensive regulations.
To achieve mutual recogni-
tion or convergence, several
variances must be reconciled.
C-TPAT covers imports. Once
operational, AEO will cover
exports and imports. Some of
the AEO criteria address finan-
cial risk. The C-TPAT standards
focus on supply chain security.
Ralph Basham, Commission-
er, Customs and Border
FacilitatingSecure TradeAcross the Atlantic
59987_GACC_ACG 11/23/07 11:10 AM Page 24
German American Trade · Vol. 18 · No. 10 25
Regions
W A S H I N G T O N
Protection (CBP), explained
that C-TPAT fits into a multi-
layered strategy for identifying
and mitigating risks to home-
land security. Nearly 8,000
firms have become voluntary
participants in C-TPAT. CBP
seeks to boost the number of
foreign-firm members and to
streamline further the applica-
tion and certification processes.
Robert Verrue, Director Gen-
eral, Tax and Customs
Directorate, European Com-
mission (DG TAXUD), called
for greater cooperation to
address common concerns over
the safety of supply chains. He
applauded preliminary efforts
to assess the feasibility of
mutual recognition of C-TPAT
and AEO, which enters into
force on January 1, 2008.
The private sector represen-
tatives called on the
Commission to permit com-
panies with affiliates to
submit consolidated AEO
applications. Another sugges-
tion is to adopt paper-free
supply chains to reduce
paperwork and transaction
risk. Panelists noted the logis-
tical challenges in delivering
products “just in time”
through Europe, querying
how the Commission will
handle lorry deliveries origi-
nating outside the EU.
At lunch, John Bruton, EU
Ambassador to the U.S., voiced
European concerns over the
new U.S. law requiring 100 per-
cent scanning of U.S.-bound
containers, and of cargo carried
on passenger airplanes.
The conference closed with a
presentation of recommenda-
tions, including a roadmap
leading to mutual recognition,
to Christopher Padilla, Acting
Undersecretary, U.S. Depart-
ment of Commerce, and to
John Pulford, DG TAXUD. The
list underscored the imperative
for a coordinated approach to
trade facilitation and security,
the need for common stan-
dards, and the benefits of
mutual recognition. �
Dr. Erlen
Bayer Schering Pharma AG
Robert Verrue, EU Commission with Ralph Basham,
U.S. Customs and Border Protection.
Bernhard Welschke, President, RGIT
59987_GACC_ACG 11/23/07 11:10 AM Page 25
German American Trade · Vol. 18 · No. 1026
ThyssenKruppBreaks Ground
On the Site of its Steel and Stainless Steel Facility
A T L A N T A
Regions
59987_GACC_ACG 11/23/07 11:10 AM Page 26
On November 2, 2007,
ThyssenKrupp Steel
USA, LLC, and
ThyssenKrupp Stainless USA,
LLC, broke ground on the site
of its $3.7 billion carbon and
stainless steel processing facili-
ty in Calvert, Alabama. The
groundbreaking marks the
beginning of construction of
the 3,500-acre plant.
Permit applications required
to begin construction were
approved by State and Federal
agencies, allowing Thyssen
Krupp to remain on schedule
for the commencement of
operations in March 2010.
“The global steel industry is
undergoing a dynamic consoli-
dation process. We are taking
our own individual approach,
with a clear forward strategy to
further position ourselves as a
global player in the steel mar-
kets of Europe and North
America,” Ekkehard D. Schulz,
Chairman of the Executive
Board of ThyssenKrupp AG,
said. “This is the type of project
that represents a very long-
term commitment. We will be
in Alabama for decades to
come, providing good jobs for
many generations.”
Karl-Ulrich Koehler, Chairman
of the Executive Board of
ThyssenKrupp Steel and member
of the Executive Board of
ThyssenKrupp AG, added, “This
new processing facility will allow
us to strengthen our position in
North America. It will create
major advantages in terms of
quality, costs, and access to a cus-
tomer base with a demand
greater than current supply.”
“Our investment in Alabama
is a central element of the
ThyssenKrupp Stainless strate-
gy. The NAFTA stainless steel
market has great potential and
we are committed to signifi-
cantly expanding our business
in this growth region,” noted
Juergen H. Fechter, Chairman
of the Executive Board of
ThyssenKrupp Stainless and
member of the Executive Board
of ThyssenKrupp AG.
The facility will include a hot
strip mill which will be used
primarily to process slabs from
ThyssenKrupp’s new steel plant
in Brazil. It will also feature
cold rolling and hot-dip coat-
ing capacities for high-quality
end products of flat carbon
steel. The facility will have an
annual capacity of 4.1 million
metric tons of carbon steel end
products. In addition, a stain-
less steel melt shop will be built
with an annual capacity of up
to one million metric tons of
slabs, which will also be
processed on the hot strip mill.
A cold rolling facility is to be
German American Trade · Vol. 18 · No. 10 27
Kristian Wolf, CEO & President, German American
Chamber of Commerce of the Southern United States, Inc.
with Christian Koenig, Vice President, Public
and Government Affairs, Thyssen Krupp USA, Inc.
Regions
A T L A N T A
59987_GACC_ACG 11/23/07 11:10 AM Page 27
built, which will be designed
initially to produce 350,000
tons of cold strip and 125,000
tons of pickled hot strip. In
addition, the stainless steel
plant will provide ThyssenK-
rupp Mexinox in San Luis
Potosi (Mexico) with its
required pre-material (340,000
metric tons of hot band).
In May, ThyssenKrupp
announced that it will build a
new state-of-the-art carbon and
stainless steel processing facili-
ty in Alabama. Since that time,
the company has opened a
project office in Mobile, award-
ed several site preparation
contracts to Alabama-based
companies and placed an order
for the hot strip mill and cold
rolling complex. ThyssenKrupp
has also held four Community
open house meetings through-
out the Mobile area to inform
approximately 2,000 residents
about the new plant.
Along with construction, the
company’s next focus will be
on developing a first-rate work-
force to help operate the facility
– producing 5.1 million metric
tons of high-end products each
year. ThyssenKrupp will work
together with the Alabama
Industrial Development Train-
ing office (AIDT), to train and
recruit workers for the facility.
When fully operational, 2,700
permanent jobs will be created,
including opportunities in
management, engineering,
equipment operations, logis-
tics, production, maintenance
and adminis¬tration.
Throughout the construc-
tion and operation of the new
facility, ThyssenKrupp is com-
mitted to meet the most
stringent environmental pro-
tection standards. The plant
will employ the most techno-
logically advanced protection
measures. It will use clean-
burning natural gas and
electricity - not coal - to fire its
process heaters and furnaces.
The process equipment will
also be designed with exten-
sive energy recovery and
re-use technologies.
Once operational, the new
facility will process carbon and
stainless steel for high-value
applications by manufacturers in
the United States and through-
out North America. The plant
will serve industries including
automotive, construction and
household appliances. �
German American Trade · Vol. 18 · No. 1028
Christian Koenig
ThyssenKrupp USA, Inc.
Public and Government Affairs
Phone: +1 (248) 643-3512
Fax: + 1 (248) 643-3518
www.ThyssenKruppNewUSplant.com
Contact
From left to right: Jo Bonner, Congressman of Alabama;
Dr. Ekkehard D. Schulz, Chairman of the
Executive Board of ThyssenKrupp AG;
Govenor of Alabama, Bob Riley;
Dr. Karl-Ulrich Koehler, Chairman of the Executive
Board of ThyssenKrupp Steel and member of the
Executive Board of ThyssenKrupp AG
Dr. Lutz Hermann Görgens, Consul General of the Federal Republic
of Germany enjoying a lively conversation with the Chairmen of the
Executive Board of ThyssenKrupp AG and Steel as well as the
Governor of Alabama Bob Riley
A T L A N T A
Regions
59987_GACC_ACG 11/23/07 11:10 AM Page 28
Engine Coating is the area
of expertise of Therma-
max, a company
headquartered in Mannheim,
Germany, that specializes in
insulation for high tempera-
ture engine applications. Being
the European technology
leader in this field of engineer-
ing Thermamax decided
to introduce its unique
products to the U.S. in
2006. Stunningly, the
realization of the com-
pany’s dream of
establishing assembly opera-
tions in the U.S. happened
within one year of business
representation by means of a
virtual office located in Chica-
go. After starting a virtual
office, which is one of the
many services of the German
American Chamber of Com-
merce of the Midwest, in the
middle of August of 2006, pos-
itive responses came in right
away. The initial contacts to 5
of the top US Large engine and
commercial vehicle manufac-
turers were made quickly, and a
sales customer relationship
evolved within this one year
with all 5 U.S. manufacturers,
while over 50 other U.S. com-
panies expressed interest in
Thermamax’ products. “In
December of 2006 we were able
to record our first product
order in the U.S. and looked
into the future positively,” says
Ronny Lasner, U.S. Sales Man-
ager of Thermamax. And the
future still looks positive: Now,
at the end of 2007, Thermamax
has opened operations in Auro-
German American Trade · Vol. 18 · No. 1030
Member Profile
American Engine MeetsGerman High-Tech-Coat
Integral Insulation
59987_GACC_ACG 11/23/07 11:10 AM Page 30
ra, IL, a suburb of Chicago.
Indeed, a great outcome for a
company whose name was
unknown to U.S. engine manu-
facturers just a year ago.
Yet, the success story of Ther-
mamax in the U.S. did not arise
simply from the label “made in
Germany”. Nowadays, it takes
more than German quality. It
takes an innovative technologi-
cal concept that exceeds the
standards of engine insulation
technology. Thermamax’ new
line of high-temperature insula-
tion products such as “Tmax
Integral Insulation” fulfills and
goes beyond the expectations
of the U.S. engine manufactur-
ers. Thermamax products are
designed to enhance the
engines’ insulation specifica-
tions through high temperature
insulation and to improve
engine fuel consumption,
which, according to Therma-
max, “hardly any other
manufacturer” in the same
industry does. Thermamax’
Integral Insulation has been
developed for midsized engines
and exhaust after treatment
used in power generation, com-
mercial and agricultural
vehicles. The new line consists
of prefabricated insulation rudi-
ments that combine insulation
material, a supporting structure
and surface protection in a sin-
gle, easy-to-mount component.
Thermamax also offers cus-
tomized products, allowing
customers to ship in their prod-
uct, which is then processed by
the innovative engine insula-
tion manufacturer. And it is
exactly this combination of
innovative products and cus-
tomization that has made
Thermamax’ entrance into the
American market so successful.
And this is how it all started:
The medium sized company
started its U.S. presence with a
virtual business representation
in Chicago - a service offered by
DEinternational, the service
brand of the German American
Chamber of Commerce of the
Midwest (GACCoM). The con-
tract with GACCoM offered
Thermamax a physical address
and a phone line in Chicago,
and on-the-spot support and
representation to promote and
introduce the company to the
U.S. market. The virtual office
and the mailing of Thermamax
brochures, as well as trade show
follow-ups, managing flow of
proposal requests and facilitat-
ing contacts to Thermamax’
sales staff enabled a seamless
management of new customers.
Although Thermamax has a
line of unique and competitive
products, the success in the U.S.
was not guaranteed from the
start says Ronny Lasner: “Estab-
lishing an American company,
leasing office space, and dis-
patching employees, were
viewed as a critical hurdle,
when you’re still in
the beginning
and can’t esti-
mate future
t u r n o v e r ” .
Yet, the virtu-
al business
representa-
tion offered
by GACCoM contributed to
Thermamax’ individual Ameri-
can Dream and as Lasner
recognizes “offered interested
American parties a virtual pres-
ence and professional contact.”
GACCoM is pleased to witness
the success story of Thermamax
and wishes all the best to their
former business representative.
Thermamax’ accomplishment is
an excellent example of the great
possibilities that the U.S. market
has to offer for foreign compa-
nies. For questions on market
entrance strategies, or GAC-
CoM’s “Virtual Office” services,
please contact Mark Tomkins,
Director of Consulting Services
at [email protected]. �
Member Profile
German American Trade · Vol. 18 · No. 10
Exhaust Foil Blanket
Engine SOLAS Cover
59987_GACC_ACG 11/23/07 11:10 AM Page 31
Advertisement
German American Trade · Vol. 18 · No. 10
Regulars
German American Company News
32
For more ticker news go to www.gaccny.com/news/transatlanticticker
Adidas Profit Gains on Cost
Savings After Reebok Buy
(Bloomberg)
Adidas AG, the Germany-
based world's second-largest
sporting-goods maker, said prof-
it rose 22 percent in the third
quarter after last year's acquisi-
tion of Reebok International
Ltd. let the company negotiate
cheaper prices with suppliers.
The annual net income
advanced to $436 million.
GM Loses $39 Billion
in Third Quarter
(Forbes, Houston Chronicle)
General Motors reported a
mammoth quarterly loss of
$38.6 billion. GM attributed
most of the loss to a charge
related to accumulated
deferred tax credits in the U.S.,
Canada and Germany. GM also
blamed part of the losses on
challenging conditions in the
U.S. and German auto markets.
BSN Medical
Acquired FLA Orthopedics
(Business Wire)
Germany’s BSN medical
announced the acquisition of
FLA Orthopedics, Inc.
through its wholly owned
subsidiary BSN medical, Inc.
from international private
equity house The Riverside
Company for an un-
disclosed sum. FLA Orthope-
dics is a leading U.S. manu-
facturer and distributor of
orthopaedics soft goods
(OSG) and bracing products.
For BSN medical, the acquisi-
tion of FLA Orthopedics
signifies an expansion of its
product range in the strategic
growth segment of OSG and
bracing products in the U.S.,
the world's largest market for
such products by far.
Munich Re Bought
U.S. Midland for $1.3bn
(MSNBC)
Munich Re bought Midland,
a specialist US primary insur-
ance company, for 900m Euro
($1.3bn), a week after the Ger-
man reinsurer launched a new
strategy and management team
for its North American business.
The takeover will expand the
presence of the world’s second-
biggest reinsurance company in
the property and casualty under-
writing business in the world’s
biggest insurance market.
ProLogis Announces New
Agreements With BMW
of North America
(PR Newswire)
ProLogis, the world’s largest
owner, manager and developer of
distribution facilities, announced
that it has signed two new agree-
ments to develop approximately
1.2 million square feet of indus-
trial space in the eastern United
States for automaker BMW of
North America.
Hochtief AG Won New U.S.
contracts Valued at 1.14 bln EU
(Forbes)
Hochtief AG said it won sev-
eral new international contracts
with a total value of 1.14 billion
eur. In the U.S., its unit Turner
Construction is to build a hospi-
tal complex in Philadelphia for
166.6 million eur, Hchtief said.
In addition, Turner will co-build
a US army base in Aberdeen,
Maryland for 338.6 mln eur, of
which Turner’s share amounts
to 172.7 million eur.
59987_GACC_ACG 11/23/07 11:10 AM Page 32
In the 3rd quarter 2007 the
Ifo Business Climate Index
for industry and trade in
Germany has weakened. The
companies are assessing their
current situation less positively
than in the previous quarters.
Expectations also clouded.
Thus, initial retarding effects
are visible, to which events in
the financial markets are likely
to have contributed.
In manufacturing the busi-
ness situation continues to be
assessed favourably despite
slight constraints compared to
the previous month. Expecta-
tions, however, reflect only
moderate optimism. For the
future exporting business no
strong effects are feared
despite the high euro
exchange rate. Hiring will con-
tinue, although it is expected
to slow according to the sur-
vey participants.
The business climate in the
construction industry has
cooled off again. Regarding
their current business situa-
tion, the firms expressed
less confidence, and regards
their future business they
became more sceptical.
Markedly worsened has the
business climate in retailing.
This is due primarily to the less
favourable assessment of the
current situation. The future
outlook, too, is being assessed
much more reservedly.
At the moment it is still too
early to draw conclusions if the
decline of the ifo business cli-
mate signals only a temporary
slowdown of the German econ-
omy or already a cyclical
turning point.
Ifo Business Climate Index declinedIfo Business Survey 3rd trimester 2007
Balances in % (quarterly data seasonally adjusted)
Ifo business climate
current business situation
expectations for the next 6 months
30
20
10
0
-10
-20
-30
-4091 92 93 94 95 96 97 99 99 00 01 02 03 04 05 06 07
Source: Ifo Business Survey last value: 3rd quarter 2007
Ifo Business Climate for Germany – Components
By Dr. Gernot Nerb, Director of Business Surveys, Ifo Institute for Economic Research, Munich, Germany
German American Trade · Vol. 18 · No. 10 33
Regulars
59987_GACC_ACG 11/23/07 11:10 AM Page 33
German American Trade · Vol. 18 · No. 10
Masthead
34
Atlanta
German American Chamber of Commerce of the Southern United States, Inc.530 Means Street, Suite 120Atlanta, GA 30318Phone: 404-586-6800 • Fax: [email protected] • www.gaccsouth.com
Chicago
German American Chamber of Commerce of the Midwest, Inc.401 N. Michigan Avenue, #3330Chicago, IL 60611-4212Phone: 312-644-2662 • Fax: [email protected] • www.gaccom.org
Houston
GACC Texas Branch1900 West Loop South, Suite 880Houston, TX 77027 Phone: 713-629-8787 • Fax: 713-629-8799
New York
German American Chamber of Commerce, Inc. 75 Broad Street, 21st FloorNew York, NY 10004Phone: 212-974-8830 • Fax: [email protected] • www.gaccny.com
Philadelphia
German American Chamber of Commerce, Inc.Four Penn Center, Suite 2001600 John F. Kennedy Blvd.Philadelphia, PA 19103-2808Phone: 215-665-1585 • Fax: [email protected]
San Francisco
German American Chamber of Commerce California Branch, Inc.201 California Street, Suite 450San Francisco, CA 94111Phone: 415-248-1240 • Fax: [email protected]
Washington
Representative of German Industry and Trade1627 I Street, N.W., Suite 550Washington DC 20006Phone: 202-659-4777 • Fax: [email protected] • www.rgit–usa.com
Volume 18 Number 10
G E R M A N A M E R I C A N
TRADEThe National Magazine of the
German American Chambers of Commerce
GERMAN AMERICAN TRADE is published monthly except January & July.
Reproduction in whole or in part of any article is prohibited without permission.
Unsolicited manuscripts cannot be returned unless accompanied by a properly
addressed envelope bearing sufficient postage. Editor reserves the right to edit
letters to be reprinted. Editor and publisher cannot accept any liability
for the accuracy or completeness of any material published. Contributed articles
do not necessarily reflect the Chamber’s position. If you have any comments
regarding articles in this magazine, please call 212-956-1770.
One Year Subscription: U.S.$50.00 (Euro 51,-)
Single copy: U.S.$5.00
Photos: German American Trade Archive
U.S. Postmaster send address change to: German American Chamber
of Commerce Inc.; 75 Broad Street, 21 Fl., New York, NY 10004.
Second class postage: Registration, U.S.P.S. No. 004995; U.S.;
Office of publication: New York
Publication date of this issue: December 2007
© Copyright 2007 German American Trade
Publisher
German American Chamber of Commerce, Inc.75 Broad Street, 21 Fl., New York, NY 10004Telephone: 212-974-8830, Fax: 212-974-8867
Editorial Office
Editor: Nicola MichelsGACC Photographer: Thomas DzimianAdvertising Coordination: Nicola MichelsTelephone: 212-956-1770, Fax : [email protected]
Production
328 Commerce StreetHawthorne, NY 10532Telephone: [email protected]
AHK
AZ_Petri_206x276_eng_RZ.indd 1 01.11.2007 20:58:27 Uhr
59987_GACC_ACG 11/23/07 11:10 AM Page 34
Discover our breakthroughs as your chance to grow.
cons
ell.d
e
While innovations are a rare occurrence in some business landscapes, they are always on the agenda in FrankfurtRhineMain. So whether you’re looking for an R&D hot spot, access to highly qualifi ed research professionals or simply a future-proof environment: here, you’ll fi nd enough fertile soil for your business ideas – and just the right climate to make them grow. Discover how to make the most of your business. Join the network of FrankfurtRhineMain.
www.frm-united.com
AZ_Petri_206x276_eng_RZ.indd 1 01.11.2007 20:58:27 Uhr
59987_GACC_ACG 11/23/07 11:10 AM Page 35
It’s an extraordinary attention to detail that allows us to see to your every need, at every step of your journey. Experience this attentive service fl ying to any of 170 destinations in Europe. Visit lufthansa.com.
There’s no better way to fly.SM
Personal attention that begins before check-in.
Individual care to see you through arrival.
An airline that always goes a little further.
All for this one moment.
59987_GACC_ACG 11/23/07 11:10 AM Page 36