texas business report

The Largest Business Expansions and Relocations

Big Stories from Texas 2013-2014

IT and High Tech 2

Aerospace and Aviation 5

Financial Services 7

Chemicals 8

Oil and Gas 10

Durable Goods Manufacturing 12

Food Processing 14

Contents

IT and High Tech

1 Flextronics Begins assembling Apple computers in Austin and Motorola smartphones in Fort Worth

In 2013, contract manufacturer Flextronics partnered with

two major technology firms to start assembling consumer

electronic products in Texas. In Fort Worth, Flextronics

opened the doors of a new smartphone facility, producing

the MotoX phone for Motorola Mobility, while in Austin,

the manufacturer expects to add 800 jobs in order to

assemble Apples new Mac Pro desktop computer.

4 IBM To add 900 software development jobs in Austin

In November 2013, IBM announced the opening of a

new software studio at its Austin software development

facility. The company expects to add 900 additional

jobs at the site by 2018. IBM has

operated a campus in Austin for

more than 30 years.

5 Trend Micro Moves headquarters from Silicon Valley to North Texas

The Japan-based software maker

announced plans in 2013 to move its U.S.

headquarters from Cupertino, CA, to

Irving, TX. The relocation will

consolidate about 220 jobs in Irving.

Trend Micro is a global leader in

computer security and antivirus software.

3 Cognizant Relocates U.S. operations headquarters to College Station

IT outsourcing leader Cognizant

relocated its U.S. operations headquarters

to College Station in late 2013, shortly

after purchasing a smaller firm already

based in Texas. Cognizant, whose global

headquarters remain in New Jersey,

expects to create up to 750 new jobs in

Texas over the next several years.

2 Apple Continues construction at $300 million Austin campus expansion

By early 2014, Apple had completed substantial

portions of a planned $304 million expansion at its

Austin campus. The company is in the process of

hiring 3,600 new employees,

which will roughly double

Apples Austin workforce

and make the Texas capital

one of the companys largest

bases of operations.

BIG STORIES FROM TEXAS2012-2013

Office of the Governor | Economic Development & Tourism

Austin Business Journal

Fort Worth Star-Telegram

6 HID Global Opens new world headquarters and manufacturing facility in Austin

HID Global Corp., formerly based in San Diego, CA,

celebrated the grand opening of its new $50 million

headquarters and manufacturing facility in Austin in

January 2014. The plant

will make electronic ID

and security systems and

is expected to employ

276 workers when fully

ramped up.

9 Dropbox Announces plans to hire 200 at new Austin office

8 USAA Locates new IT operations center in Plano, expects to hire 680

In September 2013, San Antonio-based

insurer USAA announced the location of a

new, $31 million IT operations center in

Plano. Tapping into Dallas-Fort Worths

large IT workforce, USAA plans to hire 680

at the new facility.

10 Home Depot Plans corporate IT center in Irving

The Atlanta-based retailer

announced the opening of its

new technology center in

Irving in 2013. Home Depot

expects to hire about 130 at

the facility in order to further

expand the companys online

operations.

11 BP Opens major data center in Houston

In October 2013, British

oil and gas giant BP

opened its new Houston

data center that houses

what the company calls the worlds largest supercomputer for

commercial research. The $45 million facility will support BPs

oil and gas exploration technologies, such as geophysical

modeling and imaging.

Big Stories from TexasIT and High Tech

7 athenahealth To hire 607 at new Austin software development office

In January 2014, health care IT

company athenahealth announced plans

for a major new office in Austin, which

is expected to eventually employ more

than 600 workers. athenahealth is a

leading provider of cloud-based

services for electronic health records,

practice management and care

coordination.


Booming San Francisco tech firm Dropbox made

news in summer 2013 when it opened a new

Austin office, with plans to hire 30.

Six months later, in February 2014, the

cloud storage company announced it

would increase its Austin head count to

200 and invest more than $5 million.

12 Websense Relocates headquarters and 445 jobs from San Diego to Austin

Cybersecurity software firm Websense

announced in February 2014 that it

would relocate its corporate headquarters

from San Diego to Austin, creating 445

new jobs and a projected capital

investment of more than $9.9 million.

Big Stories from TexasIT and High Tech

13 Oracle Opens additional Austin office to house 200 new employees

Fortune 500

software giant

Oracle revealed plans in November 2013 to

establish a new office in north Austin in

order to add 200 new sales and marketing

positions. The expansion widens Oracles

footprint in Austin, where it has multiple

other offices and a data center.


15 Ericsson Opens major expansion at North American headquarters in Plano

14 Roku and Nest Labs Silicon Valley tech companies establish first Texas offices

Roku, a maker of streaming media players,

announced plans in February 2014 for a

new development center in Austin, where

the Silicon Valley-based company expects

to hire up to 50 software and hardware

engineers. In August 2013, Thermostat

maker Nest Labs announced it would open

a customer service center, also in Austin,

with up to 140 employees.

In September 2013, Swedish telecom

equipment giant Ericsson formally opened a

270,000-sq.-ft. expansion at its Plano

campus. The new space increases the

campuss footprint by more than 25%.

Since 2001, Ericsson has more than

quadrupled its workforce in Plano, to 4,500.

Dallas Morning News

1 Southwest Airlines Completes $100 million Dallas headquarters expansion In 2013, the Dallas-based airline

completed work on a $100 million

addition to its headquarters campus

near Love Field airport. The new

building, designated Headquarters

West now houses Southwests

crew scheduling, operations

coordination center, customer

support, and other functions.

4

Aerospace and Aviation BIG STORIES FROM TEXAS2013-2014

3 Southwest Airlines Breaks ground on $156 million Houston Hobby Airport terminal

2 United Airlines Opens $97 million terminal at Houstons Intercontinental Airport

In mid 2013, United Airlines unveiled the

newly built Terminal B South at Houstons

George Bush Intercontinental Airport. The $97

million terminal serves as the primary facility in

Houston for United Express

flights. The airport is a key

hub for Chicago-based United.

Dallas-based Southwest Airlines broke ground

in September 2013 on a brand-new interna-

tional terminal at Houstons Hobby Airport,

where the airline will operate its first interna-

tional flights to Latin America and the

Carribbean. Southwest will cover a majority

of the $156 million construction cost.


Bell Helicopter Continues construction on $230 million Fort Worth HQ expansion, Invests $28 million at Grand Prairie manufacturing plant

Throughout 2013, Bell Helicopter carried out construction of its new $230

million headquarters expansion in east Fort Worth. At the same time, the

company continued major reinvestments at its aircraft parts plant in Grand

Prairie, putting $28 million into facility upgrades.

Southwest Airlines

Big Stories from TexasAerospace & Aviation

6 American Airlines Consolidates operations in Fort Worth after merger with U.S. Airways Fort Worth-based American Airlines finalized its merger

with competitor U.S. Airways in December 2013, creating the

worlds largest airline. Headquarters of the new company will

be located in Fort Worth. In early 2014, the company

announced further plans to consolidate flight operations

control in Texas, relocating 600 jobs from Pittsburgh, PA,

where an existing control center will be closed.

8 Boeing Invests $28 million to expand San Antonio maintenance facility

7 Raytheon Relocates aerospace division from California to North Texas

Raytheon announced plans in May 2013 to

relocate the headquarters of its Space and

Airborne Systems division

from El Segundo, CA, to

the companys McKinney,

TX, campus, which also houses the Network

Centric Systems division. Raytheon, one of the

worlds largest defense technology companies,

employs an estimated 8,000 in the Dallas-Fort

Worth region.

In June 2013, Boeing confirmed plans for a $28

million expansion of office and hangar space at

its Port San

Antonio repair and

overhaul facility.

The project will

make space for anticipated business growth.

Boeing customers at the site include United

Airlines, the U.S. Department of Defense, and

others.


9 SpaceX Considers Brownsville for spacecraft launch facility

SpaceX continues to evaluate a location on the

Texas Gulf Coast near Brownsville, for a future

spacecraft launch facility. While the company

has not yet made a final decision about where in

the U.S. its new facility will be located, the

company has placed the Texas site on its short

list of final contenders. The company currently

tests rockets at another site in McGregor, TX.

10 Recaro Aircraft Seating Doubles capacity at Fort Worth plant

In February 2013, aircraft seating maker

Recaro celebrated the expansion of its Fort

Worth plant, which produces

seats for customers such as

American Airlines. Originally

established in 1998, the plant is

the German companys largest

production facility in the world.

American Airlines

Financial Services

1 State Farm Insurance Builds campus in Richardson spanning 2 million square feet

State Farm Insurance broke ground in July

2013 on a new 2-million-sq.-ft. regional

campus in Richardson. The complex of three

towers, ranging from 13 to 21 stories, has an

estimated half-billion dollar price tag.

Scheduled to be completed by 2015, the new

campus is part of the companys massive

expansion plan to create a trio of U.S. regional

hubs across three states. State Farm expects to

add up to 700 employees in Richardson during

the first phase of hiring.

4 USAA Announces addition of 1,000 new jobs in San Antonio

In March 2013, insurance company USAA

announced plans to hire up to 1,000 new

employees by 2016 in its home city of San

Antonio. With its headquarters campus nearly

full, the company intends to lease additional

office space in the city, and in 2013 spent around

$10 million to fit out several new offices.

5 Visa Completes build-out of new Austin offices

The California-based consumer credit giant

finished out multiple floors of its new Austin

office in 2013. The $27 million facility houses

a cybersecurity operations

center, which is expected to

employ nearly 800 within

five years.

2 GEICO Locates 1,000-employee claims center in Katy

In December

2013, GEICO

announced the

location of a new

135,000-sq.-ft. claims center in Katy. The

Maryland-based insurance company plans to

hire around 1,000 employees at the facility over

the next three years.



3 Capital One Opens Plano campus expansion Virginia-based Capital One opened two new

buildings at its Plano, TX, campus in December

2013, bringing the total number of buildings at

the site to seven. The $100 million expansion

will house the companys growing auto and

mortgage finance business. Capital One

employs more than 3,100 at the Plano site, its

only corporate office outside of Virginia. State Farm

Chemicals

4 Lyondell Basell Invests half a billion dollars in Houston area and Corpus Christi

Houston-based LyondellBasell said it invested

$500 million in 2013 to increase capacity at its

La Porte ethylene plant and Channelview ethane

cracker. In Corpus Christi, the company

announced an additional $420 million capacity

expansion at its Equistar Chemical operations.

5 Celanese and Mitsui Form joint venture for $800 million plant in Clear Lake

In mid 2013, Dallas-based Celanese

announced a joint venture with Japanese

chemical company Mitsui that has begun

building an $800 million methanol facility in

Clear Lake. The plant is expected to produce

1.3 million tons of methanol annually.

2 Exxon Mobil Plans multi-billion-dollar expansion in Baytown, to add 350 jobs

In March 2013, Exxon Mobil announced it

would invest billions in upgrades at its huge

Baytown chemical plant. The project would

boost the plants capacity to utilize natural gas

liquids to produce plastic resins. The Baytown

complex, which is the nations largest

integrated refining complex, currently employs

about 6,000 workers, and the company says the

expansion will add 350.


3 Chevron Phillips Chemical Plans $5 billion expansion in Baytown and Old Ocean

Chevron Phillips plans to build a new ethane

cracker at its Baytown plant and two

polyethylene facilities at its complex in Old

Ocean. The combined projects will

cost the company an estimated

$5 billion by the time they are

completed in 2017.

1 Dow Chemical Increases new investment at Freeport facilities to $2.5 billion

In August 2013, Dow Chemical revealed plans

to expand its manufacturing facilities in

Freeport with two new performance plastics

plants. The project builds on a separate Dow

expansion announced in 2012, and brings the

total value of the companys investments in

the area to $2.5 billion. Separately, a joint

venture between two Japanese chemical

companies, Indemitsu Kosan and Mitsui, plans

to build an alpha olefins plant at Dows

Freeport location.


6 Ascend Performance Materials Expands chemical plant in Brazoria County, to add 100 jobs

In early 2013, chemical maker Ascend

Performance Materials publicized plans to

construct a new $1.2 billion propane dehydro-

genation facility at its site in Alvin. The new

unit will produce propylene, a chemical

building block for plastics and synthetic

fibers. The company plans to add 100 jobs

as a result of the expansion.

REXtac Announces major chemical plant expansion in Odessa

8 BASF Builds additional facilities in Freeport and Port Arthur

German chemical giant BASF began

construction in 2013 on a $90 million emulsion

polymers plant at its site in Freeport. The

expansion is expected to begin operations in

2014. Meanwhile, at its Port Arthur plant,

BASF and joint-venture partner Total began

construction of a tenth ethane cracker unit to

increase that plants capacity.

7 OxyChem and Mexichem Joint venture plans to build $1.5 billion expansion in Ingleside

Dallas-based Occidental Chemical (OxyChem)

announced in October 2013 it would proceed with a

50/50 joint venture with Mexican chemicals

company Mexichem. The companies plan to

build a $1.5 billion ethylene cracker at

OxyChems Ingleside site near Corpus

Christi. Oxy purchased the shuttered

Naval Station Ingleside in 2012 in order to

expand its nearby chemical plant.

In October 2013, Odessa

chemical company REXtac

announced plans for a $680

million expansion of its local

plant in order to begin

producing polypropylene. The

company expects to add 150

employees to its workforce.

Big Stories from TexasChemicals

11 Linde North America Invests $200 million to expand La Porte synthetic gas plant

The Linde Group, a Germany-based producer

of industrial gases, plans to expand its La

Porte plant with a $200 million equipment

overhaul. Linde, like many other chemical and

industrial gas companies, intends to take

advantage of the low price of natural gas from

shale drilling in the U.S.

9 OCI Plans $1 billion investment at Beaumont methanol plant

Natgasoline, a subsidiary of Netherlands-based

OCI, announced plans for a billion-dollar

expansion at its Beaumont-area chemical

facility. The new additions will produce

methanol and gasoline. The company expects

to create 240 new jobs at the plant.

10

Odessa American

Energy

1 Exxon Mobil Continues construction on billion-dollar Houston-area campus to house 10,000

In mid 2012, the nations largest oil and gas company,

based in Irving, TX, began construction on a $1 billion

super campus on 385 acres north of Houston. Exxon plans

to relocate 2,100 employees from northern Virginia, as well

as to consolidate workers from Ohio and other Houston

offices into the new complex. Approximately 10,000

employees are expected to work at the site by 2015.

4 Anadarko Petroleum Completes second office tower in The Woodlands, plans to hire 450

In early 2014, Anadarko Petroleum completed construction

on a $180-million, 31-story office tower at its headquarters

in The Woodlands. The

building stands beside

the companys existing

30-story tower and is

expected to house 450

employees.

5 Shell Oil Expands Houston campus with two office towers

Through 2013, British-Dutch

oil giant Shell continued

construction on two 12-story

office buildings at its west

Houston campus. The 670,000-sq.-ft.

expansion will cost approximately

$125 million.

2 BHP Billiton Commissions $1.3 billion office tower in Houston

Construction is underway on a 30-story office

tower in Houstons Galleria area to be occupied

by Australian mining and energy giant BHP

Billiton. Building owner Transwestern will

invest more than $1.3 billion into the towers

construction, located next door to BHP

Billitons existing office building.



3 Valero Energy To invest $730 million into Houston and Corpus Christi refineries

In early 2014, San Antonio-based Valero

Energy announced plans to upgrade two of its

Texas refineries in order to process additional

crude from the Eagle Ford Shale. The company

says it will invest $390 million at its Houston

refinery and another $340 million at its Corpus

Christi plant.

Anadarko Petroleum

Exxon Mobil

6 ConocoPhillips Plans Houston expansion with two new office towers

Developer Trammell Crow Co. broke ground

in 2013 on two Houston office towers that will

span more than one million sq. ft. and cost

approximately $177 million. Houston-based

ConocoPhillips has

signed on to occupy

more than 80% of the

two towers, dubbed

Energy Center Three

and Four, by 2016.

Big Stories from TexasEnergy

7 Phillips 66 Breaks ground on new HQ campus, plans $3 billion refinery investments

Spun off from industry giant ConocoPhillips in

early 2012, the now-independent oil refining

company Phillips 66 broke ground in 2013 on a

new 1.1 million-sq.-ft. headquarters

campus in Houston. In February 2014, the

company also finalized plans for $3

billion worth of capital investment at its

Sweeny Refinery and Freeport LNG

Export Terminal, both in Brazoria County, as

well as infrastructure in Mont Belvieu.


10 Occidental Petroleum To relocate headquarters to Houston after splitting off California operations

In February 2014, Fortune 500 energy company Occidental

Petroleum announced plans to spin off its California opera-

tions and relocate the companys overall headquarters from

Los Angeles to Houston, Texas. Occidental already employs

around 2,000 at its oil and gas operations in Houston.

9 German Pellets Completes $100 million wood pellet plant in Deep East Texas

8 Chevron To add 1,752 jobs in Houston and build new campus in Midland

California-based Chevron, the nations second

largest energy company, revealed plans in July

2013 to create more than 1,750 jobs in

Houston. Separately, the company broke

ground in West Texas for its new $100

million Midland campus. With space for

800 employees, the new facility demon-

strates Chevrons long-term confidence

in the Permian Basin oilfields.

In 2013, Germany-based biofuels maker

German Pellets completed a $100 million wood

pellet plant outside of Woodville, Texas. The

dowel-sized pellets are sold as fuel for power

plants, mostly in Europe. Woodville officials

estimate the project will create around 250 jobs.

In coastal Port Arthur, German Pellets estab-

lished a $10 million storage and shipping

facility to export the new plants output.

Trammell Crow

Crescent Real Estate Holdings

Durable Goods Manufacturing

1 Tenaris Plans construction of $1.5 billion steel pipe plant near Bay City, to hire 600

Tenaris, a global manufacturer of steel pipe products

used in the energy industry, announced plans in

early 2013 to build a $1.5 billion seemless tube

manufacturing facility outside Bay City, Texas.

Once complete, the mill is expected to employ 600

workers and produce 600,000 tons of pipe annually.

4 HVHC Inc. Plans 600-employee eyeglass plant HVHC, the parent company of

optical retailer Visionworks,

announced in April 2013 that

it would open a new optical manufacturing plant

and distribution center in San Antonio. The

facility is expected to employ 600 and produce

more than two million pairs of eyeglasses per

year when fully operational.

5 Borusan Mannesmann Pipe Locates first U.S. plant in Baytown In mid 2013, Turkish steel product company

Borusan Mannesmann began construction in

Baytown, Texas, on its first U.S. manu-

facturing plant. The $148 million facility,

which is expected to employ

250, will produce tubing for the

oil and gas industry.

3 OCI Solar Power To manufacture solar panels in San Antonio

Korean solar component maker OCI continued

construction through 2013 on a new solar-panel

manufacturing facility at San Antonios Brooks

City-Base. The $115 million plant could

employ more than 400 manufacturing workers

after its completion in 2014. The surrounding

master-planned development occupies the site

of former Brooks Air Force Base.

2 Voestalpine Chooses Corpus Christi area for $700 million iron processing facility

Austrian steel giant Voestalpine announced

plans in 2013 to construct a $700 million plant

at the Port of Corpus Christi in San Patricio

County. The industrial facility will produce

direct reduced iron, an intermediate component

in steelmaking, and is expected to create 150

jobs.



6 Prolamsa Group To hire 500 at a new steel pipe mill in Bryan

Axis Pipe and Tube, a subsidiary of

Mexican steel product company

Prolamsa, selected Bryan, Texas,

for the location of its new U.S. pipe

plant in early 2013. With a pro-

jected completion date of mid 2014,

the $120 million facility could

eventually employ more than 500

workers.

9 OMK Tube Begins production at first U.S. manufacturing plant in Houston

8 Mitsubishi Heavy Industries Announces $100 million compressor plant to be built in Pearland

Japan-based Mitsubishi Heavy Industries

purchased 26 acres in Pearland in late 2013 as it

prepares to build a new compressor

manufacturing facility. The $100

million plant, which will assemble

equipment for the energy industry, is

expected to employ 100 by 2016.

Big Stories from TexasIndustrial Manufacturing

7 Emerson Process Management Opens new headquarters for Regulator Technologies division in McKinney

In November 2013, industrial control maker Emerson

opened the new $25 million HQ and manufacturing facility

for its Regulator Technologies

division in McKinney

(pictured). Emerson also

announced recent completions

of new engineering and

technology centers in Houston

and Round Rock.

In February 2013, Russian pipe company

OMK began production at its first U.S. pipe

manufacturing facility in Houston. OMK

produces pipe products for the oil and gas

industry. The new Houston plant represents

$100 million in foreign direct investment from

the Russian manufacturer.

10 Valew Truck Bodies Expands from California with new assembly plant in Gainesville, Texas

Valew, a California automotive manufacturer,

began construction in late 2013 on a new truck-

body assembly facility in Gainesville, Texas.

The company expects to hire up to 250 at the

new plant once it is fully operational. Valew

produces truck bodies, chassis, and trailers for

commercial and industrial markets. Valew

Emerson Process Management

Food Processing

1 Sanderson Farms Builds new poultry processing complex to employ 1,000 in Palestine area

In early 2014, Mississippi-based chicken processor

Sanderson Farms continued construction on its new

$124 million poultry complex in the Palestine region. At

multiple area sites, the company is building a feed mill,

hatchery, and processing plant. The plant is expected to

employ 1,000 when operational in 2015.

4 Campbell Soup Company Invests $45 million at Paris plant In July 2013, Campbell Soup celebrated the

grand opening of a $45 million expansion at its

plant in Paris, Texas. The 76,000-

sq.-ft. addition expands the

plants soup production capacity

and is expected to create 70 new

jobs in Paris.

5 Fehr Foods Plans 100-job expansion in Abilene Abilene-based Fehr Foods moved forward with

plans in December 2013 to open a second,

133,000-sq.-ft. bakery facility in the city. The

packaged cookie maker currently employs

around 320 in Abilene and intends to hire up to

105 more. Fehr was acquired by Colombian

food company Grupo Nutresa in 2010.



3 Goya Builds new bean canning plant in Brookshire, to employ 300

In late 2013, Latin-food maker Goya completed

a new 320,000-sq.-ft. bean

cannery and distribution center

in Brookshire. Located 35

miles west of Houston, the $30

million facility is expected to

employ 300 workers. The plant

is New Jersey-based Goyas

second cannery in the U.S.

2 Ruiz Foods Announces major expansion at Denison frozen foods plant

California-based Ruiz Foods announced a $25

million expansion at its Denison food processing

plant in June 2013. The company, which makes

frozen Mexican foods under brands such as El

Monterey, expects to add 100 new employees to

its existing Denison workforce of 700. The

expansion will add 50,000 sq. ft. to the plant and

nearly double its capacity.

Office of the Governor Economic Development and Tourism

Business Research PO Box 12428, Austin, TX 78711

512-936-0101

www.TexasWideOpenForBusiness.com

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