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oreign investment has long been a linchpin of South Carolina's economic development efforts. When the textile industry dominated the scene, suppliers from Europe and Asia opened subsidiaries in the Upstate. More recently, firms have lighted in the state to serve BMW and other southern automakers and to take advantage of the state's port infrastructure.

Hiring is now under way at DaimlerChrysler's Sprinter van assembly facility near Charleston. Production is set to begin ramping up in November 2006.

   In the five-year period 2000-2004, South Carolina attracted US$6.4 billion in investment from 29 countries, creating or promising 18,792 jobs. Companies headquartered in Germany, the Netherlands, France, the United Kingdom and Japan were among the leading job creators in the state.
   The Washington, D.C.-based Organization for International Investment says the state ranks first in the nation in "insourcing" as approximately one of every 12 private-sector jobs (127,500 total, or 8.4 percent of the total work force) are supported by U.S. subsidiaries of companies headquartered abroad. Manufacturing accounts for 51 percent of these jobs. Future investment from these foreign-based firms is needed to help ease the pain of the state's high unemployment rate of 7 percent in December, which ranked second only to hurricane-ravaged Mississippi with a jobless rate of 9.9 percent.
   Much of the investment has been automotive-related. The most high-profile recent announcement from a foreign-headquartered firm is the DaimlerChrysler Dodge Sprinter van assembly plant. The company is spending $35 million in a first-phase project to refit a facility belonging to the company's Freightliner division.
   Heinz Handtrack, DaimlerChrysler's senior manager for the South Carolina project, says everything is proceeding smoothly. Work thus far has involved modifying the facility.
   "We are on schedule in regards to our construction and earthwork, and we're also on schedule in drafting our training concept together with the state," Handtrack says.
   Hiring begins in March 2006 with the bulk coming in July. The first employees hired will be trained in plants in Germany, Handtrack says. The total work force will be approximately 220 when the plant hits full production in March 2007.
   "So far, we have great support from the state and for the time being we are satisfied with our location in Charleston," Handtrack says. "It's a great place to live."
   South Carolina Yutaka Technologies (SCYT) has found the Palmetto State to its liking since it established an operation in Lugoff in 1999. The Japanese supplier of parts for Honda is adding 48,000 sq. ft. (4,500 sq. m.) to its 122,000-sq.-ft. (11,300-sq.-m.) facility.
   Dean Riddle, SCYT's senior manager of administration, says the expansion will add warehouse space, increase capacity and improve its manufacturing flow. The project, which will add 14 jobs, will be complete in May, he says. The plant was also expanded in 2003.
   "The state has done a really good job of supporting new businesses," Riddle says. "In our case, they were very involved in the site selection process and provided training to help us establish a good work force. They even provided outside facilities when we didn't have a facility. They've continued to help along the way and as we've grown, they've continued to partner with us."
   The plant's primary products are ATV-related, but as Honda expanded in Alabama, SCTY has broadened its product range to include catalytic converters for the Honda Odyssey and Pilot SUV.
   Michelin, which has invested more than $2.2 billion in the state over the last 30 years, has several projects ongoing in South Carolina. The France-based tire maker is investing $85 million over the next five years to boost production by 50 percent at its Earthmover tire plant in Lexington. Michelin is also investing $80 million over the next six years at two raw materials plants in Anderson.