hen you are the world's No. 1 forestry power tools company, you can choose to locate your operations anywhere you want.
For Blount that choice was Wallonia Belgium's southern French- and German-speaking region which combines a pristine outdoor environment with a pro-industry attitude.
"Wallonia was at the top of each selection criteria for us," says Scott Sander, managing director of European operations for Blount Europe SA. "When we chose to relocate our operations, we did a gravity study and Wallonia was well within the best locations, plus it has the skilled work force and other key attributes that we need. The government has been especially supportive. One example is the improved highway infrastructure throughout the region, which helps us tremendously from a logistics standpoint."
Blount relocated its 110,000-sq.-ft. (10,210-sq.-m.) European Distribution Center from Nivelles to Courcelles in Wallonia, while also moving its 27,000-sq.-ft. (2,508-sq.-m.) administrative offices from Nivelles to Mont-Saint-Guibert.
Blount is the world’s No. 1 forestry power tools company. The headquarters of its European distribution hub is in Courcelles in the Wallonia region of Belgium.
"Blount's products are distributed all over the world, and the Wallonia facility is responsible for distribution to Europe, Africa and the Middle East," Sander notes. "We like Wallonia for several reasons: the work force is very well educated; the cost structures are reasonable, and the Benelux countries have historically been a great location for serving Central Europe."
Sander said his company considered sites in Germany and France before settling on Wallonia in the heart of Europe. Many other distributors have done the same. A recent Cushman & Wakefield study named Central Belgium the No. 1 location in Europe for logistics operations. One reason for this ranking: Wallonia has Europe's densest road, highway and rail network.
"With this expansion, we have more than doubled our volume for handling products," adds Sander. "We operate five other facilities in Europe, but this is our headquarters and the distribution hub for the other five."
Scott Sander, managing director of European operations for Blount Europe SA, based in Wallonia
'Wallonia Family'
Welcomes Newcomers
Sander says he likes the fact that in Wallonia, it is easy to find workers who speak multiple languages, including English, Italian, Spanish, German and French. A recent study revealed that workers in Wallonia are 20 percent more productive than their counterparts throughout Europe.
Incentives played a key role in the company's expansion. "This region has been quite conducive with incentives and favorable working conditions for distribution companies," he notes. Land costs also are much cheaper in Wallonia than in competing locations in Belgium and Eastern Europe.
Jean-Claude Marcourt, minister of the economy for Wallonia, says that such support is typical for growing firms. "AWEX the official Invest in Wallonia agency assisted 122 foreign companies to establish in Wallonia in 2008, with the creation of over 2,500 jobs. Wallonia is the ideal choice for small to medium-sized companies," he tells
Site Selection. "They will immediately feel part of the 'Wallonia family,' and with AWEX's assistance, they will hit the ground running and be profitable right away."
The Marshall Plan 2005-2010, soon to be followed by the Marshall Plan 2.0, has been instrumental in improving the fortunes of the region of 3.5 million people, says Marcourt. "Bordering Germany, France, Luxembourg and the Netherlands, the Walloon region of Belgium
Vincotte International Holding is located in the Crealys Science Park, home to some 60 companies. The park provides a wide range of services to startup and innovative companies.
The Monnett Centre International Laboratory (MCIL), formerly the Shell Research Centre, is located in the science park of Louvain La Neuve. The facility conducts chemical and allied industrial research and other lab activities.
has a global and historical reputation as an industrial powerhouse with foundations in steel and metalworking, machine-tools, flat and specialty glass, automotive and truck supply, chemicals, polymers and advanced materials," he says. "And while these industrial sectors have remained important in Wallonia, often people are unaware of more recent developments. Wallonia is now a leader in areas such as life sciences, biotech, food and agricultural products, aerospace, and more recently composites and nanotechnology."
The Marshall Plan and other government efforts have helped bring in Google, Microsoft, Baxter, Tuthill, Coopervision, GlaxoSmithKline, Doosan of Korea, Johnson & Johnson, Skechers, AMI Metals and other firms. A study revealed that the
Marshall Plan generated 27,239 jobs, trained 115,076 workers and recruited 1,250 new researchers to Wallonia.
Tailored Incentives, Educated Work Force
Marcourt adds that, thanks to liberal incentives, the average corporate tax rate in Wallonia is about 25 percent and in many cases is much lower. "The programs include the national interest deductions, the dividend-withholding tax exemption, the new U.S.-Belgium double tax treaty, the patent income deduction and the special expatriate tax status," he says. "And we assist you to maximize your incentive package and minimize your corporate taxes."
Wallonia is home to nine universities, 130 high schools, 300 research centers and six science parks. Nearly 500 companies have established operations in the six science parks. And with expedited work-permitting, it's even easier today for firms to bring in workers from other countries.
Competitive Clusters Abound
A wide range of industries are present in Wallonia. Recently, five competitive clusters have been the focus of attention:
Many functional but aesthetic canals traverse Wallonia.
- The largest sector in Wallonia is mechanical engineering and advanced materials, comprised of 2,900 companies and 60,000 employees, accounting for nearly 40 percent of the region's manufacturing jobs. Innovative composite, nanotechnology and plasma coating companies are just a few examples of the evolution in this sector. In 2007, this sector generated close to 11.4 billion Euros in sales, of which more than 70 percent came from exports.
- The food and agricultural industry is the number two employer, with more than 21,000 workers and 7 billion Euros in sales.
- Belgium is No. 7 globally in life-sciences investment. Currently, there are 108 life-sciences companies in Belgium; 80 of these are in Wallonia, with 2.9 billion Euros in revenues generated in 2007.
- Aerospace and aeronautical is one of the newest sectors in Wallonia, and also one of the fastest growing. This sector has 8,400 employees and revenues of more than 1.3 billion Euros.
- Logistics is for many the principal reason to invest in Wallonia. Extensive, efficient and uncongested motorways; a large-capacity, canal-barge transportation network; high-speed TGV rail for passengers and cargo; and convenient connections to the world's eighth-largest air freight facility and TNT headquarters Liège Airport.
"We invite you to visit and discover Wallonia," says Jean-Claude Marcourt. "Grow your business while living in a recreational paradise. We welcome you to become a member of the Wallonia family."
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| The cable-tied Meuse River Bridge in Liege was built between 1996 and 2000. |
Wallonia's historical reputation as an industrial powerhouse is only strengthened by its strategic position bordering the countries of Germany, France, Luxembourg and the Netherlands. |
GlaxoSmithKline Biologicals is located in the Wavre North Industrial Park in Wallonia and employs 3,600 workers on site. |
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