A global economic slowdown will dampen Latam’s growth prospects, says
Deloitte. But a reconfiguration of the global economy following the war
in Ukraine may give rise to unexpected opportunities for the region.
Brief stories look into Steel Dynamics dipping its toes into aluminum in
Mississippi; GE’s energy and aerospace investments across multiple
states; the federal go-ahead for ConocoPhillips’ Willow Project on
Alaska’s North Slope; a massive solar project in Idaho; Roche’s
investment in Oceanside, California; and Fox Studios’ $1.5 billion
expansion in Century City, California, 90 minutes to the north.
Last week Finland’s Neste Corp. said its renewable products expansion
announced in 2018 has begun production, meaning a doubling of capacity
to 2.6 million tons annually of which up to 1 million tons can be
sustainable aviation fuel (SAF). “Singapore has world-class logistics
connectivity enabling efficient transportation of the renewable raw
materials as well as final products globally,” said Matti Lehmus,
president and CEO of Neste. “Also, its world-class education supports
the availability of future talents to be a part of our production and
commercial operations, as well as to enhance our R&D in our recently
established Innovation Center.” “Singapore is a leading aviation hub in
the Asia-Pacific region,” added Sami Jauhiainen, acting executive vice
president for the Renewable Aviation business unit of Neste. “In
addition to being a global hub for Neste’s SAF production, we have
established an integrated SAF supply chain to Singapore Changi Airport
to make our product available to an increasing number of regional and
international airlines.” Neste is developing a global network of
airports where it has the capability to supply SAF directly into
aircraft. The company’s total SAF production capability will be 1.5
million tons per annum by the end of 2023 when the modifications at
Neste’s Rotterdam refinery are completed, and 2.2 million tons when the
expansion of the Rotterdam refinery is completed by the first half of
2026.
The Lubbock Economic Development Alliance (LEDA) announced this month
the expansion of X-FAB Texas, a manufacturer of analog and mixed-signal
semiconductor solutions, with major investments over the next five
years. Phase one amounts to $200 million and is expected to create up to
250 additional jobs. “This expansion comes on the heels of growth in
reshored manufacturing of chip production,” a LEDA release stated,
noting that the Lubbock operation is the only U.S. site for the
Belgium-based company. “As the leading silicon carbide foundry, we must
continue to invest to grow our capacity, capabilities and technical
workforce to provide high-quality products and prepare for future
generations of products,” said Lloyd Whetzel, president and CEO of X-FAB
Texas. “X-FAB is committed to maintaining the foundry leadership
position in silicon carbide.” The company has operated in Lubbock since
1999. X-FAB analog-digital integrated circuits (mixed-signal ICs),
sensors and micro-electro-mechanical systems (MEMS) are manufactured at
six production facilities in Germany, France, Malaysia and Lubbock.
X-FAB employs approximately 4,200 people worldwide.
As a timely follow-up to the “Let’s Get Together” Online Insider
published in this space last week, CBRE has released a survey of 207 companies with U.S.
offices that finds 65% of them are requiring
in-office work at least some of the time. Office attendance
levels at 60% of surveyed companies have reached a long-term
steady state, up from 43% last year, CBRE found, but in many
cases that steady state is smaller in size. “Fifty-three
percent of companies expect their office portfolios to get
smaller over the next three years compared to 46% that
anticipate either no change or expansion,” CBRE reports.
“Companies increasingly have multiple options to reshape
their office portfolios to accommodate attendance patterns,
employee preferences and market dynamics. Fifty-eight
percent report renewing their leases, even if for less
space. Forty-nine percent have allowed leases to expire, and
32% are relocating to better quality space.” The report
takes a deep dive into workplace metrics. Find more insights
in the Workforce 2023 report published by
Conway Data earlier this year. Further exclusive analysis,
case studies and reporting will be pursued for Workforce
2024, the fourth annual publication in the Workforce series.
PHOTO OF THE
DAY
Site Selection EVP Ron Starner made this photo of downtown Rochester,
New York, last week while in town on a familiarization tour. In addition
to semiconductor industry investment occurring in the region, the
just-concluded PGA Championship was expected to generate $190 million in
direct, indirect and induced spending. Watch Site Selection and
Siteselection.com for insights into the region’s economy from Ron’s
conversations with corporate executives and community leaders.
