Tennessee Draws Global Investment
A combination of available land, low tax structure and quality workforce is keeping Tennessee high on the list of investment by foreign-owned companies.
Nearly 680 foreign-owned companies from 30 different nations employ some 112,000 Tennesseans and have made investments in the state totaling $19.2 billion.
Three major projects announced in a span of just a few months underscore the interest.
Volkswagen will invest some $1 billion in Chattanooga. Germany’s Wacker Chemie plans a $1 billion facility to manufacture hyperpure polycrystalline silicon in Bradley County. Hemlock, a joint venture between majority owner Dow Corning Corp. and two Japanese companies, is investing $1.2 billion to $2.5 billion in a silicon plant in Montgomery County.
“The recent Wacker announcement and the VW investments are a clear indicator that southeastern Tennessee has become an extremely attractive location for German companies,” says Kristian Wolf, president and chief executive officer of the German American Chamber of Commerce of the Southern United States.
Japan Invests in Tennessee
Japan’s presence in Tennessee dates to the 1970s, and today its business presence includes major auto and tire manufacturing among the 147 Japanese companies that have operations in the state.
Japan in 2008 relocated its consulate general to Nashville, where the Japan-America Society of Tennessee has been promoting friendly relations and cultural understanding between the two countries since 2000.
The society is playing a key role in setting up the 32nd annual Southeast U.S./Japan Association & Japan-U.S. Southeast Association meeting that will be held in
October 2010 in Nashville. The associations are made up of leaders in business and government from Japan and eight Southeast states including Tennessee. The groups promote trade, investment, understanding and friendship.
“Japan is really the pioneering investor here,” says Leigh Wieland, Japan-America Society executive director. “It began with a Nissan forklift company in the late 1970s, and then just grew from there. They’re still coming.”
Having the consulate general of Japan relocate to Nashville only underscores Tennessee’s geographical advantage as a place for Japanese companies when they’re considering a location in the United States, she says.
“We can point to that to show them they have services they need to operate here and stay in touch with their government. It’s a great convenience to them,” she says.
Canadian companies find the state a good place to do business for several reasons, not the least of which is the bottom line, says Brian Oak, consul general at the Canadian Consulate General – Atlanta.
“Tennessee plows significant cash and tax incentives into attracting foreign-development investment,” Oak says. Volkswagen’s presence should mean more business for Canadian companies, he says.
Canada’s inroads into VW’s Chattanooga regional sourcing office bring additional benefit because as suppliers are approved there, they automatically will have the opportunity to supply
VW’s plant in Juarez, Mexico, Oak says.
“This provides Tennessee and the surrounding Southeast states with an added incentive to attract Canadian auto-parts suppliers,” he says.
