Next time someone prattles about “unfair” competition with China, Mexico or other countries with lower labor costs, just mention MGC Advanced Polymers, Inc. The Japanese chemical manufacturer is investing $18 million in a state-of-the-art manufacturing facility in Chesterfield County, Va., to produce 22 million tons a year of Nylon MXD6, a plastic used in auto parts and food packaging.

And why the Richmond  region? Furuta cites 

Tomiyoshi Furuta

the business-friendly environment, proximity to the ports in Norfolk and a central East Coast location. But a critical consideration was the nature of the workforce. A strong cluster of specialty chemical companies makes it easy to recruit the kind of employees that MAP is looking for. “The labor pool is very good,” Furuta says. “People are accustomed to working with polymers.”

Even in a hyper-competitive global marketplace, you can’t beat the combination of smart management and a skilled workforce.

MGC Advanced Polymers, which is 80 percent owned by Mitsubishi Gas Chemical, joins a long and growing list of chemical companies choosing to invest in the Richmond-Petersburg region. The past half year has seen plant openings or expansions by Boehringer-Ingleheim (chemicals and pharmaceuticals), Goldschmidt Chemical Corporation (oligomers and silicons) and DuPont Engineering Polymers (Zytel polymer).

“The Richmond region has a superior geographic location and a dynamite industrial infrastructure -- but it’s the human capital that sets us apart in the chemical industry,” says Gene Winter, senior vice president with the Greater Richmond Partnership, the regional economic development organization. “Our workforce gives us an edge. We have thousands of experienced engineers, chemists and line workers versed in the unique challenges of chemical manufacturing.”

The number of chemical manufacturing jobs in the region has declined in the past five years, partly due to cyclical economic conditions and partly to gains in productivity. Extrapolating from national economic forecasts adjusted for the local industry mix, Chmura Economics & Analytics projects that the sector will shed another 1,000 jobs, equivalent to 12 percent of the local industry workforce, over the next decade. That trend, combined with a projected increase in chemical-related occupations, assures companies like MGC Advanced Polymers that they should have little trouble finding employees with relevant skills and knowledge.

Furuta, who has moved to Richmond to oversee construction of the plant, has worked for Mitsubishi Gas Chemical for more than 30 years, joining the company right out of school. The 57-year-old executive has engaged in the MXD6 project since 2001, when the company decided to expand its manufacturing capacity to meet growing demand.                          More.

Infineon Announces

$1 Billion Expansion 

Infineon Technologies AG, the giant German semiconductor manufacturer, has announced a $1 billion expansion of its plant in Henrico County, Va., to produce advanced DRAM chips on 300mm wafers beginning in early 2005. Headcount in Richmond is expected to increase by 800 employees from the current 1,750 employees to approximately 2,550.

Said Infineon COO Dr. Andreas von Zitzewitz: "Overall customer demand - both for logic as well as memory chips - is increasing at a strong pace. ... The excellent infrastructure and state-of-the art manufacturing expertise at Richmond make this the fastest and most cost effective way for us

300mm (12-inch) wafer

to respond to changing market conditions."

After completion of the initial expansion, the site will be capable of processing 25,000 wafer starts per month in 300mm technology. With operations scheduled to begin in early 2005, the initial build out also will give Infineon the option to ramp up additional capacity rapidly if and when it is required by market conditions.       More

News

Business

Albemarle to Acquire Akzo Nobel Catalyst Business

Albemarle Corporation, a manufacturer of specialty chemicals, has announced plans to purchase the catalyst business of Akzo Nobel N.V. for 625 Euros in cash. The acquisition of the unit, which will generate annual revenues of 350 million in Euros, will make Albemarle the world’s largest producer of hydroprocessing catalysts and the second largest producer of fluidized catalytic cracking catalysts. More.

Carpenter Expands Polyester Mattress

Capacity

Carpenter Co., a manufacturer of "Sleep Better" products, is expanding manufacturing capacity around the country to accommodate increased demand for its products. "Virtually all of our plants will undergo major renovations over the next few months," said Dick Davidson, vice president for manufacturing. The company is adding a total of 370,000 square feet, installing state-of-the-art quilting lines in two plants, and purchased blowing lines to produce synthetic down pillows, comforters, fiber beds and what it contends are the "most innovative polyester mattress pads in the country."

Ethyl to Become Holding Company 

The board of Ethyl Corporation, a manufacturer of chemical additives, has recommended that the company move to a holding company structure named New Market Corporation, which would own Ethyl as a wholly owned subsidiary. The change must be approved by shareholders.

Pillow Talk

Here’s one way to increase the sales of pillows: Convince people their old ones are nasty and not worth keeping. According to a Roper poll just released Carpenter Company, manufacturer of Sleep Better pillows, most Americans are sleeping on a pillow that is more than two years old, gets washed less than once a month, and isn’t as comfortable as it could be. “Old pillows and pillows overdue for washing can significantly downgrade the sleeping experience," says Dan Schecter, vice president of sales and marketing, consumer products division. Carpenter maintains the pillow industry's only dedicated research and development facility. 

Cleaning up Those Pet Spills

Carpenter Co., a manufacturer of polyurethane foam and processed polyester-fiber products, has partnered with Invista, formerly DuPont Textiles & Interiors, to introduce a stain-resistant carpet cushion under Invista’s STAINMASTER brand name. The cushion features a breathable moisture barrier that catches spills and pet accidents that seep through the carpet, preventing them from soaking into the cushion and sub floor where they can cause damage and odors. 

Ethyl Sells Fuel Additive to Turks

Petrol Ofisi, the largest oil company in Turkey has today launched a new premium diesel fuel, Prodizel Plus, based on Ethyl's Greenburn Combustion Technology. Prodizel Plus, according to Ethyl, offers less smoke, cleaner engines and better performance and the best ignition quality of any fuel in Turkey, which translates into quieter motors, reduced exhaust emissions and quicker cold startup. More.