By Kathryn Brown
In the December 2009 issue of Forbes, West Virginia was reported as having an impressive list of reasons for being able to attract new businesses to the Mountain State. Among the high points were the facts that in recent years West Virginia’s economy has grown faster than that of any other state in the nation, the cities were noted as being top choices for establishing careers and families, the state’s skilled workers were among the country’s most productive and crime rates remained among the lowest in the United States. However, for three international business leaders, the decision to make West Virginia their corporate home was based on basic needs to satisfy complex wants: historical roots, professional understanding and geographic accessibility. Whether companies are establishing new products and services or expanding existing operations in new markets, West Virginia appears to be receiving increased global consideration.
EuropTec: Clarity of Corporate Vision
Eagle Glass Specialties of Clarksburg was once known as a supplier of convex glass products to the lighting industry as well as a supplier of glass to the appliance market. The company was founded by a Belgium immigrant who settled in the north-central region of West Virginia in 1921. Decades later, Eagle Glass became of interest to the EuropTec Group, based in Oftringen, Switzerland, which happened to be a leading manufacturer of technical flat glass, displays for numerous diverse applications, technical polymers products and protective coatings. The family-owned EuropTec Group set its sights on capturing the technologies used to make premium-quality etched glass, which Eagle Glass had been manufacturing. When EuropTec discovered the small organization’s capabilities, the group’s chief executive officer of U.S. operations, Kurt Ruefenacht, approached Eagle Glass the old-fashioned way: he picked up the telephone and asked for a face-to-face meeting.
“While EuropTec enjoyed a widespread geographic footprint, we acknowledged that our business activities lacked a significant component,” Ruefenacht begins. “We were attracted to etched glass technologies, which we were able to find in West Virginia. When we discovered Eagle Glass in this particular sub-specialty, we knew that we had two choices—buy the company or build our own and compete against them,” he explains.
Ruefenacht has lived in the United States since 1985 but joined EuropTec in 2004 to launch its American operations. Established as a display business in Northfield, Minnesota, Ruefenacht and EuropTec’s owner and president, Dr. Andreas Lauterburg, knew that the potential opening in Clarksburg would be worth moving the company’s flag to West Virginia.
“Simply put, we made a cold call to Eagle Glass’ owners to see if they were interested in selling the company,” Ruefenacht continues. “We agreed to discuss our situations at a glass industry conference in Boston, and after doing so and talking at length with the various parties, we worked out a deal that was secured in early 2006.”
Through the acquisition of Eagle Glass, the group has achieved not only an official holding presence in the United States but enhanced opportunities in the area of glass fabrication. Before launching new services to customers, EuropTec’s first objective was to refocus a relatively small business into a worldwide name.
“I want to stress that Eagle Glass was not in financial trouble,” Ruefenacht confirms. “They were doing well, but they also knew that they had taken things as far as they could on their own. We took over the company and invested significant dollars into modernizing the facility, upgrading equipment and perfecting mechanical processes that now turn out sophisticated, specialized products such as glass for avionic displays.”
In three short years, EuropTec USA has built a reputation as a market leader in etched glass (trademarked as EagleEtch and EagleEtch Plus) for the touch panel and display industry. EuropTec has expanded its precision glass production to include computer filter glass, vandal-proof laminated glass, silk screening and chemical and heat tempering. The company, which recently launched EuropTec Asia, an international branch managed from the Clarksburg location, now provides supplies to the touch panel, ATM, avionic military and automotive markets.
“We have worked very hard to be known as the specialist in glass processing and fabrication for the display industry,” Ruefenacht says. “We are providing the largest leaders in touch-panel manufacturing with finishing and processing technologies. Our success is allowing us to forecast a quadruple jump in our sales over the next three to four years, and we will need to double our workforce to accomplish this goal. In the short term, we’re planning to invest approximately $3 million in efforts to make this company more efficient. Most people don’t realize that a simple glass company has been turned into a complex manufacturing industry, which is sending West Virginia-made products all over the map.”
For more information, visit the company’s USA Web site at www.europtec.com.
Kureha: On West Virginia’s PGA Tour
In the spring of 2008, a groundbreaking ceremony was held for the 20th Japanese company to settle in West Virginia. Prior to the ribbon-cutting festivities, Tokyo-based Kureha announced that $100 million would be invested in the construction of a new plant dedicated to the production of polyglycolic acid—or PGA.
First discovered in the early 1950s, PGA is a simple yet strong high performance polymer. Currently, the only commercial application for PGA is in the medical world, where it is used for absorbable surgical sutures. Through Kureha’s extensive research and development programs, exciting discoveries have made it possible for PGA to be used in new ways and for new markets.
“The breakthrough is in the technology to make PGA commercially viable,” says Tom Provost, Kureha’s plant manager. “The ease with which PGA can be processed and its much-improved properties as a barrier to carbon dioxide and oxygen now make it possible to produce various food and beverage bottles—and give them a longer shelf life. This has the potential to revolutionize the soft drink industry.” Kureha’s new polymer will be sold and distributed under the Kuredux trade name.
Situated on the DuPont site in Belle, West Virginia, Kureha’s venture is rather unique in that the company designed and is building and operating the plant itself. Senator Jay Rockefeller commented that Kureha’s decision to construct a modern plant in West Virginia would be met with “endless support, steadfast workers and a location where they will want to do nothing but expand.”
In response, Provost shed light on how and why West Virginia was chosen as the ideal place for Kureha’s complex endeavor. Most important to the project was the state’s availability of raw materials used for polyglycolic acid production, particularly glycolic acid, which is manufactured at the Belle site by DuPont. Second, the Brownfield site was already equipped with critically important infrastructure that included security, fire protection, other sources of emergency response and all of the necessary utilities. Finally, statewide accessibility of chemical industry expertise coupled with an experienced workforce armed with specific skills for construction and operation solidified Kureha’s decision.
The partnership between Kureha PGA, LLC, DuPont Corporation and West Virginia as a whole proves that the state can continue its leadership in the global chemical and polymer manufacturing industry, confirms Governor Joe Manchin. Provost is quick to point out that ideally the relationship works both ways as the company’s presence in West Virginia will require assistance in the management of wide-ranging administrative tasks.
“Kureha PGA is able to partner with existing businesses in West Virginia to implement many of the required business functions while minimizing our investment in human resources, accounting, IT, engineering, maintenance, storage and shipping, raw material supply and site services,” Provost explains.
Kureha PGA, LLC and Kureha America Inc. are wholly owned subsidiaries of Kureha Corporation, which is the leading global supplier of specialty chemicals and plastics used in consumer packaging, household products, pharmaceuticals, agriculture and other industrial applications. The principal business of Kureha America Inc. is to import and sell various types of products sourced from parent and affiliated companies to North and South America markets.
For more information, visit the company’s Web site at www.kureha.com.
Randox Laboratories, LTD: Life-Changing Innovations
Dr. Peter Fitzgerald carefully evaluated numerous locations in many states before selecting the exact site for the newest office of Randox Laboratories, originally based in Northern Ireland. Fitzgerald explains that the proximity to key markets was a crucial factor in his decision making process, as the company needed to reach an increasing volume of customers in the most efficient ways. After a thorough search and many fact-finding missions, West Virginia became the company’s choice for its East Coast operations, a place assembled for technological advancements in medical testing.
The announcement, which was made in early December 2009, confirmed that Kearneysville, West Virginia would be the town in which Randox Laboratories would invest $7 million to renovate an existing structure in Jefferson County. Randox, known worldwide for its assistance in disease diagnosis, would create a 34,000-square-foot facility to house the company’s administrative, distribution, sales and manufacturing functions.
Currently, Randox Laboratories manufactures supplies, kits and equipment that are used in virology and endocrinology studies within hospital and university settings. The newest location, in Burr Business Park along WV 9, provides a perfect blend of opportunities such as the closeness to clients as well as the convenience of travel, which is important to company representatives who fly to the United States from various overseas offices, in addition to the shipment of products manufactured at the UK facility.
“West Virginia was chosen for a number of reasons,” says Fitzgerald. “The facility that we purchased is ideal for our future plans. The 30,000 square feet will allow us to begin our manufacturing of the revolutionary biochips in the United States. With our current location in California, we have been shipping Randox products to the West Coast and then back across the United States to our customers in the East. Adding this new office to our United States operations will streamline business activities.
As scheduled, Randox launched operations this past January. Initially, the location in Jefferson County was slated to be used as a sales office; however, company officials plan to recruit administrators and management staff to handle broader functions. Fitzgerald explains that experienced staff members from the company’s main office will be on-site to train new employees in West Virginia.
“Throughout 2010 and 2011, Randox will be refurbishing the facility in order to set up our temperature sensitive storage,” he says. “We will also be preparing the facility for the manufacturing of the biochips. These developments will provide jobs in the skilled manufacturing, scientific, engineering and management markets.”
Company literature indicates that Randox possesses contracts with institutions in more than 130 countries and has direct offices in Africa, Asia, Australia, Europe and South America. Founded in 1982 by Fitzgerald himself, the international health care technology firm has dedicated $150 million of company resources to the development of two key products—Biochip and Evidence—which creators believe are the finest diagnostic tools in biological science.
For more information, visit the company’s Web site at www.randox.com.
