BSH Home Appliances Corporation Project: BSH Home Appliances Corporation Project


Overview: Overview The BSH Home Appliances Corporation supplies household appliances to people world-wide. This presentation provides an overview of their “Appliance Park” project in New Bern, North Carolina. BSH Germany 1995 Site Selection Bosch Power Tools Dishwashers Project Victory BSH Appliance Park Incentives Suppliers


BSH Home Appliances Corporation: BSH Home Appliances Corporation BSH Home Appliances Corporation USA is a wholly owned subsidiary of BSH Bosch und Siemens Hausgeräte GmbH, which was formed in 1967 is a 50/50 joint venture between Robert Bosch GmbH and Siemens AG In 2005 BSH Bosch und Siemens Hausgeräte GmbH employed 35,500 people and had sales of $7.3 billion The BSH Group is the third largest manufacturer of household appliances in the world operating at 30 production sites with 43 factories in 15 countries.


1995 Germany: 1995 Germany In 1991 BSH decided to introduce it’s dishwasher into the US market. In June 1995 BSH made their decision to build a dishwasher manufacturing plant in the USA and NCDOC became involved in July 1995 through a lead from our European office In October 1995 NCDOC’s first visits to BSH were held in Dillingen and Munich regarding producing the BSH dishwashers in North Carolina


BSH Site Selection: BSH Site Selection Site selection activities: Product top quality dishwasher National search ($30,000,000 project) Greenfield or an available building(200,000 sq.ft.) Siemens in New Jersey/Bosch in Chicago Labor force a critical issue (240 jobs) German style training and apprenticeships Supportive Community and State Infrastructure Minor role of incentives at the beginning


Bosch Power Tools: Bosch Power Tools Existing Industry (and Facilities) 70 Acre Site 200 Skilled Employees Management staff in place & supportive Consolidation rumors Supplier network Distribution North and South on I-95 Testimonials


BSH New Bern: BSH New Bern 1996 March Decision to locate in New Bern 1996 April Groundbreaking in New Bern 1996 Sept. Hurricane Fran hit New Bern! 1997 March Start Production of Dishwashers $30,000,000 Investment 240 Jobs Incentives – road improvements electrical utility improvements tax credits labor training


Bosch Power Tools &BSH Dishwashers: Bosch Power Tools & BSH Dishwashers


BSH Project Victory: BSH Project Victory On Friday, July 10 1998 Johnny Rogers (Regional Economic Developer) Dan Oliver (CP&L), Jim Davis (County Developer) and I visited Viktor Stehle, VP Technical Operations & Reiner Trapp of BSH Home Appliances, New Bern to discuss their company’s plans to establish facilities to produce cloths washers, cloths dryers, and cooking home appliances in the US as well as locate warehouse and parts distribution facilities. Unfortunately, to grow the current dishwasher facility and to create the appliance campus in New Bern it appears Bosch will consolidate their power tools division to their other plants. This would mean 200 employees would be reemployed by the home appliances division from the power tools division. If the appliance campus concept is successful ultimately it could employ approximately 2,000 people with an investment of $150-200,000,000.


BSH Project Victory: BSH Project Victory BSH plans to conduct an analysis to compare New Bern with other NC and SC plus VA communities to be sure they have selected the correct location. The major concern in New Bern is attracting enough technical and manufacturing labor to support the facility. For the long run an apprenticeship program has been suggested similar to those in Germany to generate a continuous labor supply.


Project Victory Plan: Project Victory Plan


Project Highlights: Project Highlights


REMI Forecast: REMI Forecast


Labor Force: Labor Force


Wages and Benefits: Wages and Benefits Benefits: Family Health Insurance - $60 per month Family Dental - $3.50 per month Vision Care - $10 co-payment Short & Long Term Disability Insurance - Free, 60% of wages paid Life Insurance - Twice annual salary 401K - 50% match of first 6% Holidays - 10 paid Vacation - progress based on tenure Retirement Plan - 4% of gross earnings Education Assistance - 100% of cost for work related


Suppliers: Suppliers Additional Jobs & Investment Tub - 50 jobs, $10,000,000 Parts assembler - 10 jobs, $ 1,000,000 Parts assembler - 10 jobs, $ 1,000,000 Parts assembler - 10 jobs, $ 1,000,000 Racking - 20 jobs, $ 5,000,000 TOTAL 100 jobs, $18,000,000


Comparison to SC: Comparison to SC


Comparison to SC: Comparison to SC


Project Victory : Project Victory 1998 July BSH Acquired Thermador 1999 Nov. Power Tools Out Cooking Products In 2002 Feb. Groundbreaking 2002 Nov. Buildings Complete 2003 Nov. Production Began 2004 March Products introduced to the market


BSH Appliance Park: BSH Appliance Park


BSH Appliance Park: BSH Appliance Park


BSH Appliance Park: BSH Appliance Park


BSH Distribution Center: BSH Distribution Center


BSH Appliance Park: BSH Appliance Park Incentives: One NC Grant Tax Credits 3A – Equipment, Jobs & Training Training from the Community College System Training Center at the Craven County Community College Apprenticeship Program – from High School through Community College Industrial Road & Rail Access and TIP US 17 Bypass Progress Energy & Private Business Support Regional Partnership Support Legislative Support City and County Performance Grants Local & State Infrastructure grants Excellent Business Relationship with the Client


BSH Appliance Park: BSH Appliance Park Results 2006: 1,100 Full Time Employees 300 Temporary Employees $ 41,000,000 Payroll Annually $ 180,000,000 Investment in Plant & Equipment Top performing household appliances in the USA Testimonial to Technology, Talent, Teamwork & Training


BSH Suppliers: BSH Suppliers Suppliers: Wirthwein Plastic Injection Molder 70 Jobs $11,000,000 Supplier to BMW Prettl Control Panels 84 Jobs $10,000,000 Sonoco Packaging 51 Jobs $4,000,000 National Standard Metal Stampings 30 Jobs $8,000,000


BSH Appliance Park: BSH Appliance Park


BSH Appliance Park: BSH Appliance Park Project: Announced Monday 12/4/06 Mid-Range Dishwasher Manufacturing 225 Jobs $11,000,000 Investment Incentives: Tax Credits 3J – Equipment and Jobs Training Job Development Investment Grant City and County Performance Grants Excellent Business Relationship with the Client Competition: Mexico and Turkey


BSH Appliance Park: BSH Appliance Park Expansion


Questions?: Questions? Expansion