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International Business Headlines

These monthly headlines will provide you with a few highlights of the Commonwealth’s World Trade PA program, managed by DCED’s Office of International Business Development. For more information: check out newpa.com or call 717/720-7469. To unsubscribe, please click.

Click Trade Event Calendar to view upcoming trade events.

TRADE/INVESTMENT: World Trade PA program reports record results: $644 million in export sales and foreign direct investment generated for PA businesses and communities in one year  

Even though this has been one of the most difficult years for our clients and for global trade in general, we are still helping clients make further gains in the international market. Last year (FY 2009-10), as a direct result of support provided by the Office of International Business Development, its regional partners and international network, 266 of our Pennsylvania client companies generated a combined total of more than $483 million in new export sales. In addition, foreign companies assisted by our office made a total capital investment of over $161 million in their PA operations. This results in a combined direct impact of $644 million from the World Trade PA program in one year, beating last year’s record by more than 12%. Many thanks to the OIBD team, our local and regional partners, and our business clients, for their hard work and commitment to expanding Pennsylvania’s international footprint!

TRADE: Ultimate Defender – Altoona-based sporting goods designer and manufacturer - expands into the Canadian market

Altoona-based sporting goods designer and manufacturer, Ultimate Defender (UD), has expanded their sales efforts into Canada. UD’s sports training aid is premised on “Active Visualization” to hone competitive skills while actively training in order to prepare mentally and physically while improving technique. Originally created as a training tool for basketball and football, UD is now used for volleyball and soccer. Bob Crook, UD’s designer and owner, is diligently working to increase sales. Bob originally came to SAP&DC, Pennsylvania’s Regional Export Network (REN) partner for the Southern Alleghenies, for help with a potential order from Bulgaria but has since decided to work with SAP&DC and set his sights on other markets. The UD is being used by local high schools, colleges and training camps around the region as well as across the US.  

TRADE: Global/SFC Valve Corporation (Somerset County) reports success from DSEi exhibit in London

Somerset-based manufacturing company Global/SFC Valve Corporation sells world-class underway replenishment equipment, hose assemblies and fittings in the international marketplace. With assistance from Pennsylvania’s trade representative in the UK, multiple RFQ’s and new orders resulted from Global’s catalog participation in the Defense and Security Equipment International (DSEi) exhibition held in London in September 2009. This month, the company hosted two delegates from Bosch Rexroth (Netherlands) at their Somerset facility. Bosch presented Global with a second RFQ for underway replenishment equipment, and the company estimated sales resulting from participation in DSEi at $100,000. Global has utilized the World Trade PA program to advance their international business objectives and is now selling in 8 countries.

PORTS: DonJon Shipbuilding and Repair (Erie) holds Open House

On July 21^st, DonJon Shipbuilding led about 120 invited guests, including elected officials, members of the local business community and out-of-town customers and vendors, through the largest shipyard on the Great Lakes.  Work on a massive 877-foot integrated tug and barge is progressing on target for completion by the end of this year.

As 70 employees went about the business of welding, measuring, and cutting, DonJon announced that payroll could reach about 150 or even 200 by the end of this year.

 

This is the manufacturing room at DonJon Shipbuilding and Repair in Erie. Shown here are parts of a 740-foot-long dry cargo barge that is scheduled to be completed in March, 2012.

INVESTMENT: FracServe from Canada sets up operations in Indiana, PA, bringing repair services to gas drilling companies

FracServe provides repair services to gas drilling companies of Alberta, Canada and has recently set up business operations in Indiana, Pennsylvania, with the assistance of Pennsylvania’s investment representative in Canada, Center for Direct Investment staff, and the Indiana County Chamber of Commerce. They are providing repairservices to gas drilling companies involved in the development of Marcellus Shale gas. FracServe repairs and maintains products such as hose loops, pup joints, fittings, and plug valves for wells. The company plans to hire 19 employees over the next three years as a result of its expansion to Pennsylvania.

Pennsylvania’s investment representative in Montreal, Jason Rose, first connected with FracServe at Go Expo, an event for the oil and gas industry, held in Calgary in June 2009. At the meeting, Mr. Rose provided FracServe’s representative with information about investing in Pennsylvania and the excellent opportunities available to the company as a result of Marcellus Shale development.

Not long after the meeting, a FracServe representative traveled to Pennsylvania and visited a number of potential sites for their business operations. In early 2010, FracServ signed a lease for a facility in Indiana, PA.

The Marcellus Shale is a rock formation that underlies approximately two-thirds of Pennsylvania and portions of New York and West Virginia and is believed to hold trillions of cubic feet of natural gas.

TRADE: PA Guide to Exporting offers first-ever overview to PA business community of all available in-state resources for export assistance

Pennsylvania’s Center for Trade Development (CTD) has begun distribution of the PA Guide to Exporting, a new publication designed to help Commonwealth businesses of every size and sector tap into potential export opportunities. The brochure showcases the Commonwealth’s diverse network of local and overseas experts and programs available to our companies to help navigate the resource network. With the nation’s largest export assistance program, and at a time when the federal government launches the National Export Initiative, our state is already positioned for success with a streamlined and localized approach to export assistance. The Commonwealth is committed to being a leader in international business development and fortunate to have experienced public and private economic development professionals with the knowledge and customized tools to help our companies become more globally competitive. Partnering organizations should have received brochure supplies this month for their own distribution. You can also download the brochure at www.NewPA.com/trade.

TRADE: Sakamoto-san – PA trade representative in Japan - passed away earlier this month

                                                    

Mr. Nobuyuki Sakamoto (Sakamoto-san) represented the Commonwealth of Pennsylvania’s international trade and investment interests in Japan from 2000 to 2010. He tirelessly worked both trade and investment deals for the benefit of Pennsylvania and earned a reputation as a valued and dedicated partner working for the betterment of the Pennsylvania economy and its citizens.

In his 10 years with us, he worked with 453 Pennsylvania companies and he and his team assisted 100-130 clients each year, completing 100-200 projects annually. During the last 5 years, PA clients credited his office with almost $30 million in export sales to Japan. Each year, his office handled at least 1 Pennsylvania trade delegation attending exhibitions covering a wide variety of industries as well as 1-2 catalog promotions on behalf of our clients.

Sakamoto-san was a man of many ideas and embodied the Japanese philosophy of “kaizen” or continuous improvement but in a gentle manner, as was his custom. He was adept at finding “free” space at trade shows in order to prompt PA companies to participate. He forged a strategic relationship with Japan’s Saitama prefecture and encouraged them to establish a relationship with Pittsburgh, focused on bringing Saitama-based companies to Pittsburgh to build business-to-business ties. He organized multiple visits of Japanese study abroad agencies to see Pennsylvania institutions and encouraged them to place Japanese students in these schools, even setting up special PA libraries at these agencies. Based on his own research, he sent us lists of Pennsylvania companies that he believed could succeed in Japan, many formerly unknown to us. Most recently he spear-headed a successful initiative sending a Japanese life sciences expert and venture capital advisor to meet with Pennsylvania companies and evaluate their potential for VC funding, Japanese market entry, and participation in our 2011 Japanese Life Sciences Trade Mission.

Beyond the numbers and all his professional accomplishments, Sakamoto-san’s optimism, drive and kindness will be missed most of all. On behalf of all of those who worked with him in Pennsylvania, we send our condolences to Sakamoto-san’s family and colleagues.

PORTS: EPA Grant to Help “Green” the Port of Pittsburgh, significantly reducing diesel emissions

The EPA will present a $1.15 million grant to the Port of Pittsburgh Commission to help fund the repowering of four marine towing vessels with new, more efficient diesel engines and generators that will reduce air pollution, improve air quality and lessen overall environmental impacts.

The EPA estimates that 33% of our nation’s annual carbon dioxide comes from transportation and that waterway transportation is our greenest form of transportation because it contributes less than any other mode.

This grant by the EPA, along with matching funds invested by Campbell Transportation, Consol Energy and River Salvage, will reduce Nitrous Oxide by 112 tons; Particulate Matter by 5 tons and Carbon Monoxide by 15 tons above and beyond the reductions achieved by just using waterways.

TRADE: ChemBio Shelter (Lehigh County) introduces airtight shelter system to the Chinese market, resulting in first shelter sale with partner in Beijing

Engineers at ChemBio Shelter in Allentown (Lehigh County) have developed an airtight shelter system enabling people to survive in situations where ambient air becomes hazardous. Through the company's efforts, federal legislation now mandates use of such systems in underground coal mines and the shelter is now widely used throughout the US. Seeing similar opportunities abroad, ChemBio’s owner asked for assistance in the Chinese market. Pennsylvania’s trade representative in Beijing was able to provide the company with information on patent and trademark issues in China. ChemBio Shelter has recently developed a strategic partnership in Beijing and has successfully completed its first shelter sale.

TRADE: Furniture Pakistan official makes marathon lumber mill visit

Mr. Shoiab Raza, Wood Procurement Officer from Furniture Pakistan, subsidiary of Pakistan Development Corporation (PDC) under Pakistan’s Ministry of Industries and Production, visited Pennsylvania from June 27 – July 16, 2010. PDC plans to develop a wood bank to provide American lumber to small and medium-sized furniture manufacturers in Pakistan. The intense itinerary developed by the Hardwood Development Council, Center for Trade Development and the Regional Export Network included 17 lumber yards and saw mills throughout Pennsylvania, wood grading training at Penn State University’s Forest Resource Lab, and a meeting with IUP’s furniture design director. Once up and running later this year, PDC plans to purchase 35-40 containers of US lumber per month.

 

PORTS: Major new marine terminal at Port of Philadelphia one step closer to reality

Governor Ed Rendell announced the shortlist of teams that will continue on in the solicitation process of developing the public-private partnership to be known as Southport Marine Terminal. The state-of-the-art facility is strategically positioned to handle growing international trade volumes and is expected to bring millions of dollars of investment to the region.

One of the teams selected is Delaware River Stevedores (“DRS”) and Hyundai Merchant Marine America (“HMMA”); the other, SMT Development Partners and Spanish-based Obrascon Huarte Lain, S.A. (OHL). Both have solid track records in terminal development and based on phase two submissions, the preferred bidder should be determined in November.

TRADE:  Allegheny Bradford Corporation and Top Line Processing Equipment exhibit at the COPHEX show in Seoul, Korea

Bradford-based ABC (Allegheny Bradford Corporation) manufactures stainless steel tanks and its sister company, Top Line Processing Equipment, provides valves----serving the pharmaceutical and biotechnology industries. Both companies exhibited at the COPHEX Show in June in Seoul, Korea and have been represented in the market since 2008. ABC currently holds over 80% of the heat exchanger market in Korea. Pennsylvania’s trade representative in Korea supported the companies at the COPHEX show.

 

                                   Top Line’s exhibit at the 2010 COPHEX Show in Seoul

COLLEGE/UNIVERSITY RELATIONS: Pennsylvania’s three CIBERs help link the business community with international education, language training, and research

CIBER is an acronym for the Centers for International Business Education and Research. Created by Congress, CIBERs serve as a resource for business people, students and teachers. Three Pennsylvania universities, University of Pennsylvania, Temple University and the University of Pittsburgh, provide services in support of international competitiveness by linking the business community with international education, language training and research. With over thirty CIBERs in the United States, Pennsylvania boasts three, only two other states can claim the same amount.

From providing support to small and medium-size businesses, funding research projects to internationalizing business curriculum, CIBER programs are a mix of organized activities to advance the study and teaching of international business.

CIBERs offer assistance to colleges and universities through various activities, programs and events, including a faculty development trip offered by Pitt CIBER.   Faculty at Western PA schools may apply to participate in a ten-day trip featuring new or potential European Union countries. CIBER is able to provide a few scholarships to assist with funding.   The 2011 itinerary features Czech Republic, Croatia and Turkey. The faculty agenda includes company visits and lectures on EU relationships, potential United States business involvement and the region’s economy.

Representatives from the Temple and Pitt CIBER programs will present the session Cross Cultural Virtual Collaboration (Using Technology to Work with International Partners) at the October Pennsylvania Council for International Education (PACIE) Conference in Scranton. PACIE’s mission is to strengthen collaborative efforts with all education sectors to promote international programs and the globalization of education.

The Penn Lauder Summer Institute is an intensive program for secondary and post-secondary language educators. Teachers learn business fundamentals and business communication tools to integrate into their curriculum for classroom use. Temple CIBER has partnered with schools in France, Ireland, Mexico, India and the United Arab Emirates after creating study abroad and student exchange opportunities.

To learn more about these programs, please use these links to access the CIBER websites: www.lauder.wharton.upenn.edu/ciber , www.sbm.temple.edu/ciber, and www.business.pitt.edu/ibc   

If you have questions regarding the above articles, please contact:

peoneill@state.pa.us for TRADE related articles; dbriel@state.pa.us for INVESTMENT related articles; hpacker@state.pa.us for PORT related articles; and lwalter@state.pa.us for COLLEGE/UNIVERSITY related articles.