BSH Home Appliances Corporation Project

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BSH Home Appliances Corporation Project
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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

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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.

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1995 Germany
In 1991 BSH decided to introduce its 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 NCDOCs first visits to
BSH were held in Dillingen and Munich regarding
producing the BSH dishwashers in North Carolina
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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
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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
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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

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Bosch Power Tools BSH Dishwashers
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BSH Project Victory

• On Friday, July 10 1998 Johnny Rogers
  (Regional Economic Developer) Dan Oliver (CPL),
  Jim Davis (County Developer) and I visited Viktor
  Stehle, VP Technical Operations Reiner Trapp of
  BSH Home Appliances, New Bern to discuss their
  companys 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.

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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.

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Project Victory Plan
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Project Highlights
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REMI Forecast
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Labor Force
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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
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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
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Comparison to SC
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Comparison to SC
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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

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BSH Appliance Park
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BSH Appliance Park
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BSH Appliance Park
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BSH Distribution Center
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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

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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

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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

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BSH Appliance Park
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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

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BSH Appliance Park
Expansion
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Questions?
Expansion