Optimizing Success of - gaccmidwest.org€¦Optimizing Success of Munich Trade Fairs [6] GERMAN...

Optimizing Success ofMunich Trade Fairs [6]

GERMAN AMERICANGERMAN AMERICAN

What German EmployeesMust Know When Coming toWork in the U.S. Part II

WindEnergy Business 2007

Facilitating Secure TradeAcross the Atlantic

ThyssenKrupp Breaks Groundon it’s New Facility

Optimizing Success ofMunich Trade Fairs [6]

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59987_GACC_ACG 11/23/07 11:08 AM

Viewpoint

German American Trade · Vol. 18 · No. 10 3

The United States is the

most important trade

and investment partner

of the European Union. Bilater-

al trade volume last year

amounted to over 600 billion

Euro (about $800 billion); bilat-

eral investment volume roughly

to 1.5 trillion Euro (that is sig-

nificantly more than $2

trillion). Yet we have far from

realized the full potential of

European-American economic

relations. Differing standards

and bureaucratic hurdles con-

tinue to hamper unlimited

trade in goods and services as

well as direct investments.

Companies on both sides of the

Atlantic are therefore rightfully

calling for existing and future

regulations to be harmonized or

mutually recognized.

German Chancellor Merkel

took up this challenge and

made it a priority during Ger-

many’s EU presidency in the

first half of this year to remove

remaining nontariff trade and

investment barriers in both

economic regions. At the EU-

U.S. Summit in Washington on

April 30, 2007, the Framework

for Advancing Transatlantic

Economic Integration was

signed. Its successful imple-

mentation should give new

momentum to EU-U.S. eco-

nomic relations. It can

contribute to accelerating eco-

nomic growth in Europe and

the United States, securing

existing jobs, and creating new

ones. It will mean lower costs

for industry, improved oppor-

tunities for business sales, and

lower prices for consumers.

The Transatlantic Economic

Council (TEC), led by EU

industry commissioner Günter

Verheugen and Allan B. Hub-

bard, economic-policy adviser

to the U.S. President, will form

the core of future regulatory

cooperation. The Council com-

menced its work in Berlin late

last June. On November 9, the

full body met for the first time

in Washington. The Transat-

lantic Economic Council will

also meet twice annually in the

future to identify priority

action areas and evaluate

progress in the transatlantic

economic relationship.

Among the “lighthouse pri-

ority projects” which have

already been taken up are pro-

tection of intellectual property,

common standards for secure

trade, mutual recognition of

accounting standards no later

than 2009, deeper cooperation

in the field of innovation and

technology, and elimination of

investment barriers.

The product groups partic-

ularly targeted for speedy

harmonization of regulations

include cosmetics, medica-

tions and medical products,

automotives, chemicals, and

electronic articles.

The business community

should continue to support the

integration of both the EU and

U.S. economic areas by articulat-

ing its concerns and proposals to

governments on both sides of the

Atlantic and to the EU Commis-

sion on a regular basis and within

existing structures, particularly

via the Transatlantic Business

Dialogue, and by actively collab-

orating on implementation. �

Strengthening TransatlanticEconomic Relations –Transatlantic Economic Council

Dr. Klaus Scharioth

German Ambassador

to the United States

59987_GACC_ACG 11/23/07 11:08 AM

German American Trade · Vol. 18 · No. 1044

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Contents

5

Contents


Feature

11 Honorary Consul Series:E.B. Robinson, Jr.

Part 9 of a 9-part series.

14 Düsseldorf – an ExcitingMix of Christmas Marketsand Shopping

With Delta Air Lines’ dailynon-stop service fromAtlanta to Düsseldorf it hasnever been easier to visitthe city during its mostatmospheric time.

16 Terms of Assignment

Part Two of Two

What German EmployeesMust Know When Comingto Work in the U.S.

Regions

20 Midwest

WindEnergy Business 2007

US-German Opportunitiesfor Cooperation inWindEnergy

24 Washington

Facilitating Secure TradeAcross the Atlantic

The Federation of GermanIndustries (BDI), RGIT andthe TransAtlantic BusinessDialogue (TABD) hosted aconference on facilitatingsecure transatlantic trade.

26 Atlanta

ThyssenKrupp BreaksGround On the Site of itsSteel and Stainless SteelFacility

Member Profiles

30 Thermamax

American Engine MeetsGerman High-Tech-Coat

Regulars

3 Viewpoint

Dr. Klaus Scharioth

Strengthening TransatlanticEconomic Relations –Transatlantic EconomicCouncil

32 Transatlantic Ticker

German AmericanCompany News

33 Economic Indicators

34 Masthead

Cover Story

6 Cover Story

Optimizing Success ofMunich Trade Fairs viaExpansion of theInternational Network

Munich International TradeFairs Group (MMI) hasrisen to become a globalplayer since its founding in1964. Today it is one of thefive largest trade fair com-panies in Germany and oneof the leading trade fairorganizers worldwide. MMIfocuses on topics of thefuture and has developed acompetitive event portfoliosince its founding withapproximately 40 of itsown international tradefairs today.

59987_GACC_ACG 11/23/07 11:08 AM

6 German American Trade · Vol. 18 · No. 10

Cover Story

Optimizing Success ofMunich Trade Fairsvia Expansion of the International Network

Munich International Trade Fairs Group (MMI)

has risen to become a global player since its

founding in 1964. Today it is one of the

five largest trade fair companies in Germany

and one of the leading trade fair organizers

worldwide. MMI focuses on topics of the future

and has developed a competitive event portfolio

since its founding with approximately 40 of its

own international trade fairs today.

59987_GACC_ACG 11/23/07 11:09 AM


Cover Story

The focal points of MMI

include leading interna-

tional trade fairs for

capital goods; for example, the

construction industry, beverage

technology, transport and

logistics, environmental tech-

nology, the ceramics industry,

skilled trades and commercial

real estate. In consumer goods,

for example, it has trade fairs

for sports and fashion, watches

and jewelry and tourism. It also

has leading trade fairs in the

areas of electronics and com-

munication and information

technology.

Building up a comprehensive

trade fair program was possible

because Munich International

Trade Fairs Group continuously

expanded its infrastructure.

Since 1998, exhibitors and visi-

tors from throughout the world

meet at the extremely modern

New Munich Trade Fair Centre.

These trade fair grounds have

more than 180,000 square

meters of hall space and

360,000 square meters of open-

air exhibition grounds. The

International Congress Center

Munich (ICM), integrated into

the trade fair grounds, is

among the five largest congress

centers in Germany with a

capacity of 6,000 seats.

Every year, more than 30,000

exhibitors and approximately

two million visitors from

almost 200 countries attend

the events in Munich. Howev-

er, the trade fairs in Germany

have not just been platforms

for international exhibitors

and visitors as German organiz-

ers also hold numerous trade

fairs in many international

markets as well.

Munich International Trade

Fairs Group recognized the

potential of its events for inter-

national markets at an early

stage and has expanded its

international trade fair net-

work in other countries since

the end of the 1980s.

In the wake of its interna-

tionalization strategy, the

company has exported core

topics of its trade fair program

into selected, high-growth

markets worldwide. It can take

advantage of the 60 years of

experience of its subsidiary

IMAG – Internationaler Messe-

und Ausstellungsdienst GmbH

(International Trade Fair and

Exhibition Service Company)

in other countries. IMAG has

been organizing more than 60

trade fairs and trade fair partic-

ipation in more than 25

countries annually since 1946,

and IMAG has organized more

than 4,000 trade fairs and trade

fair participation throughout

the world since its founding.


Fairs Group has been placing

emphasis on expanding its

international network for

many years to support

exhibitors and visitors alike not

only with professional skills,

but also by holding events

close to where they are located.

In addition, MMI has 66

representatives covering 89

countries. One of those repre-

sentatives is the German

American Chamber of Com-

merce in New York. As

representative of Munich Inter-

national Trade Fairs Group in

the USA, it has acted as an

experienced and capable

contact and partner for

American exhibitors and visi-

tors for many years. In

addition to overseas represen-

tatives, Munich International

Trade Fairs Group has six sub-

sidiaries, which are located in

Singapore, Shanghai, Beijing,

Hong Kong, Vienna and – since

July 2007 – in Mumbai.

The expansion of Munich

International Trade Fairs Group

is not just limited to its sub-

sidiaries and their events. Its

involvement in China in build-

ing and operating the Shanghai

New International Expo Center

(SNIEC) was a significant mile-

stone for MMI. This joint

venture of the three trade fair

companies from Munich, Dus-

seldorf and Hanover as well as

a Chinese partner attracted

more than 52,000 exhibitors

and approximately 2.7 million

visitors to a total of 75 events

in 2006.

In the expansion of Munich

International Trade Fairs

Group’s international network

and programs the core compe-

tence areas at Munich are

established in important mar-

kets on other continents. For

example, a global trade fair

concept was developed for elec-

59987_GACC_ACG 11/23/07 11:09 AM


Cover Story

Interview with Manfred Wutzlhofer, Chairman & CEO of Munich International Trade Fairs Group

How satisfied are you with the trade fair

year 2007?

The year 2007 was a very strong trade

fair year which was characterized by lead-

ing international trade fairs such as BAU

and bauma for the construction industry,

ISPO Winter for the area of sporting

goods and sports fashion, ITMA –

International Exhibition of Textile

Machinery – and PRODUCTRONICA for

electronics production. We were able to

record new all-time records in the events

cited for the numbers of exhibitors and

visitors. The tendency to increasing

exhibitor and visitor figures at our trade

fairs in the first half of 2007 has continued

at the fall trade fairs held till now. Overall,

we had 45 large international events in

Munich as well as other large internation-

al congresses and guest events. We

expect the best result in the history of the

Munich International Trade Fairs Group in

2007.

What is the outlook for the year 2008 and

what will be the innovations?

We want to prove our quality with cre-

ative continuity in 2008 too. This is the

basis for maintaining and developing the

acceptance of our products and services

on their existing high level by our cus-

tomers.

We have again been able to acquire

interesting new guest events for Munich

for the upcoming trade fair year 2008.

These include the largest European solar

energy trade fair INTERSOLAR, which

deals with renewable energy sources in

times of climate change. It fits perfectly

into our trade fair program, because the

topic of environmental and climate pro-

tection is also dealt with at BAU, IFAT and

even ELECTRONICA for example. Another

new topic is the GPEC, the International

Exhibition & Conference for Police and

Special Equipment. And finally, we recent-

ly signed a contract for the European

Attractions Show EAS 2008, which deals

with the topic of equipment for carnivals

and amusement parks, among other

things, and which will take place during

Oktoberfest 2008.

Of course, we will maintain and expand

further all of our services for our complete

trade fair program on their current high

level. Our newly developed central mar-

keting service will also be pushed ahead.

What is the significance of your involve-

ment in India?

In addition to China, India is one of the

focal point countries for our trade fair

activities in Asia due to its increasing eco-

nomic significance. This is being reflected

in the growing offers of our own events in

this country, where investments in infra-

structure, education, health and environ-

mental protection are primary objectives

due to the country's development. At the

same time, India offers international

investors a young population, specialists

who speak English, legal security, politi-

cal stability and increasing buying power

of the middle class. All of these factors

were decisive in our decision to become

involved in India.

In the future, Vietnam will also play an

increasingly strong role, both with

respect to exhibitors and visitors in

Munich as well as a site for our own

trade fairs in the country.

Are you planning additional

joint projects with part-

ners in other countries?

The expansion of our

international trade fair

program will also be con-

tinued dynamically. It is

the logical consequence of

our efforts to support our

customers from the

exhibiting industry worldwide, especially

within the framework of our leading trade

fairs, to acquire new customers and con-

sequently to maintain our competitive-

ness in Germany too. Our activities

extend particularly to all of Asia with the

focal points of China, India and Vietnam

as well as to the Middle East, North Africa,

Latin America and especially to Eastern

Europe. We always work with local part-

ners on site to this end.

What do you think could make it easier for

international exhibitors and visitors to

take part in trade fairs in Munich?

We would like to see the elimination of

the duty to pay value-add tax on invoices

for our international exhibitors. This

would make things much easier both for

the these customers and for the trade fair

companies. Fast granting of visas for

trade fairs by the German embassies is

also extremely significant for our interna-

tional trade fairs. Exhibitors and visitors

expect that their international business

partners are represented completely at

trade fairs and not just those, who can

travel to Germany without a visa.

59987_GACC_ACG 11/23/07 11:09 AM


Cover Story

tronics trade fairs, which cov-

ers events in East Asia, India

and South Ameri-

ca. This concept is

also used for other

industries repre-

sented at Munich

such as the con-

struction industry,

beverage technolo-

gy, environmental

technology and

transport. Trade

fair schedules can

be coordinated

better thanks to a

combination of

leading international and

regional trade fairs. Trade fair

offers can be adapted better to

respective markets and the

marketing activities of

exhibitors, visitors, associa-

tions and the press can also be

coordinated. One essential

objective of the Munich trade

fair business is systematic sup-

port of industries in this

context, including in markets

far from Munich with their

own conditions.

The example of China

showed that the transfer of

leading world trade fairs such

as bauma, IFAT and Analytica

creates positive synergies both

for the German and Chinese

versions of these events. For

the events in Munich, this

means that the number of

exhibitors and visitors from

China has increased continual-

ly since the Chinese

counterpart was held for the

first time. The number of Chi-

nese visitors increased for

bauma in Munich alone from

173 in 1995 to 2,259 at this

year’s event.

The growth in India is even

better news, where MMI and its

subsidiary IMAG

have achieved great

success for some

years with their own

events such as ANA-

LYTICA ANACON,

TEXMAC, AUTOMA-

TION and AUTO

EXPO thanks to the

increasing economic

significance of the

country. While only

495 visitors from

India came to

Munich in 1994,


Fairs Group was able to wel-

come more than 11,000

visitors from there this year.

India is already one of the

biggest economies in the

world. Above-average growth is

predicted for the Indian econo-

my in the near future

compared to Europe and the

USA. According to these fore-

casts, India will become the

third largest economy in the

world following China and the

USA.

Based on these economic

forecasts and the good experi-

ence in China, Munich


founded its own subsidiary in

India in July 2007. With head-

quarters in Mumbai, the

central economic region of the

whole subcontinent, this

organization fits perfectly with-

in MMI’s strategy for

international countries. MMI

and its subsidiary MMI Asia in

Singapore are the stockholders,

each with a share of 50 percent.

The business goal is the organ-

izing and holding of trade fairs

in India and Munich Interna-

tional Trade Fairs Group was

able to recruit Manmeet Sabar-

wal an experienced India trade

fair and media expert as gener-

al manager.

The first task will be the new

development of electronicIndia

at Bangalore, the center of the

Indian IT and electronics

industry. There is currently no

event for this sector in South-

ern India, but there is a big

market with a corresponding

demand. The first electronicIn-

dia will take place from

September 2 to 5, 2008.

Manfred Wutzlhofer, CEO of


Fairs Group, stated with respect

to the expansion of the interna-

tional network: “The expansion

of our international trade fair

program will also be continued

dynamically in the future. It is

the logical consequence of our

efforts to support our customers

from the exhibiting industry

worldwide, especially within

the framework of our leading

trade fairs, to acquire new cus-

tomers and consequently to

maintain our competitiveness

Every year, more

than 30,000

exhibitors and

approximately

two million

visitors from

almost 200

countries attend

the events

in Munich.

59987_GACC_ACG 11/23/07 11:09 AM


Cover Story

in Germany too. Our activities

extend particularly to all of Asia

with the focal points of China,

India and Vietnam as well as to

the Middle East, North Africa,

Latin America and especially to

Eastern Europe. We always

work with local partners on site

to this end. In addition to Chi-

na, India is one of the focal

point countries for our trade

fair activities in Asia due to its

increasing economic signifi-

cance. This is being reflected in

the growing offers of its own

events in this country, where

investments in infrastructure,

education, health and environ-

mental protection are primary

objectives due to the country’s

development. At the same time,

India offers international

investors a young population,

specialists who speak English,

legal security, political stability

and increasing buying power

of the middle class. All of

these factors were crucial in

our decision to become

involved in India.”


Fairs Group has continued its

strategy in international coun-

tries consistently with the

founding of the subsidiary in

Mumbai. The objective has

been defined clearly. The suc-

cessful concept from China – to

build even closer relations to

the market and customers and

consequently expand the posi-

tive results at Munich with an

owned company – will now be

applied to all of Asia and espe-

cially to India.

In addition to global expan-

sion, of course new and self-

developed events, as well as

renowned guest events in

Munich are focal points of

MMI’s attention.

In November 2007, oils +

fats, International Trade Fair for

the Production and Processing

of Oils and Fats from Renew-

able Resources, will take place

in the M,O,C, Event Center

Munich for the first time. With

this event and following Auto-

matica and Maintain, Munich


is again demonstrating its com-

petence and innovation

potential in developing new

events, which it has started

over the past three years.

MMI has also been able to

acquire interesting new guest

events for the upcoming trade

fair year 2008. These include the

largest European solar energy

trade fair INTERSOLAR from

June 12 to 14, 2008, which deals

with renewable energy sources

in times of climate change.

Another new topic is the GPEC

from June 3 to 5, 2008, the

International Exhibition &

Conference for Police and Spe-

cial Equipment. Munich


also signed a contract in Octo-

ber for the European Attractions

Show EAS 2008, which deals

with the topic of equipment for

carnivals and amusement parks,

among other things, and which

will take place during Oktober-

fest 2008.

With these new events

the wide-ranging event portfo-

lio of Munich International

Trade Fairs Group is being

expanded by additional, top-

rate trade fairs. �

59987_GACC_ACG 11/23/07 11:09 AM


Features

For over 32 years I was with the largest bank holding company based in Mississippi, serving as its CEO for over a decade prior to my retirement in 1999

from that organization. The contacts and knowledge of Mississippi from those 32 years have been useful

in carrying out my duties as honorary consul, particularly in times of crisis such as the recent hurricane devastation.

How would you characterize both

your relationship to Germany

and Germany’s importance to you?

Germany to me is the most

important foreign relationship

the U.S. has and vice versa. There

is much in common from a cul-

tural standpoint and a business

one. In Mississippi, the Stennis

Space Center on the Mississippi

Gulf Coast wouldn’t be in exis-

tence but for the former German

scientists who helped propel the

U.S. into space.

Why have you agreed to serve

Germany as an unsalaried

honorary consul?

I want to aid German citizens

and businesses in Mississippi

and to promote cultural and

economic ties between Ger-

many and the U.S.

What do you value most

about Germany and its people,

what less so?

I value the German people’s

ingenuity, cleverness, and

exactness. I am also encour-

aged to see the citizens of

Germany acting more individ-

ually and not as much as a

group unwilling to be different

from the German norm.

What do you value most

about the United States

and Americans, what less so?

I value the American people’s

individuality and entrepre-

neurship. I also value the

willingness of Americans to let

other Americans speak up on

issues they may not agree with

out of respect for the right of

free speech and thought.

What comes to mind when you

hear the word Heimat?

Heimat makes me think of

the German homeland, its cul-

ture, spirit, traditions, regional

dress and food.

In what respect is Germany

important to your region

of the United States?

German companies are

major employers in the

region, and, particularly in

the automotive field, are mak-

ing the South an automotive

manufacturing center.

How would you describe your role

as a link between Germany

and the United States?

My role as honorary consul

is to provide some consular

services to German citizens in

Mississippi. Additionally, my

role is to promote goodwill

between Germany and the

U.S. As an example: Mississip-

pi was fortunate to have the

‘Glory of Baroque Dresden’

Exhibition, which brought

the wonderful art of that mar-

velous German city to the U.S.

I helped make this possible as

honorary consul and as chair

of the group that was respon-

Honorary Consul Series: Part 9/9

E.B. Robinson, Jr.

59987_GACC_ACG 11/23/07 11:09 AM

sible for having the exhibi-

tion. A much greater

understanding of Germany

and Germany’s great art and

cultural history was the result.

The period and history sur-

rounding the objects in the

exhibition were taught in

Mississippi schools, and

the opening was broadcast

statewide on Public Televi-

sion. There was nation-

wide media coverage of Chan-

cellor Schröder’s visit to

the exhibition.

What impact do the political

relations between the two coun-

tries have on your work?

Political relations have a

tremendous impact on public

perception of each other in

both countries.

How does your community

respond to you as German

Honorary Consul?

The community responds

very favorably to my role as

honorary consul.

What official act that you carried

out as Honorary Consul has

influenced or engaged you most?

Perhaps the most rewarding

accomplishment recently in my

work as honorary consul was

searching for and helping Ger-

man citizens who were impacted

by Hurricane Katrina on the Mis-

sissippi Gulf Coast. With help

from the Embassy in Washing-

ton and the Atlanta Consulate,

as a team we were able to locate

all German nationals who had

not been heard from in the days

immediately following Katrina

and deliver some aid to those

who needed it. Since then, the

German Government has con-

tinued to offer assistance and aid

to the citizens and communities

on the Mississippi Gulf Coast

who are still in dire straits.

What do you wish for Germany

and the United States

in the future?

I wish for continued close ties

between Germany and the Unit-

ed States. Since the United States

is decreasing its military presence

in Central Europe and moving it

further East, the relationship will

have to be continually worked

on, for there will not be as much

military personnel returning to

the United States from Germany

with a favorable impression of

Germany as in the past. �


Features

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Features

DüsseldorfAn Exciting Mix of Christmas

Markets and Shopping

59987_GACC_ACG 11/23/07 11:09 AM


With Delta Air Lines’

daily non-stop serv-

ice from Atlanta to

Düsseldorf it has never been

easier to visit the city during its

most atmospheric time.

Santa Claus loaded with

presents, shopping bags full to

bursting. Mulled wine and

red-hot credit cards – Düssel-

dorf in the Advent season is

an exciting mix of Christmas

market and shopping. Around

Königsallee, the new

Sternchenmarkt and five oth-

er theme markets along the

most popular shopping streets

are waiting to be discovered.

In the pre-Christmas sea-

son, a stroll through

Düsseldorf’s cen-

tre is a wonderful experience.

Atmospheric Christmas markets

with individual themes are

staged at different places in the

lively city centre: this year, the

Sternchenmarkt has its premiere

at Stadtbrückchen, where giant

crystals and twinkling stars

bathe sky-blue market stalls in

the light of an impressive winter

landscape. On Marktplatz in

front of the historic town hall,

numerous nostalgic huts offer

arts and crafts. The Engelchen-

markt in art-nouveau style

claims the attention on Hein-

rich-Heine-Platz in the Old

Town. On Flinger Straße, Christ-

mas goods are presented in

small hand-painted reproduc-

tions of historic middle-class

houses. Schadowplatz is particu-

larly family-friendly with a

merry-go-round and special

activities for children. XXL-

sized Santa-Claus hats, reindeer

and coloured lights adorn the

huts on Schadowstrasse.

A walk along world-famous

Königsallee is particularly worth-

while. A thousand brilliant lights

illuminate the giant chestnut

trees lining the boulevard.

Opening times of the Christ-

mas market: November 22 to

December 23 daily from 11

a.m. to 8 p.m. Sunday to Thurs-

day, and to 9 p.m. Friday and

Saturday. Closed on Sunday,

November 25. Shops open for

business on Sunday, December

2 (1 p.m. to 6 p.m.)

Travelling to Düsseldorf is

very convenient. Delta Air

Lines, Northwest, LTU / Air

Berlin and Lufthansa offer

numerous direct flights from

various destinations within the

US to Düsseldorf – your Gate-

way to Europe. �

For hotel offers and further

information please go to

www.duesseldorf-weihnachtsmarkt.de

and www.duesseldorf-tourismus.de.

More Information

Features

59987_GACC_ACG 11/23/07 11:09 AM


Features

Terms ofAssignment

What German Employees Must Know When Coming to Work in the U.S.

By Wendi S. Lazar, Esq., with Ian M. Maywald

Part Two of Two

59987_GACC_ACG 11/23/07 11:09 AM

It is important for German

employees considering

employment in the U.S. to

have a fairly negotiated contract

of employment (expatriate or

secondment agreement) prior to

their relocation. However, since

most U.S. companies shy away

from these agreements and

prefer at-will employment to

any contract guaranteeing

employment and severance,

often the employee is offered

only an assignment policy to

refer to or a letter outlining the

terms of the expatriation.

Knowing the differences

between working and living in

Germany versus the U.S., and

what is essential for the compa-

ny to provide an employee

during the assignment, can

prevent hardship and dis-

appointment later on. A U.S.

lawyer, skilled in representing

expatriates, can negotiate

assignment terms prior to

employment and make sure

they are memorialized in a let-

ter signed by both parties.

Also, once an expatriate is

employed in the U.S. or even

before she arrives, the company

will present her with its human

resources policy in a handbook

or code of conduct. Often, an

employee will be asked to sign for

the receipt of this policy, and vio-

lating it can subject an employee

to disciplinary procedures includ-

ing suspension or, worse,

termination. Notably, U.S. work-

place policies vary greatly from

German codes of conduct and

should be read carefully.

The following is a list of the

10 most important things to

negotiate when coming to the

U.S. to work.

Immigration Issues

A German employee plan-

ning to work in the U.S. will

most likely need to attain

employment authorization

before coming to the U.S. Usu-

ally, the employer will hire a

U.S. immigration lawyer and

pay any legal and processing

fees to file a petition with the

U.S. government for an

employee to work abroad on a

non-immigrant temporary work

visa and for the employee’s

family if needed. The types of

applicable visas include H, L,

O, P, or Q visas that vary

depending on the expatriate’s

position and level of education.

Tax Equalization

Generally, every expatriate

agreement should provide that

the employer pays for tax

advice and tax equalization

during and after U.S. employ-

ment. This ensures that the

German expatriate is made

financially “whole” while work-

ing in the U.S, preventing any

additional tax liability and pro-

viding her with tax assistance

in order to comply with both

German and U.S. tax laws.

R. Scott Jones of Goldstein

Jones LLP, an international tax

lawyer in New York, advises

that a German employee work-

ing in the U.S. is generally

subject to federal and applica-

ble state income taxes on

compensation for services per-

formed in the U.S. Any

German employee will be sub-

ject to U.S. taxes, even if the

individual is not a resident for

U.S. tax purposes, unless she

is exempt under the U.S./

Germany Income Tax Treaty as

a qualifying short-term visitor

for less than 184 days in the

calendar year. Jones further

advises that a German employ-

ee who is assigned to the U.S.

on a temporary basis remains a

resident of Germany for tax

purposes. If the German tax res-

idence is “broken” and the

expatriate working in the U.S.


Features

Wendi S. Lazar, Attorney

at Law of Outten & Golden

LLP, an employment law

firm in New York City

represents employees,

both in the US and abroad.

She is co-head of the firm’s

Executives & Professionals

Practice Group and has

years of experience

representing expatriates

and senior level executives

worldwide. She regularly

writes and lectures

on expatriate rights

and executive agreements.

Outten & Golden LLP,

Advocates for

Workplace Fairness

3 Park Ave., 29th Floor,

New York, NY 10016

United States of America

Tel: +1 212-245-1000

Fax: +1 212-977-4005

[email protected]

www.outtengolden.com

About the Author

59987_GACC_ACG 11/23/07 11:09 AM

meets the definition of a U.S. tax

resident, the individual becomes

subject to income taxation in

the U.S. on a worldwide basis.

Social Security

Under the U.S./German

Social Security Totalization

Agreement, expatriates working

in the U.S. may participate in

both German and U.S. social

security systems. In those

instances, the amounts paid

over time from both German

and U.S. social security systems

are adjusted, and they “totalize”

each system’s benefits to better

approximate full benefits.

Under this treaty, German

expatriates are exempt from

paying social security taxes in

the U.S., provided the individ-

ual remains a German employee

and is sent to the U.S. for a peri-

od of five years or less. Further,

the expatriate remains insured

with the German pension insur-

ance system. A certificate of

coverage issued by Germany

serves as proof of exemption

from Social Security taxes on

the same earnings in the U.S.

Therefore, it is imperative that

the expatriate understand and

the U.S. employer agree to limit

the period of expatriation if the

German employee is unwilling

to sacrifice the German social

security and pension benefits.

Benefits

German expatriates coming to

the U.S. can choose to keep their

German benefits and send reim-

bursement forms to Germany or

they can negotiate with the

employer to be covered by a U.S.

plan. Depending on whether the

expatriate uses statutory or a pri-

vately owned insurance plan in

Germany, the employee will take

different actions with regard to

keeping her German insurance

effective while she is covered by

a U.S. plan. If the expatriate has

private insurance, she can pay

a minimal fee and keep her

status in the private insurance

(“freeze” the status). However,

she can always go back to the

statutory insurance.

Vacation

In Germany the statutory

number of vacation days is sig-

nificantly higher than in the

U.S., and expatriates should

negotiate to keep the same vaca-

tion days while abroad. In terms

of holidays, the employee will

have to follow the U.S. holiday

schedule and negotiate some

personal days to return home

for important German holidays

not celebrated in the U.S. In this

regard, periods of home leave as

well as emergency leave and

reimbursement for emergency

travel costs should be provided

by the U.S. employer.

Cost of living adjustment (“COLA”)

Usually, the employer will pro-

vide expatriates with additional

compensation to help offset cost

differentials for living in the U.S.,

if any. This extra compensation

is determined using the employ-

ee’s base salary, and using

changes due to fluctuations in

cost differentials between Ger-

many and the U.S. and

fluctuations in the exchange

rate. COLA is usually paid once

the employee moves into perma-

nent housing and is dis-

continued when she moves out

of that housing at the end

of the assignment. COLA

allowances typically end if an

employee changes from expatri-

ate status to local status.

Moving

The employee and her family

should request a relocation

allowance for additional expens-

es incurred on account of the

move from Germany to the U.S.

At times, the employee may be

expected to repay the relocation

allowance if her assignment ends

earlier than anticipated. This is

an important point to negotiate

in an employment agreement or

assignment letter, depending on

the cause for the termination of

employment. Similarly, employ-

ees are customarily reimbursed

for shipment costs to cover per-

sonal belongings, but policies

vary, and some may contain

unreasonable limits on the

amount that will be reimbursed.

Leave

Generally, the employee and

her family will be eligible for one

or two home leaves per year to

travel back to Germany to visit

family and/or friends. Some

employers recommend that, if

possible, these trips be combined

with business trips to Germany.

Usually, non-working days dur-

ing home leave are counted as

vacation. The employee and her

family are reimbursed for actual

and reasonable transportation

costs in accordance with the

employer’s travel policy.

Reassignment/Repatriation

It is highly recommended

that any expatriate assignment

letter or agreement contain full

reimbursement of moving


Features

59987_GACC_ACG 11/23/07 11:09 AM

expenses for relocating the

German expatriate back to Ger-

many after his assignment

ends. The employer should

make an employee ¨whole¨ by

paying all relocation and repa-

triation expenses even if the

employment is terminated.

Children

The employer will often pay

for private education in the U.S.,

particularly if the expatriate has

school-age children who need

language assistance. The differ-

ence between the German and

U.S. school system is vast. While

the quality of public education

in Germany is fairly high, in the

U.S. the quality of the public

schools varies from district to

district. The expatriate should

make sure that her attorney

negotiates this essential point

into her agreement or offer letter

and that a specific school or dol-

lar amount is allocated for

private or international school.

Codes of Conduct

Once an employee arrives in

the U.S. and begins work, the

company will usually hand the

new employee a handbook or

code of conduct. U.S. compa-

nies often expect their

employees to abide by these

codes, a practice that is still

unknown to the vast majority

of employees in Germany. Typ-

ically, codes of conduct contain

workplace policies or rules

regarding such issues as social

conduct, discrimination, priva-

cy and fraternization among

employees in and outside the

workplace. They often include

guidelines concerning bans on

smoking and the use of alcohol

and drugs in the workplace. In

various companies there are

very specific rules concerning a

company’s confidential and

proprietary information. Final-

ly, the codes usually contain a

provision imposing a duty to

report employee misconduct.

Although many of these

codes contain rules that are for-

eign and in many ways

repugnant to German employ-

ees (and would violate post-

Holocaust privacy statutes in

Germany), they should be tak-

en seriously, as a violation of

these rules can lead to termina-

tion of employment.

In addition, in the U.S.,

employees do not have a right

to privacy in the workplace,

and while there are laws in

place for protecting medical

records, there are few laws pre-

venting other kinds of data

collection, workplace monitor-

ing or email monitoring. In

fact, an expatriate moving to

the U.S. should be aware that

she may need to provide the

company with extensive per-

sonal information for a

background check and to take a

drug test, and she should

assume that her work email

may be monitored.

Conclusion

Working in the U.S. can be a

positive and rewarding experi-

ence for the internationally

mobile employee. However,

winding up in the U.S. without

a job and no contractual pro-

tections that would otherwise

guarantee rent, tuition, med-

ical care and relocation may be

the alternative reality if these

matters are not negotiated in

advance of employment. With

few statutory protections in the

U.S. under federal, state and

local law, an expatriate can be

in a compromised situation

with little relief. Seeking legal

counsel early in the process can

alleviate the stress of moving

and relocating and insure that

the expatriate experience is a

good one for the employee as

well as for the whole family. �

Ian Marc Maywald, Wissenschaftlicher

Mitarbeiter of CMS Hasche Sigle

in Cologne, Germany is doing a legal

training program at Outten & Golden

LLP in New York City. Besides his

practical work he is writing on his Ph.D.

thesis in law on employment law issues

in matrix-organized multinational

companies at the University

of Mannheim, Germany.

CMS Hasche Sigle

Theodor-Heuss-Ring 19-21

50668 Köln, Germany

Tel: +49 (0)221 7716-140

Fax: +49 (0)221 7716-110

[email protected]

www.cms-hs.com

CMS Hasche Sigle Partnerschaft

von Rechtsanwälten

und Steuerberatern

Registerangaben / Liste der Partner:

www.cms-hs.com

About the German Law Consultant


Features

59987_GACC_ACG 11/23/07 11:09 AM


M I D W E S T

Regions

WindEnergyBusiness 2007US-German Opportunities for Cooperation in WindEnergy

Over 160 Participants Attend Des Moines Conference

MidAmerican Wind Farm

North of Des Moines, Iowa

59987_GACC_ACG 11/23/07 11:09 AM


Regions

M I D W E S T

The German American

Chamber of Commerce

of the Midwest (GAC-

CoM) brought together over

190 companies and leaders in

WindEnergy from both sides

of the Atlantic on Tuesday,

November 6th, 2007, in Des

Moines, Iowa. Eight innova-

tive German companies also

presented their technologies

at the conference. This

demontstrated Germany’s

leadership position in devel-

oping major commercial wind

energy systems, which are

well-positioned to take

advantage of the enormous

market potential in the next

ten years in the Upper Mid-

west and Great Plains of the

United States.

The conference was high-

lighted by keynote speeches by

Iowa Governor Chet Culver

and Bob Gates, the President of

the American Wind Energy

Association and Senior Vice

President of Clipper Windpow-

er. Governor Culver recounted

his recent visit to the

HusumWind fair in Germany,

and reconfirmed Iowa’s goals

and position as the leading

state in the nation for renew-

able energy, citing Iowa’s

position as the largest producer

of ethanol, biodiesel, and hav-

ing the third largest installed

capacity of wind turbines in the

US. In his speech, he called on

Congress to set a national

Renewable Portfolio Standard

and for all presidential candi-

dates to embrace and commit

their support to renewable

energy. Bob Gates opened the

conference with an overview of

the explosive growth in the cur-

rent wind energy market and

challenges facing the industry

moving forward. He highlight-

ed a key shortage of critical

turbine components such as

large forgings and bearings,

which are in short supply due

to high demand for cranes and

other heavy equipment used in

booming construction markets

in the Middle East and Asia.

Two panels focused in more

detail on the German and US

markets. Dr. Christine

Woerlen, Head of Renewable

Energies at the German Energy

Agency (DENA), described pub-

lic policy initiatives such as

Germany’s feed-in tariff pro-

gram and other support that

has positioned Germany as by

far the world’s leading produc-

er of electric power from wind.

The US panel discussed the

increasing boom of wind tur-

bine development in the Upper

Midwest and plans for power

grid development to support

this growth, as well as commu-

nity-based wind development.

The grid issues are particularly

important, as Iowa is located in

the middle of a region that has

unprecedented wind resources,

which one panelist cited as the

“OPEC of Wind”, with enough

energy to easily meet the entire

US electricity demand. Howev-

er, this vast power resource

must be transmitted to major

population centers. Another

speaker cited that for next six

years, the sales forecast for tur-

bines and related components

within one day’s drive of the

center of the state is conserva-

tively valued at over $3.2

Representatives from the companies Asmus GmbH

and DRTS GmbH receive a tour of the control room

from the Iowa Lakes Electric Cooperative

German Delegation with Governor Culver

“There are incredible things happening in Iowa

related to renewable energy, and I am thrilled

to have the opportunity to promote our state

to renewable energy industry leaders

from Germany,” said Iowa Governor Chet Culver.

“With our leadership in ethanol, biodiesel

and wind power, Iowa is proud to be known

as the renewable energy capital of the U.S.

Iowa’s strong wind and workforce and make

it one of the best places in the world for wind

turbine manufacturing and wind power

production. As Governor, I will do everything

I can to form international business

partnerships, increase renewable energy

production and bring high-quality

21st century jobs to Iowa.”

59987_GACC_ACG 11/23/07 11:09 AM

Billion annually, as six of the

top 10 states ranked by wind

potential are also located in

the region.

Over 50 one-on-one meet-

ings between the German

companies and US businesses

were organized both before and

after the event, in addition to a

Roundtable Discussion, on the

Monday preceding the confer-

ence. At the roundtable, the

German delegation was briefed

by industry experts on a wide

range of developments and

opportunities in the Wind

Energy market in the Upper

Midwest. One highlight was

the presence of senior develop-

ment executives from major

independent developers of

wind energy projects like

Invenergy and Clipper Wind-

power, who shared their

experiences and plans for new

wind developments.

The top wind energy execu-

tives from MidAmerican and

Alliant Energy, two major regu-

lated utilities explained their

commitment to developing

their own wind parks. Tom

Budler of MidAmerican high-

lighted the fact that

MidAmerican owns more wind

turbines than any other public

utility in the US.

Executives from Holmes

Murphy and XL Insurance dis-

cussed what companies need to

do to protect themselves from

risks related to supply chain

delays, weather risk or equip-

ment failure. The wind

workforce was also addressed

by a pioneering program at

Iowa Lakes Community Col-

lege to educate future wind

energy technicians.

Several members of the dele-

gation concluded their visit

with a trip to Iowa’s wind coun-

try, visiting a cooperative that is

starting a new wind project, as

well as a stop at a MidAmerican

wind farm, and a tour of the

Wind Energy & Turbine Tech-

nology program at Iowa Lakes

Community College.

The conference was sponsored

by the German Ministry of Eco-

nomics and Technology, and was

supported by several organiza-

tions including the American

Wind Energy Association, the

Iowa Department of Economic

Development, Windustry, DENA,

and the Institute for Renewable

Energy and the Environment. �


M I D W E S T

Regions

Iowa Governor Chet Culver

delivering his keynote

speech on Iowa’s activities

in renewable energy

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59987_GACC_ACG 11/23/07 11:09 AM

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Regions

N E W Y O R K

January 19, 2008

The Pierre Hotel, New York


59987_GACC_ACG 11/23/07 11:09 AM


W A S H I N G T O N

Regions

With a view to the

first meeting of

the Transatlantic

Economic Council on Novem-

ber 9, the Federation of

German Industries (BDI), RGIT

and the TransAtlantic Business

Dialogue (TABD) hosted a con-

ference on facilitating secure

transatlantic trade.

In April, President Bush, EU

Commission President Barroso

and Chancellor Merkel, as EU

Council President, signed the

Framework for Advancing

Transatlantic Economic Inte-

gration between the European

Union and the United States.

Secure Trade was identified as a

priority Lighthouse Project.

To advance the Secure Trade

agenda, the BDI gathered key

players from the public and pri-

vate sectors to share practical

experiences in handling cus-

toms initiatives, and to debate

mutual recognition of the pri-

mary secure trade programs: the

U.S. Customs-Trade Partnership

Against Terrorism (C-TPAT) and

the EU Authorized Economic

Operator (AEO).

Opening speaker Dr. Huber-

tus Erlen, Vice-Chair of the

Supervisory Board of Bayer

Schering Pharma AG, set the

tone, affirming transatlantic

business is prepared to invest

in security but needs solutions

that are “efficient and reason-

able, not over-reactions.”

Citing the strength of transat-

lantic trade – $600 billion in

goods annually, 40 percent of

global trade – that supports 14

million jobs, Dr. Erlen pointed

to the risk of burdening these

connections with cumbersome,

expensive regulations.

To achieve mutual recogni-

tion or convergence, several

variances must be reconciled.

C-TPAT covers imports. Once

operational, AEO will cover

exports and imports. Some of

the AEO criteria address finan-

cial risk. The C-TPAT standards

focus on supply chain security.

Ralph Basham, Commission-

er, Customs and Border

FacilitatingSecure TradeAcross the Atlantic

59987_GACC_ACG 11/23/07 11:10 AM


Regions

W A S H I N G T O N

Protection (CBP), explained

that C-TPAT fits into a multi-

layered strategy for identifying

and mitigating risks to home-

land security. Nearly 8,000

firms have become voluntary

participants in C-TPAT. CBP

seeks to boost the number of

foreign-firm members and to

streamline further the applica-

tion and certification processes.

Robert Verrue, Director Gen-

eral, Tax and Customs

Directorate, European Com-

mission (DG TAXUD), called

for greater cooperation to

address common concerns over

the safety of supply chains. He

applauded preliminary efforts

to assess the feasibility of

mutual recognition of C-TPAT

and AEO, which enters into

force on January 1, 2008.

The private sector represen-

tatives called on the

Commission to permit com-

panies with affiliates to

submit consolidated AEO

applications. Another sugges-

tion is to adopt paper-free

supply chains to reduce

paperwork and transaction

risk. Panelists noted the logis-

tical challenges in delivering

products “just in time”

through Europe, querying

how the Commission will

handle lorry deliveries origi-

nating outside the EU.

At lunch, John Bruton, EU

Ambassador to the U.S., voiced

European concerns over the

new U.S. law requiring 100 per-

cent scanning of U.S.-bound

containers, and of cargo carried

on passenger airplanes.

The conference closed with a

presentation of recommenda-

tions, including a roadmap

leading to mutual recognition,

to Christopher Padilla, Acting

Undersecretary, U.S. Depart-

ment of Commerce, and to

John Pulford, DG TAXUD. The

list underscored the imperative

for a coordinated approach to

trade facilitation and security,

the need for common stan-

dards, and the benefits of

mutual recognition. �

Dr. Erlen

Bayer Schering Pharma AG

Robert Verrue, EU Commission with Ralph Basham,

U.S. Customs and Border Protection.

Bernhard Welschke, President, RGIT

59987_GACC_ACG 11/23/07 11:10 AM


ThyssenKruppBreaks Ground

On the Site of its Steel and Stainless Steel Facility

A T L A N T A

Regions

59987_GACC_ACG 11/23/07 11:10 AM

On November 2, 2007,

ThyssenKrupp Steel

USA, LLC, and

ThyssenKrupp Stainless USA,

LLC, broke ground on the site

of its $3.7 billion carbon and

stainless steel processing facili-

ty in Calvert, Alabama. The

groundbreaking marks the

beginning of construction of

the 3,500-acre plant.

Permit applications required

to begin construction were

approved by State and Federal

agencies, allowing Thyssen

Krupp to remain on schedule

for the commencement of

operations in March 2010.

“The global steel industry is

undergoing a dynamic consoli-

dation process. We are taking

our own individual approach,

with a clear forward strategy to

further position ourselves as a

global player in the steel mar-

kets of Europe and North

America,” Ekkehard D. Schulz,

Chairman of the Executive

Board of ThyssenKrupp AG,

said. “This is the type of project

that represents a very long-

term commitment. We will be

in Alabama for decades to

come, providing good jobs for

many generations.”

Karl-Ulrich Koehler, Chairman

of the Executive Board of

ThyssenKrupp Steel and member


ThyssenKrupp AG, added, “This

new processing facility will allow

us to strengthen our position in

North America. It will create

major advantages in terms of

quality, costs, and access to a cus-

tomer base with a demand

greater than current supply.”

“Our investment in Alabama

is a central element of the

ThyssenKrupp Stainless strate-

gy. The NAFTA stainless steel

market has great potential and

we are committed to signifi-

cantly expanding our business

in this growth region,” noted

Juergen H. Fechter, Chairman


ThyssenKrupp Stainless and

member of the Executive Board

of ThyssenKrupp AG.

The facility will include a hot

strip mill which will be used

primarily to process slabs from

ThyssenKrupp’s new steel plant

in Brazil. It will also feature

cold rolling and hot-dip coat-

ing capacities for high-quality

end products of flat carbon

steel. The facility will have an

annual capacity of 4.1 million

metric tons of carbon steel end

products. In addition, a stain-

less steel melt shop will be built

with an annual capacity of up

to one million metric tons of

slabs, which will also be

processed on the hot strip mill.

A cold rolling facility is to be


Kristian Wolf, CEO & President, German American

Chamber of Commerce of the Southern United States, Inc.

with Christian Koenig, Vice President, Public

and Government Affairs, Thyssen Krupp USA, Inc.

Regions

A T L A N T A

59987_GACC_ACG 11/23/07 11:10 AM

built, which will be designed

initially to produce 350,000

tons of cold strip and 125,000

tons of pickled hot strip. In

addition, the stainless steel

plant will provide ThyssenK-

rupp Mexinox in San Luis

Potosi (Mexico) with its

required pre-material (340,000

metric tons of hot band).

In May, ThyssenKrupp

announced that it will build a

new state-of-the-art carbon and

stainless steel processing facili-

ty in Alabama. Since that time,

the company has opened a

project office in Mobile, award-

ed several site preparation

contracts to Alabama-based

companies and placed an order

for the hot strip mill and cold

rolling complex. ThyssenKrupp

has also held four Community

open house meetings through-

out the Mobile area to inform

approximately 2,000 residents

about the new plant.

Along with construction, the

company’s next focus will be

on developing a first-rate work-

force to help operate the facility

– producing 5.1 million metric

tons of high-end products each

year. ThyssenKrupp will work

together with the Alabama

Industrial Development Train-

ing office (AIDT), to train and

recruit workers for the facility.

When fully operational, 2,700

permanent jobs will be created,

including opportunities in

management, engineering,

equipment operations, logis-

tics, production, maintenance

and adminis¬tration.

Throughout the construc-

tion and operation of the new

facility, ThyssenKrupp is com-

mitted to meet the most

stringent environmental pro-

tection standards. The plant

will employ the most techno-

logically advanced protection

measures. It will use clean-

burning natural gas and

electricity - not coal - to fire its

process heaters and furnaces.

The process equipment will

also be designed with exten-

sive energy recovery and

re-use technologies.

Once operational, the new

facility will process carbon and

stainless steel for high-value

applications by manufacturers in

the United States and through-

out North America. The plant

will serve industries including

automotive, construction and

household appliances. �


Christian Koenig

ThyssenKrupp USA, Inc.

Public and Government Affairs

Phone: +1 (248) 643-3512

Fax: + 1 (248) 643-3518

[email protected]

www.ThyssenKruppNewUSplant.com

Contact

From left to right: Jo Bonner, Congressman of Alabama;

Dr. Ekkehard D. Schulz, Chairman of the

Executive Board of ThyssenKrupp AG;

Govenor of Alabama, Bob Riley;

Dr. Karl-Ulrich Koehler, Chairman of the Executive

Board of ThyssenKrupp Steel and member of the

Executive Board of ThyssenKrupp AG

Dr. Lutz Hermann Görgens, Consul General of the Federal Republic

of Germany enjoying a lively conversation with the Chairmen of the

Executive Board of ThyssenKrupp AG and Steel as well as the

Governor of Alabama Bob Riley

A T L A N T A

Regions

59987_GACC_ACG 11/23/07 11:10 AM

59987_GACC_ACG 11/23/07 11:10 AM

Engine Coating is the area

of expertise of Therma-

max, a company

headquartered in Mannheim,

Germany, that specializes in

insulation for high tempera-

ture engine applications. Being

the European technology

leader in this field of engineer-

ing Thermamax decided

to introduce its unique

products to the U.S. in

2006. Stunningly, the

realization of the com-

pany’s dream of

establishing assembly opera-

tions in the U.S. happened

within one year of business

representation by means of a

virtual office located in Chica-

go. After starting a virtual

office, which is one of the

many services of the German

American Chamber of Com-

merce of the Midwest, in the

middle of August of 2006, pos-

itive responses came in right

away. The initial contacts to 5

of the top US Large engine and

commercial vehicle manufac-

turers were made quickly, and a

sales customer relationship

evolved within this one year

with all 5 U.S. manufacturers,

while over 50 other U.S. com-

panies expressed interest in

Thermamax’ products. “In

December of 2006 we were able

to record our first product

order in the U.S. and looked

into the future positively,” says

Ronny Lasner, U.S. Sales Man-

ager of Thermamax. And the

future still looks positive: Now,

at the end of 2007, Thermamax

has opened operations in Auro-


Member Profile

American Engine MeetsGerman High-Tech-Coat

Integral Insulation

59987_GACC_ACG 11/23/07 11:10 AM

ra, IL, a suburb of Chicago.

Indeed, a great outcome for a

company whose name was

unknown to U.S. engine manu-

facturers just a year ago.

Yet, the success story of Ther-

mamax in the U.S. did not arise

simply from the label “made in

Germany”. Nowadays, it takes

more than German quality. It

takes an innovative technologi-

cal concept that exceeds the

standards of engine insulation

technology. Thermamax’ new

line of high-temperature insula-

tion products such as “Tmax

Integral Insulation” fulfills and

goes beyond the expectations

of the U.S. engine manufactur-

ers. Thermamax products are

designed to enhance the

engines’ insulation specifica-

tions through high temperature

insulation and to improve

engine fuel consumption,

which, according to Therma-

max, “hardly any other

manufacturer” in the same

industry does. Thermamax’

Integral Insulation has been

developed for midsized engines

and exhaust after treatment

used in power generation, com-

mercial and agricultural

vehicles. The new line consists

of prefabricated insulation rudi-

ments that combine insulation

material, a supporting structure

and surface protection in a sin-

gle, easy-to-mount component.

Thermamax also offers cus-

tomized products, allowing

customers to ship in their prod-

uct, which is then processed by

the innovative engine insula-

tion manufacturer. And it is

exactly this combination of

innovative products and cus-

tomization that has made

Thermamax’ entrance into the

American market so successful.

And this is how it all started:

The medium sized company

started its U.S. presence with a

virtual business representation

in Chicago - a service offered by

DEinternational, the service

brand of the German American

Chamber of Commerce of the

Midwest (GACCoM). The con-

tract with GACCoM offered

Thermamax a physical address

and a phone line in Chicago,

and on-the-spot support and

representation to promote and

introduce the company to the

U.S. market. The virtual office

and the mailing of Thermamax

brochures, as well as trade show

follow-ups, managing flow of

proposal requests and facilitat-

ing contacts to Thermamax’

sales staff enabled a seamless

management of new customers.

Although Thermamax has a

line of unique and competitive

products, the success in the U.S.

was not guaranteed from the

start says Ronny Lasner: “Estab-

lishing an American company,

leasing office space, and dis-

patching employees, were

viewed as a critical hurdle,

when you’re still in

the beginning

and can’t esti-

mate future

t u r n o v e r ” .

Yet, the virtu-

al business

representa-

tion offered

by GACCoM contributed to

Thermamax’ individual Ameri-

can Dream and as Lasner

recognizes “offered interested

American parties a virtual pres-

ence and professional contact.”

GACCoM is pleased to witness

the success story of Thermamax

and wishes all the best to their

former business representative.

Thermamax’ accomplishment is

an excellent example of the great

possibilities that the U.S. market

has to offer for foreign compa-

nies. For questions on market

entrance strategies, or GAC-

CoM’s “Virtual Office” services,

please contact Mark Tomkins,

Director of Consulting Services

at [email protected]. �

Member Profile


Exhaust Foil Blanket

Engine SOLAS Cover

59987_GACC_ACG 11/23/07 11:10 AM

Advertisement


Regulars

German American Company News

32

For more ticker news go to www.gaccny.com/news/transatlanticticker

Adidas Profit Gains on Cost

Savings After Reebok Buy

(Bloomberg)

Adidas AG, the Germany-

based world's second-largest

sporting-goods maker, said prof-

it rose 22 percent in the third

quarter after last year's acquisi-

tion of Reebok International

Ltd. let the company negotiate

cheaper prices with suppliers.

The annual net income

advanced to $436 million.

GM Loses $39 Billion

in Third Quarter

(Forbes, Houston Chronicle)

General Motors reported a

mammoth quarterly loss of

$38.6 billion. GM attributed

most of the loss to a charge

related to accumulated

deferred tax credits in the U.S.,

Canada and Germany. GM also

blamed part of the losses on

challenging conditions in the

U.S. and German auto markets.

BSN Medical

Acquired FLA Orthopedics

(Business Wire)

Germany’s BSN medical

announced the acquisition of

FLA Orthopedics, Inc.

through its wholly owned

subsidiary BSN medical, Inc.

from international private

equity house The Riverside

Company for an un-

disclosed sum. FLA Orthope-

dics is a leading U.S. manu-

facturer and distributor of

orthopaedics soft goods

(OSG) and bracing products.

For BSN medical, the acquisi-

tion of FLA Orthopedics

signifies an expansion of its

product range in the strategic

growth segment of OSG and

bracing products in the U.S.,

the world's largest market for

such products by far.

Munich Re Bought

U.S. Midland for $1.3bn

(MSNBC)

Munich Re bought Midland,

a specialist US primary insur-

ance company, for 900m Euro

($1.3bn), a week after the Ger-

man reinsurer launched a new

strategy and management team

for its North American business.

The takeover will expand the

presence of the world’s second-

biggest reinsurance company in

the property and casualty under-

writing business in the world’s

biggest insurance market.

ProLogis Announces New

Agreements With BMW

of North America

(PR Newswire)

ProLogis, the world’s largest

owner, manager and developer of

distribution facilities, announced

that it has signed two new agree-

ments to develop approximately

1.2 million square feet of indus-

trial space in the eastern United

States for automaker BMW of

North America.

Hochtief AG Won New U.S.

contracts Valued at 1.14 bln EU

(Forbes)

Hochtief AG said it won sev-

eral new international contracts

with a total value of 1.14 billion

eur. In the U.S., its unit Turner

Construction is to build a hospi-

tal complex in Philadelphia for

166.6 million eur, Hchtief said.

In addition, Turner will co-build

a US army base in Aberdeen,

Maryland for 338.6 mln eur, of

which Turner’s share amounts

to 172.7 million eur.

59987_GACC_ACG 11/23/07 11:10 AM

In the 3rd quarter 2007 the

Ifo Business Climate Index

for industry and trade in

Germany has weakened. The

companies are assessing their

current situation less positively

than in the previous quarters.

Expectations also clouded.

Thus, initial retarding effects

are visible, to which events in

the financial markets are likely

to have contributed.

In manufacturing the busi-

ness situation continues to be

assessed favourably despite

slight constraints compared to

the previous month. Expecta-

tions, however, reflect only

moderate optimism. For the

future exporting business no

strong effects are feared

despite the high euro

exchange rate. Hiring will con-

tinue, although it is expected

to slow according to the sur-

vey participants.

The business climate in the

construction industry has

cooled off again. Regarding

their current business situa-

tion, the firms expressed

less confidence, and regards

their future business they

became more sceptical.

Markedly worsened has the

business climate in retailing.

This is due primarily to the less

favourable assessment of the

current situation. The future

outlook, too, is being assessed

much more reservedly.

At the moment it is still too

early to draw conclusions if the

decline of the ifo business cli-

mate signals only a temporary

slowdown of the German econ-

omy or already a cyclical

turning point.

Ifo Business Climate Index declinedIfo Business Survey 3rd trimester 2007

Balances in % (quarterly data seasonally adjusted)

Ifo business climate

current business situation

expectations for the next 6 months

30

20

10

0

-10

-20

-30

-4091 92 93 94 95 96 97 99 99 00 01 02 03 04 05 06 07

Source: Ifo Business Survey last value: 3rd quarter 2007

Ifo Business Climate for Germany – Components

By Dr. Gernot Nerb, Director of Business Surveys, Ifo Institute for Economic Research, Munich, Germany


Regulars

59987_GACC_ACG 11/23/07 11:10 AM


Masthead

34

Atlanta

German American Chamber of Commerce of the Southern United States, Inc.530 Means Street, Suite 120Atlanta, GA 30318Phone: 404-586-6800 • Fax: [email protected] • www.gaccsouth.com

Chicago

German American Chamber of Commerce of the Midwest, Inc.401 N. Michigan Avenue, #3330Chicago, IL 60611-4212Phone: 312-644-2662 • Fax: [email protected] • www.gaccom.org

Houston

GACC Texas Branch1900 West Loop South, Suite 880Houston, TX 77027 Phone: 713-629-8787 • Fax: 713-629-8799

New York

German American Chamber of Commerce, Inc. 75 Broad Street, 21st FloorNew York, NY 10004Phone: 212-974-8830 • Fax: [email protected] • www.gaccny.com

Philadelphia

German American Chamber of Commerce, Inc.Four Penn Center, Suite 2001600 John F. Kennedy Blvd.Philadelphia, PA 19103-2808Phone: 215-665-1585 • Fax: [email protected]

San Francisco

German American Chamber of Commerce California Branch, Inc.201 California Street, Suite 450San Francisco, CA 94111Phone: 415-248-1240 • Fax: [email protected]

Washington

Representative of German Industry and Trade1627 I Street, N.W., Suite 550Washington DC 20006Phone: 202-659-4777 • Fax: [email protected] • www.rgit–usa.com

Volume 18 Number 10

G E R M A N A M E R I C A N

TRADEThe National Magazine of the

German American Chambers of Commerce

GERMAN AMERICAN TRADE is published monthly except January & July.

Reproduction in whole or in part of any article is prohibited without permission.

Unsolicited manuscripts cannot be returned unless accompanied by a properly

addressed envelope bearing sufficient postage. Editor reserves the right to edit

letters to be reprinted. Editor and publisher cannot accept any liability

for the accuracy or completeness of any material published. Contributed articles

do not necessarily reflect the Chamber’s position. If you have any comments

regarding articles in this magazine, please call 212-956-1770.

One Year Subscription: U.S.$50.00 (Euro 51,-)

Single copy: U.S.$5.00

Photos: German American Trade Archive

U.S. Postmaster send address change to: German American Chamber

of Commerce Inc.; 75 Broad Street, 21 Fl., New York, NY 10004.

Second class postage: Registration, U.S.P.S. No. 004995; U.S.;

Office of publication: New York

Publication date of this issue: December 2007

© Copyright 2007 German American Trade

Publisher

German American Chamber of Commerce, Inc.75 Broad Street, 21 Fl., New York, NY 10004Telephone: 212-974-8830, Fax: 212-974-8867

Editorial Office

Editor: Nicola MichelsGACC Photographer: Thomas DzimianAdvertising Coordination: Nicola MichelsTelephone: 212-956-1770, Fax : [email protected]

Production

328 Commerce StreetHawthorne, NY 10532Telephone: [email protected]

AHK

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