Business Facilities - March 2008 - (Page 48)

INTERNATIONAL PROFILE Luxembourg By Karim Khan Europe’s Center for Goods, Real and Virtual Surrounded by France, Belgium, and Germany, the small nation of Luxembourg has built a first-class reputation for logistics and information technology in Europe. K nown in Europe as a logistics hub, the small, centrally located nation of Luxembourg worked throughout 2007 to build on that reputation. In November of last year, the government unveiled plans for transforming a former U.S. Army maintenance base into a high-end logistics park to be known as Eurohub Luxembourg South. The construction and management of the housing facilities for logistics activities on one part of the site will be supervised by a new partnership company formed by the Luxembourg government and the French group Sogaris, which specializes in the management of multimodal logistics freight platforms. Sogaris manages over 110 acres of logistics facilities throughout France. Another French group, Transalliance, will begin its value-added, third-party logistics activities in existing facilities on the Eurohub site. Transalliance will also base its general headquarters for its European subsidiaries (except for its subsidiaries in France) in the existing administrative building while it waits for its new infrastructure to be built. The group is a major European operator in the logistics sector offering multiple integrated services such as maintenance, stock management, pre- and postpositioning assembly activities, quality control, and picking and conditioning as well as organization of transports, documentation management, and labeling. MARCH 2008 Because Luxembourg is also a major center for finance, information technology, and other datadriven, high-value business models, the country is often chosen by companies that need to make their virtual goods easily available throughout Europe. The concentration of highly educated, multilingual employees in Luxembourg complement the country’s well-maintained digital and physical infrastructure, making it an ideal choice for many companies. A perfect example is Rakuten Inc., a Japanese company founded in 1997 that has created e-commerce services in its home country. Now the largest e-commerce company in Japan, Rakuten sells its e-commerce services and products to retailers in the smalland medium-size enterprise (SME) market, allowing the retailer to focus LUXEMBOURG FAST FACTS Area: 998 square miles Population: 460,000 (40% foreign) Languages: Lëtzebuergesch, French, German, and English Currency: Euro GDP Growth, 2007 (est.): 6.0% Unemployment rate, 2007: 4.4% Major business sectors: Automotive components; environmental, health, and information technologies; logistics; media; plastics and other materials; telecommunications Source: Luxembourg Board of Economic Development, 9/07 and 3/08 International logistics services provider Kuehne & Nagel operates this loading station in Luxembourg. on selling rather than the technology and logistics behind the sale. In February, Rakuten announced that it had chosen Luxembourg as the location from which it will introduce its ecommerce model into Europe. Operating from Luxembourg, Rakuten Europe will, among other things, be responsible for core corporate functions such as strategic coordination and human resources. The company foresees that at a later stage, its Luxembourg presence will serve as a central platform for logistics and research and development activities. “I am impressed with Rakuten’s business model that we had the opportunity to discover through our discussions over the last months,” says Luxembourg Minister of the Economy and Foreign Trade Jeannot Krecké. “Mr. Mikitani and his team have developed a unique tool to broaden SME’s market presence on the Internet. … Rakuten’s decision to establish its Central Coordination Entity in Luxembourg confirms our country’s unique assets for e-commerce in Europe.” 48 PHOTO CREDIT: LUXCORE

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Business Facilities - March 2008 Contents First Word Snapshots California Seeks Immigration Reform To Spur Economic Growth Outside the Biotechnology Clusters Global Biotech Competition Heats Up Location Is Key To Your Bottom Line New Incentives For New Hampshire Metro Spotlight: Jersey City, NJ Europe's Center For Goods, Real and Virtual Access Your Markets From Pennsylvania Corporate Moves: Illinois Louisiana Upgrades Important Port Road Projects To Accelerate Michigan's Economy Corporate Moves: South Carolina Metro Spotlight: Salt Lake City, UT Advertiser Index Inside LiveXchange

Business Facilities - March 2008

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