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By Mike Hixenbaugh The Virginian-Pilot May 17, 2012 VIRGINIA BEACH In an effort to lure more international companies here, VirginiaBeach leaders plan to establish a presence overseas – a firstamong cities in Hampton Roads. The budget proposed by Mayor Will Sessoms and approved by the CityCouncil last week included an extra $250,000 for the city"sDevelopment Authority. About $100,000 will be used to open aninternational economic development office based in Europe,officials announced this week. "I"m extremely pleased to hear that," Sessomssaid after learning of the authority"s plans. "This isan excellent opportunity to grow the economy." The money will be used to hire a European consultant who willrepresent and market the city to foreign companies and investors.The consultant would earn extra if prospective companies visit oragree to open facilities here. The plan does not involve building an office or acquiring landoverseas, a city spokeswoman stressed. Increasingly across the country, localities and regional economicdevelopment organizations have looked to establish an internationalpresence to bolster ties to prospective foreign investors. FairfaxCounty is among the leaders, with offices in India, England,Germany, South Korea and Israel. The Hampton Roads Economic Development Alliance, a joint effortrepresenting the entire region, has offices in the United Kingdomand Germany. Development officials here are recommending the new officeinitially be based in Stuttgart, Germany. The city in southernGermany is near the international headquarters of Stihl Inc., oneof Virginia Beach"s largest employers. Six German companies have facilities in Virginia Beach, more thanany other country. More could come, said Warren Harris, director ofthe city"s Department of Economic Development. Officials expect the $100,000 investment in a foreign consultantwill spur about $30 million in capital investment and bring 200full-time jobs to the city, according to estimates included in thecity"s budget. Harris said the estimate is based on"historical success" the city has had after travelingoverseas and establishing relationships with foreign companies. Harris hopes to eventually open additional offices in Europe and indeveloping countries such as Brazil, assuming the initial programsuccessfully draws businesses to the city. He believes it will. A relatively low cost of doing business and proximity tointernational ports makes Virginia Beach attractive, Harris said.U.S. factory workers produce one-third more than German factoryworkers and at four-fifths their cost, according to the Bureau ofLabor Statistics. Further, opening a facility here gives companiesmore direct access to the American consumer market. Sessoms has traveled to Germany twice in the past seven months aspart of the city"s sister cities program. He said opening anoverseas office will help the city groom already establishedrelationships with international firms. "We can provide the same workers at a lower cost, and weought to be fighting to bring those jobs here," Sessoms said. Councilman John Moss, a frequent critic of city spending, said hebelieves establishing a development office overseas is a smartmove. "Clearly we"re not going to grow the economy withmilitary spending," Moss said. "We"ve got to growthe economy through the private sector. This investment actuallymakes sense." Mike Hixenbaugh, (757) 222-5117, mike.hixenbaugh@pilotonline.com. We are high quality suppliers, our products such as Pet Bottle Recycling Machine , Film Dewatering Machine for oversee buyer. To know more, please visits Plastic Recycling Machines.
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