Southern Business and Development

Flying High

Europe’s Largest Aerospace Firm Sets Its Sights on Rural Mississippi

By Lisa Maseng

Where did Europe's largest aerospace firm and the world’s leading producer of rotary winged aircraft invest $11 million to build its new manufacturing facility? The company looked to the rural South—specifically rural Mississippi—to find a location worthy of building its world-class products.

Nicknamed "The Friendly City," Columbus, Mississippi is the birthplace of Pulitzer Prize-winning playwright Tennessee Williams and is a town bustling with revitalization projects, teaming with cultural art events, and recognized as having the best bass-fishing spots in the country. Columbus is also home to the Golden Triangle Regional Airport, the Columbus Air Force Base, and world-class technology and research centers. Now, this friendly community can also lay claim to building some of the world’s finest helicopters.

In 2002, European Aeronautic Defense & Space Co. (EADS) made the strategic decision to bring 100 new high tech jobs and $5 million in annual payroll to Columbus. The company extended its operations into Mississippi with the groundbreaking of a new American Eurocopter facility.

In total, EADS holds 57 percent of the world market share of new helicopters. Its subsidiary American Eurocopter is the largest provider in the United States for commercial and homeland defense helicopters. The nearly 400 customers flying over 1300 aircraft in the United States include the U.S. Coast Guard, the U.S. Border Patrol, U.S. Customs, FBI, Federal, State and Local Government Agencies, Emergency Medical (EMS), and corporate customers.

Though EADS might not yet be a household name in America, the company continues to gain ground worldwide. EADS was formed in 2000 by a merger of Aerospatiale Matra of France, DaimlerChrysler Aerospace of Germany and Construcciones Aeronauticas of Spain. EADS also includes the Airbus commercial aircraft consortium, Boeing’s top competitor for commercial aircraft sales. With a desire to pursue mergers and acquisitions in the United States, EADS has set up a U.S. company called EADS North America, which is worth about $500 million, said Joel Johnson, vice president for international operations for the Aerospace Industries Association. EADS had revenues of $29.9 billion in the year 2002 and a workforce of more than 100,000. The numbers say it best—EADS is a major force in its industry and a major prize for rural Mississippi.

EADS North America CEO, Ralph Crosby emphasized, “Our growing industrial presence in the U.S. gives EADS a significant foothold to play an intensified role in the U.S. economy, reach our North American customers more effectively, and invest as partners in growth.” EADS North America decided to expand its existing operating units and investments from ten states and the District of Columbia to include another facility in Mississippi. EADS North America set up its temporary headquarters in Jackson, MS where it launched its extensive prospecting visits for one month before landing in Columbus.

How Did Rural Columbus/ Lowndes County Mississippi Get The Attention of EADS North America?

Knowing that competition would be intense, Lowndes County activated its strong resource coalition known as the “Golden Triangle” - the cities of Columbus, Starkville and West Point - to identify a strategic site that would accommodate plans for a 100,000-sq. ft. manufacturing facility with reliable airspace for flight tests and simulations. Once EADS North America recognized Columbus as a strong contender, the state of Mississippi, the Mississippi Development Authority, Mississippi Technology Alliance, Columbus Air Force Base, the Golden Triangle Airport Authority, government officials, and the corporate community rallied to support the tri-city coalition. Through their collective city, county, and federal government efforts, this rural location was able to create an enticing package of tax credits, loans, bonds, and other site incentives that were unparalleled:

Available 84-acre site north of the Golden Triangle Airport to meet transitional needs through an existing hanger facility as well as planned site and potential expansion needs.
Plans for a FAA approved control tower and secured airspace at the Golden Triangle Regional Airport
Access to the Columbus Air Force Base, which is part of the Air Education Training Command.
Usage of Mississippi State University's Engineering and Industrial Research Station, its Center for Robotics, Automation, and Artificial Intelligence, the High Voltage Laboratory, the Engineering Research Center for Computational Field Simulation, the Raspet Flight Research Laboratory, and the Diagnostic Instrumentation and Analysis Laboratory.
Interaction with East Mississippi Community College and the Center for Manufacturing Technology Excellence.

Going Above and Beyond to Make the Final Cut

By the third site visit, Columbus leaders knew that they needed a unique final presentation. So, Columbus sought a special connection to push them into the winner's circle. Since Columbus is in the Tennessee Valley Authority (TVA) service area, the TVA’s IT experts volunteered to develop a special flight presentation to demonstrate how the Eurocopters would be assembled and tested at the facility. It provided the high-tech platform to tie the keen incentives neatly together.

EADS CEO, Philippe Camus said, at the August 7, 2002 groundbreaking ceremony, “We are determined to increase our already significant role in the U.S. economy, providing employment and quality products for U.S. corporate, para-public, and government customers. Mississippi provides the ideal business location for our continued success.“ Camus continued, “Under the leadership of EADS North America Chairman and CEO Ralph Crosby, we are expanding our role as a valued citizen in the U.S. This is the first of many industrial milestones in the U.S., and we can envision increased production presence in defense and commercial aerospace in the future.”

The final assembly for the EC120, EC130, EC135, and EC155 --helicopters made by Eurocopter -- will be performed at this plant, as well as the manufacturing of components and subassemblies for the AS 350 family of aircraft.

President and CEO of American Eurocopter Marc Paganini, will be responsible for managing the staff and operations of the Columbus plant. Paganini said, “We have found the right home here in Mississippi: a strong community spirit and talented employees. We will grow here, creating the finest helicopters in the world, while being good corporate citizens in the local community.” There are currently 500 A-Stars (AS 350 in Europe) in service flying in the U.S., which American Eurocopter sells at a rate of around 40 per year.