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Sweet Home Alabama
Rural Opelika attracts international biotech firm with a skilled workforce and world-class infrastructure.
By Don Hampton
Consider this: An international leader in biotechnology product development chooses to invest more than $100 million to build a manufacturing facility in rural Alabama. That decision might seem to run against the grain of conventional industry wisdom. In the past, most biotech companies looked to center their manufacturing efforts in major metro areas, like San Diego or Boston.
Investing in Opelika, however, is not so unusual a decision as it might appear. As a matter of fact, the city has attracted almost $170 million in corporate investments and 700 new jobs in 2005 with the announcements of corporate facilities for Jo-Ann Stores, Maxforma Plastics and global medical technology company Gambro Renal Products. And this year has followed suit with the previous several for this hot new center of economic vitality.
Gambro's decision is part of a growing trend among biotech companies to relocate to southern cities. These companies recognize the infrastructure and cost advantages that are presented by communities like Opelika.
An obvious choice
The trend is not such a big surprise for those who work and live here. Gambro chose Opelika because the community met the company's need for clean, dependable power and a comprehensive workforce training program.
Gambro had, literally, hundreds of choices for where to locate its new facility. But Opelika's workforce had the final ingredient that gave their town the edge over all the others: textile skills. Gambro's facility will manufacture a cellulose-type fabric for the company's renal dialyzers, making textile skills an absolute must.
Gambro is a global leader in medical technology and healthcare, focusing on renal care products and services, as well as blood component technology. Gambro Renal Products develops, manufactures and supplies hemodialysis, peritoneal dialysis and acute dialysis equipment. The company, headquartered in Sweden, had about 21,300 employees in 40 countries in 2004, with revenues of $3.6 billion.
Opelika Director of Economic Development Al Cook said, "Gambro is just the type of company we are targeting in Opelika - a world-class company with an outstanding reputation that will manufacture a high-quality product and provide high-paying jobs for our citizens."
Alabama Governor Riley added, "One of the factors that obviously attracted Gambro to the area is Opelika's and Lee County's excellent workforce. The dynamic work ethics of Alabamians, and the vibrant partnerships between state, local and company leaders are combining to bring greater prosperity and new jobs throughout the state."
An interesting intercultural challenge
Gambro's new Opelika facility will increase the company's production capacity to about 30 million synthetic dialyzers annually.
"Building this plant in Opelika will make Gambro well prepared to meet the increased global market demand for synthetic dialyzers," said Gambro Renal Products President Jon Risfelt. "Gambro is truly committed to meeting the needs of our customers in the Americas and this will allow us to manufacture and deliver high-quality dialyzers cost effectively."
Gambro employees will be temporarily relocated to Gambro Renal Products facility in Germany for up to 24 months for on-site training while the Opelika plant is built.
"Production of dialyzers is a highly sophisticated job requiring skilled and experienced people," said Heiko Zimmerman, vice president of the company's dialyzer division. "We have developed an intensive training and education program for Opelika employees, which will take place later this year. Our intention is to bring some key people from the U.S. to our Center of Excellence for dialyzers in Germany and train them for up to two years on the job. They will be the facilitators/trainers for others at the Opelika plant. We also intend to start up manufacturing in Opelika with the support of some very experienced German people. This project will be an interesting intercultural challenge."
A really hot town
Two major reasons for the area's success in attracting business recently have been location and education. Opelika is located in east central Alabama, along Interstate 85 between Atlanta and Montgomery, Alabama, two hours from Birmingham.
The surrounding area is home to Auburn University, the largest university in the state with more than 23,000 students.
Mayor Fuller, in speaking of the area's advantages, likes to acknowledge the contributions of past Opelikans. "Our leaders recognized the need for a strong and sustaining infrastructure - one capable of meeting the needs of Opelika 'back then' and one capable of growing with the city now and into the new millennium," he said.
"Because of their foresight, Opelikans today enjoy a strong water, sewage, utility and road infrastructure that keep Opelika growing every year," he added. "It's a network that has given us the capability of competing for new industry against cities much larger than ours, as Opelika's economy diversifies from its historical roots in textile manufacturing, tire production and magnetic media manufacturing."
Opelika has been primed for the economic success of 2005 over the past several years. In our Summer 2003 issue, Southern Business & Development named Auburn-Opelika number 21 on the list of the top 25 southern business climates regardless of size.
Site Selection Magazine named Opelika's economic development department as one of the top ten in North America, as recognition of "not only their industrial and commercial successes, but their professionalism and support to business," according to Mayor Gary Fuller.
Then, in January 2004, Expansion Management Magazine named the metro area among "America's 50 Hottest Cities for Expansions and Relocations." Auburn-Opelika tied for 50th with two larger cities - Cincinnati and Columbus, Ohio.
"For an area the size of Auburn-Opelika to be recognized by prominent site selection consultants alongside such cities as Atlanta, Nashville, Chicago and Houston, speaks tremendously to not only our strong reputation, but to the outstanding attributes that make and will continue to make this area a top choice for relocating and expanding companies," said Cook.
As companies like Gambro continue to choose Opelika, it is becoming increasingly obvious that this community is on the verge of something really big. It is a place where business can thrive in a climate that is simultaneously economically thriving and rural. That's what makes Opelika a really sweet place for companies to call home.
For more information on the South's hot locations for biotech visit www.BioIndustrySouth.com
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