The California Business Minute provides news and information about the people, businesses and organizations that are creating and growing business along with retaining and creating jobs in California.
Additionally, the California Business Minute provides information on a variety of sectors from aerospace, agriculture, construction, finance, health care, real estate, retail, technology, transportation and utilities. Information is also provided on topics ranging from general business trends, labor markets, infrastructure, community, economic and employment development in concert with redevelopment actions by covering California's diverse regions.
The California Business Minute is constantly examining the marketplace determining growth, e.g., expansions, relocations, mergers and acquisitions along with down-sizings and unfortunately even business closures. This section provides public information on the latest actions by business based upon economic sectors and in chronological order starting with the most current.
For the Week of 12-28-08
US SENATOR BOXER, RELEASES MAJOR ECONOMIC REPORT Realities of Recession
Californias US Senator has released a report that looks at California entitled the 'Realities of Recession in California.' The report which is based on interviews that the senator and her staff had with officials from 20 cities and all 58 counties paints a stark picture of the economic strains across the state. See the details at the 12-29-08 MINUTE.
PRO LEAGUE CANCELS SEASON California Franchises Impacted
The Arena Football League announced it has canceled its 2009 season, but the indoor football league, which has struggled financially for several years, will resume play the following year. The AFL said its board of directors voted to suspend the 2009 season, subject to agreement with the players' union, while the league works on "developing a long-term plan to improve its economic model." "Owners ... recognize that, especially in light of the current unprecedented economic climate, the AFL, as a business enterprise, needs to be restructured," the acting commissioner, Ed Policy, said in a statement.
The AFL, founded in 1987, has 16 teams after New Orleans folded in October. Owners had conducted multiple meetings over the past several weeks and discussed numerous options, but concluded canceling the 2009 season was the best option. Two California franchises, Los Angeles and San Jose are impacted by the decision.
For the Week of 12-21-08
FIRM OPENING CLOSED FOOD PROCESSING PLANT Olam Americas Inc a subsidiary of Olam International has acquired the De Francesco & Sons processing plant near Firebaugh, reviving the dehydrating facility that has been shuttered for nearly three years and is adding 250-300 jobs to the local economy. The plant closed in 2006, laying off as many as 187 workers. De Francesco & Sons employed up to 450 people during its peak seasons. But Olam plans to hire up to 300 workers once it reaches full capacity in a couple of years. The company will begin processing onions and garlic should begin by May 2009. The company plans to process garlic and onion into flakes used for spices. The facility has an established reputation as one of the best equipped vegetable dehydration plants in the U.S. and is also strategically located in the middle of the garlic and onion growing belts in California.
Sunnyvale based Advanced Micro Devices is cutting 500 jobs or 3% of its global work force. The cuts are AMD's major round of lay-offs this year, when AMD laid off 1,600 workers, replaced its CEO and announced plans to spin off its factories. The job cuts will affect AMD departments worldwide except for the company's manufacturing operations, which have roughly have 3,000 employees and are being spun off into a seperate company.
San Diego based Amylin Pharmaceuticals will reduce its San Diego workforce by approximately 340 employees or 25% of its San Diego employment base. This action does not impact its Ohio facility. After the action, Amylin will still employ 1800 worldwide with 900 in San Diego.
San Jose based Adobe Systems Inc., impacted by the economy and lower-than-expected revenue, announced plans to lay off 600 employees or about 8% of its workforce. CEO Shantanu Narayen said layoffs are intended to better focus the company on its growing online video and Internet software business. In addition he said " We are experiencing what the whole world is experiencing".
For the Week of 11-23-08 WaMu to Lay Off It was Only a Matter of Time
JPMorgan Chase, which bought WaMu's banking operations Sept. 25 after federal regulators took them over, has begun the inevitable lay-offs in the effort to streamline operations and to eliminate organizational redundancies. While Seattle, WaMus headquarters will suffer the greatest, it was announced that two facilities in California will be closed. JPMorgan Chase said it plans to close a 1200 employee operations center in Pleasanton that handles calls for credit card and consumer banking customers. Most of the workers will be gone by the end of January, although a small crew will be kept on until that center closes in early spring. In addition, a credit-card facility in San Francisco with 450 jobs is also being closed. WaMu employs approximately 13,000 in California.
For the Week of 11-08-08 DHL CLOSES PARCEL SERVICE IN U.S. IMPACTS OPERATIONS IN RIVERSIDE
The shipping company, DHL announced earlier this week that it will pull out of the US domestic shipping business, eliminating some 9500 jobs nationwide and closing most of its DHL Express service centers. Impacted by the announcement will be the closure of its distribution center at March Global Port, the former March Air Force Base outside of nearby Riverside and the loss of 300 jobs. DHL announced it will as of Jan. 30, focus only on its international shipping business. DHL's other U.S. operations -- global freight forwarding, supply-chain services and global mail -- are not impacted by this announcement. More than 25,000 people work in those divisions.
TECH IMPACTED BY SLOWING ECONOMY
Santa Clara based Sun Microsystems announced it will cut from 5,000 to 6,000 employees, or 15% to 18% of its employment base. According to Sun, the move is designed to "align its cost model with the global economic climate." According to Sun, the layoffs will save between $700M to $800M annually.
Santa Clara based Applied Materials, which manufactures equipment for the semiconductor industry, announced it is cutting 1,800 jobs or 12% of its workforce identified as part of a restructuring program. A statement from the company said the moves were due to "declining market conditions." The company said it would reach its goal through attrition, voluntary separation, and other "workforce reduction programs."
Santa Clara based National Semiconductor, a manufacturer of mixed signal and analog ICs, announced it will cut 330 positions at the firm, as a result of an "uncertain business climate." The firm said it would make cuts primarily in non-manufacturing functions. National said it currently has approximately 7,000 people employed worldwide.
STANFORD BUILDING LARGEST STEM CELL LABORATORY IN NATION
The Stanford University School of Medicine marked Oct. 27 as the start of construction on the Lorry I. Lokey Stem Cell Research Building, the nations largest stem cell research facility, with a scientific symposium and ceremonial groundbreaking. The 200,000-square-foot building will bring together some 600 scientists now working in scattered locations in a unified effort to capitalize on the power of stem cells in treating human disease. The $200 million building is scheduled to open in the summer of 2010. The building will be financed through a mix of public and private funds. The California Institute for Regenerative Medicine, the state stem cell agency, has provided a grant of $43.6 million to help pay for construction. In addition, at least $130 million will come from philanthropic contributions, including a $75 million gift from Lorry I. Lokey, the Business Wire founder for whom the building is named.
For Week of 10-27-08
BLUE SHIELD OPENS FACILITY IN LODI TO EMPLOY 1,000
Blue Shield of California opened the doors to its new 20-acre Lodi campus expanding operations and creating a centralized customer service center. "After 24 years in Lodi, we are proud to have a new campus for our employees to call home bringing new career opportunities and renewed commitment to the local economy," said Bob Novelli, executive vice president of customer service and corporate marketiing at Blue Shield of California. " The new facility brings together all of our customer service capabilities, allowing Blue Shield to integrate its processes and better serve out customers." The first group of 700 employees has moved into the new campus facility, just south of downtown off of Highway 99.
When construction is complete in November, the facility will house approximately 900 employees working in customer service, claims and membership processing, underwriting and other administrative functions with capacity for a total of 1050 employees. There is a potential for a second phase of construction that could expand the campus to house additional 400-500 employees.
Yahoo has announced plans to lay off 10 percent of its global workforce, some 14,000 employees as the week economy cuts deeply into profits.
Yahoo had already announced in January that it would be cutting more than 1,000 jobs. This announcement is th esecond round of cuts for the company this year.
The current reduction is to save the company some $400 million.
After announcing it would lay- off 1,000 employees, San Jose based eBay announced that it has acquired BillMeLater and two other Danish classified sites. According to eBay, it is acquiring the firm Bill Me Later in a deal worth $820 million in cash plus $125 million in options. It has also acquired the classified site dba.dk and vehicles site bilbasen.dk for $390 million in cash.
BROCADE ACQUIRES FOUNDRY NETWORKS
San Jose based Brocade announced it has signed an agreement for $1.225 billion in secured credit for its acquisition of Santa Clara based Foundry Networks. Brocade saide the credit is being admininstered by Bank of America, N.A with the involvement of Bank of America Securities, Morgan Stanley Senior Funding, HSBC Bank, National Association and Key Bank National Association. The actions include $1.1 billion in a term loan and $125 million in revolviing credit.
SYMANTEC ACQUIRES UK'S MESSAGE LABS
Cupertino based Symantec Corp. has signed a definitive agreement to acquire United Kingdom based Message Labs which develops online messaging and web security services. Symantec reported that it will pay approximately $695 million in cash for the company.
HP CONTINUES BUYING COMPANIES, ACQUIRES LEFTHAND NETWORKS
Despite their recent announcement of worldwide lay-offs, HP continues to acquire companies as it has announced its acquisition of Boulder, Colorado based LeftHand Networks, a developer of iSCI storage area network (SAN) technology in a $360 million cash deal. According to HP, it will make LeftHand a part of its HP StorageWorks Division, part of the Technology Solutions Group at HP. LeftHand develops storage software used for storage virtualization and iSCI data storage used in enterprise data centers. LeftHand has 215 employees.
MARVEL FILMS TO REMAIN IN CALIFORNIA, AT RALEIGH STUDIOS IN MANHATTAN BEACH
Marvel Studios a subsidiary of New York City based Marvel Entertainment will film, four of its superhero movies at Raleigh Studios. Marvel will shoot the sequel of Iron Man along with Thor, First Avenger and Captain America and The Avengers. These films are set to release in 2010 and 2011. Marvel Studios is also moving its Beverly Hills executive and production offices to Raleigh's Manhattan Beach facility which has 14 sound stages with 287,000 square feet. It currently hosts several TV shows including '90210' and CSI Miami. It is estimated that by remaining in California, Marvel's annual economic impact will mean about $500 million to the LA Basin.
FOREVER 21 TO ACQUIRE SOME OF MERVYN'S
Forever 21 has bid to acquire 150 Mervyn's stores. The Hayward based Mervyn's filed for Chapter 11 bankruptcy protection in July. It has announced plans to close 26 stores of its 176 stores. Forever 21's bid is for the remaining stores, scattered across six western states from Texas to California. Forever 21, the Los Angeles fashion retailer has been growing fast and acquiring Mervyn's locations would allow it to move into larger stores, since the average Mervyn'sis 80,000 sq. ft. Most of Forever 21's 430 stores are in shopping malls and have smaller foot prints.
TESLA MOTORS TO LOCATE HQ IN SAN JOSE
Tesla Motors, an electric car company has announced that it will locate its headquarters to San Jose and build its upcoming electric sedan at a factory to be set up there. The San Jose factory will roll out its first sedan, the Model S during the fourth quarter of 2010. The Company expects its new factory and corporate headquarters to create about 1,000 jobs.
Construction of the proposed $250 million facility on an 89-acre site in North San Jose is planned to begin in the summer of 2009. The first vehicles will likely roll off the assembly line in late 2010. When fully operational, the facility will employ approximately 1,000 workers.
In June, the company said it would build the latest model in California after saying earlier it had chosen New Mexico. Teslas CEO, Zeev Drori, said he wanted to keep the car manufacturing in California, where the company has been since it was founded in 2003.
Tesla executives decided to base the company in San Jose for several strategic reasons, Tesla President and CEO Ze'ev Drori said. Silicon Valley already enjoys a high concentration of highly skilled engineers and support infrastructure, and San Jose's "Green Vision" job- creation initiative perfectly aligns with Tesla's own vision.
Tesla selected the San Jose site for its easy access to transportation, high level of visibility, and strategic location at Silicon Valley's Innovation Triangle innovation center, home to more than 2,000 corporations, including Cisco, eBay, and other leading tech companies. Tesla announced earlier this year that California would be the new home for its corporate headquarters and for the manufacturing plant of the Model S, an all-electric, zero-emission, five-passenger luxury sedan. Tesla selected San Jose in part because it is only 20 miles from the company's current headquarters in San Carlos, actually making it even closer to the homes of many employees. The Tesla Roadster is the only highway-capable production zero-emission electric car of any kind for sale in the United States. With a 0 to 60 mph acceleration of 3.9 seconds, a 14,000 rpm redline, and the fastest top gear acceleration of any production car tested by Car & Driver magazine in 2007, the Tesla Roadster is unique in providing super car performance, zero emissions and extraordinary efficiency. For more information, visit .
ROCHE DEPLOYING PERSONNEL TO AND FROM CALIFORNIA -PALO ALTO LOOSES
Even though Roche has made an offer to acquire Genentech, it is planning to move its inflammation disease business from Palo Alto to Nutley, NJ and its virology operations division also located in Palo Alto to South San Francisco. The company will also move U.S. pharmaceutical commercial operations from its New Jersey site to South San Francisco impacting about 1,000 employees. Unfortunately for Palo Alto, Roche's reorganization plans will take place whether or not the Genentech deal goes through.
HEWLETT PACKARD TO LAY OFF 24,600
Hewlett Packard announced it will lay off 24,600 employees, about half located in the United States. The action stems from the newly combined workforce resulting from the Palo Alto computer giant's purchase of Electronic Data Systems, a Texas-based IT services company. HP said the cuts will occur over the next three years and produce an annual cost savings of $1.8 billion, after reinvesting some savings in areas such as sales, delivery and emerging markets. The company said it will record a charge of $1.7 billion in its fourth quarter as a result of the restructuring. HP already employed more than 172,000 people and added 140,000 more with the EDS acquisition, which is part of HP's effort to expand its role in the technology consulting and services business. The cuts announced today represent about 7.8 percent of the newly combined workforce.
McCLATCHY TO LAY OFF AGAIN
Sacramento based McClatchy Co; a newspaper company announced its second major round of job cuts in three months blaming a sour advertising environment and will trim its payroll by 10 percent. The McClatchy Co. said it expects half the 1,150 new reductions to come through voluntary buyouts and attrition and the rest through layoffs. The company said the job cuts and other initiatives across the company would save $100 million over the next year, not including severance costs of about $20 million. In June, McClatchy also announced a trim to its work force of about 10 percent, which meant the loss of 1,400 full-time jobs and savings of $70 million a year. Two months later, it announced a one-year pay freeze for remaining employees effective Sept. 1. McClatchy is one of the nation's leading newspaper publishers. It has 30 daily papers, including the Bee and The Miami Herald, and about 50 non-daily newspapers. The company had no estimates on how many of the cuts would come from newsrooms or management ranks, saying individual papers will be evaluating their needs.
For the Week of 10-05-08 For the Week of 09-07-08 From the Week of 08-17-08
WALGREEN'S WITHDRAWS BID TO BUY LONGS DRUG'S
Walgreen's has withdrawn its offer of $2.8 billion for Walnut Creek's Long's Drugs, challenging the bid made in August by CVS. Walgreen's cited a slowing economy nd a lack of a response by Long's to their offer as the reasons for their decision. Longs Drug's has 521 stores which are located across California, Arizona, Hawaii and Nevada.
CALIFORNIANS CONFIDENT? New Field Poll Illustrates Concerns
A record number of Californians (63%) report being financially worse off than they were a year ago. In no previous Field Poll survey in nearly fifty years of polling covering several previous economic recession periods has more than 50% described their financial condition so negatively. In addition, most voters foresee no improvement in their personal finances next year. There has also been a deterioration in Californians' appraisal of the state's economy. At present 86% of voters feel California is in bad economic times, while just 8% say the state is in good times. This represents a 34 percentage-point increase in the proportion of voters describing the states economy negatively from December, and is their gloomiest assessment in fifteen years. These are the main findings from the latest Field Poll updating Californians economic well-being and views about the state's economy, a time series the poll began in 1961.
For the Week of 07-29-08
NASA CELEBRATES 50 YEARS MAJOR IMPACTS ON CALIFORNIA
The National Aeronautics and Space Administration, NASA was established 50 years ago today by the passage of the National Aeronautics and Space Act. California receives 20 percent of NASA's budget. See 07-29-08 Minute.
DALLAS COWBOYS IN CALIFORNIA FOR TRAINING CAMP OXNARD HOST CITY
DALLAS COWBOYS
The NFL's Dallas Cowboys have left Texas to begin summer training camp in Oxnard. The Cowboys training camp is expected to attract up to10,000 visitors per day, and a higher count than in previous years. Visitors are expected to spend big money on hotels, shopping, sightseeing, food and gasoline. A report conducted by California Lutheran University in 2004, the last time the study was completed, found the training camp generated about $4.5 million to $5.3 million in gross revenue. The tax benefit was estimated to be $365,000 to $426,000. The three-week camp in 2004 drew about 70,000 people, but is expected to be higher this year. That year, 73 percent of attendees were from outside the county. This year's camp likely will be the last such windfall. The Cowboys last trained here in 2006 and returned this year because of a scheduling conflict with the Alamodome in San Antonio, where the team has a five-year camp contract.
CALIFORNIA BASED SUNKIST CELEBRATES 100 Years in Business
The Sunkist brand was first used in 1907 to promote and further unify an emerging citrus cooperative formed by independent growers (previously known as the Southern California Fruit Exchange and later the California Fruit Growers Exchange). In 1908, the "Sunkist" name captured the organization's interest and was adopted as its trademark to appear on boxes of premium quality fruit. Their legacy is honored today, over 100 years later, by the citrus growers in California and Arizona, most of whom are small family farmers, who now own Sunkist Growers. Steadfast to its commitment to provide quality fresh fruit, Sunkist is one of the world's oldest and largest citrus marketing cooperatives, packing millions of cartons of fruit each year. Stretching its presence beyond the produce aisle, Sunkist brand licensed its famous name to more han 600 products -- ranging from vitamins to beverages -- in more than 40 different countries on five continents. For more information about Sunkist, visit .
A ground crewman unplugs electrical connections during pre-flight checks of NASA's Ikhana research aircraft on July 2, 2008. The unmanned plane is being used to provide photos of the wildfires. (Photo courtesy NASA/Tony Landis)
An infrared image of the Gap Fire, north of Santa Barbara, Calif., captured by NASA's Autonomous Modular Scanner from the Ikhana unmanned aircraft on July 8. The city can be seen in the lower right of the image. The hot spots of the fire are visible in the middle of the image. They appear as yellow pixels in the center of the pink region. (Photo courtesy NASA/Google)
New actively burning areas are seen in yellow from above the American River Fire Complex in Placer County as captured by NASAs Autonomous Modular Sensor (AMS) onboard the Ikhana remotely- operated aircraft on July 8. Known fire perimeters are indicated in orange, red and green. Many active fire areas are also outside the known perimeter. (NASA/Google photo)
For the Week of 07-07-08
Express Jet to Suspend Service
ExpressJet Airlines, the Houston, Texas based airline announced it will suspend flying under its own name as of Sept. 1. Earlier this month ExpressJet and Delta Air Lines terminated their agreement where ExpressJet operated under the Delta Connection brand. The company said it was also ceasing its branded commercial passenger flight operations on Sept. 2 and the 39 aircraft currently used in these operations will be among those returned to the lessor no later than June 2009.
ExpressJet Airlines will continue flying a fleet of 205 aircraft as Continental Express to more than 150 destinations, as well as continue to serve charter customers with a fleet of 30 aircraft through ExpressJet Corporate Aviation. "If we had any other choice, we would not take this difficult action. However, rising fuel prices has made the operation impossible to sustain," says Jim Ream, president and chief executive officer. Tickets on ExpressJet Airlines for travel prior to Sept. 2 will not be affected and the company says it will continue selling tickets for any customers desiring travel prior to that date.
Customers holding tickets for a flight after Sept. 1 should contact ExpressJet Reservations at 888-958-XJET (9538) to request a refund. The airline is a unit of ExpressJet Holdings (NYSE: XJT).
The action by ExpressJet will suspend its service to San Diego, Sacramento, Fresno, Bakersfield, Monterey, Long Beach and Ontario. The airline has been flying from cities in California since April 2007 and will shut down operations on Sept. 1.
AIR FORCE TO REBID $35B TANKER CONTRACT BOEING AND NORTHROP TO FACE OFF AGAIN IN HIGH STAKES COMPETITION
After scrutiny by the Government Accountability Office, GAO the previous issued $35B Air Force contract to build a new fleet of air tankers awsarded to California's Northrop Grumman and Airbus parent, the European Aeronautic Defence and Space Co. will be rebid.
Competitors Boeing and Northrop will submit new offers for the contract but this time the Secretary of Defense - Pentagon will select a winner by the end of the year.
The GAO detailed significant errors the Air Force had made in the original award. Boeing which protested the award, was the concern for the GAO which illustrated that if the mistakes had not been made, it might have lead to Boeing recieving the contract.
The Pentagon will now conduct a limited rebid that examines eight issues where the government auditors found problems in the initial process.
Blackstone Group manager of the worlds largest buyout fund has agreed to buy Orange County based Apria Healthcare Group the nations largest supplier of in home medical equipment and in home medical care services for $1.6 billion.
Based in Lake Forest, Apria provides several home healthcare services and equipment. The company currently runs about 550 respiratory and infusion therapy locations throughout the United States and claims to service more than two million patients a year.
Apria employs 13,000 nationwide, over 700 at their offices in Lake Forest. Apria was created 13 years ago with the combination of Homedco Group Inc. and Abbey Healthcare Group Inc., two Orange County based home health care companies.
Upon completion of the merger, Apria will become a private company, wholly-owned by Blackstone and its affiliates. The transaction is expected to close in the second half of 2008, subject to customary closing conditions. The corporate headquarters of Apria Healthcare will remain in Lake Forest, California; its infusion division headquarters will remain in Denver, Colorado.
For the Week of 05-18-08 HP buys EDS for $13.9 Billion
Hewlett-Packard today announced a definitive agreement to purchase Texas-based Electronic Data Systems for $13.9 billion. The acquisition, which has been approved by the boards of both companies, is HP's biggest since it bought Compaq for nearly $20 billion in 2002 - and the largest such deal since Mark Hurd, HPs CEO took the helm at HP in 2006. Hurd said EDS will become a division of HP, based in Texas, and EDS chief executive Ron Rittenmeyer, will report to Hurd. At a joint news conference, the two executives said the combined companies will have 210,000 employees doing business in 80 countries. They said they expected to increase efficiency by combining the firms, acknowledging that some jobs may be trimmed, but declined to give specifics. The deal is expected to close in the second half of the year.
For the Week of 05-18-08
CBS buys CNet for $1.8 Billion
CBS announced it is buying CNet Networks Inc., an online news and information provider, for $1.8 billion in cash in its latest bid to expand its reach on the Internet. CNet is known for technology reviews, news and advice but has also expanded into entertainment areas with a stable of sites that includes ZDNet, GameSpot.com, TV.com and mp3.com. It also owns the highly valuable Internet domain name News.com.. The acquisition, expected to close in the third quarter after shareholder and regulatory approval, would make CBS one of the 10 most popular Internet companies in the U.S., with 54 million unique visitors a month and approximately 200 million uses worldwide.
See further information about business activity at Markets 08 under Economic Overview
Santa Clara's Sun Microsystems reported that due to an unexpected third quarter net loss, announced plans to cut 1,500 to 2,500 jobs.
Cupertino's Apple announced that it is cutting 174 jobs at its Elk Grove facility a suburb of Sacramento and moving the functions to a site in Austin. The positions involve sales and support functions. Apple retains 1100 employees at this location and another 150 member customer support facility in Rancho Cordova suburb.
Santa Clara based National Semiconductor announced that it will eliminate 130 positions across the company mainly in product line and support functions. The company said the cuts are part of a move to boost revenue in key market areas that require better power management and energy efficiency.
California Businesses Keeping Headquarters in State
California businesses unfazed by the current downturn and contrary to the media slant that the state is too expensive for business and industry continue their growth in the state.
Three companies long known for their 'Golden State' beginning have announced plans to remain and grow in the state. Biotech company, Beckman-Coulter has consolidated its operations from Fullerton to Brea.
Jaccuzzi, the world renown company for aqua therapy has moved its headquarters from Irvine to Chino Hills.
And the shoe maker Skechers has announced plans for its headquarters in Manhattan Beach and plans for corresponding expansion on adjacent properties
For the Week of 04-13-08
Crate and Barrel Consolidating to Tracy
Consolidates Distribution in Norcal
Retailer Crate and Barrel is consolidating its Northern California distribution facilities to Tracy with two new facilities totaling 1.2 million sq.ft. One of buldings will total 827,000 sq.ft. and the be used to warehouse furniture products. The second building will be 398,000 sq.ft. and used as a center for its housewares. Crate and Barrel will consolidate from facilities in Tracy and Hayward.
Hino Motors to Close Facility in Long Beach
Toyota subsidiary Hino Motors Ltd. will stop making commercial trucks at its Long Beach facility as surging oil prices and the U.S. credit crisis squelch demand, according to the company. Truck production at TABC Inc., a Toyota parts maker has an assembly line for Hino trucks will be moved to Hino's other U.S. plant in West Virginia by July.
Hino produced 4,800 trucks at the California plant in the fiscal year that ended March 31. That plant will continue to make parts for Toyota. Hino's Williamstown, W.Va., plant has an annual production capacity of 2,500 vehicles but it produced only 300 trucks in the last fiscal year, according to Hino. Hino has a third North American plant, in Ontario, Canada, which produced 1,300 trucks over the same span. Hino's North American sales for the last fiscal year dropped 19 percent to about 6,600 trucks from 8,200 trucks the previous year. Hino sales have been booming elsewhere in the world, including southeast Asia, South America and the Middle East, but the U.S. market has been the soft spot. Hino is 50.11 percent owned by Toyota Motor Corp., Japan's No. 1 automaker.
Employees will be moved to the nearby Toyota plant.
AGC to Close Glass Plant and R&D in Golden State
AGC Flat Glass, formerly AFG announced that it will close plants in the US including a manufacturing facility in Victorville and a Research and Developmentt facility in Petaluma.
AGC also has other facilities that will be impacted in Hampton, Iowa, Hawkins, Tennesse and St. Augustine, Quebec.
No numbers on employees impacted
For the Week of 04-06-08
Steelcase to Cut Jobs, Close Plants in California
Facilties to Close in 3 Cities: Oakland, Industry and Corona
Office furniture manufacturer Steelcase announced that it will cut 200 to 250 jobs across the nation during the next 18 months. In addition it also announced it will close three factories in California. Two are furniture manufacturing facilities in Oakland and city of Industry and the other makes dry-ease boards in Corona.
Steelcase based in Grand Rapids, Michigan identified that the cuts are needed due to the slowing economy specifically their U.S. customer base of finance, insurance and real estate firms.
Hillerich and Bradsby, maker of the 'Louisville Slugger' baseball bat has announced that it will close its manufactuirng facility in Ontario. The plant makes aluminum and composite bats - it is the last Louisville-Slugger manufacturing facility left in the U.S. outside of its wooden-bat poduction facility in Louisville.
The plant is expected to close by late summer or early fall afecting 42 employees. At its height of operations the facility employed 167. The company identified that it has been moving its non- wood bat manufacturing to China over the past two years.
Hillerich and Bradsby have a research and development facility in Loomis and timber operations in New York and Pennsylvania where souvenir bats are produced.
Britain's TESCO grocery stores and its US brand Fresh and Easy announced this past week their thrid wave of expansion into California. As previously reported (See Markets) Fresh and Easy began their opening salvo with siting their headquarters in El Segundo, and opening 54 stores in southern California and Arizona. This was followed by yet another announcement of nearly 30 stores for the San Francisco Bay area. Their plans now call for the opening of 18 stores in the Capital region.
For further information see 10-01 Minute TESCO enters California; 02-04 TESCO Expands under Markets under Economic Overview.
April 2, 2008
TESCO has halted its expansions across the western US to review and evaluate its rapid growth strategy, 31 units in California, 61 across the southwest. Company officials identified that the chain will open two more stores and then will not proceed further until July.
03-31-08
US Bank buys 1st Mellon in California
US Banks lead bank, US Bank National Association has agreed to acquire Melton 1st Bank, a subsidiary of the Bank of New York. While the Financial terms of the cash deal were not disclosed, information was provided on the business points. US Bank will acquire $2.4 billion in assets, $1.1 billion in loans and $2.7 billion in deposits.
Melton has 7 offices in southern California, specifically in Los Angeles and orange Counties
03-10-2008
Relocations in Automotive Industry
Volvo & Chrysler Relocate Operations
Volvo Cars of North America identified that it will relocate its U.S. headquarters from Irvine to Rockleigh, New Jersey where customer service and other operations are based. Volvo had moved to Irvine in 2001. Its move will effect 80 employees, the company said in its press release. More details see
Chysler also identified that it would close its Pacifica Advance Product Design Center outside of San Diego in Carlsbad. Chrylser identified that it would consolidate its next generation design work with its exisiting studios at its headquarters in Auburn Hills, Michigan.
Many auto makers maintain design studios in California due to its proximity to the Golden State's trend-setting market that ranks as the single largest in the nation.
Further information posted at Markets.
03-02-08
STEEL GIANTS TO BUILD FACILITY IN CALIFORNIA
Two of the world's steel giants have broken ground for the development of a $129 million plant to produce petroleum pipe in Pittsburg, California.
The company called USP - is a join venture by the south Korean steel manufacturers POSCO and US Steel. POSCO, the world's fourth largest steel maker and US Steel each own a 35 percent stake in the new factory with the remaining 30 percent to South Korea's SeAh steel.
The plant will produce the American Petroleum Institute-certified steel pipes for which demand is growing in the US and Canadian markets. The few facility is expected to be completed in 2009 and will annually produce up to 270,000 tons of pipe.
