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Machine Tool Builder Hess Engineering Serves European Markets

8 June 1998

Machine Tool Builder Hess Engineering Serves European Markets From Base in Switzerland

   Productivity and Precision Machine Tool Industry Support Business Growth

    NEW YORK, June 8 -- Three years of experience has proved for
Hess Engineering AG, a subsidiary of Hess Engineering, Inc., Niles, MI, that
manufacturing companies can operate profitably in Switzerland, reports Mario
Brossi of Location: Switzerland+, based here.
    Hess Engineering AG provides sales and service for wheel and rim
manufacturing equipment in Europe built by its parent company.  In addition,
Hess manufactures brake shoe welding equipment and valve upsetting systems for
passenger car and truck applications from its office in Frauenfeld in the
canton of Thurgau.
    Bernard Ackermann, Hess Engineering AG's Managing Director, said that the
decision to locate in Switzerland came after an economic analysis of options.
"When we acquired a division of a German company in 1995 we would have been
obligated under EU law to fulfill the employment contracts of 35 people had we
remained in that country," he explained.  "This was financially untenable.
Switzerland is not in the EU, which allowed us to set up operations here with
only the employees we needed.  Since then, business has expanded and we're
planning to nearly double our workforce."
    Another economic criterion favoring Switzerland is its relatively low
social costs compared to neighboring countries.  "These costs can be a
deterrent to setting up a business in Germany, France, Italy and Austria,"
Mr. Ackermann said.
    According to Hess Engineering, the education level and productivity of the
Swiss workforce, coupled with the high quality of the Swiss machine tool
industry, added to the attractiveness of the country as a base of operations.
Switzerland's central location, excellent transportation infrastructure and
the multilingual capabilities of the Swiss make the country a natural location
from which to serve markets throughout Europe, the company reported.