SkyscraperCity banner
1 - 20 of 230 Posts

·
Chicago's #1 Fan
Joined
·
2,334 Posts
Discussion Starter · #1 ·
Downtown in running for steel company offices

April 15, 2005

BY DAVID ROEDER Business Reporter


Downtown Chicago is in contention as a site for a new U.S. headquarters of the world's largest steel company, city and state officials said Thursday.

Mittal Steel Co. NV is weighing downtown against northwest Indiana. Mittal became the top steelmaker when it completed a $4.5 billion buyout of International Steel Group Inc. on Tuesday.

ISG, based about 20 miles south of Cleveland in Richfield, Ohio, had accumulated such major properties in the area as a former LTV plant in East Chicago and a Riverdale mill once owned by Acme Steel. Mittal grew from the former Inland Steel and runs its East Chicago mill.

Mittal has held conferences with state and local officials concerning potential headquarters buildings and government subsidies. The officials said the headquarters should bring about 200 jobs plus a dose of prestige for the Chicago economy.

"We think that what this company wants, we have,'' said Paul O'Connor, executive director of World Business Chicago, a public-private group that promotes economic growth. He said his group is touting the city's transportation network, work force and quality of life.

"This is a very hands-on company and they want to be able to get to their operations quickly,'' O'Connor said.

Jack Lavin, director of the state's Department of Commerce and Economic Opportunity, said a range of incentives is on the table, including credits against sales taxes and job-training expenses and grants for infrastructure work. He declined to discuss specific offers.

"It's our impression they want to make some sort of decision soon,'' he said.

O'Connor and Lavin said the Cleveland area also is in the running with Mittal, but a company announcement issued late Thursday appeared to rule that out.

Netherlands-based Mittal said its U.S. operations will be "in the Chicagoland area.'' The statement was part of an explanation of management changes at the enlarged company. Most of the key managers come from Ispat Inland, the company that succeeded Chicago-based Inland Steel.

That includes Lou Schorsch, named chief executive of Mittal Steel USA. Mittal officials could not be reached or did not return calls.

Many of them were in Chicago on Thursday night for a cocktail party at the Field Museum to celebrate the acquisition of ISG.

Charles Glazer, spokesman for ISG, said a work force of about 200 roughly approximates what the company has at its base in Richfield.

Mittal shares are publicly traded in Europe and on the New York Stock Exchange, but the company is controlled by Indian-born Lakshmi Mittal, 54, a resident of London. The Sunday Times of London has estimated his net worth at $28 billion.

He began buying steel mills in the 1970s. A sharp rise in steel prices in the last few years has motivated him to buy out competitors.

While not being specific about it U.S. headquarters plans, the company said its domestic operations will have two regional offices, Burns Harbor, Ind., and Richfield.

It also said Rodney Mott, who was chief executive of ISG, has resigned.

Steel tariffs extended for 5 years

BY KEN THOMAS


WASHINGTON -- Tariffs should be kept on some steel imports for five years, a U.S. trade panel voted Thursday, a victory for the industry that wants to maintain the protection as it struggles to rebound from bankruptcies.

The Commerce Department had determined that lifting the tariffs would result in more imports from Brazil, Japan and Russia, and the U.S. International Trade Commission voted 4-2 that those imports would harm the U.S. industry. That was the key finding that guaranteed the continuation of the tariffs.

The duties were implemented in 1999 to prevent a flood of low-priced hot-rolled steel from the three foreign markets. The three countries dumped about 7 million tons of hot-rolled steel in 1998, trade officials said, part of an unprecedented surge into the American market.

A second wave of steel im- ports from 11 other countries brought additional tariffs in 2002, which President Bush lifted in late 2003.

''This decision is a victory for our steel industry. It will help protect the livelihood of our steelworkers, their families and their communities,'' said Sen. Jay Rockefeller (D-W.Va.).

Automakers, suppliers and domestic manufacturers that use steel in their products said the tariffs were causing higher prices and harming their ability to stay competitive.

Ford Motor said the decision ''seriously impacts steel consuming manufacturers as well as our entire economy.''

The automaker predicted that the United States ''will continue to see constrained supplies of steel and prices that are artificially high.''

Rep. Mike Rogers (R-Mich.) said the ruling was unfair and could lead to suppliers shifting their business overseas in order to remain competitive.

A trade panel of the House Energy and Commerce Committee plans to hold hearings on the issue soon, he said.

The U.S. steel industry has rebounded and reorganized since the tariffs were first ordered and the sector turned a profit in 2004 for the first time in years.

International Steel Group was formed after the merging of several bankrupt steel companies, including LTV and Weirton, while U.S. Steel and Nucor each acquired other companies.

Steel manufacturers said that the tariffs were necessary to ensure their continued financial viability, implement technological improvements and fund retiree benefits.

AP
 

·
Registered
Joined
·
34 Posts
Certainly Chicago is a better place from the perspective of anyone who would frequent this website, but you're overgeneralizing when you call northest Indiana a junkheap, and you're not acknowledging that many corporations choose to be headquartered in suburban areas because of the cost of doing business, the pace of life, the quality of the schools, etc. Of course that wouldn't be my choice, but not everyone loves this city or city life in general. And while it's true that much of northern Lake County (Gary, Hammond, Whiting, East Chicago) is grim, there are a lot of nice communities in NW IN, including Valparaiso, Chesterton, Crown Point, Ogden Dunes, etc., that are attractive, clean, safe and have good schools. None of those places may appeal to a dyed-in-the-wool urbanite, but that's not to say that the decisionmakers at Mittal wouldn't prefer that kind of place to set up shop.
 

·
The City
Joined
·
5,935 Posts
Rascacielos said:
Certainly Chicago is a better place from the perspective of anyone who would frequent this website, but you're overgeneralizing when you call northest Indiana a junkheap, and you're not acknowledging that many corporations choose to be headquartered in suburban areas because of the cost of doing business, the pace of life, the quality of the schools, etc. Of course that wouldn't be my choice, but not everyone loves this city or city life in general. And while it's true that much of northern Lake County (Gary, Hammond, Whiting, East Chicago) is grim, there are a lot of nice communities in NW IN, including Valparaiso, Chesterton, Crown Point, Ogden Dunes, etc., that are attractive, clean, safe and have good schools. None of those places may appeal to a dyed-in-the-wool urbanite, but that's not to say that the decisionmakers at Mittal wouldn't prefer that kind of place to set up shop.
^Sure, but just because a company is headquartered in downtown Chicago doesn't mean its employees can't live in the suburbs and enjoy all those amenities you mentioned. I mean, after all, that's probably the case in most downtown companies as it is.

Downtown Chicago, via its huge commuter rail system and numerous highways, can be fairly easily accessed from nearly anywhere within the entire metropolitan area. Also, it has (or is near) all of the major universities and cultural institutions of the area. Not only that, but both O'Hare and Midway airports are much more easily accessed from downtown Chicago than NW Indiana.

Putting personal biases aside, I don't see why the company would choose NW Indiana (except for cost of doing business, which is a valid argument)
 

·
Rockford, IL
Joined
·
55 Posts
I agree with TUP 100%. Even if it is cheaper for companies to locate in the suburbs, wouldn't you want access to the entire metropolitan for your employment base? A centralized location with all the transportation options that a commuter (employee) would have would far outweigh the cheaper suburban location. Not to mention the food and fun minutes from your front door for wining and dining clients.
 

·
The City
Joined
·
5,935 Posts
Either way, we are missing the bigger picture. The Chicago metro is gaining ANOTHER US Headquarters of a major global corporation, all within 2 weeks of eachother.

Takeda Pharmaceuticals decided to make Deerfield, IL the site of its US base of operations last week. It is a huge global corporation based in Japan.

Mittal Steel, the world's largest steel-maker based in the Netherlands, will make either downtown Chicago or NW Indiana (still Chicagoland) the base of its US operations.

Innovene just moved their global HQ into the Aon Center.

Now let's see of Illinois can win that huge particle accelerator project at Argonne National Laboratory (we are in competition with Michigan State University)
 

·
Chicago's #1 Fan
Joined
·
2,334 Posts
Discussion Starter · #8 ·
GlobalNetXchange moving headquarters to Chicago

April 27, 2005

BY SANDRA GUY Business Reporter


Click Here

The merger of two online marketplaces for consumer-goods retailers and manufacturers will mean a new technology headquarters in Chicago.

One of the companies, GlobalNetXchange LLC, is moving its headquarters to Chicago from San Francisco.

GlobalNetXchange employs 120, but only a handful of the workers in California are expected to move into the new offices at 200 W. Monroe in the Loop, according to an insider who asked not to be named. GlobalNetXchange got its start five years ago with the backing of Sears Roebuck and Co. and French retail group Carrefour.

GlobalNetXchange announced Tuesday that it intends to merge with a rival, WorldWide Retail Exchange LLC, to create a big enough online marketplace to compete against retailers such as Wal-Mart that tightly control their inventory. The newly merged company will be backed by some of the world's largest retailers, including locally based Sears Holdings and Walgreen Co., and the parent companies of Jewel and Dominick's grocery stores.

The online exchanges connect manufacturers, suppliers and retailers of virtually every product that's consumed or worn. The participating companies include textile manufacturers and key players in the food, beverage and packaged goods industries.

The exchanges' goal is to eliminate much of the excess inventories that companies carry, to cut costs by helping companies find cheaper goods to buy, and to enable everyone's computer systems to communicate using the same language.

Worldwide Retail Exchange, with 125 employees, will keep its offices in Alexandria, Va., a spokeswoman said.

The CEO of the combined companies is Joe Laughlin, CEO of GNX and a former senior vice president of corporate finance and business development at Sears Roebuck and Co. The new chairman is Christopher Sellers, CEO of Worldwide Retail Exchange.

The merged company has yet to be given a name.

The deal leaves Transora, an online exchange founded in Chicago, the lone exchange out. Transora, formerly an online marketplace, had previously sought to merge with Worldwide Retail Exchange in the past, and had once worked with GNX.

Now, Transora focuses solely on helping companies synchronize their data. The newly merged exchange will compete with Transora in that niche.
 

·
Registered
Joined
·
879 Posts
A Proposed West Loop Office????

I don't know where to post but heck, I do it here.

There was a rendering of proposed 2 mill sq ft office buildings located on West Madison St in the West Loop area. It appears on page 3(?) in today's papered Tribune. It will start construction once they found a tenant to anchor.
 

·
The City
Joined
·
5,935 Posts
^I will reply to both posts:

To BVictor: I read that article as well. It's great news. What I am wondering about is whether this merged company is now supposed to have 2 headquarters. That seems odd. I think those dingbats in Virginia need to get the **** out (BTW, I've been to Virginia and it's a horse's ass compared to Chicago) and bring their HQ to Chicago like any sane person would.

To Chi Coruscant: Interesting. I, however, never have a hard copy of the Tribune so I'm royally fucked. Either way, if you could find a way to scan or post that rendering we'd all worship the ground you walk on :cheers:

BTW, I"m still on vacation so pardon my demeanor ;)
 

·
Registered
Joined
·
207 Posts
eh... steel. chicago should strive to shed its industrial image, but hey. if they wanna build an HQ in the loop, im all for it. i just wont shed any tears if they choose hammond or whatever.

im having difficulty picturing the 2 acres in the west loop for tat new office complex... whats exactly there right now?
 

·
Registered
Joined
·
717 Posts
The Urban Politician said:
Hard to say without color.

Either way, it's tall, steel and glass, and is occupying a vacant lot.

I have no complaints
Ineed, depicted are two tall, steel and glass boxes occupying a vacant lot. There is much to complain about, since the elements of height, materials and site need a masterful handling to achieve something of architectural and aesthetic interest. True, this is only a newspaper's rendering, still two tall, steel & glass boxes do little to stir the soul. A pair of buildings with the flair and imagination of its neighbor across the way, Skybridge, would combine to make for an exciting gateway for those travelling the expressway. Chicago's heart deserves architecture not just buidlings.
 

·
Registered
Joined
·
879 Posts
Sara Lee narrows HQ search to city, Downers Grove
Decision could come as early as Friday

By Julie Johnsson, Greg Hinz and Alby Gallun (www.chicagobusiness.com)
Sara Lee Corp. is on the verge of picking the building for its new corporate headquarters, with a decision expected as soon as Friday, said people familiar with the company’s plans.
The Chicago-based consumer products company has narrowed its search down to two locations, one in the city and one in west suburban Downers Grove, the people said.

If it picks Dowers Grove, it would occupy the former Spiegel Inc. headquarters building at 3500 Lacey Rd., confirmed Gary Mori, a partner at Hamilton Partners Inc., the Itasca-based firm that owns the property.
The leading contender downtown is a 35-story building at 222 S. Riverside Plaza, the people said. Sara Lee would sublease space from Deutsche Bank AG, which leases roughly 375,000-square-feet in the 1.1 million-square-foot high-rise. A broker representing Deutsche Bank declined to discuss Sara Lee’s search.

Sara Lee needs as much as 400,000 square feet of space as part of a major corporate restructuring announced in February that would relocate staff from St. Louis and Cincinnati to the Chicago area. The company expects to employ 900 to 1,200 people at its headquarters, up from the roughly 300 that work in its current corporate offices at Three First National Plaza in the Loop.

A Sara Lee spokeswoman declined to comment, saying only that a decision would be made before Memorial Day.

“When a decision is made, we will communicate that,” she said.

In addition to 222 S. Riverside, Sara Lee also has looked at the R.R. Donnelley Building at 77 W. Wacker Dr.; 500 W. Madison St.; 33 W. Monroe St.; 200 W. Madison St.; and even the Sears Tower at 233 S. Wacker Dr.

Yet the commute to the Downers Grove building would be a lot easier for new Sara Lee CEO Brenda Barnes, who lives in nearby Naperville.
~~~~~~~~~~~~~~~~~~~~~`

Hope Sara Lee doesn't pick Downers Grove due to cheaper rent.
 

·
Registered
Joined
·
819 Posts
How much are they paying Brenda? Can't she afford a pied-a-terre in the city -- maybe one of the hotel room condos at Trump -- and keep the HQ in the city.
 

·
Registered
Joined
·
5 Posts
Not sure if people have already seen this article. It's not a big company but they are quite bullish on the downtown job growth.
-J


Growth moves benefits firm to pursue destiny downtown

BRUCE JAPSEN
Published April 21, 2005


An up-and-coming health benefits firm will relocate to downtown Chicago from smaller offices in Oak Brook to accommodate the company's growth and future employment needs.

Destiny Health, which sells so-called consumer-directed health plans, has signed a letter of intent to move into the 29,000-square-foot 21st floor of 200 W. Monroe St., a building co-owned by John Buck Co. investment fund. Terms of the deal are not being disclosed.

Destiny Chief Executive Scott Spiker said the company wanted to move downtown to be closer to more current and potential client offices, the Chicago insurance broker community and the company's desired future job base. He also sees downtown Chicago as a home to more entrepreneurial businesses while being convenient for employees and clients.

"As we have grown, we have found we need the high intellectual kinds of employees to support this kind of job growth," Spiker said. "Being in Oak Brook, every employee gets here by car."

Destiny's primary market is to sell its consumer-directed health plans to companies with between 2 and 500 workers. Such plans let employees or the company decide how much they want to spend on medical care.

The plan or employer then sets aside a defined amount of money to put toward medical costs. The money is put into a fund to pay for doctor visits and deductibles or co-payments for drugs, with unused dollars rolled over into the next year.

Since the company's launch four years ago Destiny's staff size has soared from five workers to more than 150. The company will be expanding its employment in a number of areas including underwriting, marketing and actuarial services.

Destiny's revenue jumped 116 percent last year to about $200 million while the number of health plan enrollees rose 81 percent to 55,000. Destiny made its first profit in the first quarter of this year.

"We expect to start next year at 100,000 members," Spiker said.

The company operates in Illinois, Wisconsin, Maryland, Massachusetts, Virginia and Washington, D.C.

While its rapid growth is impressive, industry analysts believe the company will eventually be gobbled up by a larger health insurance conglomerate, given the need for health plans to have hundreds of thousands, if not millions, of subscribers in order to spread their costs and turn a profit.

Last year, for example, Minneapolis-based managed-care giant UnitedHealth Group paid $300 million in cash for Definity Health Corp., which sells consumer-directed health plans.

But Spiker said there are no plans to be part of a merger, adding that Destiny's South Africa- based parent company, Discovery International, is well-funded. "We are thriving on our own and we have good capital support," Spiker said.

Des Plaines hospital conversion: Resurrection Health Care said it plans to convert Holy Family Medical Center in Des Plaines into a long-term acute-care hospital for critically ill patients.

The new facility would focus on caring for patients who are "more acutely ill and require more intensive care nursing," spokesman Brian Crawford said.
 

·
Registered
Joined
·
819 Posts
I would guess that some of these HQ location decisions have to do with the percentage of employees with families with school-age children. As soon as a reasonably well-paid employee has children of school-age, unless (1) they can afford private school or (2) their children are gifted enough to enter one of the college preps, they generally would move to the suburbs. Since parental status is strongly correlatd with age, don't you think entrepreneurial is a codeword for young?
 
1 - 20 of 230 Posts
Top