Foreign Investments Europe Case studies Zip-Pak

Zip-Pak

Background
Zip-Pak, a division of Illinois Tool Works, produces sealable packagings for sectors including the food industry. Until 2003 the company had its production locations solely in the United States. But Zip-Pak wanted to move closer to the international market and was looking for a location in Europe. About 40 potential locations were visited in ten European countries. The Northern Netherlands was not (yet) in the picture at this stage. That gave the NOM every reason to convince Zip-Pak of what the region has to offer.

Question: We are looking for a location in a rural area, with good arterial roads that will have to serve not only as a production location, but as an international distribution centre as well. To what extent can the Northern Netherlands meet this requirement?

The first steps
The first meetings between the NOM and Zip-Pak were held in the United States, together with the Netherlands Foreign Investment Agency (NFIA). Following intensive talks with the company’s decision-makers, a number of possible locations were presented. Zip-Pak was impressed – especially with the possibilities offered by Winschoten. This town in East Groningen borders Northern Germany, has a favorable land price and offered plenty of suitable personnel for Zip-Pak. Zip-Pak ultimately had to choose between Winschoten and a location in the east of Germany.

Progress and result
Since this was to be Zip-Pak’s first foreign location, sentiment played an important role in the decision. The NOM therefore pulled out all the stops to make sure that Zip-Pak felt at home. Appointments with various relevant parties were made for the company. They included internationally operating companies in Winschoten, suppliers, building companies, the municipal authority and Arbeidsvoorziening (manpower services organisation) Winschoten. Appropriate subsidy options were of course considered as well. The result: In 2003 Zip-Pak chose Winschoten. A successful decision. A new production line has since been installed at the location, virtually doubling the company’s capacity in a relatively short time span.