FOREIGN-OWNED FIRMS PROVIDE ECONOMIC CONTRIBUTIONS TO STATE

Quik Quiz: True or false?

Foreign-owned companies are taking money out of Missouri.

Foreign companies are taking American jobs.

Foreign companies are not allowing Missourians to hold top management positions in their companies.

Foreign investment is dominated by Pacific Rim countries.

If you answered "false" to the above statements, you may be up on foreign investments and presence in Missouri.

KPMG Peat Marwick -- a company which provides accounting, auditing, tax and management consulting services to leading multi-national businesses with operations around the world -- quizzed chambers of commerce throughout the state in compiling its 1993 study of foreign-owned companies with operations in Missouri.

The study reveals that foreign-owned companies had capital investment in Missouri of more than $2.7 billion in 1992, with plans to increase that investment by 9 percent in 1993 (these records are not yet available), and employment by 4 percent, reinvesting their profits in the U.S.

Rather than displacing American jobs, foreign-owned companies in Missouri employed approximately 39,600 people, and more than 99 percent of those employed are native-born Americans. Additionally, 82 percent of the key management positions in foreign-owned Missouri companies are held by U.S. citizens with only 18 percent held by foreign nationals.

European companies have more companies in Missouri than other foreign investors, with 64 percent European vs. 29 percent from the Pacific Rim.

"Professional staffs of KPMG Peat Marwick in St. Louis and Kansas City offices interviewed executive officers and principal officers with 146 of the estimated 182 foreign-owned companies in Missouri," said Robyn Frankel of Aaron D. Cushman & Associates Inc., a public relations firm in St. Louis.

"Missouri offers fertile ground for international investment and has attracted an ever-increasing number of U.S. headquarters for foreign-owned operations," said Brian M. Ambrose, a partner of the St. Louis KPMG office. "These businesses employ thousands of Missourians, own or lease real estate, plants and facilities, pay state and local taxes and energize the state's economic growth."

The majority of foreign-owned operations are located in St. Louis and Kansas City metropolitan areas. But, in total, operations are based in 32 Missouri counties, including Cape Girardeau and Perry counties.

Four foreign-owned companies -- M&W Packaging, manufacturer of plastic bags; Saueressig, producer of gravure printing cylinders for all kinds of packaging printing; Tri-Con, manufacturer of seat covers; and Biokyowa, manufacturer and seller of feed additives -- provide employment to more than 700 persons in Cape Girardeau County.

Two foreign-owned firms -- TG (U.S.A) at Perryville, producer of a number of auto parts, and Timber Exports Ltd., Frohna, which produces wood veneer products -- employ more than 700 workers in Perry County.

According to Ambrose, the bottom line is that foreign investment is good for Missouri.

Among the findings of the KPMG study:

Missouri attracts a large number of German investors, who represent more than a third of the $2.7 billion foreign capital investment.

The majority (55 percent) of foreign-owned companies are engaged in manufacturing. Thirty percent are involved with sale and/or distribution and 15 percent in service.

"The KPMG study points clearly to the fact that Missouri continues to be a strong choice for foreign business looking for a U.S. location," said Missouri Gov. Mel Carnahan. "As the world economy becomes increasingly global, it is important that we understand the needs and issues of foreign operations. Missouri remains committed to attracting businesses, both foreign and domestic, to our state."

"This study provides a valuable service in helping businesses understand the significant contributions made by foreign-owned companies," noted Joseph L. Driskill, director of the Missouri Department of Economic Development, which is involved in assuring that the state is competitive nationally and internationally in bringing business to the state.

KPMG has a network of 819 offices in 125 countries.

Flori Sales & Service has moved to downtown Cape Girardeau.

The company, which provides residential and commercial heating, air conditioning and refrigeration service, recently purchased the 10,600-square-foot building at 101 William, which formerly housed Maxwell Service Co., a heating and air conditioning firm.

The firm, owned by Ralph and Julia Flori, has been in business more than 25 years, and was previously located at 1634 N. Kingshighway.

"We provide sales and service and will be servicing former Maxwell customers," said Flori.

Flori's company will occupy about a third of the space in the large structure, which originally served as a Biederman's Furniture Store warehouse during the 1950s.

"We'll have about 3,000 square feet," he said. "We wanted enough space to display some of our products. The remainder of the space is leased out."

Flori is a dealer for Bryant heating and air conditioner systems.

"We are also an authorized service center for several other companies, including GCS Co., and Kaemmerien Electric Co. from the St. Louis area," he noted.

The company employs nine people.

Gulliver's Travel Agency Inc. is in a new location at 2424 Kingsway in Cape Girardeau.

The agency's telephone and fax numbers will remain the same.

Gulliver's, owned by David and Lynn Moll, was founded in 1974.

Lynn Moll recently returned from a visit to Italy.

A guest of Alitalia Airlines and European Incoming Services, Moll toured major points of interest in Italy, including the Coliseum and Vatican; the Academy of Arts & Sciences and tombs of Michelangelo and Galileo in Florence, and the Grand Canal and other sites in Venice.

The travel agency staff consists of Mrs. Moll, manager Ann Swanson, sales/marketing manager Beverly Estes and travel consultants Marilyn Barker, Lisa Dunaway and Theresea Carr.

A grand opening of the new location is being planned for March.

Paul Harris Stores Inc., a women's clothing and accessories retailer, opened a facility in West Park Mall last year.

The Paul Harris group, headquartered in Indianapolis, Ind., includes more than 217 stores in three categories -- Paul Harris Stores, $5-$10-$15-$20 Stores and Pasta Stores -- in 27 states.

The store in West Park Mall is a Paul Harris Pasta Store and features clothing and accessories for women, 18 to 40 years old.

The Pasta clothing line is the creation of Eloise Paul, vice president of merchandising. She joined her father's firm nine years ago after being in retailing in California for six years. Her father, Gerald Paul, is the company's co-founder and chief executive officer.

Nancy Schlick is manager of the Cape Girardeau store.

ELSEWHERE:

DONGOLA, Ill. -- Heartland Heritage Antiques and Collectibles has opened at Dongola, Ill.

The new store, owned by Berry and Betty Hunter, is located on Front Street, and features furniture, glassware, pottery, quilts and other collectible items.

The store will be open from 9 a.m. to 5 p.m. Tuesday through Saturday.

POPLAR BLUFF -- State Rep. Bill Foster has sold his business.

"I have made a commitment to the people of the 156th District to be a strong voice for them in Jefferson City," said Foster, who was elected in July of 1993 to fill the seat vacated by Joe Driskill.

Rick Allison is new owner of Brown Window Co. Inc., a company which was founded by the Foster family in 1980.

Foster will assist the new owner of the company as a consultant.

CARBONDALE, Ill. -- The Southern Illinois Women's Business Council (SIWBC) will hold its annual meeting Feb. 10 at the Small Business Incubator in Carbondale.

"Change - Friend or Foe," is the topic of the 5:30 p.m. meeting. Additional information is available by calling Sallie Ricker, president of the SIWBC, 618-457-8145.

BOAT NOTES:

Players International, which operates riverboat gambling casinos at Metropolis, Ill., and Lake Charles, La., has received approval from Maryland Heights, in the St. Louis area, to develop a riverboat casino complex.

Duke Rohlffs, vice president of corporate development, said the company has also applied to the Missouri Gaming Commission for a license to own and operate a riverboat casino at Maryland Heights, and is moving forward to seek the necessary approval from other agencies, including the Army Corps of Engineers, for the development site.

Plans for the multi-complex facility, located on 132 acres, include a riverboat that will cruise the Missouri River, and a pavilion to include a ticket center, restaurants, gift shop and VIP Lounge. The site will also feature a large multipurpose sports complex, including retail shops, restaurants, nightclubs and other recreational facilities.

The proposed facility will be the third riverboat casino developed and operated by the company.

The November Illinois "Slot Report" shows the Casino Queen, docked at East St. Louis, with the second highest payout, at 93.8 percent, just behind the Joliet Express, at 93.9.

The Players Casino at Metropolis was among the stingiest on slot payouts, at 90.7 percent. The Alton Belle ranked sixth paying out 91.3 percent.

The average payout of all casinos in Illinois was 92.7 percent.