Madem Chooses Chattanooga for U.S. Launch

Madem, the global leader in the manufacture of nailed wooden reels for electrical cable companies, launched its U.S. operations in Chattanooga last November. But the company headquartered in Brazil with plants in three other countries was on the verge of making Birmingham its American headquarters in 2007.

In fact, the Alabama city was on Madem’s website and marketing materials as its first plant in the U.S. when company officials decided to take a look at Chattanooga.

"The support of many different entities was very important to our decision to locate in Chattanooga," said Madem global sales director, Leandro Mazzoccato, son of the company’s majority owner. "We hope to grow the Chattanooga plant beyond our expectations."

The Chamber – with Existing Business Development Director Steve Hiatt assuming a business recruitment role – coordinated the successful effort to attract the $12 million investment that would create 75 new jobs within a year.

"It was exciting to have a prospect that produces four million reels a year and that promised to add 125 jobs over a few years’ time," said Hiatt. "During their first visit we showed company officials eight or 10 buildings that seemed like they might be a good fit."

During the second visit the company execs zeroed in on two or three sites and met with representatives of the Chamber’s economic development partners – TVA, EPB, the Southeast Tennessee Career Center and the state’s Economic and Community Development department.

"We are fortunate that our top local public officials are keenly attuned to job growth and accommodating to prospects," Hiatt said. "After meeting with Mayor Claude Ramsey and Mayor Ron Littlefield, the Madem officials seemed convinced that they should make Chattanooga their U.S. headquarters."

Mazzoccato said the company chose Chattanooga for several reasons. "We liked the size and feel of the city," he said. "The low energy cost, tax incentives and the location with its proximity to interstates, our lumber suppliers and customer base also worked in Chattanooga’s favor.

"We are very happy to be a part of Chattanooga’s business community. We have enjoyed steadfast support from the Chamber and other entities. They have met our expectations."

Madem located in JEPCO Industrial Park at 1312 East 42nd Street in a facility with more than 143,000 square feet. The operation that began with a workforce of 25 machine operators and material handlers, has almost tripled in employees in its first year. In 2009 Madem Reels expects to add even more local jobs.

"Our Chattanooga operation represents a significant step in Madem Group’s aggressive global expansion strategy," according to Mazzoccato. "Production from this plant will support domestic, international, and emerging market sales."

The company that employs 1,000 people worldwide and exports to over 40 countries is stepping up its warehouse operations and expects to have more than 10 warehouses and distribution centers around the U.S. by 2010.

Madem Reels’ plant is equipped with state-of-the-art advancements in wooden reel production technology, with original automated design on two production lines. With these significant investments in manufacturing technolgy, Madem Reels USA ensures the highest level of quality, performance, and service to its customers in the U.S. and around the world.

October 2008 to December 2008

Job Creation Announcements

Company Name Product/Service Project Type Investment New Jobs

Greenbriar Cove at N Chickamauga Crk Retirement facility Expansion $75,000,000 n/a

North American Credit Services Health care billing/debt collection Expansion n/a 50

Convergys Corporation Customer service center Expansion - 200

T-Mobile Cellular phone customer service center Expansion - 100

Parkway Professional Ctr Office building New $2,000,000 n/a

*Chattem, Inc. Mfr. health & beauty aids Expansion $7,000,000 33

TOTAL INVESTMENT $84,000,000

TOTAL NEW JOBS 383

The projects listed above represent commitments announced in the newspaper or reported to the Chamber.

*Projects assisted by the Chattanooga Area Chamber of Commerce.