German firm to open area factory

They're hailing it as an economic development -- possibly the first of many -- that could help set the region's alternative energy industry spinning.

Months after plans emerged for a $98 million wind turbine test facility in North Charleston, a German company called IMO Group plans to open a 190-worker factory near Summerville to make circular metal rings that help a turbine spin.

Company officials plan to open the $47 million facility in a vacant warehouse in McQueen Industrial Park in July. They'll ship their parts to existing wind turbine manufacturers that are now scattered across the country, but they're betting that those companies will eventually open operations in North Charleston to be near the research facility.

Recession-weary elected leaders and economic development officials embraced the announcement. The latest figures on the state's high unemployment rate, which hit a record 12.6 percent in December, will be released today.

"There's an energy in this room that hasn't been here in a while," David Ginn, president of the Charleston Regional Development Alliance, told a gathering of more than 100 business leaders and government officials.

Merle Johnson, who recruits competitive business deals for the alliance, said the group doesn't have any other turbine-related projects in the works, noting that it's too early. But IMO executives said they're comfortable with the risk.

"It's the next industry revolution in the United States, so we're not nervous about that," said Markus Hackher, the company's business development manager.

Rüdiger Unverzagt, who will head the U.S. operation, echoed that in a written statement: "Charleston's strong port coupled with its strengthening profile in alternative energy gave us complete confidence in our decision to come here."

Currently, the company makes the circular metal rings, technically called slew rings, at a 1,100-worker factory at its German headquarters. The medical industry uses the rings to build rotating CT scanners, and they're used in mining equipment too.

Hackher said his company wanted to expand to the United States to take advantage of an emerging market that's already well-established in Europe. The U.S. Department of Energy estimates that $175 billion will be spent on the East Coast's alternative energy market during the next 20 years.

Company officials looked for cities along the East Coast with easy port access -- Savannah, Norfolk, Richmond -- until they heard of North Charleston's planned research facility.

Even though Clemson University researchers wouldn't have a need to buy slew rings for their testing, the wind turbine project solidified the deal.

"This is what they call a cluster," said Elizabeth Colbert-Busch, director of business development at the Clemson University Restoration Institute on the former Charleston Naval Base. "Call it what you want, but know that 90 percent of wind turbine manufacturers will be coming through here."

Gov. Mark Sanford, who spoke at the event, emphasized that the company decided to locate its first U.S. branch in South Carolina, strengthening the state's existing business ties with Germany.

"That's not just significant for your firm but for our state," he said.

Sanford praised the company's expansion plan but voted against accepting key federal money for the turbine project, saying that the project is being powered by a one-time grant and could become what he called a "taxpayer obligation."

Reach Katy Stech at kstech@postandcourier.com.