THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, November 24, 1994 TAG: 9411220164
SECTION: NORFOLK COMPASS PAGE: 15 EDITION: FINAL
SOURCE: BY SCOTT McCASKEY, CORRESPONDENT
LENGTH: Medium: 63 lines
The next time there's an oil spill, think of Norfolk.
In all likelihood, that's where the equipment to clean up the spill will come from.
DESMI Inc., an international supplier of oil spill equipment and industrial pumps, has moved its U.S. corporate headquarters to Norfolk Commerce Park. After looking at Richmond, Raleigh, and other cities, the firm chose Norfolk.
``It's a classic example of a company going where it's been made to feel welcome,'' said Robert B. Smithwick, director of the Norfolk's department of development.
According to Smithwick, a lot of the credit for landing DESMI goes to Ernie Franklin, a marketing manager for the department.
``He got wind of the company's growth potential and invited them here to see our credentials,'' Smithwick said. ``He helped it happen.''
DESMI's president, Jan Harvest said that the move was a combination of several key factors.
``It's geographically strategic, there's a container port, an international airport and the interstate,' he said. ``Even the warehouse was ideal.''
The company is a wholly owned subsidiary of the Danish firm A/S De Smithske, which manufactures the equipment. DESMI will support assembly and distribution operations for North and South America. Smithske's equipment was used in the Exxon Valdez disaster.
``It's safe to say that at any oil spill, DESMI equipment will be there to help clean it up,'' Harvest said.
Though only in the distribution phase at present, the company will begin assembly procedures soon. There are five employees, but the work force is expected to grow to more than 20 in two years. First-year sales could top $2 million.
The firm caters to three categories of customers. The Coast Guard, Marine Response Corp. and other co-ops hired by oil companies to clean up accidents comprise about 50 percent of business revenues. Skimmers, floating pumps that suck oil from the surface into a storage vessel, are a major weapon in fighting spills. The machines cost about $100,000. Pumps for shipyards and machinery for industrial processing plants make up the other half of the firm's income.
DESMI was founded in Cleveland in 1991 under the umbrella of its parent company. The relocation of the corporate headquarters reflects a merger with Rotan Pumps Inc. of Charlotte, N.C. That merger was precipitated by the Smithske takeover of a division of Thrige Titan, another Danish firm.
The company's arrival in Norfolk caught the attention of Mayor Paul Fraim, who said that the growing list of international companies coming to the city enhances the city's economic strength. The enthusiasm was taken a step further by Smithwick.
``Corporations locating in Norfolk assist the city in its goal of becoming the business, financial, cultural, educational and medical center of the mid-Atlantic by the year 2000,'' he said.
Harvest, a native of Denmark, says he feels Norfolk's strong maritime status will be a catalyst for business. He noted that the Coast Guard had recommended the city. by CNB