Established in Differdange since 1991, Airtech Europe, which is part of the California-based Airtech Advanced Materials Group, has added 1,000 m2 to its 6,600 m2 facility and now counts two office buildings, a laboratory, a factory, and a warehouse for its 58 employees. A third enlargement of about 6,000 m2 is even planned for 2009.

Jeff Dahlgren, current CEO of the group and son of its founder, William Dahlgren, explained that the site in Differdange Hanneboesch was the first big venture of Airtech outside its native California. "At the time it was a big step for us, but today we don't regret it." This is true because Airtech Europe has developed massively.

Airbus and Cargolux

Today, the Luxembourg subsidiary covers the whole European market together with a second Airtech company called Tygavac, which is located in England. Airtech Europe supplies vacuum bagging materials, e.g. nylon and release films for the production of fibre reinforced plastics parts for all Airbus models, including the latest A380 and A350. It also provides these materials for Cargolux in Luxembourg and Euro-Composites in Echternach, as well as for other industries like wind energy and automobiles.

But one question remains: Why Luxembourg? After all, the cost of labour is much cheaper in other countries. "The Luxembourgish government showed itself very cooperative and more flexible than other European governments," affirmed Wolfgang Stratman, General Manager of Airtech Europe. The warm welcome from the Ministry of Economy also comprised a SNCI scheme which granted a low interest loan to the company.

Luxembourg needs industry

However, it is in the best interest of the Grand Duchy to open its doors to new industries. Although the country experienced a 6.2% growth of GDP in 2006 (which was mostly due to the booming financial place), it remains necessary to rely on other sectors than the service industry.

"Job creation in the field of industry is very special for Luxembourg," affirmed the Minister of the Economy, Jeannot Krecké, at the opening ceremony and reminded the audience that banks have not always been the prime trademark of Luxembourg.

Indeed, it was once the steel industry which used to be the backbone of the economy until the 1970s and the 1980s, when it suffered from two oil crises and a massive price slump due to worldwide overproduction. Since the mid-1980s, the Luxembourgish government has managed to diversify the economy and built on the expansion of the banking place.

It is in this spirit of diversity that the Ministry of Economy welcomes companies like Airtech to the country and wants to keep them. "Foreign direct investment and research are factors that continue to play a substantial role in our economy," argued Mr. Krecké.

The development of Airtech Europe is indeed a positive sign that the Luxembourgish industrial sector continues to breathe in a finance-crowded habitat.