Virginian-Pilot


DATE: Tuesday, October 21, 1997             TAG: 9710210284

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY MEREDITH COHN, STAFF WRITER 

                                            LENGTH:   91 lines




STATE SEEKS GROWTH BEYOND ITS BORDERS

From the day Sorbilite Inc. opened its doors in 1985, company officials began seeking overseas markets for their molding machines and technology. Within the year, they found them.

In China, now the Virginia Beach company's largest export destination, Sorbilite's products are used to turn rice remnants and plastic waste into exterior doors, furniture components and toilet seats.

More than 2,100 other Virginia companies have found foreign buyers for their products and services, but the state's businesses in general are not following Sorbilite's lead, say business and government leaders.

Virginia's economic development officials want to change that. The Virginia Economic Development Partnership and Virginia Tech plan a series of one-day seminars in November called ``Power Tools for International Development.'' Lecturers will tell businesses how to find markets, partners, financing and transportation. A seminar is planned in Norfolk Nov. 20.

``When we opened, our intention was to export,'' said Brigit Pohl, Sorbilite's vice president. ``Americans in general don't think about other countries. They can't see over the boundaries of the U.S. because it's so big compared to European countries.''

Sorbilite spun off from its German parent in 1988, but Pohl said its European roots made exporting an easier concept for company leaders.

``In Europe you drive 250 miles and you're in another country, so it's more familiar to us,'' she said. ``Other businesses need to start thinking that way because it's difficult to survive in today's business world. You have to be flexible and capitalize on new markets.''

John W. Whaley, economic director of the Hampton Roads Planning District Commission, agreed that not enough local companies are looking at the big picture.

Whaley said that local businesses should take advantage of the rapid growth in international markets and the reduction in international trade barriers.

Hampton Roads' primary interests in international trade are its port, the second largest on the East Coast, and its products. Companies already are manufacturing goods that can be exported, but don't, he said.

``But domestic businesses still tend to turn inward,'' Whaley said. ``Most of us only speak one language and in other countries they often speak many. .

Virginia is making some headway. In 1996, Virginia exported $10.9 billion worth of goods, up 5 percent from the year before, according to information provided by the Virginia Economic Development Partnership, the state's business development arm. That makes the state the 16th largest exporter in the nation, which exported $623.9 billion in 1996.

Major exports include tobacco, industrial machinery, transportation equipment, chemicals and electronic components. Top export destinations for Virginia businesses' goods and services include Japan, Canada, Korea, Germany and Belgium, which is the main distribution point into Europe.

The state's seminars are geared toward companies that want to begin exporting their products and those that want to export to additional markets, said Jill D. Lawrence, a spokeswoman for the Virginia Economic Development Partnership. The state offers other services that include cataloging local goods and services and marketing overseas. The Partnership's Division of International Trade & Investment has two foreign offices in Tokyo and Frankfurt.

``The main reason for the seminars is to tell Virginia companies they can diversify and expand their markets,'' she said. ``If there is a downturn in domestic markets they can capitalize on international markets.''

Lawrence said when companies find new buyers that means they are growing, which boosts local taxes and jobs. In 1996, export industries supported directly and indirectly 216,427 jobs in the state, the partnership reported.

At Sorbilite, where exports now account for about 90 percent of sales, business has grown more than 20 percent a year and the company has expanded its plant and capital investment three times.

Pohl said, ``We couldn't have done that without exporting.''

MEMO: ``Power Tools for International Profits'' will be held Nov. 20 in

Norfolk and Nov. 21 in Richmond. The fee is $49, which includes

materials and lunch. For information, call Rebecca Henries at Virginia

Tech, 804-786-8110. Internet registration is available at

(www.conted.vt.edu/powertools/-powertools.html). ILLUSTRATION: VIRGINIA EXPORTS

[Color Photo]

IAN MARTIN/The Virginian-Pilot

Hampton Roads' main interest in international trade it its port,

which includes Norfok International Terminals. A seminar on such

trade is planned in Norfolk on Nov. 20.

GOODS TO GO

VP CHART

TOP DESTINATIONS

TOP PROPERTIES

SOURCES U.S. Department of Commerce; Virginia Economic Development

Partnership

[For a copy of the chart, see microfilm for this date.]



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