Posco Hunts Joint Ventures Energizes State Business CRAIN’S Steelmaker Wants Access to New Markets
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20121008-NEWS--0001-NAT-CCI-CD_-- 10/5/2012 6:18 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 42 OCTOBER 8 – 14, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 DTE green spending drive Posco hunts joint ventures energizes state business CRAIN’S Steelmaker wants access to new markets MICHIGAN BUSINESS BY DUSTIN WALSH It’s interested in creating ven- taining our core competencies CRAIN’S DETROIT BUSINESS tures with auto suppliers, includ- and matching up with the tech- ing metal stampers for doors and nology know-how we just don’t To capitalize on the growing chassis as well as motor manufac- have.” global automotive market, the turers, said Steven Bigatti, execu- Posco plans to announce the South Korean steel conglomerate tive director of business develop- plan today in South Korea. Posco Ltd. is opening its wallet to ment at Posco’s North America Bigatti said each of the 200 joint spend at least $2 billion to create business group in Troy. ventures would have a bench- up to 200 joint ventures — many “We feel in the future of the mark of reaching $50 million in DUANE BURLESON/THE ASSOCIATED PRESS with suppliers headquartered in supply business, companies will revenue by 2020, contributing $10 Detroit Tigers Miguel Cabrera and Wading in Southeast Michigan. have more vertical integration,” billion in revenue overall. Prince Fielder celebrate a Cabrera Posco, along with its interna- he said. “We have the raw materi- Posco is interested in access to home run Aug. 24 at Comerica Park. Michigan tests waters tional trading subsidiary Daewoo al, and this is a way to participate new markets and technology of ‘blue economy,’ International, looks to own up to 20 in this trend of reverticalization Page 11 percent of these joint ventures. of the supply base while main- See Posco, Page 32 New TV deals World Watch: Michigan biz in Spain, Portugal, Page 17 should cover Serving Detroit’s Cheesecake Bistro takes the Crain’s Lists place of the former Sweet Prince-ly Largest Michigan off the Georgia Brown on Brush Street manufacturers, Page 14 next to Largest group health Greektown paychecks Casino. providers, Page 27 ANDREW TEMPLETON menu BY BILL SHEA CRAIN’S DETROIT BUSINESS This Just In Major League Baseball’s three Bistro opens with new television contracts will cover St. Joseph Mercy plans much of the premium that the De- $29.3 million addition troit Tigers are paying for slugger La-Van Hawkins, Prince Fielder and his nine-year, St. Joseph Mercy Hospital Ann $214 million contract. Arbor has submitted plans to questions, but Baseball analysts expect the the state for a $29.3 million, new TV deals to give the Tigers an two-story hospital addition. additional $26 million in shared The hospital said in a let- no liquor license revenue from MLB’s Central Fund ter of intent last month to the starting in 2014. That means the Michigan Department of Com- team will receive almost $90 mil- munity Health that it wants to BY NATHAN SKID CRAIN’S DETROIT BUSINESS lion collectively from its local ca- replace nine outpatient oper- ble deal with Fox Sports Detroit and ating rooms with new rooms Detroit’s Cheesecake Bistro the shared national broadcast con- that are double the size to ac- opened with a Sept. 27 party, con- tracts. commodate robotic equip- troversial entrepreneur La-Van Fans and pundits have worried ment. The plans are subject Hawkins and a lot of questions. that Tigers owner Mike Ilitch was to certificate-of-need ap- What it didn’t open with was a mortgaging the future by signing proval. liquor license, health department NATHAN SKID/CRAIN’S DETROIT BUSINESS Fielder in January to a free-agent The existing hospital oper- La-Van Hawkins says the liquor license for Detroit’s Cheesecake Bistro should signoff or business license — come through this week. deal that pays him $23 million this ating rooms are outdated and something not known to its VIP year and in 2013, before increasing too small, said Suzette guests that included the Detroit ing it following a stint in prison. to restaurant owners Chicago to $24 million annually. Bouchard-Isackson, vice presi- mayoral trio of Dave Bing, Dennis The Tigers already were on the dent of surgical services as St. Hawkins doesn’t own the restaurateur Jerry “Magic Man” Archer and Kwame Kilpatrick. restaurant — he’s a convicted Kleiner and anesthesiologist Dr. hook for mega-deals with Miguel Joseph Mercy Health System. One, and maybe two, of those Cabrera (eight years, $152.3 mil- The second story of the ad- felon and can’t hold a liquor li- David Tomkin, who hold the requirements have since been sat- cense in Michigan — but he’s a restaurant under Cheesecake lion through 2015) and Justin Ver- dition would be turned into isfied, but the restaurant as of lander (five years, $80 million two spaces for hybridoperat- consistent presence there, some- Bistro LLC, incorporated in Friday wasn’t able to legally times chatting with guests, and Delaware. through 2014). ing rooms that can be used serve alcohol to the general pub- The influx of new TV money for surgery or radiology. on one occasion at least, sipping In an earlier interview, Kleiner lic. sparkling wine while being at- denied involvement with the should assuage payroll worry. St. Joseph plans to have It’s the latest episode in the “The Tigers have the treasury to the rooms fully operational tended by a waiter. restaurant. controversial career of Hawkins, Who does own it isn’t entirely “I am not involved in any form afford that kind of contract. More- by spring 2014. who entered the Detroit market over, the club is looking at a rev- — Ryan Kelly clear. in the 1990s, and now is re-enter- Hawkins said he’s a consultant See Bistro, Page 30 See Tigers, Page 33 Starting OCT. 15 Wake up to Michigan business news in your inbox each morning.| Learn more at crainsdetroit.com/morning NEWSPAPER 20121008-NEWS--0002-NAT-CCI-CD_-- 10/5/2012 4:38 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS October 8, 2012 MICHIGAN BRIEFS CEO offers employees a bonus Neogen makes food and animal safety products. The price of the with added bonus: Voting advice Trails bring 2-wheel tourism to N. Mich. businesses all-cash purchase won’t be dis- MLive.com’s Jim Harger report- closed until Neogen’s next quarter- ed last week that the 2,300 employ- Before Nick Wierzba and his wife moved to Michi- Briggs, director of marketing at the winery. ly filing, the company said. Napa Val- ees at Grand Rapids-based Lacks En- gan in mid-March, he spent seven years at “Along the Old Mission Peninsula, bikers will of- ley Bike Tours terprises got something extra in a leading thousands of people on treks ten stop for a sample and return after the ride to pur- Find business news from letter telling them they would be through California’s wine country — without a path chase because they don’t have any place to store the around the state at crainsdetroit getting a bonus — their sixth in the specifically for bicycles. wine on their bikes,” Briggs said. “At our Suttons .com/crainsmichiganbusiness. past three years. That added value So when Wierzba and wife Kasey heard that more Bay location, we have seen a big increase of bikers Sign up for Crain’s Michigan was this passage from the letter bike trails were being paved in Michigan’s own ver- on tours arranged and facilitated by Grand Tra- Business e-newsletter at crainsde- from President Richard Lacks: sion of Napa Valley — the Leelanau Peninsula — verse Bike Tours.” troit.com/emailsignup. “The talk of additional tax in- “that was kind of the kick in the pants to say hey, if The network of paved trails has been in the works creases by the administration, if re- we don’t open a bike shop, somebody’s going to open for two decades, when planning began on a 15.5-mile elected, will have an additional neg- a bike shop,” Wierzba said. paved alley, built on a former railroad corridor and CORRECTIONS ative impact on the organization. … In June, they set up Suttons Bay Bikes-Grand Tra- connecting Traverse City with Suttons Bay. Last sum- The 40 under 40 profile story It is important that in November verse Bike Tours in Suttons Bay. mer, the final 6.2 miles of the Leelanau Trail was paved. on Jeffrey Laethem on Page 19 of you vote to improve your standard “If this were in Napa, California, many, many This past summer also saw the ribbon-cutting on the Oct. 1 edition included an in- of living, and that will be through more people would ride their bikes to and from the the first four miles of the Sleeping Bear Heritage Trail, correct revenue figure for Ray smaller government and less gov- wineries,” Wierzba said. which promises eventually to take bicyclists from Laethem Buick-GMC and Ray ernment.” One of those wineries, Black Star Farms, has seen the southern edge of Leelanau County through Sleep- Laethem Motor Village. The dealer- The suggestion being: Voting for more customers on two wheels at its locations in ing Bear Dunes National Lakeshore to Good Harbor Bay. — Howard Lovy ships report annual revenue of President Barack Obama may not Suttons Bay and Old Mission Peninsula, said Coryn about $90 million. be the best option. The 40 under 40 profile on Jim Green, executive director of entity got closer to tapping into of sales, Crain’s Michigan Business pedics business, as the new presi- Bernard Fuhs, on Page 17, should human resources, said Lacks En- Lake Huron and, in the process, reported in January.