HowCONVERSATIONLuxembourger Isabelle Steichen is boosting the lupini bean in New York
TheDOSSIERstrength of Barrett: the US ambassador on cooperationtransatlantic
Luxembourg-USthenetworkCONVERSATION Thomas
International OCTOBER 2022
From the grand duchy, the “Great Resignation” just sounds like words on paper--a trend quite removed from us, at least for now. In the Midwest, at least, it was tangible--and I’ve heard similar comments from friends in other regions of the US. With benefits cheques drying up, it’s unclear why many aren’t heading back to work, although various sources question whether it’s due to mental health concerns, the sheer need to disconnect, the general quality of life people got used to in lockdown.
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Editorial #StrangeTimes
Nathalie Reuter
Editorial
Bérengère Beffort
It seemed like an eerie time to be in the US… but these are strange times globally. At the time of writing, much of Europe is struggling with a drought, Pakistan is suffering extreme flooding, there’s a war still going on in Ukraine, there are concerns about energy shortages this winter… Many of these issues are at the forefront of our interviewees’ minds in this supplement, of course, and the forecast (see page 34) heading into the winter and 2023 is bleaker than last year’s. Sometimes it’s hard to take a step back from our daily lives to focus on the bigger picture about our world: its inequalities, the impact of climate change--and how they intersect. I recently came across an article on The Guardian, written in April 2021 by Simone Tagliapietra, in which the climate and energy expert urges for a new “green social contract”. He cites an Open Society European Policy Institute survey in which “support for climate measures is broad but shallow”, as participants said they were willing to forgo plastic, for example, but felt uncomfortable paying more for fuel.
“Climate action should be designed in a way that improves social equality,” says Tagliapietra. The world should take notice.
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3OCTOBER2022INTERNATIONAL Editor-in-chief, Delano magazine NATALIE A. GERHARDSTEIN
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Imagine this: a restaurant, only half of the tables occupied, yet you’re waiting in queue for nearly an hour. A department store with nobody at the technology station nor the garden area… if you’re lucky, there’s a sign to pick up the telephone on the counter to call for help. No, this isn’t science fiction--it was my experience visiting the US this summer.
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may be more prevalent in the US”
CONVERSATION STEICHEN WITH FORSON
p.14 Ambassador Thomas Barrett bilateral relations and burden sharing - OLIVIER CONVERSATION WITH BARRETT BUSINESS community
THOMAS
Managing22 tough space 26associationsInternational24environmentsbusiness
US
INTERNATIONAL2022OCTOBER5International October 2022 IllustrationWolff,GuyPhotosSaloméJottreau
Helping20 liftoff
WITH ISABELLE
RICHARD
I’m very cautious when I look out into the future” 32 SUCCESS STORIES Four 34abroadLuxembourgers FORECAST What’s your global economic outlook for 2023?
p.18
on
business links are solid, thanks to a strong network “““
US-Luxembourg
startups achieve
It’s important to spend resources in a focused way” 30 CONVERSATION
in defence 06 ON THE RADAR Global links Ristretto 08 #EU2022CZ - VLADIMÍR BÄRTL “Putin made a great promotion for the Green Deal” 10 #TRAVELINSTYLE 12 #INNOVATION
POSTY “The future of IT is being able to build a new ecosystem” 14
The18 importance of
“It’s important that we have a well-functioningstrong,Nato” Dossier US-LUXEMBOURG
Annual trade in goods and services with select countries in 2020, For most markets, the vast majority of the value of Luxembourg’s imports and exports are in services.
200,000 2016 400,000300,000500,000600,000700,000800,000 2017 2018 2019 711,548.5 630,026.4 472,759.8 425,374 278,734.2 204,652.5 Germany Singapore JapanUK US 20,00010,0005,000015,00025,000 Exports Imports
KEY PARTNERS
Global links
***Direct
Foreign direct investment, €m
Source Statec
Direct investment flows into and out of Luxembourg are heavily influenced by the country’s large financial sector.
Source Statec
*Outward FDI less inward investment abroad investment in Luxembourg
FDI **Direct
Abu Dhabi/Gulf
6OCTOBER2022INTERNATIONAL On the radar
www.tradeandinvest.luSeoulSanNYCCasablancaFranciscoShanghaiTaipeiTelAvivTokyo US 2020 -400,000 2016 0-200,000200,000400,000600,000800,000 2017 2018 2019 186,572.2 -319,419.5 471,863.1 1,000,000 505,976.5 808,929.7 945,090.2 UK
Luxembourg’s global Thenetworknetworkabroad includes Luxembourg Trade & Investment Offices in nine locations (listed to the right), plus 40+ embassies, general consulates and permanent representations, 160+ honorary consuls and 14 foreign trade advisors in 70 countries.
Source Luxembourg Trade and Invest region 2020
Net FDI* Inward FDI***Outward FDI**
Luxembourg imports and exports, €m
You’ve got three years to prepare for the next world expo. What exactly goes into planning for Osaka?
The design by Steinmetzdemeyer is the perfect translation of our initial idea, namely creating an interesting, intrigu ing and informative pavilion, which responds to the criteria of the circular economy, with as little impact on the environment as possible. Through our pavilion, we want to show Luxembourg’s know-how and commitment in the domain of the circular economy, as well as the country’s ability to find innovative solutions for today’s challenges, which perfectly corresponds to the main theme of 2025’s world expo: ‘Designing future society for our lives’.
GERMANY 2020 0 2016 50,00025,00075,000100,000125,000150,000 2017 2018 2019 199,875.7 200,000175,000SINGAPORE 2020 -25,000 2016 25,000050,00075,000100,000 2017 2018 2019 -21,063.8 52,622.596,114.9 38,414.2 84,710.9 27,078.5 JAPAN 2020 -800 2016 1,65004,1006,5509,000 2017 2018 20198,744.2 122,171.374,779.2 77,976.2121,899.5 34,207.5 5,161.2 3,209.13,010.1 8,035.5 7,227 -708.7
3 QUESTIONS TO FRANZ FAYOT Economy minister (LSAP)
INTERNATIONAL2022OCTOBER
Luxembourg’s presence at the Shanghai and Dubai expos received a lot of positive feedback. Does that add any pressure to ‘deliver more’ for Osaka?
7
The realisation of a national pavilion at a world expo is a substantial coordination process between many actors, both institutional and private, national and international. It is a long and complex process which involves many different stakeholders and various aspects, including the architectural concept. There is, of course, the construction itself with all the constraints onsite... [and] the conception of the image that we want to convey about Luxembourg.
Here’s a snapshot of Luxembourg’s trade figures and its international network, plus economy minister Franz Fayot talks about plans to promote the grand duchy at the Osaka world expo.
Luxembourg’s pavilion has been designed by Steinmetzdemeyer. What do you want the pavilion to say to expo visitors about Luxembourg?
I would not call it pressure, but rather an incentive or a motivation.
Well, if you look at the political priorities of the presidency, it’s obvious that Ukraine is a central line and it couldn’t be [any] different. But it doesn’t mean at all that the presidency and the whole trio [of member states holding the Council presidency for a set period] are giving up on the long-term files; they continue [to be important]. And maybe some of those long-term goals are now adjusted by the new situation, like the Green Deal.
8OCTOBER2022INTERNATIONAL Ristretto
With Czechia having taken over the presidency of the Council of the EU amid a crisis, Czech ambassador to Luxembourg Vladimír Bärtl looks at the main challenges.
At the moment, [solutions] that should decrease the dependency on Russian energy are being analysed. And I think that with this war, Putin made a great promotion for the Green Deal, and I think he sped up the process. The original long-term goals [of the presidency] have to be adjusted to the situation, and one way to get the war faster to its end is to disrupt the dependence on Russian energy.
Russia is the aggressor, Russia is the one that started the war. Russia doesn’t want to negotiate; they want to get territorial gains, and this is unacceptable. So I cannot really imagine that Putin is someone who could sit on the opposite
Could efforts to cut Russian energy dependence harm long-term sustainability goals?
Every administration and every country might have some historical tunnel vision, and this rotation gives them the chance to change that.
What does the EU’s decision to reduce gas consumption by 15% demonstrate?
Vladimír Bärtl has served as the Czech ambassador to Luxembourg since 2020
“Putin made a great promotion for the Green Deal”
Is working on relations with Russia
What does the Council presidency represent for Czechia?
How to cope with the short-terms files, which are coming in on a daily basis, and keep the long-term files pushing ahead.
In my country, the government is made by a coalition. On the European level, this coalition is represented by conservatives and greens, and so reaching a consensus on the national level gives a good prerequisite for being able to moderate this debate on the European level.
What is the biggest challenge for the Czech presidency?
It was a clear signal to the markets, citizens and economies that the EU is capable of consensus in order to be ready for a hard winter, when everyone should contribute. But it is also a signal to [Russian president Vladimir] Putin that breaking EU unity is increasingly unlikely, despite the Kremlin's never-ending efforts. The Czech presidency has played against Putin's strategy of putting member states at odds with each other. And it has shown that the EU is capable of acting together, putting each member state in an infinitely stronger position vis-à-vis Russia.
Interview TEODOR GEORGIEV Photo GUY WOLFF
#EU2022CZIs
This is an opportunity for every country during its presidency to maybe express some national priorities, although we are really carefully focusing on our role, not being to set goals but more or less moderating the goals which will be put together with the European institutions. And I believe that the advantage of this six-month rotation is that it gives an opportunity to [try] a different approach.
the priority for the Czech presidency
To balance this is a challenge and I think it was a challenge for the French presidency as well, but I don’t have deep insight on
2
“I always take a little crease-resistant black dress in my carry-on suitcase and travel-size beauty products because you never know. In general, I just pack essentials and I still have too much!”
“For the look, I prefer simplicity, suitable for all circumstances. My tip: travel light, and download what you need in advance to be able to work even without a network!”
4
10OCTOBER2022INTERNATIONAL Ristretto #TravelInStyle LuxembourgOrangeZenari,MikeToussaint,OlivierNaderi,VarghaLuxair, Selected by TRACY HEINDRICHS
Bob Kneip, president at Kneip Management SA. FUTURE OF TRAVEL?
Luxair CEO Gilles Feith. BE COMFORTABLE
3 MIX ’N’ MATCH
Orange Luxembourg customer relationship director France-Diane Hardy.
“I dream of a hotel with breakfast and clothing included, where you could rent everything and still look like a stylish guy.”
Japanese ambassador to Luxembourg Jiro Okuyama, whose interest is to “travel light”.
5 FORESIGHT
EIB Institute director Shiva Dustdar shares the secrets to a comfortable flight during a business trip.
1 KEEP NECESSITIES AT HAND
“For every suit jacket, pack two matching trousers. That way you don’t have to carry as much. I also only own dark blue ties, they work with everything.”
“I always carry a soft cuddly scarf, eye cover, moisturiser, a good book, iPhone AirPods, an iPad with downloaded movies, my green water bottle, some melatonin and a bag of nuts.”
Living in its most beautiful form
Showroom 7, rue de L–6118GodbrangeJunglinsterT.4264951 www.phillipps.lu
What role does collaboration play in NTT’s functioning?
First, we look at our target customer base. We’re not into the small- and medium-sized business market, for instance. Digitalisation is definitely key for us, and actually often the customer or partner comes to us. The most important thing is that we can deliver the best level of service quality and meet the client’s expectations. But one should keep in mind that for us not everything is innovation. Our job is to discuss innovation with our clients as well as to help them with existing issues. If they think that innovation is the way to solve those issues, we will be there
Has Luxembourg found a way to play a more prominent role in telecom?
Telecom is always a competitive game, and I think we do well. We might not always have been the first to jump into a certain topic when it becomes innovative, but we have sometimes been the best at executing. Because we are smaller, we are able to leapfrog and go one step ahead. While others need, for example, three years because of their size, we can do it faster.
We have one big project right now, which is a new kind of solution: private 5G. We believe that there are a lot of use cases that can make a difference in Luxembourg. The existing situation with airports-which this year was a disaster, and every single airport had issues with baggage and passengers-shows that there is a lot of room for improvement. The answer can be to have more people, but what private 5G can bring is to automate processes which will not rely on people, but will be managed by IT.
Interview TEODOR GEORGIEV Photo ROMAIN GAMBA
“The future of IT is being able to build a new ecosystem”
What do you look for when deciding who
What does Luxembourg represent for NTT globally?
What upcoming projects are you looking forward to?
leaders like Cisco. And what we are building is this ecosystem, putting those people together and bringing solutions to the market.
We are in a unique position because we are part of many internal work streams, where we can share what we believe is important in terms of innovation within NTT. And I think Luxembourg is really important because we can test, and we get to see how the markets react to trends and new technology solutions.
Why did you partner with Hôpitaux Robert Schuman to create the IoT digital health platform?
Olivier Posty, managing director at telecom company NTT's Luxembourg branch, talks about the country's role in its global strategy and collaboration with Hôpitaux Robert Schuman, which won NTT a healthcare award.
Olivier Posty's main role is cohesionmaintainingwithNTT'sheadquartersinLondon
12OCTOBER2022INTERNATIONAL Ristretto #Innovation
We believe that the future of IT is being able to build a new ecosystem, which means bringing different players and delivering a better solution. We work with the largest cloud providers--AWS, Google and Microsoft--and with technology
The project was, in fact, the next level of an existing relationship and [part of] a larger project on how to transform IT and bring more agility and innovation. It was four years ago that we started [our collaboration with HRS], and we began building a network foundation. Healthcare is definitely one of the top priorities for NTT. What happened during the last two years showed us that IT can really help in how a patient is managed. If you talk with my peers in Germany or France about their top three priorities, healthcare will be one of those.
Prior to serving as US ambassador USoneservinghiminasBarrettLuxembourg,toThomashadservedMilwaukeemayor2004-2021,makingthelongest-mayorofofthe50largestcities
“It’s important that we have a well-functioningstrong,Nato”
Source lu.usembassy.gov
Let’s talk about some positive developments between the US and Luxembourg, for example, in the space sector. What other areas of opportunity are there in bilateral business relations between the two nations?
15OCTOBER2022INTERNATIONAL
Interview NATALIE A. GERHARDSTEIN Photo GUY WOLFF
I will share with you again part of my edu cation here: I was not aware of Luxem bourg’s strength in space until the [US] President [Joseph Biden] asked me if I wanted to serve in this capacity. And, as I was doing my research, I thought, well, this is interesting. I didn’t expect to see this, and I didn’t really understand the expansiveness and the depth of it until I got here. American companies, other for eign companies… Just the major role SES plays, all of that was part of my education, [and] I love having an education.
Six months into his tenure, US Ambassador Barrett shares his thoughts on current geopolitical tensions, the importance of burden sharing in defence and the need for a strong transatlantic alliance.
But then the final one which is also, I think, very important is the cultural experience of being here in Luxembourg, being amazed at the multilingualism, which is both awe-inspiring and hum bling for me as an American… just the warmth that I felt from people through out the country… from the north, where there are a lot of memories, vivid mem ories, of the Battle of the Bulge in World War II, to here in the capital region, where there’s obviously a real vibrancy, and you can just feel the cultural vibrancy as well as the economic vibrancy that is present here in Luxembourg. It has been a very, very wonderful experience.
Conversation Thomas Barrett
You’ve been serving as US ambassador for just over half a year. What have been your three top focal points during this period? Well, I think everything has been framed by covid, Ukraine and just the newness of the Theexperience…firstcoupleof months were actu ally quieter than probably most starts because there weren’t that many public events. That gave me a chance to really get to know internally the embassy, but from my back ground, and just my temperament, I like being part of the community. I was chomp ing at the bit to do more things and, obvi ously, things have opened up somewhat, so that’s been helpful. I think the covid work that’s been done here, as well as in other parts of the world, shape things.
I never dreamed that essentially two weeks after being accepted by the grand duke that we would be facing the first land war in Europe since the 1940s. That was transformative in terms of the work that I personally did and the work we did at the embassy. A lot of working with the State Department in Washington, [D.C.], working with our partners here--both within the government and within the diplomatic community and in the notfor-profit community, for that matter. That presented some challenges but also some opportunities, and part of that really dealt with Nato, Nato’s role, Luxem bourg’s relationship to Nato and Luxem bourg’s military spending… that consumed a lot of time as well.
SELECTED CV February 2022
Thomas Barrett presents his credentials to Grand Duke Henri to become current US ambassador to termsElectedJoeNominatedAugustLuxembourg2021byUSPresidentBiden;confirmedandsworninlaterthatyear2004-2021MayorofMilwaukee,Wisconsin1993-2003toservefiveconsecutiveinUSHouseofRepresentatives1989-1993ElectedmemberofWisconsinSenate1984-1989ElectedmemberofWisconsinStateAssembly1980Startscareerasalawclerk;laterworksinaprivatelawpracticeandasabankexaminer
Looking down the road, I’m very opti mistic that there are going to be oppor tunities for Luxembourg companies and the Luxembourg government to be an even stronger partner. Obviously, the agreements that we’ve reached have been important, but the practical applications are going to arrive for businesses here, in connection with both governments and the private sector, that are going to provide opportunities…
I served in Congress for 10 years [serving in the US House of Representatives, 19932003], so I’m familiar with the politics of trade agreements--the support of them and the opposition to them, which comes
from both the left and the right--and so I think there has to be better communi cation of the benefits for more parts of society. I think where some of these trade agreements have had problems is mak ing working people and everyday people understand that this can be a benefit to them and will not hurt them. And that takes some work. I think that’s the big gest challenge--and it’s a real challenge. I think you see that in country after coun try, [e.g.], the Brexit issue, issues in France with the ‘yellow vests’ [‘gilets jaunes’] movement… It’s so interesting because I think that [regarding] globalisation efforts, we’re seeing now the pendulum going back with nationalism sometimes, so it’s a challenge. And I think, again, we have to make sure everyone is involved in this, that these agreements create a win-win situation.
I think the concerns are real. We saw that recently with the security breaches that
The discussions around the Transatlantic Trade and Investment Partnership--which would have been the largest bilateral trade deal ever negotiated--were halted under the Donald Trump presidency. What lessons could be learned from that which could be applied to the US-EU Trade and Technology Council (TTC)?
Ambassador Barrett on a Milwaukee River Tour he arranged in August with VISIT Milwaukee, also attended by (DP),ministerBakshianUSAmbassadorLuxembourgtoNicoleBintner-andfinanceYurikoBackesamongothers
The US has been vocal about its concerns over privacy and cybersecurity issues, particularly with regards to certain governments and companies. How real are these threats to the EU and to Luxembourg in particular?
I think that there really are some oppor tunities here--and you’ve seen it with the Artemis Accords. The decision that Lux embourg made to really be one of the lead horses on the Artemis Accords, I think, is going to pay dividends very much so in the long run. And I stress in the long run because I know that there probably were individu als who wanted Luxembourg to have a more prominent role in what’s going on in the US this week--or hopefully goes on in the US this week [the anticipated launch of Artemis 1, which has since been postponed].
I expect the upcoming IAC to foster innovation and further international cooperation in space exploration and utilisation between the US, Luxembourg and our other partners. International partnerships are essential to achieving a sustainable presence on the Moon and for conducting a historic human mission to Mars. It is not solely international cooperation between governments that leads us to new frontiers. Forums like the IAC also provide an excellent oppor tunity to bolster cooperation between the space industry, academia and the non-profit sector from Luxembourg, the US and other nations.
16OCTOBER2022INTERNATIONAL Conversation MilwaukeeYoo/VISITKennyPhoto
The 73rd International Astronautical Congress takes place in Paris on 18-22 September. In a previous edition, the Artemis Accords were announced. Can we expect any big announcements this year?
occurred in the energy field here. That is something, I think, particularly with what’s going on with Russia, if it has the ability, which I think it does, to be dis ruptive, and other actors, to create secu rity problems is real. That’s why I think Luxembourg, the EU and the US--be cause we share so many values about transparency and open government and freedoms--it’s imperative that we work as hard as we can together…
The six-month anniversary of Russia’s invasion of Ukraine just passed, and only a few weeks ago [at time of writing], the world narrowly escaped a potential radiation disaster with incidents at the Russian-controlled Zaporizhzhia nuclear power plant. Are sanctions having enough of an impact? I think they’ve had an impact. I think, over time, they’ll have even more of an impact. Obviously, Russia has been able to with stand some of them up to this point, but we’re six months into this now. And there’s a lot of concern here in Europe, as there should be, energy concerns as we go into the winter. But Russia, obviously, is going to face even more challenges. And I think that [the sanctions] have been appropri ate; I think that they certainly deserve to be put in place, and if more needs to be done, I’m hopeful that the US and Europe will work together to do that. I don’t think Putin ever dreamed that he would see the coordination and cooperation among the US and the European allies, as well as some other countries, when he made the decision to begin this horrible war.
What’s on the horizon for you and the US Embassy into the second half of 2022 and into 2023?
Is there a fair sharing of the current defence and security burdens among Nato allies?
I’m looking specifically at the energy issues. I think that’s going to be the biggest chal lenge that Europe is going to face in the coming months. We all hope that we can have a peaceful resolution that is fair to the Ukrainian people… but we don’t know. I have to compliment President Biden, the State Department, others that were involved in gaining information early on in this chapter… about what Putin was going to do. There was a lot of doubt. I understood some of the doubt, but it really instilled greater confidence in the US after it became so evident that President Biden and [US] Secretary [of State Antony] Blinken and others really were accurate in the information that they were providing. And I think it increased the confidence in our abilities to do that in a responsible fash ion. And I’m proud of that.
In the US, we spend roughly 3.5% of our gross domestic product on defence. A significant amount of that really goes to protect Europe, and I believe for Nato to continue to have the support in the US that I believe it should have, that you really have to have that honest conversation about the burden sharing. And that is something where Luxembourg has, to its credit, made some significant gains in the last six months. Its projection to go from 0.74% of the GDP to 1% of the GDP on defence spending by 2028 is a significant step in the right direc tion. I applaud the defence minister, I applaud the government for really taking more action in this field… that’s a very pos itive development. At the same time, the Wales’ agreement called for 2%, and no one was coerced into entering that agree ment. And I think for all countries that haven’t reached the 2%, that has to remain the goal, particularly if you want the US to remain as engaged as we have. I think the US has been engaged in a very positive way--and I support that very, very strongly, as I know the President clearly has made this one of the biggest priorities of his administration, certainly of his foreign policy, to make sure that we’re standing up to Putin’s brazen attack. But I want the public to understand, and I think the peo ple in Luxembourg, as well as the people in the US, to feel that everybody’s doing their fair share. I think there’s a real ‘fair share’ argument here.
Thomas Barrett
Again, at the Wiltz memorial this morn ing, I was thinking, we need the next generation to understand this, and there are parallels between what happened and what we’re witnessing today. And if we forget about history, that’s when we’re more likely to make mistakes. It’s my generation and the younger generation’s responsibility to continue to educate people as to what happened, how and why it happened so that it doesn’t hap pen again.
17OCTOBER2022INTERNATIONAL
What about the cultural agenda? I was in Wiltz this morning [for] the com memoration of the 80th anniversary of the workers’ strike there. To see the role that played not just in Luxembourg, but internationally, that small Luxembourg was defying the Nazis, individuals were defying the Nazis, which took tremen dous courage. Learning more about that, it’s part of my incredible education, which I love. I just love to learn this stuff; it’s fascinating for me. [Over] the remainder of the year, I’d like to spend a lot of time in the schools [and] will be going to a lot more community celebrations in the mem ory of the Battle of the Bulge and the role the US played in it.
As I mentioned to you earlier in the year, just the personal connection that our family has to my mother’s first hus band, and that has resonated more with me when I’ve been in communities, par ticularly in the northern part of the coun try, where people talk about the price that those communities paid during the Battle of the Bulge and the bravery and the price that some Americans paid. It hits home when I think about my moth er’s first husband, losing his life, right over the border of Germany on 17 Decem ber 1944 [leaving] her as a 23-year-old widow. Fortunately, she met my father. So, in terms of our family, it has a happy ending, but hearing stories from people here, the role the US played in that--I think that’s still important.
Well, that’s another issue I’ve spent a lot of time on. And, as you know, there’s been a dramatic shift in Washington, D.C., under President Biden, who has made it very, very clear that he values the US’ historic rela tionships with Europe. He believes that they’re strong, and he believes that they’re good for the US and they’re good for Europe. I share his sentiment very, very strongly.
I also share his sentiment that it’s important that we have a strong, well-func tioning Nato. That’s very, very important. And I think for anybody who wants to have a strong and effective Nato, you have to have an honest conversation about the equity of defence spending.
The biannual Luxembourg American Business Award & Gala Dinner is expected to take place in New York City this Novem ber. The award, launched in 1999, recog nises a company’s lasting contribution to business between the two countries and, as in years past, it is anticipated that members of the Luxembourg royal fam ily will be in attendance for the event.
“The importance of community may be more prevalent in the US”
Dossier
Fermaud is also the head of the Elvinger Sàrl New York-based office, which works exclusively with the Elvinger Hoss Prus sen law firm in the grand duchy. He helped open the office there and specialises in investment vehicles. And he has broad international experience as well: prior to joining the firm, he worked more than 10 years in the grand duchy, as well as Moscow and New York.
This community, of course, is quite active in places like Belgium, Wisconsin, where the Luxembourg American Cultural Soci ety and Center annually sponsors a Lux embourg heritage weekend and festival.
The 2022 award has gone to the chem icals company, DuPont, while past win ners have included Miami University, Amazon, Airtech and Goodyear, to name just a handful. The gala dinner is just one of many events put on by the Luxem bourg American Chamber of Commerce (LACC) to promote business links between North America and Luxembourg, to fos ter networking and provide other services to support its members.
“The LACC’s original focus was to help US companies set up or direct them when they go to Luxembourg,” Nicolas Fermaud, LACC executive committee member and secretary, told Delano. But also “it’s for all the members, and generally members tend to be more Luxembourgish compa nies that do not have operations in the US,” or perhaps such activities are limited to areas like sales or marketing.
He shares plenty in common with oth ers who have spent any degree of time in the grand duchy. “It’s one of those inter esting things about Luxembourg and its community abroad. It’s fairly easy to fit in within that community,” he explains. “It’s not necessarily based on nationality. As soon as someone has spent a year, two years, three years in Luxembourg, they feel part of that ‘Luxembourg’ commu nity in the US.”
Words
NATALIE A. GERHARDSTEIN Illustration SALOMÉ JOTTREAU
18OCTOBER2022INTERNATIONAL
Nicolas Fermaud, who has headed the Elvinger Sàrl New York-based office since its opening, talks about the realities and myths of setting up in the US and how the Luxembourg-American Chamber of Commerce, where he serves on the excom and as secretary, supports its members.
A multi-purpose platform
Its Dooley-Wagner Research Center is one of the largest of its kind, focusing on Lux embourg studies, including genealogy mat ters outside the grand duchy, while its Roots & Leaves Museum showcases historical links between the two nations.
But perhaps a bit less known is the fact that the New York City-based LACC, according to Fermaud, “was used by the Luxembourg and Luxembourgish com munity on the east coast to kind of min gle, gather around for a Luxembourg dinner or things that they still hold dearly in their hearts from their days [there].”
Fermaud sees strong ties between the US and Luxembourg, for example, at the indus trial, financial and commercial levels.
The report was shared with a Luxem bourg audience at an Amcham Luxem bourg event held at Deloitte Luxembourg in June, where speakers stressed the need for strengthened cooperation on a trans atlantic level, and how Luxembourg could play a role in that. While the Transatlan tic Trade & Investment Partnership nego tiations were halted during the Trump administration, the proposed EU-US Trade and Technology Council calls for a renewed partnership, for cooperation between the two blocs to address global challenges linked to supporting Ukraine, securing supply chains, trade and export discussions and controls, information integrity, enhancing cooperation with matters related to climate and the envi ronment, and more.
Of course, at the time of writing, there were concerns about geopolitical devel opments, soaring energy prices, the impact of inflation and more. Fermaud explains that even if New York City has always been pricey, it’s much more noticeable now, with offerings by restaurants and the like being notably more expensive than before. Petrol prices have also increased in the US, he adds, “People think they’re getting ripped off for their gas at the gas station, but the reality is that it’s still cheaper than in Europe.”
Similarly, he adds, it may surprise some that in the US, credit scores play a strong role in whether it’s possible (and at what interest rate) to receive a loan, pay back credit card debts, etc.
PrussenHossElvingerPhoto
19OCTOBER2022INTERNATIONALUS-Luxembourg business
And for good reason: according to The Transatlantic Economy 2022 report, inde pendently researched by Daniel Hamil ton and Joseph Quinlan at the Foreign Policy Institute at Johns Hopkins Uni versity’s School of Advanced Interna tional Studies, and the Transatlantic Leadership Network, with the backing of the US Chamber of Commerce and American Chamber of Commerce (Amcham) EU, in 2020, US foreign direct investment (FDI) reached $759.4bn, while grand duchy FDI in the US was at $316.9bn. Trade in services exports to Luxembourg for the same year amounted to $7.1bn, versus $2.1bn vice versa. Respectively, trade in goods were $1.4bn and $0.5bn, with New York the top state importing goods from Luxembourg, while Georgia was the top exporter to the grand duchy.
SELECTEDFERMAUDCVCurrentroles
Having lived enough years abroad, Fer maud also has his own personalised sug gestions on enhancing the expat experience in the US or elsewhere. These include having an open-minded outlook, keeping in mind the “vast diversity” of the conti nent--that a smaller town in Tennessee may be immensely different from a big city like Chicago, San Francisco or the Big Apple. He also emphasises that “the impor tance of community may be more preva lent in the US, or at least in New York.”
But, even more generally, Fermaud says it can be a difficult path. He notes that in other locations where he has lived and worked, and based on information he has received from colleagues as they expatriate, there may be a simplified visa regime for high earners or high poten tials--those who should be able to make a valuable contribution to the economy and fabric of a country. “Interestingly enough, for the US, there isn’t a separate high earner or highly skilled employee category,” explains Fermaud. “And so you fall in the same bucket as anybody else.”
Of course, the LACC isn’t necessarily the first point of contact for companies hoping to set up in the US. There’s the whole Luxembourg Trade & Invest net work (see page 6), with nine offices world wide, including one in New York City and another in San Francisco, California.
Strengthening transatlantic ties
Myth-busting on setting up in the US Fermaud talked about some of the initial challenges he faced when arriving in the US, but he also wanted to challenge some common
So, while there may be different forms or paperwork, individuals face similar difficulties in, for example, opening a bank account as they would in Luxem bourg or elsewhere in Europe.
Worked for more than a decade in the Luxembourg, Moscow and New York offices of a Magic Circle law firm
Fermaud baulks at the misunderstand ings surrounding general bureaucratic meas ures as well. “One thing that’s pretty funny when you set up a business in the US, com ing from Europe, you’re used to Americans moaning and complaining about European red tape, or how Europeans are on vaca tion during the summer months,” he says. “Then, when you actually set up shop in the US, you realise they have a similar amount of red tape; it’s just different.”
“Theremisconceptions.maybealittle bit of a myth about how easy it is to set up a business in the US,” he says. “There’s also a myth on visas, to get people to actually [be able to] work in the US.” The latter situation is what his own business has even strug gled with, particularly during the two-year covid-19 pandemic and resulting lock downs, which caused many US consulates worldwide to delay or to temporarily stop visa services altogether. In August 2022, there were reports of massive backlogs not seen for over 20 years.
NICOLAS
Partner, head of the New York office, Elvinger Sàrl; executive committee member and secretary of LACC; member of the editorial board of The InvestmentPreviouslyLawyer
INTERNATIONAL2022OCTOBER €100,000
This is the period when things can get “hairy” for firms which are “sometimes hanging by a thread,” said Tabanpour. “We’re really there to support them at that stage.” This comes in the form of capital investment in exchange for company shares and a 12-week accelerator programme. This features entrepreneurial training and support, including access to the gener8tor corporate network. Thereafter, less inten sive backing is provided on a regular basis.
About the 2022 graduates
Next stages
Five early-stage companies benefitted from an offering that is unique in Luxem bourg, according to gener8tor Luxem bourg managing director Menachem Tabanpour. “Our mission is to support businesses in that early stage of awkward growth,” he said. “They will generally have a couple of customers, or some promising pre-sales activity, but without a major breakthrough yet. Our task is to help pre pare them as they look to take on new customers and investment.”
20 Dossier US-Luxembourg business
Helpingachievestartupsliftoff
Two of the recent five graduates of the European accelerator programme are from the grand duchy. Asets-Lux offers a multidisciplinary cloud design and sim ulation platform for engineers. Dropslab Technologies provides a device-agnostic augmented reality assistance solution to translate processes and procedures into interactiveOtherwise,guidance.EliasRobot is from Finland and develops conversational language learning software and media content, Co-Rent is an Italian firm offering a plat form for film producers to find and rent equipment, and Carbon Saver from France
These candidates were chosen from 170 applicants from across Europe. “When making our selection, we prioritise start ups that seek to drive systemic change at the corporate, government and com munity level,” Tabanpour said. “We [also] back firms seeking to make legacy indus tries more sustainable.”
“Now we have got through all the bureaucracy, we’re now set up and ready to start scaling ourselves in Luxembourg,” said Tabanpour. They’re recruiting their next cohort for the second European accelerator programme, set to begin next year. They’re also planning to run a range of other programmes through out Europe from their base in the grand duchy. The gBeta sponsorship programme works with public agencies and private operators to help foster startup ecosys tems in any given locality. Another offer ing is an investment platform for early-stage companies, through which financial support can be channelled and practical support offered.
Five early-stage startups have recently completed the first European programme run by the Luxembourg office of US-based venture capital investors and accelerator network gener8tor. More such schemes are planned for 2023.
Several US-based investors in gener 8tor will also be present, many of whom are part of the Luxembourg-heritage dias pora located in and around the US state of Wisconsin. As well as making financial returns, many of these investors are moti vated by the desire to help develop the Luxembourg and wider European econ omies. Gener8tor has been in operation in the US for 10 years and has become a significant player there, with the firm saying around 850 firms have graduated from their accelerator programmes.
10th
Applicants for this year’s European accelerator programme
builds software tools to optimise the use of eco-friendly building solutions.
planned for 23 September in Luxembourg City. The evening will include pitches from the five companies followed by a networking reception featuring investors, mentors and other supporters.
Words STEPHEN EVANS
The investment sum on offer for a 7% equity stake
170
This year the gener8tor platform celebrated its 10th anniversary
This stage of the programme will end officially with a public showcase event
OCTOBER 08, 2022 • d’COQUE • LUXEMBOURG Experience a unique cinematic and musical event at the Coque! Tickets available now: www.coque.lu
half a dozen people to work on develop ing thermal control technologies at their operations in the Technoport in Belval. This number is set to double by the end of this year before reaching about 20 in 2023. This compares to a workforce of around 60 in the US. Lunar Outpost EU is currently in the process of selecting a more permanent location for its manu facturing and testing operations.
CEO of Lunar Outpost EU since it was founded in the Belval Technoport at the start of this year. Co-founder and chief operating officer of the US-based parent Engineer,Formerlycompany.LockheedMartin
JULIAN SELECTEDCYRUSCVCurrently
The relationship with Luxembourg started when a delegation from the Den ver HQ participated in the 2019 edition of Space Resources Week. They held conversations with several key actors, including the Luxembourg Space Agency.
It can reach +120°C on the Moon during the lunar day, dropping to as low as -130°C at night. At the moment, lunar rovers and their modules tend to be designed to oper ate during the day, but then are required to shut down at night. “If this work could continue without interruption, then the operational lifespan of the mission would be extended considerably,” Cyrus noted.
Managing tough environmentsspace
Harnessing the bountiful raw-material resources of outer space is a tantalising prospect. Numerous tough technological challenges must be overcome before these hopes can be realised, and Luxembourg has been contributing to this effort for several years. It is this engagement which encouraged Lunar Outpost to establish their European hub in the grand duchy.
“We’re working to establish relationships, both on the technology side and to help us deepen connections in the European market,” said Cyrus.
“They were the ones that approached us with enthusiasm, and we appreciate the pragmatic way they go about things and the practical help they offer,” CEO Julian Cyrus
“Over the past six months, we’ve been contacted by the UK space agency, by folks in Switzerland, the Netherlands, Italy, the Czech Republic, but Luxem bourg was ahead of the curve,” said Cyrus.
The creation of Lunar Outpost EU is both the latest contribution to Luxembourg’s significant space sector and a result of the country’s long-standing economic relationship with the US. CEO Julian Cyrus explains why the grand duchy suits the company’s strategy.
“This consists of day-to-day support in areas such as helping us to refine the business case, finding commercial mar kets, helping with short-term revenue and support establishing the company,” he“We’readded. not here to just be a govern ment contractor. We’re here to start to commercialise the technologies, to expand the company to create value in Luxem bourg and the European ecosystem,” he said. They are currently working to develop the technology while looking for markets where they can spin off their innovations, both for use on Earth as well as in space.
The government reckons the local space sector now counts about 75 com panies and research laboratories, employ ing nearly 1,200 people. Lunar Outpost EU will be able to tap into this expertise.
IngallsBillNasa,Photo INTERNATIONAL2022OCTOBER
Words STEPHEN EVANS
Since operations started at the beginning of this year, the firm has now hired about
“They told us about the LuxImpulse pro gramme, which provides support to local space technology firms, and they sug gested we should apply,” said Cyrus. This scheme has the backing of the Luxem bourg state, which provides funding along side the European Space Agency.
A growing presence
22 Dossier US-Luxembourg business
Theexplained.firmworks to provide a range of technologies that can be used in space and in extreme conditions on Earth. Exam ples include a commercial lunar rover, a system to generate oxygen on Mars and high-spec environmental monitors. Lunar Outpost EU will focus initially on enabling these technologies to cope better with extreme temperature conditions.
The Delano offering is expanding!
www.delano.lu Daily Stay up to date with the Breakfast & Noon Briefings ¼ Briefings at 6:45 a.m. and 11:45 a.m. Weekend "10 Things To Do" ¼ Every Saturday at 9 a.m. Finance The latest industry news from the heart of Luxembourg’s financial centre ¼ Every Tuesday at 2 p.m. WEEKLY!NOW, onSUBSCRIBEgo.maisonmoderne.com/welcome
Paul Schonenberg President and CEO
American Chamber of Commerce in Luxembourg (Amcham)
24OCTOBER2022INTERNATIONAL
Ukraine-LuxembourgBusinessClub
icon_phone 46 54 66
The war in Ukraine threw this young business club, founded in 2017, into the spotlight as it raised awareness and funds for refugees from Ukraine. The club organises business forums, including in tech and industry.
Bilateral networking
icon_phone 44 59 05
Evgenia Paliy CEO
Members are active in industry, technology, tourism, art, agriculture and services.
icon_website www.bcc.lu
icon_website www.ccperu.lu
Words DUNCAN ROBERTS
Its annual Christmas lunch, addressed by the British ambassador to Luxembourg, is unmissable.
icon_mail info@china-lux.lu
icon_phone 691 866 352
Jorge Villar President
icon_mail info@weareulbc.com
icon_website www.ilcc.lu
Its showcase networking event is the annual celebration of Chinese New Year.
British Chamber of forCommerceLuxembourg
King Zhujun Xie President
Hosts regular events and an annual Entrepreneurial Woman Project.
icon_mail contact@ibcl.lu
Founded in 2018, the ANZCCL hosts events and provides bilateral trade insights to members.
icon_website www.lpcc.lu
icon_phone 43 17 56
ChamberLuxembourg-PolandofCommerce
Australia and New Zealand Chamber of Commerce Luxembourg
The chamber has several specialised committees and hosts regular business talks. The highlight of its social season is the annual Thanksgiving dinner.
Daniel Eischen Chair
The grand duchy is home to a wealth of country-specific business clubs and chambers that promote bilateral links, support entrepreneurs and companies in Luxembourg, host networking and sector-targeted events, and even lobby on their behalf. Here is a selection of them.
Amcham has long lobbied on many fronts, especially with regards to work permits for third-country nationals and more English-language schooling.
Ireland ChamberLuxembourgofCommerce
Indian Business Chamber of Luxembourg
icon_website www.anzccl.lu
Internationalassociationsbusiness
ModerneMaisonDul,Erickson / KrystynaKevenPhoto :LaLaLaHanrion,JanZenari,MikePhotos
The Irish chamber says it wants to exert influence by representing the interests of its members in Luxembourg, disseminate information and organise business networking, often with prestigious guest speakers.
icon_mail hello@anzccl.lu
icon_website www.amcham.lu
Marking its 30th anniversary in 2022, the British Chamber helps promote business links and hosts events with high-profile speakers from Luxembourg and the UK, including a prestigious Leadership Forum in the autumn.
icon_mail info@ilcc.lu
icon_mail info@lpcc.lu
Artur Sosna President
icon_mail info@amcham.lu
icon_website www.china-lux.lu
Maya Joshi (photo) & Tony Whiteman Co-presidents
ChamberChina-LuxembourgofCommerce(ChinaLux)
icon_website www.ibcl.lu
Joe Huggard President
icon_website www.weareulbc.com
Celebrating its 10th anniversary in 2023, ChinaLux engages with business communities to help foster and promote positive connections, both in business and culture. It has a diverse steering committee and executive board.
icon_mail contact@ccperu.lu
Chamber of Commerce and Tourism of Peru in Luxembourg
icon_mail info@bcc.lu
Aditya Sharma President
Established in 2008, the Indian chamber says its objective is to “promote the development of trade, economic, financial, educational, legal, scientific and cultural relations” between India and Luxembourg.
The
announce the
of this
edition will take place during a gala dinner gathering 1,000 decision-makers. Each member company will be given a seat at the dinner or alternatively (subject to availability), book a table for 10 people (at the price of 9). GOLD SPONSORS
17h00Mardi Esch-BelvalRockhal13.12 DressBlackCodeTie
Who will succeed to Romain Bausch (2006), Michel Wurth (2008), Ernst-Wilhelm Contzen (2010), Gaston Reinesch (2012), Pierre Ahlborn (2014), Marc Giorgetti (2016), Norbert Becker (2018) and Michèle Detaille (2020)? ceremony to laureates 9th
Words DUNCAN ROBERTS Photo RACHEL PAPO (NEW YORK CITY)
Conversation
26OCTOBER2022INTERNATIONAL
New York City-based co-founder of Lupii, Isabelle Steichen talks about the steps leading to the company recently signing a deal with American multinational chain Whole Foods Market and diversifying into upstraightforwardandentrepreneursaysIsabelleLuxembourgerpasta.SteichentheUSis“veryfriendly”itwasfairlytosetherbusinessthere
“It's important to spend resources in a focused way”
“In New York, veganism is really like a no-brainer,” says Luxembourger Isabelle Steichen, who moved to the Big Apple in 2013. “It feels omnipresent, not just because there are tons of incredible vegan restaurants, but also there are a lot of options at non-vegan restaurants.” Steichen, who turned vegan after moving to the States--she was already vegetarian--says that there are even bakeries and ice-cream shops that are dedicated to using only plant-based ingredients. “And most of the customers that go to these places aren’t vegan, they just enjoy eating plantbased options, for whatever reason.”
Global pandemic aside, Steichen says that setting up a business in the US is pretty straightforward. “The environ ment is very entrepreneur friendly, so it’s a low lift to get started,” she explains. On the other hand, the US is a huge mar ket. “It's important to spend resources in a focused way,” Steichen says. “It’s easy to get distracted by opportunities, so you really need to be disciplined and start with your core consumers and build a sticky relationship with this early adop ter before going too broad. I truly believe in going deep within a few regions and retailers first, before spreading ourselves too thin.” That said, the company recently landed a deal with Whole Foods Market.
Her own background was in opera tions and sales, so Steichen wanted to find someone with marketing and brand ing experience. “I literally had an Excel spreadsheet going, and probably met with like 70 people for coffee and calls,”
ISABELLE
Bryant Park Corporation: consultant June-July 2010 Luxembourg embassy in London: intern
Isabelle Steichen
“But we also raised a $200,000 on Republic last summer. That was a really incredible validation because Republic is an equity crowdfunding platform; it’s not traditional accredited investors. There's a really unique opportunity to bring your customers in as investors because Repub lic actually lets anyone invest as little as $100. So Republic really helps to democ ratise that, and that’s something also that we deeply believe in.”
Finding a co-founder
January 2020, just months before the covid pandemic. “That was not only the worst time to launch a brand with a new ingredient, but also in the bar category, which went down by 40%,” Steichen says. “So Republic was a fantastic way for us to give them the opportunity to not only buy the product but also invest in the business and benefit from our growth.”
Soon (this was back in December 2018), Steichen had a plan to launch a range of protein bars and started pitching her business idea to potential investors. She already had prototypes for the bars, though the company had a different name in that early stage. She found plenty of excited potential investors, but their condition was for her to find a co-founder with complementary skills and background.
“This is exactly where our target consum ers are shopping. So now the next step is to build traction there, by driving healthy velocities before trying to add too many otherIndeed,accounts.”Lupii was first sold in a cou ple of local stores down the street from her home in Brooklyn. A quick glance at the current distribution map shows a plethora of stockists now spread across the United States, with a high concen tration still in New York and the east coast but also in the Midwest around Chicago and in California and the Pacific Northwest.
27OCTOBER2022INTERNATIONAL
“We always say it was love at first sight. It was meant to be. Allie ended up quit ting her job less than a month later and jumped into Lupii full-time.”
Lupii:AprilSELECTEDSTEICHENCV2019-PresentfounderandCEOAugust2015-Present
Eventually she landed a meeting with Alexandra Dempster, then a senior global marketing manager at Pepsi, through a mutual contact who told Steichen they shared the same passion for plant-based eating and the better-for-you food space.
Steichen’s startup, Lupii, has as its mission the creation of “simple, sustain able and delicious food” made from the “small but mighty” lupini bean. The ger mination of the idea for Lupii came from Steichen’s own research into ways of ensuring she had enough protein in her plant-only diet. She soon realised that most of the options on the market were all super processed. But delving deeper, she soon became obsessed with the lupini bean. “Lupini beans are, in my opinion, the number one protein out there,” she says. “Lupini is uniquely positioned as it has more plant protein and gut-healthy fibre than any other bean, and it’s natu rally low in carbs.” It also has all nine essential amino acids.
she explains. “Each introduction would lead to two or three other introductions, and I just started meeting people really understanding what the profile was that I was looking for.”
Voyage Control: general manager January-September 2013
“It was really not that much of a con versation,” Steichen says. “Because I always knew that I wanted to do this with some body. I believe in co-founding teams; I think collaboration is key and that it takes a village to build something. And I, by no means, felt capable of doing this all on my own.”
This became evident when Steichen and Dempster launched the business in
Initial funding came from two early-stage venture capitalists, as well as angel inves tors from the food and beverage industry or those who were looking to invest more into women-owned companies. “Because that's still a huge challenge here in the States, as it is everywhere else,” says Steichen.
Cultivation opportunities
The Midwest may also have the potential to take advantage of any growth in demand for lupini bean products. Lupii is cur rently importing its raw beans from one of the largest farming cooperatives in Europe. “We do have ambitions to source the ingredients locally,” Steichen explains. “But today, there is no industrial supply chain for lupini beans in the US.” How ever, the beans are a hardy crop that can be grown in hot, dry summers and have short growing periods. They also don’t require a lot of water, which makes them very“Lupinisustainable.[beans] also are nitrogen-fix ers, so they’re really good for soil health,
The Plantiful vegan podcast: founder February 2017-September 2018 Sawyer software development: director customer experience February 2015-February 2016
Need for discipline
Steichen is discreet when it comes to talking about immediate plans to further expand the Lupii product range. “For now, we have our hands full with bars and pasta. We’re really focused on that and building the foundation for the business and driv ing really healthy velocities. But I would say there is a lot of opportunity to inno vate from here. Lupini is incredibly ver satile, and when you think about snacks, centre-of-the-plate applications or meat replacements, those are all options. So we haven’t made decisions yet where we want to go next, but we definitely have ideas, and we have done some early pro totyping for some other categories.”
Packaging challenges
f
no-brainer if, as a company, you can say, ‘We care. We’re not perfect; we’re trying to be transparent. Here’s what we’re doing.’” Steichen says that Lupii is constantly tak ing on board feedback from customers. “So we are really building the brand with the customers that care about not just tastes and functionality, but also the envi ronment.”
New products
28OCTOBER2022INTERNATIONAL
Another big challenge Lupii faced was with its packaging, especially for the com pany’s range of bars. “We have strict require ments in making sure the product is at least 12 months shelf-stable, because oth erwise we can’t sell in retail,” Steichen explains. The co-founders looked every where and conducted research on sus tainable and compostable packaging. One challenge is that not many options on the market were guaranteeing 12 months’ shelf stability. In addition, they found there were hardly any industrial or backyard composting systems in the United States. “I mean, it’s starting to happen in places like New York, where there’s some local composting programmes and some dropoff locations,” says Steichen. “But it’s not a well-established infrastructure. So, if we went with a compostable packaging, it felt almost like we were greenwashing because we knew it would not actually be disposed of correctly. And oftentimes, compostable options require even more
Source oodandnutrition.org
resources to be produced. It felt like we couldn’t do that ethically either.”
Members of the pea family, lupini beans have a slightly nutty favour and pack a nutritional punch. Even just a half-cup of these cooked beans provides a boost of zinc, magnesium, plus about 13g protein and 2g fiber. Originating in the Middle East, original varieties were more bitter than today’s newer varieties, which now require less soaking. Dating back to ancient Rome, they’re still served often in the Mediterranean area and have recently gained more popularity in the US.
JottreauSaloméIllustration
LUPINI: COOL BEANS!
“Obviously, first, we have created demand on the consumer side and then, progressively, the vision would be to start growing beans locally in the States.” But Steichen is confident that interest in plant-based protein is growing. “I think it’s kind of the perfect time to introduce some of these old ingredients that are so well established in other parts of the world, and have a long culinary history, and bring them back to the table. It’s very exciting.”
On the other hand, at the end of August, Lupii launched a range of three sorts of pasta--elbows, penne and rotini, which are traditionally the top-selling short shapes in the US--all packaged in card board boxes without the traditional plas tic Thewindow.pasta was launched so that the company could start going outside the bar category pretty quickly. “Just to estab lish kind of more visibility across differ ent aisles of the grocery store. It’s a really unique product because lupini are so high in protein and fibre and so low in carbs. We’re able to offer a really func tional pasta that looks and tastes almost like a traditional pasta but offers so much more nutritional functionality.”
This presents a real opportunity, espe cially in the Midwest where there is an established culture of growing legumes. Lupii has ambitions to start contracting lupini-growing in the US and has linked up with farming partners in western Mon tana, where some trial plots of lupini beans--with farmers that have a lot of experience growing chickpeas, lentils and black beans--have already been planted.
In the end, Lupii ended up going with plastic packaging that can be recycled in some areas of the country. But with every city in the States having its unique reg ulations, that too proved to be challeng ing. “So we partnered with a European company that is helping us to offset our plastic footprint.” That means every year, Lupii tells them how much plastic and what type it is using for the wrappers on its bars, and they commit to collecting the equivalent plastic in the most pol luted areas of the world--a lot of it is in Southeast Asia and India. The company will collect plastic to prevent it from going into the ocean and then track what’s happening with it and upcycle it with local community organisations. “It’s a Band-Aid. It’s not a perfect solution. But at least as a business, we’re taking respon sibility for the waste that we’re creating, until we have more sustainable options on the Andtable.”forcustomers, this transparency is also important. “Let’s not kid ourselves, you know, taste is always going to be the first motivation when consumers make food choices,” says Steichen. “Functional benefits are really important here in the States, maybe more than they are in Europe. But younger generations--and we have a lot of young customers--also care about the environment. And it becomes a
Conversation Isabelle Steichen
crop rotation,” says Steichen. “In the US, I would say the focus on the health of the soil hasn't been as strong as it is in Europe, and regulations are not as strict. But now there’s kind of a reckoning, especially among younger farmers, who are realising they have to think about what they are going to do in the next 20 to 30 years, to make sure they still have a business, so there’s a lot of interest for these rotational crops that are helping to revitalise the soil.”
•ProgrammeWelcome drink (11:30) • Conference (12:00) • Walking Lunch (12:45) • End of the event (14:00) LUNCH COMMUNITIESARCHITECTURETOGETHER:TALKURBANISM,AND Registration and www.paperjam.lu/clubinformation:11:30Thursday17.11 Céline Coubray Editor-in-Chief of Architecture+RealPaperjamEstate Maison Moderne Andrew Phillips Architecte, Andrew Phillips Luxembourg
Forson
Photo ROMAIN GAMBA
“I'm very cautious when I look out into the future”
CEObeingasbrieflyThefinancialpresidentasCargoluxjoinedin2012executiveviceandchiefofficer.sameyear,hetookthereinsinterimCEObeforeappointedin2016
Cargolux president and chief executive officer Richard Forson discusses trends that will feed into the 2023 outlook for Europe’s largest freight-only operator in a highly volatile market.
30 Conversation INTERNATIONAL2022OCTOBER Words ABIGAIL OKORODUS
Richard Forson
2023 outlook
Staff and recruitment plans
The ranking in International
the
Air Transport Association’s top 20 cargo carriers based on international scheduled freight tonne km flown Source Cargolux Group (April 2022)
revenues for the cargo carrier (+40% YOY) $1.72bn EBIT (+73% YOY) 5th
EU trilogues on the ReFuelEU aviation law (set to begin on 8 September, prior to
A clear roadmap is needed
“I’m very cautious when I look out into the future… The covid period really brought the recognition that the air freight indus try deserves. Combination carriers which had been pulling back from cargo [are] suddenly going back in. So there’s a lot more capacity to take advantage of what the market has given us as an industry over the past two and a half years. [How ever,] a time will come when countries are opened to passenger services again, which means belly capacity comes back into the Whilemarket.”keeping an eye out for geopo litical and macro-economic development in the short term, Forson underlines the decision to increase interest rates by the European Central Bank as critical to quelling inflation and stresses the impact it will have on industry and consumer demand. Another key trend he’s watch ing is the evolution of China’s zero-covid policy and extreme weather conditions, and how this will impact the exportation
of various products from China to the rest of the world. “There’s a variety of factors, [and] a lot of it is outside of our controls [as] an airline.”
Scaling up the production of sustaina ble aviation fuels to meet potential high demand levels, the need for new-genera tion aircraft, and advancing the research and development phases of new forms of SAF--including e-Fuels--are key areas to be developed, according to Forson. “If you look at what is being manufactured as sus tainable aviation fuel today versus the demand, it’s not even 1%. There are many additional facilities coming online--all that is in the planning phase--but even then, I think 2% is realisable by 2025, but it’s still going to represent a challenge.”
“If I look at the future, I see more con cern for overcapacity than I do see for continued levels of demand that we cur rently see now. And, as I say, when the bad times come, we might really see a level of capacity in the market that’s never been seen before. So things can switch rapidly from extremely high rates [to] lack of capacity, [and] to one where there is oversupply of capacity which will result in downward pressure on the rates. Oth ers might be more optimistic than I am but if I look at the various issues that [we] are confronting, it all seems to be a per fect storm that’s coming together glob ally at the end of the day.”
For the future, it intends to keep employment going to cope with retire ment or attrition rate. Forson however stresses that expansion plans will have to go hand-in-hand with maintaining a certain level of competency and ensur ing optimum service delivery in a highly regulated environment.
Sustainability is a buzzword in the indus try, but clarity is still needed from an indus try perspective on the blueprint towards net-zero carbon emissions and on who will bear the costs. “I do not think that if you ask anybody today what the roadmap is in getting towards carbon neutrality by 2050, that they will be able to give it to you. This is going to come at a cost and that cost cannot be borne by the airlines alone,” explains Forson.
the time of writing) will determine sustain able aviation fuels (SAF) targets. While the bone of contention centres on whether the 2050 target will be set at 63% or 85%, con sensus seems to have been reached on the 2025 SAF target set at 2% for EU airports.
Market volatility has marked the indus try for years, and this is increasing due to economic circumstances, explains Forson. He adds that the attractiveness of the air-cargo market, the grounding of a major portion of normal fleets com bined with an initial lack of capacity to meet demand has since led to the entrance of newcomers in the market, thereby propelling supply capacity. However, he expects the levels of record profitability will not “continue ad infinitum,” and cautions of a future scenario where a sig nificant supply capacity surpasses demand.
CARGOLUX
With 52 years’ experience, a record $1.3bn in profit after tax last year, a fleet of 30 freighters, close to 2,500 employees glob ally and a network that spans over 75 destinations, Cargolux is clearly a Lux embourg success story.
PERFORMANCE,GROUP2021 $4.4bn
31OCTOBER2022INTERNATIONAL
Many airlines had to let go of staff during the pandemic to cope with reduced demand and lower revenues and now have to re-em ploy staff to deal with labour shortages. This is not a problem that Cargolux has to deal with, Forson explains. “We’ve not laid off any staff because of the pandemic; rather we’ve been employing staff in order to meet the increased intensity of opera tions that we had to undergo and meet the demand from our customers.”
But as with any other business man aging an international logistics network in the context of the current geopolitical tensions, supply chain disruptions and rising inflation, predicting future trends can be challenging. It can be hard to stay optimistic. Nevertheless, as the last quar ter of the year begins, Cargolux president and chief executive officer Richard For son analyses some of the underlying trends that may feed into its 2023 outlook and does not rule out the possibility of a bestor worst-case scenario.
Record
In addition to a clear roadmap, Forson recommends observing the global reac tion to the legislation when it comes into effect. “There is also risk that other coun tries don’t do the same, and that might cause further distortion in the level play ing fields between airlines operating from different countries at the end of the day.”
32OCTOBER2022INTERNATIONAL GuerdinAnaisELQO,Photos
From business and media to culture and beyond, there are plenty of Luxembourgers living and working internationally. Here four of them share more about their experiences of relocating and working in foreign markets.
11 countries
MOVED TO US May 2018
FOUNDED ELQO LLC 31 August 2020
ROLE MODEL Luxembourg choreog raphers and artists
But since May 2021, Brosius has been located in Colorado, where he serves as CEO of ELQO, which acts as a consultant for European brands looking to expand into the US market.
“US economic markets are still the most powerful in the world. The potential enormous…”is
ELQO has built up an excellent network of resources, including lawyers, accountants and locals with vast marketing experience. It distributes a range of products that includes pasta from France and cakes from Italy.
William Cardoso
Jean-Luc Brosius CEO, ELQO LLC
PROUD MOMENT The execution of and“Raum”“Dearmum”
A love for the US played a sig nificant part in Jean-Luc Bro sius’ decision to cross the Atlantic. He initially set up a company in Texas to import and market products made by Mou lins de Kleinbettingen, best known for its Farin’ Up range of flours. “US economic markets are still the most powerful in the world. The potential is enor mous, and being a part of it is simply fantastic,” he says.
LUXEMBOURG DANCE SCHOOLS ATTENDED Esch-sur-AlzettedeConservatoiremusique
Jean-Luc Brosius
ABROADPERFORMANCES
The Luxembourgish-Portuguese choreographer started dancing at the music conservatory in Esch-sur-Al zette during his high-school studies and signed his first contract at the age of 16, performing alongside South African dance guru Tebby Ramasike. After working to raise some funds, Cardoso went on to the professional dance school, Epsedanse, in Montpell ier. His expertise also covers jazz and ballet; however, he chooses to specialise in contemporary dance. “I love the freedom of expression in [contemporary] dance,” he explains. He moved to Lisbon in August 2022 to rediscover his roots and “discover myself as a person [and] as an artist,” he says. He’s participated in dance classes in New York and performed both solo or in a group in France, Germany, Norway, Denmark, Eng land, Spain, Portugal, Italy and Morocco. He recently opened his own dance company with two of his projects “Raum” and “Dear mum”, exploring the themes of mental health, selfreflection, LGBTQ+ and human rights.
Success stories
Words ABIGAIL OKORODUS & DUNCAN ROBERTS
Among the main challenges, Brosius notes, is that the US market is definitely a consumer market. “If you are looking for something, you can be sure that you will find it. And that’s why it’s challenging to come up with innovation because, even then, it’s difficult to stand out from the crowd.”
Four Luxembourgersabroad
“I want to connect myself to the dance scene in Portugal and also connect to my roots.”
William Cardoso Contemporarychoreographerdance
CURRENT LOCATION ColoradoSilverthorne, VOLUNTEERING Park ranger at Bear Lake in Rocky NationalMountainPark
BORN IN Esch-sur-Alzette
The success of 2022 sci-fi adventure film Everything Everywhere All at Once (on which he worked as part of a small special effects team), directing music videos by the likes of Father John Misty, as well as mini-doc umentary series Stranger Things: Spotlight featuring the cast of the award-winning sci-fi show, has put Lux embourg filmmaker Jeff Desom on the map in LA, where he currently resides and does most of his work.
He invests a lot of time upfront to get his personal projects off the ground. But if some of those don’t materialise he needs other sources of income--com mercials, music videos and visual effects. “In my per sonal experience the biggest difference is that Luxembourg doesn’t offer those alternatives at a rate that is consistent enough while being just as expensive as Los Angeles or London,” he explains.
33OCTOBER2022INTERNATIONAL ModerneRussillo/MaisonMarieandKrinsEvaPhotos
Crowther’s multilingual prowess wowed millions following his viral video reporting in French, Spanish, Portu guese, English, German, and nationalGames,summitsranginghasforaffiliateBornLuxembourgish.inLuxembourgCity,theinternationalcorrespondentTheAssociatedPresscoverednewsstoriesfrominternationaltotheOlympicUSpoliticsandinteraffairs.Hehasoveradec
MorgenrotHauschka:Mr.FatherHeartbreaker,OnlyJohnMisty:Tillman, FILM SCHOOL The Arts Institute at Bournemouth LUXEMBOURG FILM PRIZE 2007 Best short for The Plot Spoiler
MUSIC (SELECTED)VIDEOS
LEARNINGCURRENTLY Ukrainian SCHOOLSLUXEMBOURGATTENDED Lycée de&MicheltechniqueLuciusAthénéeLuxembourg
Jeff Deson Independentfilmmaker
The LA industry is very competitive and it took Desom some time to get a foot in the door. “It is a city that has always attracted the very best in the film indus try. You find yourself collaborating with some extremely talented folks. Few things inspire me more than see ing first-hand how other artists exert their craft and to learn from that.”
LANGUAGES FLUENTLY SPOKEN
Mitski: The
ade of experience as a White House correspondent during the Obama and Trump administrations and says, “It’s the use of six languages that gives me the opportunity to travel to the biggest stories world wide and cover them for as many broadcasters as possible.” He’s recently covered the war in Ukraine, the Tokyo and Beijing Olympic Games, the 2020 US election campaign and President Biden’s inaugura tion. His motivation stems from his childhood news interests. “I think most reporters feel one or both of two things: an instinct to be where big stories and events happen, and a sense of responsibility to share those stories with a larger audience or readership. I certainly feel both when I am covering breaking news events. I hate being bored, and I love meeting people and seeing new places; that’s another reason I have ended up with such an exciting job.” None theless, football is his “lifelong passion”. Since 2006, he has worked with top media outlets worldwide, including France 24, El País and RFI. He received the Order of Merit award in Luxembourg in 2022 and Professional Excellence Prize by the Foreign Press Correspondents USA in 2021.
“I’ve been lucky to have found a way of combining my two interests and passions: languages and journalism.”
YEARS LIVING IN THE US 11
Philip Crowther International affiliate reporter, AP Global Media Services
Philip Crowther
Desom moved to the US following his Edward Steichen artist’s residency in New York City in 2014. “During that time a lot of opportunities presented themselves to work on projects in the States. So I decided to take the leap,” he says.
6
Indeed, the industry attention received by the Everything Everywhere All at Once team-“the fact that only five artists created all those VFX”--led to them forming a collective which has already done some exciting projects that are still under wraps.
Jeff Desom
COUNTRIES REPORTED FROM 19
“You find collaboratingyourselfwithsomeextremelytalentedfolks.”
participantsbyProvidedPhotos
34OCTOBER2022INTERNATIONAL Forecast
GEORGES RASSEL CEO Paul Wurth
energy prices and increasing carbon costs are likely to be a damper on greater steel market development. ”
The stark assessment of Wagner is “the global economy appears to be heading towards recession.”
He is cautiously optimistic, expecting the business to grow in the coming months as the market regains balance. “There will continue to be considerable opportunities from the global trend towards steel
He noted that net energy-importing regions, such as the eurozone and Japan, appear to be particularly vulnerable to the threat of Russia restricting energy supplies: “Germany is in a particularly difficult situation because of its excessive dependence on Russian gas imports.” It’s likely to have an impact here, as Germany is Luxembourg’s largest market in many sectors.
Designing and building steelmaking plants glob ally, Paul Wurth is exposed to the impacts of global inflation, the war in Ukraine and the potential uncoupling of China from international supply chains.
He’s also concerned about problems as states either bail out energy companies or distribute aid to consumers. Either way, “a further deterioration in the public finances of eurozone countries can hardly be avoided.”
The current state of geopolitics is weighing heavily on local executives. Here two explain how such turbulence could impact sectors such as finance and industry.
Yet he cannot predict how the Ukraine-Russia war will play out, nor how the global community would react to an attack on Taiwan by China. But Paul Wurth has been a long-standing supplier to all four of these markets. “Record energy prices and increasing carbon costs are likely to be a damper on greater steel market development.”
decarbonisation.”“ Record
Hopes for a swift rebound in the European economy have been snuffed out. War and factors like China’s use of aggressive lockdowns are caus ing disruption. “The global economic slowdown is intensifying,” said Wagner. “Rising interest rates, the post-pandemic normalisation of gov ernment spending, high energy costs and general price increases are starting to weigh on growth.”
Words STEPHEN EVANS
“The European and global steel industries have seen considerable volatility in recent months, with steel prices rising sharply over most of 2021, matched by fairly marked falls in 2022,” said Rassel. That said, he pointed to a forecast from the trade association Worldsteel which sees steel demand set to grow by 0.4% in 2022 and by 2.2% in 2023.
What’s your global economic outlook for 2023?
GUY WAGNER Chief investment officer Banque de Luxembourg Investments
“ … a deteriorationfurtherin the public finances of eurozone countries can hardly be avoided. ”
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