Italy: The Subsidiary That Rebelled

U.S. companies that venture abroad know that they must be ready to deal with all manner of complications involving local pride and pocketbooks.Still, there are few precedents for the problems faced by Arthur G. McKee & Co., a Cleveland engineering firm that does a $154 million-a-year business designing and building industrial plants around the world. Independence-minded employees of the company's subsidiary in Rome, Compagnia Tecnica Industrie Petroli (CTIP), are staging an outright corporate rebellion.

Where the Brains Are. CTIP is McKee's European foothold and a sizable operator in its own right. The firm has orders on its books...

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