importing chinese industry to georgia
TRANSCRIPT
A Behind the Scenes Perspective of How Sany America Came to Fayette County, Georgia
February 12, 2009
Matt ForsheePresident/CEO
OverviewPrimer on Economic Development in Georgia
Sany: The Company, Products and Equipment
Project Development, Recruitment & Location
Facility Site & Building Plans
Lessons Learned
Questions
FCDA Organization Breakdown
MarketingFayettega.org Newsletter
MarketingAdvertisements Prospect Travel
Project ManagementSite Selection Building Selection
ResearchDemographics Existing Industry Data
Economic Development in Georgia
Site Selection: Project Origins
Project originated as a direct “call-in” to the Metro Atlanta Chamber in September of 2005.
Site Selection: Project Origins
Sany began a comprehensive nationwide site search , which
considered several Metro Areas.
SANY: The CompanyHeadquartered in
Changsha, Hunan Province, ChinaHong Kong –
JacksonvilleShanghai – Wash.
DCBeijing – Green Bay
Pop – 6 m + (19th largest in China)
Sany: The Company
Sany has manufacturing operations in Changsha,
Beijing, Shanghai, & Shenzen. They have announced additional facilities in India, Germany
and the US.
Sany: The Products
Sany: The Products
Sany: The Products
Sany: The Products
Sany: The Products
Sany: The Products
Sany: The Products
Sany: The Products
Sany: The ProjectsSany currently holds
the Guinness world record for the highest elevation reached by a single pump – 406 meters (1332 feet). This was performed during the construction of the Hong Kong International Financial Center.
Sany: The projects
Sany equipment has been involved in the construction
of the Three Gorges Dam on the Yangtze River, the
largest hydro-electric power station in the world.
Site Selection: Project Origins
The initial requirement from the company called for 350,000 square feet of existing
space under roof for assembly of concrete pumps and pump trucks.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Representatives from Sany make initial contact with the Metro Atlanta Chamber of
Commerce
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Initial Georgia Team is
built
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Initial Sites Submitted for an assembly facility:
McDonough (I-75) & Palmetto (I-85)
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Additional Sites Submitted: Waynesboro (I-20),Griffin (I-
75) & McDonough(I-75)
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
DEcD and GPC meet with Sany at World of Concrete Trade Show in Las Vegas,
Nevada.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Additional Sites Submitted: Stockbridge (I-75), Newnan (1-85) and Morrow (I-75).
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Sany changes the parameters dramatically. The project is
reduced to a small warehouse for parts, 1-2 acres & 30,000 sf, to be
operated as Synnium.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Georgia Team begins looking for new sites that meet parameters for small distribution location.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Project returns to original parameters for Assembly & adds HQ function. Peachtree City site
is proposed on paper to Sany.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Local team is added.
Sany: The SiteWe proposed the Cooper Loopproperties: 228acres in the PTC industrial park. Hasaccess to all utilities,
on a state divided highway and in foreign trade
zone.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2005 2006
Sany officials first visit Peachtree City. First
incentive proposal is sent to Sany’s Board of Directors.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2006 2007
DEcD and GPC make 2nd trip to WOC in Las Vegas to call
on Sany’s project team.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2006 2007
A revised proposal of incentives from DEcD and Fayette County is sent to Sany’s Board of Directors.
Site Selection: Incentives• State Proposal• Job Tax Credits $ 3,618,750• GA Quick Start $ 2,316,000• Sales & Use Tax Exemption $
600,000• REBA Grant $
900,000• Local Proposal• Tax Abatement (Real & Personal) $
4,693,696• FCDA Grant $
150,000• Fayette County Grant $
150,000• PTC Grant $ 50,000
• Total $12,478,446
Site Selection: Incentives• Average Incentive Per Job• State $12,391.25• Local $ 8,406.16• Total $20,797.41
• Fayette County Cost/Benefit Analysis• After all incentives local taxes, fees and services
are accounted for, Fayette County still shows a positive growth of $29,000 in Year 1 of the facility. By Year 10 we have accumulated an average annual net benefit of $603,744.
• After YR 10, average annual benefits are $1,157,739.
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2006 2007
DEcD and GPC team makes 1st trip to China to call on
Sany. Visits headquarters in Changsha.
Site Selection: China Visit #1
Company reps had indicated several times that Georgia was at a
disadvantage by not having visited the board members in China
Site Selection: The Grand Tour
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2006 2007
FCDA and Pathway Communities accompany
DEcD and GPC on 2nd trip to Changsha and Sany’s HQ.
Sany: Fayette goes to Changsha
Sany: Fayette goes to Changsha
Site Selection: Timeline Summary
SEP OCT NOV
DEC JAN FEB MAR
APR MAY
JUN JUL AUG
2006 2007
Sany Board of Directors votes 8-1 to select Georgia
over competing other states and cities.
Site Selection: Announcement
Sept 2007: Sany publicly announces intent to locate NA HQ and Assembly in
Peachtree City. From Sept 05 to Sept 07, process was a 2-year effort!
Site Selection: Announcement
Initial investment announced was $30MM USD, now revised to roughly $70MM USD.
It will employ up to 600 people over 10 years.
After Site Selection: Legal DocsCrafting a Memorandum of Understanding
Signatories (and Attorneys) included Sany, FCDA, Fayette County & Peachtree City
Tax Abatement BondsInitially issued $30MM in bonds for Tax
Abatement structuringGrant Application
REBA grant required a large application process that took longer than expected
Site Data•228 Acres•Assembly Bldg 1 (ph 1)
•325,000 sf•Assembly Bldg 2 (ph 2)
•500,000 sf•Assembly Bldg 3 (ph 3)
•500,000 sf•Distribution Center (ph 1)
•100,000 sf•Office, R&D Bldg (ph 1)
•140,000 sf•Total – 1.5 million sf
Sany: Proposed Site Plan
Sany: Proposed Site Plan
Sany: Proposed Site Plan
Sany: Proposed Site Plan
Sany: Proposed Site Plan
Sany: Lessons Learned
Time was always on Sany’s side (and they used it!)
To balance this, we had to formulate unique qualifiers and expirations for land
and incentives.
Sany: Lessons Learned
Sany’s site selection process was very unique and quite different from most
US or European companies. The process could be quite frustrating at
times.
Sany: Lessons Learned
The Chinese concept of Guanxi has no true comparison in Western Culture.
You must understand the implications to succeed in Chinese business,
industry & society.
Sany: Lessons Learned
There are some major visa issues for permitting Chinese Nationals to work in the US, but the companies are also aware of the tax benefits to rotating
employees.
Sany: Lessons Learned
To do business in China, you have to experience China.
To learn more about the business opportunities in To learn more about the business opportunities in Fayette County, contact the Fayette County Development Fayette County, contact the Fayette County Development Authority. We can help you with:Authority. We can help you with:• Available site and building informationAvailable site and building information• Comprehensive demographic informationComprehensive demographic information• Labor statisticsLabor statistics• Community toursCommunity tours• Customized state incentive proposalsCustomized state incentive proposals• Groundbreaking ceremony coordinationGroundbreaking ceremony coordination
Matt Forshee, President/CEOMatt Forshee, President/[email protected]@fayettega.org
PH: 770-461-5253 • FX: 770-460-0259PH: 770-461-5253 • FX: 770-460-0259www.fayettega.orgwww.fayettega.org
200 Courthouse SquareFayetteville, GA 30214