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Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
Importing Chinese Industry to Georgia
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Importing Chinese Industry to Georgia

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A presentation on how the Fayette County Development Authority recruited Sany America to Peachtree City. The presentation was given on February 12, 2009.

A presentation on how the Fayette County Development Authority recruited Sany America to Peachtree City. The presentation was given on February 12, 2009.

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    • 1. A Behind the Scenes Perspective of How Sany America Came to Fayette County, Georgia February 12, 2009 Matt Forshee President/CEO
    • 2. Overview <ul><li>Primer on Economic Development in Georgia </li></ul><ul><li>Sany: The Company, Products and Equipment </li></ul><ul><li>Project Development, Recruitment & Location </li></ul><ul><li>Facility Site & Building Plans </li></ul><ul><li>Lessons Learned </li></ul><ul><li>Questions </li></ul>
    • 3.  
    • 4.  
    • 5.  
    • 6.  
    • 7.  
    • 8. FCDA Organization Breakdown
    • 9. Marketing <ul><li>Fayettega.org </li></ul><ul><li>Newsletter </li></ul>
    • 10. Marketing <ul><li>Advertisements </li></ul><ul><li>Prospect Travel </li></ul>
    • 11. Project Management <ul><li>Site Selection </li></ul><ul><li>Building Selection </li></ul>
    • 12. Research <ul><li>Demographics </li></ul><ul><li>Existing Industry Data </li></ul>
    • 13. Economic Development in Georgia
    • 14. Site Selection: Project Origins <ul><li>Project originated as a direct “call-in” to the Metro Atlanta Chamber in September of 2005. </li></ul>
    • 15. Site Selection: Project Origins Sany began a comprehensive nationwide site search , which considered several Metro Areas.
    • 16. SANY: The Company <ul><li>Headquartered in Changsha, Hunan Province, China </li></ul><ul><ul><li>Hong Kong – Jacksonville </li></ul></ul><ul><ul><li>Shanghai – Wash. DC </li></ul></ul><ul><ul><li>Beijing – Green Bay </li></ul></ul><ul><li>Pop – 6 m + (19 th largest in China) </li></ul>
    • 17. Sany: The Company <ul><li>Sany has manufacturing operations in Changsha, Beijing, Shanghai, & Shenzen. They have announced additional facilities in India, Germany and the US. </li></ul>
    • 18. Sany: The Products
    • 19. Sany: The Products
    • 20. Sany: The Products
    • 21. Sany: The Products
    • 22. Sany: The Products
    • 23. Sany: The Products
    • 24. Sany: The Products
    • 25. Sany: The Products
    • 26. Sany: The Projects <ul><li>Sany 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. </li></ul>
    • 27. 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.
    • 28. Site Selection: Project Origins <ul><li>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. </li></ul>
    • 29. Site Selection: Timeline Summary 2005 2006 Representatives from Sany make initial contact with the Metro Atlanta Chamber of Commerce SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 30. Site Selection: Timeline Summary 2005 2006 Initial Georgia Team is built SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 31. Site Selection: Timeline Summary 2005 2006 Initial Sites Submitted for an assembly facility: McDonough (I-75) & Palmetto (I-85) SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 32. Site Selection: Timeline Summary 2005 2006 Additional Sites Submitted: Waynesboro (I-20),Griffin (I-75) & McDonough(I-75) SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 33. Site Selection: Timeline Summary 2005 2006 DEcD and GPC meet with Sany at World of Concrete Trade Show in Las Vegas, Nevada. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 34. Site Selection: Timeline Summary 2005 2006 Additional Sites Submitted: Stockbridge (I-75), Newnan (1-85) and Morrow (I-75). SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 35. Site Selection: Timeline Summary 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. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 36. Site Selection: Timeline Summary 2005 2006 Georgia Team begins looking for new sites that meet parameters for small distribution location. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 37. Site Selection: Timeline Summary 2005 2006 Project returns to original parameters for Assembly & adds HQ function. Peachtree City site is proposed on paper to Sany. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 38. Site Selection: Timeline Summary 2005 2006 Local team is added. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 39. Sany: The Site <ul><li>We proposed </li></ul><ul><li>the Cooper Loop </li></ul><ul><li>properties: 228 </li></ul><ul><li>acres in the PTC </li></ul><ul><li>industrial park. Has </li></ul><ul><li>access to all utilities, on </li></ul><ul><li>a state divided highway </li></ul><ul><li>and in foreign trade zone. </li></ul>
    • 40. Site Selection: Timeline Summary 2005 2006 Sany officials first visit Peachtree City. First incentive proposal is sent to Sany’s Board of Directors. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 41. Site Selection: Timeline Summary 2006 2007 DEcD and GPC make 2 nd trip to WOC in Las Vegas to call on Sany’s project team. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 42. Site Selection: Timeline Summary 2006 2007 A revised proposal of incentives from DEcD and Fayette County is sent to Sany’s Board of Directors. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 43. Site Selection: Incentives <ul><ul><ul><li>State Proposal </li></ul></ul></ul><ul><ul><ul><ul><li>Job Tax Credits $ 3,618,750 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>GA Quick Start $ 2,316,000 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sales & Use Tax Exemption $ 600,000 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>REBA Grant $ 900,000 </li></ul></ul></ul></ul><ul><ul><ul><li>Local Proposal </li></ul></ul></ul><ul><ul><ul><ul><li>Tax Abatement (Real & Personal) $ 4,693,696 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>FCDA Grant $ 150,000 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Fayette County Grant $ 150,000 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PTC Grant $ 50,000 </li></ul></ul></ul></ul><ul><ul><ul><li>Total $12,478,446 </li></ul></ul></ul>
    • 44. Site Selection: Incentives <ul><ul><li>Average Incentive Per Job </li></ul></ul><ul><ul><ul><li>State $12,391.25 </li></ul></ul></ul><ul><ul><ul><li>Local $ 8,406.16 </li></ul></ul></ul><ul><ul><ul><li>Total $20,797.41 </li></ul></ul></ul><ul><ul><li>Fayette County Cost/Benefit Analysis </li></ul></ul><ul><ul><ul><li>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. </li></ul></ul></ul><ul><ul><ul><li>After YR 10, average annual benefits are $1,157,739. </li></ul></ul></ul>
    • 45. Site Selection: Timeline Summary 2006 2007 DEcD and GPC team makes 1 st trip to China to call on Sany. Visits headquarters in Changsha. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 46. 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
    • 47. Site Selection: The Grand Tour
    • 48. Site Selection: Timeline Summary 2006 2007 FCDA and Pathway Communities accompany DEcD and GPC on 2 nd trip to Changsha and Sany’s HQ. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 49. Sany: Fayette goes to Changsha
    • 50. Sany: Fayette goes to Changsha
    • 51. Site Selection: Timeline Summary 2006 2007 Sany Board of Directors votes 8-1 to select Georgia over competing other states and cities. SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
    • 52. 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!
    • 53. 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.
    • 54. After Site Selection: Legal Docs <ul><li>Crafting a Memorandum of Understanding </li></ul><ul><ul><li>Signatories (and Attorneys) included Sany, FCDA, Fayette County & Peachtree City </li></ul></ul><ul><li>Tax Abatement Bonds </li></ul><ul><ul><li>Initially issued $30MM in bonds for Tax Abatement structuring </li></ul></ul><ul><li>Grant Application </li></ul><ul><ul><li>REBA grant required a large application process that took longer than expected </li></ul></ul>
    • 55. Sany: Proposed Site Plan <ul><li>Site Data </li></ul><ul><li>228 Acres </li></ul><ul><li>Assembly Bldg 1 (ph 1) </li></ul><ul><ul><li>325,000 sf </li></ul></ul><ul><li>Assembly Bldg 2 (ph 2) </li></ul><ul><ul><li>500,000 sf </li></ul></ul><ul><li>Assembly Bldg 3 (ph 3) </li></ul><ul><ul><li>500,000 sf </li></ul></ul><ul><li>Distribution Center (ph 1) </li></ul><ul><ul><li>100,000 sf </li></ul></ul><ul><li>Office, R&D Bldg (ph 1) </li></ul><ul><ul><li>140,000 sf </li></ul></ul><ul><li>Total – 1.5 million sf </li></ul>
    • 56. Sany: Proposed Site Plan
    • 57. Sany: Proposed Site Plan
    • 58. Sany: Proposed Site Plan
    • 59. Sany: Proposed Site Plan
    • 60. 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.
    • 61. 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.
    • 62. 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.
    • 63. 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.
    • 64. Sany: Lessons Learned To do business in China, you have to experience China.
    • 65. <ul><li>To learn more about the business opportunities in </li></ul><ul><li>Fayette County, contact the Fayette County Development </li></ul><ul><li>Authority. We can help you with: </li></ul><ul><li>Available site and building information </li></ul><ul><li>Comprehensive demographic information </li></ul><ul><li>Labor statistics </li></ul><ul><li>Community tours </li></ul><ul><li>Customized state incentive proposals </li></ul><ul><li>Groundbreaking ceremony coordination </li></ul><ul><li>Matt Forshee, President/CEO </li></ul><ul><li>[email_address] </li></ul><ul><li>PH: 770-461-5253 • FX: 770-460-0259 </li></ul><ul><li>www.fayettega.org </li></ul>200 Courthouse Square Fayetteville, GA 30214

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