Importing Chinese Industry to Georgia

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/CEOmforshee@fayettega.orgmforshee@fayettega.org

PH: 770-461-5253 • FX: 770-460-0259PH: 770-461-5253 • FX: 770-460-0259www.fayettega.orgwww.fayettega.org

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