Chinese return this month

Reps from auto parts, MaSteel Holly to be here

Friday, November 2, 2007

By JOHN R. PULLIAM

The Register-Mail

GALESBURG - On the heels of the most recent trip to China by local economic development officials, four Chinese contingents will visit Galesburg over the next two weeks.

GREDA Executive Director Greg Mangieri and Andy Sze, a veteran in the transportation field who has traveled to China with local officials on a number of occasions, arrived in Beijing Oct. 15. After signing an economic development agreement with the Tianjin Free Trade Zone, Mangieri and Sze met with several prospects and toured the massive, 60-square-mile FTZ.

Trips to Nanjing, MaAnshan, Shanghai, Changchun, Baishan and Liaoyuan also gave the Galesburg a contingent a chance to meet with owners and representatives of Chinese companies.

Mangieri was enthused about the reception received in Liaoyuan. Many of the contacts were arranged by Chinese MBA students from the University of Illinois-Chicago, who the Galesburg Regional Development Association hosted earlier this year in Galesburg.

"These meetings and the reception we received in Liaoyuan was the result of spending time and giving attention to the UIC students," Mangieri said.

From Nov. 6-10, a number of officials from Boneng will visit Galesburg. Boneng is an auto parts company that makes gearing for cruise control units for U.S. companies. Two of the company's vice presidents and partners, and the manager of the international department will be here.

"They have been applying for a visa to visit the U.S. for a year," Mangieri said. "These people have got their plans for establishing themselves in the U.S."

Mangieri said the Chinese business officials want to "identify a market, find sales opportunities and distribute their product in the U.S. Once they've established the market, they start doing distribution and perhaps final assembly" at the location selected, which officials here hope will be Galesburg.

On Nov. 8 and 9, a large contingent from China will arrive.

"We will have 23 representatives from 15 separate companies that all manufacture bearings," Mangieri said. "These are companies from all over China, plus representatives from the China Council for the Promotion of International Trade - The Machinery Subcouncil."

Representatives from MaSteel Holly, making their third visit to Galesburg, have already expressed interest in locating here and have big plans for their Nov. 10-15 trip. Galesburg officials met with MaSteel Holly officials in MaAnshan, which has signed an agreement to be Galesburg's newest sister city.

The visit by MaSteel Holly could be a key to the China Initiative.

"They will join us at the Intermodal Association of North America annual convention in Atlanta," Mangieri said. "They are hiring Andy Sze as an interpreter and guide."

MaSteel Holly will pay Sze's expenses and salary during that time. While in China, officials met with representatives of MaSteel, MaSteel Holly's parent firm. MaSteel makes steel for construction, such as I-beams, and produces 300,000 rail wheels on an annual basis. The parent firm employs 80,000 people in its 60-square-mile campus in Ma'Anshan City.

Mangieri said another opportunity surfaced in MaAnshan.

"While we were in Ma'Anshan City, we met with two companies that are involved in textiles," Mangieri said.

The city of MaAnshan Trade and Economic Development delegation will be in Galesburg Nov. 10-15.

Smith called the latest trip a success but said other economic development efforts continue.

"The city of Galesburg is still continuing to work with prospects from the U.S.," he said.

The mayor said Galesburg is considered a major city as Chinese officials look at possibly establishing a Midwest distribution and marketing location to complement an existing center in Greenville, S.C. He said Galesburg is becoming known through word of mouth.

"In certain economic circles in China, they know Galesburg better than Detroit, Mich.," Smith said.

Mangieri believes Galesburg has reached the level needed for Chinese business officials to feel comfortable. He believes jobs will follow.

"Apparently we have accomplished the relationship-building step and have established a comfort level with a whole bunch of people who are willing to spend the money and sit down in an earnest fashion about establishing a presence in the U.S. and, specifically, Galesburg," Mangieri said. "We have realized what we wished for. This is what we were after."