Today I read something that I thought was rather odd
(alarming). Not only are Chinese factories moving to America, we are assisting
them with the cost involved. Call me old fashioned, but why did the United States
government decide it was a good idea to provide money for foreign companies to stake a claim in our backyard? Can a North Carolina company purchase a textile mill in China and have full ownership?
Below is the press release from Governor Pat McCrory which
indicates that a performance based grant for $800,000. is helping make a Chinese owned joint venture possible in North
Carolina. Are grants arranged by the North Carolina commerce department
“government funded”? In other words, are USA tax payers providing an
$800,000. grant to textile companies based in China?
It is understood that the concept is to bring employment to
the state (which is fabulous), but wouldn’t it be better to give such grants to
American textile mills or USA owned clothing manufacturers that bring employment
to the state?
In the press article below from the Governor’s website,
Uniquetex LLC is in a joint venture between Foshan Nanhai Beautiful Nonwoven
Co., Ltd., one of China’s largest nonwoven textile businesses and Wenzhou
Chaolong Textile Machinery Co., Ltd., a Zhejiang, China-based developer
of equipment and technologies for nonwoven textile manufacturing. In the press
release it mentions the company name of Uniquetex which I think is the same as
Dezhou
Uniquetex Co. Ltd.; but I am not sure because they did not provide the
contact information for the Chinese companies in the press
release.
I am curious if it is common for Governors in the United
States of America to help provide money to Chinese owned companies. Is it good
or bad for the North Carolina textile industry that the state is helping
provide performance based grants to Chinese companies?
March 10, 2016 — Governor Pat McCrory, North Carolina
Commerce Secretary John E. Skvarla, III and the Economic Development
Partnership of North Carolina (EDPNC) announced on March 10, 2016 the
arrival of Uniquetex LLC to Cleveland County. The company intends to build
a 150-person workforce in the town of Grover over the coming five years.
Uniquetex is investing $31.6 million in a production facility there, its first
in the United States.
“Textile manufacturing is one of North Carolina’s greatest
traditional industries, and it is still growing,” said Governor McCrory. “Our
state is the ideal destination for globally-positioned, innovation-driven
textile companies like Uniquetex.”
Uniquetex LLC manufactures nonwoven fabrics for use by
medical and healthcare providers, as well as other industries. The company is a
joint venture between Foshan Nanhai Beautiful Nonwoven Co., Ltd., one of
China’s largest nonwoven textile businesses and Wenzhou Chaolong Textile
Machinery Co., Ltd., a Zhejiang, China-based developer of equipment and
technologies for nonwoven textile manufacturing.
“Uniquetex’s selection of Cleveland County highlights all the
reasons North Carolina leads the Southeast in manufacturing employment,” said
Secretary Skvarla. “I am confident that our state’s productive workforce,
competitive costs and ready access to global markets will strongly support the
company’s ambitious growth strategy.”
Uniquetex intends to hire 150 workers at its Cleveland County
operations. Positions will include machine operators, technicians, customer
service representatives and others. Salaries will vary by position but will
average $36,313 per year. Cleveland County’s overall average wage is currently
$35,885 per year.
“We are extremely excited to start up our first U.S.
operations in Cleveland County, N.C. The combination of a skilled workforce,
access for quality transportation infrastructure and the pro-business attitude
of the community is what attracted us here,” said Benny Deng, company
CEO/President.
The project was made possible in part by a performance-based grant of up to $800,000 from the One
North Carolina Fund. The One NC Fund provides financial
assistance, through local governments, to attract business projects that
will stimulate economic activity and create new jobs in the state. Companies
receive no money up front and must meet job creation and investment performance
standards to qualify for grant funds. One NC grants also require and are
contingent on financial matches from local governments.
Since Governor McCrory took office in January of 2013, North
Carolina has witnessed the net creation of more than 260,000 private-sector
jobs.
“Congratulations to this promising international company on
its choice of Cleveland County for this important investment,” said N.C. Speaker
of the House Tim Moore. “I look forward to working with Governor McCrory and
Secretary Skvarla to ensure our state has the tools to make our manufacturing
economy even stronger.”
“Cleveland County is a welcoming environment for great
companies from all over the world,” said N.C. Senator Warren Daniel. “We look
forward to Uniquetex joining our business community.”
Numerous state and local allies worked with EDPNC and N.C.
Commerce in supporting Uniquetex’s location plans. They include the North
Carolina General Assembly, the North Carolina Community College System,
Cleveland County, the Cleveland County Economic Development Partnership, and
Gardner Webb University.
Source: Governor of North Carolina Press Office / Posted
March 10, 2016 at http://governor.nc.gov/press-release/uniquetex-bring-150-jobs-cleveland-county
The mission of the N.C. Office of Science, Technology &
Innovation is to improve the economic well‐being and quality of life of all
North Carolinians through advancing science, technology, and
innovation.
In all honesty, I do not know much about how grants work.
However, at first glance, I am a bit concerned that the government (and non-profits that work hand in hand with the government) of North Carolina is not
working harder to support companies that are owned by companies based in the
“United States”. I understand that this “potentially” brings more employment
to the state, but does it help the USA to provide grants to foreign owned
businesses? Yes, I understand the concept that factories bring employment.
However, don’t factory owners determine who they will hire. Is it at all
possible that Chinese owned factories in the United States will hire employees
that enter with work Visa’s from China? The United States welcomes thousands of
foreign workers in multiple occupations or employment categories every
year.
After the Chinese own the textile mills, will they later own
the clothing factories here as well? Will the owners of these foreign
companies, control the hiring here in the USA?
Possibly I am misunderstanding the press release? Maybe
giving an $800,000. grant to a company in China is not such a bad idea? If you
know where the $800,000. comes from please let us know. Is this money from tax
payer funds?
Learn more about USA clothing & textile
manufacturing.
Please note, I do not have anything against China. I am actually jealous that they are being more clever than our countries elected officials. China is taking proper steps to improve their situation. My concern is that we may be doing the opposite here.
You may also want to read about how Global Brands and Alibaba Strengthen China.
You may also want to read about how Global Brands and Alibaba Strengthen China.
Thank you for taking the time to read our textile industry blog post. We hope that you have found this news to be informative. If you have comments or questions, please add your thoughts in the discussion area below.