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$30M plant under discussion

China scouts ATL
(April 21, 2006)

A top Chinese businessman is considering Atlanta as a potential site for a $30 million to $50 million manufacturing plant and could eventually bring 50 to 100 more Chinese industrialists with him.

In another example of how the world is becoming flat, the move could reverse a decades-long trend of U.S. manufacturing jobs leaving for China and other countries where cheaper labor costs and fewer environmental regulations create profit windfalls.

Speaking through an interpreter, the businessman, Wusheng Chen, sounded like a newly minted capitalist on an April 17-18 visit to the city, with grandiose plans to rival any American dreamer.

"I have a dream," Chen said. "My dream is to have an American-Chinese industrial city in the city of Atlanta."

Chen, who was named one of China's top 10 entrepreneurs in 2004 by Chinese Central Television, China's largest government-owned TV station, first wants to build a multimillion-dollar plant in metro Atlanta that would employ 200 to 300 people and earn about $100 million annually making electrical plugs that currently sell at Home Depot for $11.99.

Although he doesn't yet have a contract with the do-it-yourself retail giant, Chen said the day the ink dries on such a deal, he'll start building his plant here.

Peter White, president of the Southern Center for International Studies in Atlanta, said it's rare to hear of a Chinese company setting up shop on U.S. soil.

Chinese companies have been "most active in terms of purchasing raw materials," White said, such as oil, steel and energy assets from North America.

White said he's surprised to hear that a product could be produced for a competitive price in Atlanta, versus in China, where Chen owns dozens of companies.

Chen, an engineer and industrialist whose net worth is in the several hundreds of millions of dollars, built his small empire by manufacturing ground fault circuit interrupters, GFCI for short.

These electrical outlets -- which protect against severe shocks that occur around water and often are required in bathrooms and kitchens -- represent a $2 billion industry.

His company also manufactures timers, dimmers and other switches.

These electrical outlets -- which protect against severe shocks that occur around water and often are required in bathrooms and kitchens -- represent a $2 billion industry.

His company also manufactures timers, dimmers and other switches.

These electrical outlets -- which protect against severe shocks that occur around water and often are required in bathrooms and kitchens -- represent a $2 billion industry.

His company also manufactures timers, dimmers and other switches.

Although Chen told China Daily, an online business journal, that his company has been careful about applying for patents for their own innovations and denies the infringements, saying the suits were filed to stifle the competition, the matter will have to be cleared up for him to continue his expansion plans.

But local officials -- betting Chen's vision would be a boon for Atlanta -- rolled out the red carpet for him.

He had private meetings with Georgia Economic Development Commissioner Craig Lesser, Atlanta Mayor Shirley Franklin, Lt. Gov. Mark Taylor, and a vice president of The Home Depot Inc. Also scheduled was a 45-minute helicopter tour of metro Atlanta to scout for the 20 to 30 acres of land he would need for his warehousing and manufacturing operations.

"We're dealing with a new kind of Chinese entrepreneur," said state Sen. Sam Zamarripa, who is also a principal in Heritage Capital, the company that offered the high-level introductions, and may eventually invest in Chen's projects.

"They're self-made, global in their thinking, and they see us [in Atlanta] as a strategic advantage."

Metro Atlanta Chamber of Commerce President Sam Williams said, "It speaks volumes for the state and city that a significant Chinese company wants to do business here.

"They understand our pro-business attitude," Williams stressed. When asked about the red carpet treatment, he added, "We'll do handstands for them if necessary."

And Chen seems to understand exactly why he would choose Atlanta -- over other cities -- to build his empire.

Although Chen told China Daily, an online business journal, that his company has been careful about applying for patents for their own innovations and denies the infringements, saying the suits were filed to stifle the competition, the matter will have to be cleared up for him to continue his expansion plans.

But local officials -- betting Chen's vision would be a boon for Atlanta -- rolled out the red carpet for him.

He had private meetings with Georgia Economic Development Commissioner Craig Lesser, Atlanta Mayor Shirley Franklin, Lt. Gov. Mark Taylor, and a vice president of The Home Depot Inc. Also scheduled was a 45-minute helicopter tour of metro Atlanta to scout for the 20 to 30 acres of land he would need for his warehousing and manufacturing operations.

"We're dealing with a new kind of Chinese entrepreneur," said state Sen. Sam Zamarripa, who is also a principal in Heritage Capital, the company that offered the high-level introductions, and may eventually invest in Chen's projects.

"They're self-made, global in their thinking, and they see us [in Atlanta] as a strategic advantage."

Metro Atlanta Chamber of Commerce President Sam Williams said, "It speaks volumes for the state and city that a significant Chinese company wants to do business here.

"They understand our pro-business attitude," Williams stressed. When asked about the red carpet treatment, he added, "We'll do handstands for them if necessary."

And Chen seems to understand exactly why he would choose Atlanta -- over other cities -- to build his empire.

Delta Air Lines Inc. (OTC: DALRQ) lost its most recent bid for a direct route between the ATL and Beijing. But another route is opening in 2008, and Delta has said it will bid again.

Williams said direct cargo flights on Cathay Pacific also are building interest here, noting "the Olympic connection" also works as a bond between Beijing and Atlanta, both hosts to the summer Olympics.

United Parcel Service Inc. (NYSE: UPS) also is bulking up in China. The Atlanta-based company recently announced it will begin direct air service between Shanghai and Europe.

Chen, 54, and dressed in a pinstriped, brown wool suit, alligator leather shoes and a textured silk tie, hails from Zhejiang Province, on China's east coast, just south of Shanghai Province.

The province is known for its entrepreneurial spirit. And, said John Ray with Heritage Capital, who visited the area when Chen opened his most recent plant, the area doesn't have a single government-owned company.

Chen also knows his latest business readings, quoting the title of New York Times columnist's Thomas Friedman's book, "The World is Flat."

Chen's April 3-26 visit to the United States was part of a high-profile delegation traveling with Chinese Vice Premier Yi Wu, leading up to the April 20 visit by Chinese President Hu Jintao with President George W. Bush.

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