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China's "glass king" moves to the US ... Ohio.

jCandlish

jCandlish

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Oberaargau, Swizerland
China’s ‘glass king’ shatters manufacturing wisdom with move to the US | South China Morning Post

Cao Dewang became a billionaire by making glass for the world’s top carmakers, but his recent decision to move part of his operations to the United States has some asking whether the days of China as a manufacturing haven are over.

In The Beijing News on Monday, Fuyao Glass chairman Cao, 70, was quoted as saying the US was a cheaper and better place to make glass because taxes were much lower than in China. His comments come as some companies are reconsidering their presence in China, and as US president-elect Donald Trump is trying to lure firms back to the US under his “Make America Great Again” slogan.

“I just told the truth and spoke out about the problems,” Cao said, explaining his decision to invest US$1 billion in the US, including taking over a former General Motors plant in Dayton, Ohio.

He said manufacturing businesses in the mainland paid about 35 per cent more in taxes than their counterparts in the US, and value-added tax had become the biggest burden for companies.
Click to expand...

Meet the new Boss.
 
This is nothing new- Wanxiang, the world's largest driveline parts manufacturer for OEM's, bought Neapco from Ford in 2006, and has been making driveline parts in the USA since then.
The USA has over 40 Auto plants, representing most of the majors.
It makes sense, due to modern manufacturing techniques, to have parts factories near the assembly plants, and, even thought the chinese make and buy more cars every year in China than we do, at over 4 million cars were built in the USA last year, and thats a lot of windshields.

The chinese have been buying manufacturing plants, and building them, in the USA, for at least 20 years now.
When it makes economic sense, they make things here.
Steel, for instance.
Car Parts, Solar Cells, Wine Fridges, but also AMC theaters, Starwood Hotels, Smithfield foods, and Terex equipment are all chinese owned.
 
The glass shop
He said manufacturing businesses in the mainland paid about 35 per cent more in taxes than their counterparts in the US, and value-added tax had become the biggest burden for companies.
That is interesting, seems a good way to collect taxes IMHO.

Another growing outfit is 1316 Nexteer
it was Saginaw Gear a few year ago.
Currently putting up a new building that well just abut double their manufacturing space.

Nexteer Automotive – A Leader in Intuitive Motion Control | About Us

History:
Nexteer Automotive - Wikipedia

Related
American Axle says it will close down last remaining plant | Hamtramck Review
 
michiganbuck said:
Another growing outfit is 1316 Nexteer
it was Saginaw Gear a few year ago.
Click to expand...

Pacific Century Motors is a Chinese company formed to buy and hold Nexteer Automotive.

In March 2011, AVIC Automobile Industry Holding Co., a Chinese state-owned parts manufacturer, purchased a 51 percent interest in Pacific Century Motors.

Ref: Pacific Century Motors - Wikipedia

Wow. Chinese state majority interest.
 
neilho said:
I bet Dayton is glad to hear this.
Click to expand...

We WERE - TWO YEARS AGO when this came about!

Old plant is converted and has been producing glass for quite some time already! I wonder if that article stating "Monday they said..." was dated 2013? HAHA!

But they do plan to expand more here. They also have a plant in IL. Here, they expect to employ 2000 ultimately - have over 1700 so you can see they are up and running.
 
To me this is like a press release - he's sending whatever message he wants for what ever agenda.....there is likely more to it.

There's another factor is that a lot of wealthy Chinese are looking for geopolitical diversification - get a few billion in assets elsewhere as a hedge against country and political risk. There is also who-knows-how-much pressure from the US Gov and customers to be here, be closer. It seems a big challenge to take it face value, that the economics of manufacturing here after tax are better .
 
Last edited:
I just heard this new plan is to expand another 1000 jobs here in Dayton.

I just heard BWI (Bejeng West industries) bringing chassis, suspension stuff from China plant to here too....billions of bucks...

It is fine with me for Trump to take credit for all this!
 
This is why I'm not even a little afraid of globalization and foreign manufacturers... The real problem is a decrease in demand worldwide. We can sell shit to China and it can be built anywhere. Either get busy living or get busy dying...
 
michiganbuck said:
Another growing outfit is 1316 Nexteer
it was Saginaw Gear a few year ago.
Currently putting up a new building that well just abut double their manufacturing space...
Click to expand...

Yes indeed and great hardworking people there.
But as a sign of the times lookee here at page 3.
See tentative contract details between UAW Local 699 and Nexteer | MLive.com
GM and Ford are not much different. Seems the pendulum has swung far to the other side.
This is the same wage as $5.50-$6.00 per hour in 1980 and this is a UAW job.
I think we both know that in 1980 6 bucks was not a good paying deal.
A very different world for button pushers and entry level manufacturing now even inside the union.
Strange that many still think autoworkers in the US overpaid now.
The working world has changed so much. It has kept places alive, it has not been kind to many.
Any job is better than nothing, but we need cash flow for people to spend.

So in your job at the top of the heap, around what did you make?
Are there jobs that pay the same adjusted for time or did you live in the golden years and not know it?
Bob
 
There's a billion children who hold Chinese passports; American passports? Not So Much.

And it's easier to purchase North American real estate if living on the continent.

And it's easier for a child to get into the best schools if they speak excellent English.

This decision can be seen as a recruiting tool for the best Chinese engineers, designers, etc.

Not to mention as many children you can afford.

China is aware of the capital outflow, but they need the IP inflow to improve domestic products. Leadership will hold their nose for the next 1-2 decades.
 
Just a couple of questions:
1. How come GM couldn't "make a go of it" at the plant ?
2. If the communist china government is an owner, would not this be a
"bargaining chip" lest Trump wants to add tariffs to imported goods
from china ?
They can easily dump those U.S, jobs, and claim he is ruining jobs.
 
digger doug said:
Just a couple of questions:
1. How come GM couldn't "make a go of it" at the plant ?
2. If the communist china government is an owner, would not this be a
"bargaining chip" lest Trump wants to add tariffs to imported goods
from china ?
They can easily dump those U.S, jobs, and claim he is ruining jobs.
Click to expand...
1 is easy: UNIONS KILLED EM! Time for unions was pre-1940, not after. Then POS traitor obumer bought chevy, and a lot of us historically chevy only folks said NO to any future gm vehicle and are sticking to it.
CarbideBob said:
Yes indeed and great hardworking people there.
But as a sign of the times lookee here at page 3.
See tentative contract details between UAW Local 699 and Nexteer | MLive.com
GM and Ford are not much different. Seems the pendulum has swung far to the other side.
This is the same wage as $5.50-$6.00 per hour in 1980 and this is a UAW job.
I think we both know that in 1980 6 bucks was not a good paying deal.
A very different world for button pushers and entry level manufacturing now even inside the union.
Strange that many still think autoworkers in the US overpaid now.
The working world has changed so much. It has kept places alive, it has not been kind to many.
Any job is better than nothing, but we need cash flow for people to spend.

So in your job at the top of the heap, around what did you make?
Are there jobs that pay the same adjusted for time or did you live in the golden years and not know it?
Bob
Click to expand...

Mcgyver said:
To me this is like a press release - he's sending whatever message he wants for what ever agenda.....there is likely more to it.

There's another factor is that a lot of wealthy Chinese are looking for geopolitical diversification - get a few billion in assets elsewhere as a hedge against country and political risk. There is also who-knows-how-much pressure from the US Gov and customers to be here, be closer. It seems a big challenge to take it face value, that the economics of manufacturing here after tax are better .
Click to expand...

SteveBausch said:
There's a billion children who hold Chinese passports; American passports? Not So Much.

And it's easier to purchase North American real estate if living on the continent.

And it's easier for a child to get into the best schools if they speak excellent English.

This decision can be seen as a recruiting tool for the best Chinese engineers, designers, etc.

Not to mention as many children you can afford.

China is aware of the capital outflow, but they need the IP inflow to improve domestic products. Leadership will hold their nose for the next 1-2 decades.
Click to expand...


Sent from my SM-G900V using Tapatalk
 
mike_kilroy said:
1 is easy: UNIONS KILLED EM!
Click to expand...

Yet these union wages are now $12-14 per hour now.
Is that too high now?
Do we need to go down to say six bucks per hour? Are you a happy camper and dedicated employee at that pay level?
Will you fall on the sword for 13k per year? Will you do it for the outrageous union pay of 28k for a full time autoworker?
Welcome to the new world. As a machinists is 50K a year a way to high pay rate? Above union scale.

My grandparents were sitdowners, which I respect and hold with pride. My parents were anti union which I respect and it's Mom and Dad.
So I live in a world in the middle......
Not seeing the union killed things, not seeing greedy management killed things.
Life is never so simple that you can point fingers at one bad guy or group.
Doing so makes us feel good but is false.
Bob
 
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