CHICAGO: Like many Midwestern US towns, Rockford, Illinois was once an industrial powerhouse but for years has been plagued by layoffs and plant closures thanks to the globalization of the world economy. But the same globalization blamed for ending the town's halcyon days in the 80s and 90s could very well be what pulls Rockford out of the economic doldrums.
Earlier this year, Rockford, which has a population of 150,000 and is located 80 miles from Chicago, scored its first big success in what it hopes is a continuing wave of reverse globalization. That occurred when Wanxiang America Corp, the US subsidiary of one of China's leading automotive parts suppliers, agreed to locate its new solar panel manufacturing plant in the town.
Wanxiang plans to break ground on the 40,000 square-foot facility within the next month. The plant is expected to employ 240 workers, said Eric Voyles, vice-president of national business development for the Rockford Area Economic Development Council.
Voyles hopes the city can draw more job creation from Wanxiang, whose parent company has roughly 45,000 employees worldwide.
Company officials say they plan to expand their North American operations by building facilities to manufacture and distribute alternative energy products such as solar panels and electric vehicles. Last August, the company signed a strategic partnership agreement with the city and other local governments to work on locating them in Rockford.
Michael J. Schaal, general manager of Wanxiang America, said the company has not made any decisions on where they will locate any additional facilities. However, he added that Rockford has a chance to be chosen again for several reasons.
"It's a very aggressive city when it comes to attracting business," said Schaal.
Furthermore, Wanxiang wants to build in communities that show a commitment to alternative energy. Rockford, whose nickname is "The Forest City," has done that by agreeing to install solar panels from the new plant on local government buildings, and by creating a solar power farm at Chicago Rockford International Airport.
Rockford first started courting Chinese investment in 1999 when it established a sister-city program with Changzhou, an industrial hub near Shanghai. Since then, the city has hosted numerous Chinese officials and business owners.
The town's economic development council even recently hired a staffer fluent in Mandarin to help improve communication with Chinese visitors.
Still, the gains from Chinese investment have so far been modest, and the city has a long way to go before its economy recovers. But Robert Evans, chairman of the economics department at Rockford College, has studied the economic development plans for the region and he believes the goals are realistic.
"The Chinese connection would be an important factor," he said. "But no one is counting on it."
Following the Wanxiang announcement, three Chinese companies, including a manufacturer of low-energy lighting and a solar panel maker, have shown interest in locating new plants to the area, Voyles said. And China's Civil Aviation Authority and Air China have recently made inquiries about building cargo distribution centers at the airport.
Although it's too early to know how many jobs these companies could create, Voyles maintains that their interest in Rockford means the initiative to entice Chinese business is finally paying off dividends.
"We've committed tremendous resources to understanding and building a rapport with China," he said.
http://www.chinadailyusa.com/news_article.aspx?item_id=637
|