Originally in The Idaho Statesman, 12/31/2010
Written by Rocky Barker
As economic power shifts to Asia, Idaho's location makes it a prime site for an industrial foothold
A Chinese national company is interested in developing a 10,000- to 30,000-acre technology zone for industry, retail centers and homes south of the Boise Airport.
Officials of the China National Machinery Industry Corp. have broached the idea — based on a concept popular in China today — to city and state leaders.
They are also interested in helping build and finance a fertilizer plant near American Falls, an idea company officials returned to Idaho this month to pursue.
This ambitious, long-term proposal would start with a manufacturing and warehouse zone tied to the airport, and could signify a shift in the economic relationship between the two superpowers — a relationship once defined by U.S. companies like the J.R. Simplot Co., Hewlett-Packard and Morrison-Knudsen that would head to China to build and develop.
“I think China’s coming over here shows they are willing to collaborate on the reinvigoration of the American industrial base,” said Jeff Don, CEO of Eagle-based C3, which is acting as an Idaho representative for the Chinese company, called Sinomach for short.
Sinomach is just one of an increasing number of companies and investors showing interest in Idaho.
Hoku Materials Inc., a subsidiary of a Chinese energy firm, already has 500 people building its $400 million plant to make polysilicon for solar panels in Pocatello. It expects to begin production in 2011, employing 250 people, said Scott Paul, Hoku’s president and CEO.
China surpassed Japan as the second largest economy in the world in 2010. And in June, Gov. Butch Otter traveled there to tell anyone who would listen that Idaho is open for business.
EAST IDAHO PROJECT COULD COME FIRST
Sinomach is China’s third-largest contractor, with more than $14 billion in sales last year. It has been active in more than 130 countries in Asia, Africa, Latin America, Russia and Eastern Europe as general contractor for large infrastructure and building projects.
Sinomach executives told Southeast Idaho Energy, which is planning to build a $2 billion fertilizer plant in Power County, they want the contract for engineering, procurement and construction. Their access to financing is their deal sweetener.
Southeast Idaho Energy hopes to turn coal into gas to produce nitrogen fertilizer and sulfur. The company expects to hire 700 to 1,000 people during construction with 150 permanent workers.
The company also would separate the carbon dioxide that contributes to climate change and ship it to Wyoming, where it can be pumped underground to enhance the extraction of natural gas.
While Otter was in Beijing in June, he spoke about the project with Jin Kening, chairman of the China National Chemical Engineering Corp. — a different government-owned company. Don said Chinese national companies do compete with each other, but won’t let their own competition get in the way.
“Whatever makes the deal go forward,” Don said.
Doug Sayer, president and CEO of Premier Technology, worked with Otter in Beijing to build long-term relationships with China National. His company could bid on some of the work to build the fertilizer plant.
“Anything we can do to work toward having good industry opportunities for investment is important whether we get a piece of that work,” Sayer said.
The state’s efforts have been critical to the discussions, said Pat Sullivan, a Boise lobbyist who works with Southeast Idaho Energy.
“One thing these Chinese see is we have a governor here who has a great big open-door policy, and I think that’s making a difference in this Sinomach project,” he said.
AN UNUSUAL IDEA THAT MAY BECOME COMMON
Sinomach is not looking only at Idaho.
No comments:
Post a Comment