Chinese delegation visits Rockford today

By Thomas V. Bona

BusinessRockford.com

Because of China, there’s one fewer empty building on North Main Street.

That’s the view of officials from Ingersoll Production Systems, a Rockford company that was bought by a Chinese toolmaking giant in 2002.

The investment by Dalian Machine Tool Group saved the struggling Ingersoll division and gave it the capital to boost sales around the world, said Jill Wilson, director of aftermarket and administration.

It also helped the Chinese company, she told a group of Chinese business and government leaders visiting the area today.

“They were interested in using American sales and service channels,” Wilson said. “They saw the United States as a potential huge new market, and they wanted a local look and feel to the new business.”

Meanwhile, Wanxiang Group bought Driveline Systems in Loves Park several years ago, and several Rockford companies have set up facilities in China.

The 50-member Chinese delegation is here to look for future success stories, said Zhang Yingxin, deputy director general for the Chinese government’s Investment Promotion Agency.

“It is a signal to Chinese companies. ... If they invest here, they can see the same results” she said. “Before Chinese companies invest, it’s important that they see these kinds of experiences and stories.”

At least one company’s representatives told local leaders it is close to making a major domestic investment.

The delegation is actually two groups touring U.S. cities this month. Rockford is the smallest city they’re visiting,

Zhang said Rockford is a good location for Chinese companies looking to bring logistics and distribution operations to the Midwest, as well as agricultural companies looking for farmland. She noted the area’s proximity to Chicago, but that it is smaller and easier for operations.

Those were the strengths touted by Rockford business and government leaders, who said the area’s transportation network, its work force and its lower cost of doing business as advantages over other Midwestern communities.

The Rockford Area Economic Development Council organized the event, the second visit by a Chinese group in the past year.

Although the first event focused on marketing Rockford to the Chinese visitors, today’s featured more “nuts and bolts” information, such as setting up a U.S. business unit, tax laws and acquiring real estate.

Also, Chinese and local businesspeople were seated in round tables all day, grouped by industry. They had a “matchmaking” lunch where they talked to one another about opportunities.

The also toured the area, including Chicago Rockford International Airport, major business and development sites and the Keeling-Puri Peace Plaza.

“We are trying to tell you so much about Rockford in a short period of time,” RAEDC President Janyce Fadden said.

The U.S. and China are each other’s second-largest trading partners, and China is the fourth-largest market for U.S. goods, said Chu Maoming, deputy counsel general for the Chinese embassy in Chicago.

Meanwhile, Illinois has more foreign direct investment than any other Midwestern state, Rockford attorney James Keeling said. There are 1,600 foreign firms in Illinois in 5,000 locations.

Illinois companies are also benefiting from globalization, he said, exporting $50 billion in goods last year.

“Companies no longer can hope they can operate outside their borders,” Keeling said. “They have to.”

Staff writer Thomas V. Bona may be contacted at 815-987-1343 or tbona@rrstar.com.

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