An historical recap of the recruitment of SANY America to Fayette County, Ga, presented to the ENCORE Fayette Class on February 14, 2013.

1. A Behind the Scenes Perspective of How Sany America
Came to Fayette County, Georgia
February 14, 2013
Matt Forshee
President/CEO

2. Overview
 Primer on Economic Development in Georgia
 Sany: The Company, Products and Equipment
 Project Development, Recruitment & Location
 Facility Site & Building Plans
 Lessons Learned
 Questions

3. What is Economic
Development?

4. Creation of
Wealth

5. How do we do that in
Fayette County?

6. Recruiting New
Industry &
Office

7. Economic Development in Georgia

8. Site Selection: Project Origins
 Project originated as a
direct “call-in” to the
Metro Atlanta
Chamber in September
of 2005.

9. Site Selection: Project Origins
Sany began a comprehensive nationwide
site search , which considered
several Metro Areas.

10. SANY: The Company
 Headquartered in
Changsha, Hunan
Province, China
 Hong Kong –
Jacksonville
 Shanghai – Wash. DC
 Beijing – Green Bay
 Pop – 6 m + (19th largest
in China)

11. Sany: The Company
Sany has manufacturing operations in Changsha, Beijing,
Shanghai, & Shenzen. They have announced additional
facilities in India, Germany and the US.

12. Sany: The Products

13. Sany: The Products

14. Sany: The Products

15. Sany: The Products

16. Sany: The Products

17. Sany: The Products

18. Sany: The Products

19. Sany: The Products

20. Sany: The Projects
 Sany currently holds the
Guinness world record
for the highest elevation
reached by a single
pump – 406 meters (1332
feet). This was
performed during the
construction of the
Hong Kong
International Financial
Center.

21. Sany: The projects
Sany equipment has been involved
in the construction of the Three
Gorges Dam on the Yangtze
River, the largest hydro-electric
power station in the world.

22. Site Selection: Project Origins
The initial requirement from the company
called for 350,000 square feet of existing
space under roof for assembly of concrete
pumps and pump trucks.

23. Site Selection: Timeline Summary
Representatives from Sany make
initial contact with the Metro
Atlanta Chamber of Commerce
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

24. Site Selection: Timeline Summary
Initial
Georgia
Team is
built
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

25. Site Selection: Timeline Summary
Initial Sites Submitted for an
assembly facility: McDonough (I-
75) & Palmetto (I-85)
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

26. Site Selection: Timeline Summary
Additional Sites Submitted:
Waynesboro (I-20),Griffin (I-75) &
McDonough(I-75)
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

27. Site Selection: Timeline Summary
DEcD and GPC meet with Sany at
World of Concrete Trade Show in
Las Vegas, Nevada.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

28. Site Selection: Timeline Summary
Additional Sites Submitted:
Stockbridge (I-75), Newnan (1-85)
and Morrow (I-75).
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

29. Site Selection: Timeline Summary
Sany changes the parameters
dramatically. The project is reduced to a
small warehouse for parts, 1-2 acres &
30,000 sf, to be operated as Synnium.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

30. Site Selection: Timeline Summary
Georgia Team begins looking for
new sites that meet parameters for
small distribution location.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

31. Site Selection: Timeline Summary
Project returns to original parameters for
Assembly & adds HQ function.
Peachtree City site is proposed on paper
to Sany.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

32. Site Selection: Timeline Summary
Local
team is
added.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

33. Sany: The Site
We proposed
the Cooper Loop
properties: 228
acres in the PTC
industrial park. Has
access to all utilities, on
a state divided highway
and in foreign trade zone.

34. Site Selection: Timeline Summary
Sany officials first visit Peachtree
City. First incentive proposal is
sent to Sany’s Board of Directors.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2005 2006

35. Site Selection: Timeline Summary
DEcD and GPC make 2nd trip to
WOC in Las Vegas to call on Sany’s
project team.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2006 2007

36. Site Selection: Timeline Summary
A revised proposal of incentives
from DEcD and Fayette County is
sent to Sany’s Board of Directors.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2006 2007

37. Site Selection: Incentives
• State Proposal
• Job Tax Credits $ 3,618,750
• GA Quick Start $ 2,316,000
• Sales & Use Tax Exemption $ 600,000
• REBA Grant $ 900,000
• Local Proposal
• Tax Abatement (Real & Personal) $ 4,693,696
• FCDA Grant $ 150,000
• Fayette County Grant $ 150,000
• PTC Grant $ 50,000
• Total $12,478,446

38. Site Selection: Incentives
• Average Incentive Per Job
• State $12,391.25
• Local $ 8,406.16
• Total $20,797.41
• Fayette County Cost/Benefit Analysis
• After all incentives local taxes, fees and services are
accounted for, Fayette County still shows a positive
growth of $29,000 in Year 1 of the facility. By Year 10 we
have accumulated an average annual net benefit of
$603,744.
• After YR 10, average annual benefits are $1,157,739.

39. Site Selection: Timeline Summary
DEcD and GPC team makes 1st trip
to China to call on Sany. Visits
headquarters in Changsha.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2006 2007

40. Site Selection: China Visit #1
Company reps had indicated several times
that Georgia was at a disadvantage by not
having visited the board members in China

41. Site Selection: The Grand Tour

42. Site Selection: Timeline Summary
FCDA and Pathway Communities
accompany DEcD and GPC on 2nd
trip to Changsha and Sany’s HQ.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2006 2007

43. Sany: Fayette goes to Changsha

44. Sany: Fayette goes to Changsha

45. Site Selection: Timeline Summary
Sany Board of Directors votes 8-1
to select Georgia over competing
other states and cities.
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2006 2007

46. Site Selection: Announcement
Sept 2007: Sany publicly announces intent to locate
NA HQ and Assembly in Peachtree City. From Sept
05 to Sept 07, process was a 2-year effort!

47. Site Selection: Announcement
Initial investment announced was $30MM USD,
now revised to roughly $70MM USD. It will employ
up to 600 people over 10 years.

48. After Site Selection: Legal Docs
 Crafting a Memorandum of Understanding
 Signatories (and Attorneys) included Sany, FCDA,
Fayette County & Peachtree City
 Tax Abatement Bonds
 Initially issued $30MM in bonds for Tax Abatement
structuring
 Grant Application
 REBA grant required a large application process that
took longer than expected

49. Sany: Proposed Site Plan
Site Data
•228 Acres
•Assembly Bldg 1 (ph 1)
•325,000 sf
•Assembly Bldg 2 (ph 2)
•500,000 sf
•Assembly Bldg 3 (ph 3)
•500,000 sf
•Distribution Center (ph 1)
•100,000 sf
•Office, R&D Bldg (ph 1)
•140,000 sf
•Total – 1.5 million sf

50. Sany: Proposed Site Plan

51. Sany: Proposed Site Plan

52. Sany: Proposed Site Plan

53. Sany: Proposed Site Plan

54. Sany: Lessons Learned
Time was always on Sany’s side (and they used it!)
To balance this, we had to formulate unique
qualifiers and expirations for land and incentives.

55. Sany: Lessons Learned
Sany’s site selection process was very unique
and quite different from most US or
European companies. The process could be
quite frustrating at times.

56. Sany: Lessons Learned
The Chinese concept of Guanxi has no true
comparison in Western Culture. You must
understand the implications to succeed in
Chinese business, industry & society.

57. Sany: Lessons Learned
There are some major visa issues for
permitting Chinese Nationals to work in the
US, but the companies are also aware of the
tax benefits to rotating employees.

58. Sany: Lessons Learned
To do business in China,
you have to experience China.

59. To learn more about the business opportunities in
Fayette County, contact the Fayette County Development
Authority. We can help you with:
• Available site and building information 200 Courthouse Square
• Comprehensive demographic information Fayetteville, GA 30214
• Labor statistics
• Community tours
• Customized state incentive proposals
• Groundbreaking ceremony coordination
Matt Forshee, President/CEO
mforshee@fayettega.org
PH: 770-461-5253 • FX: 770-460-0259
www.fayettega.org