Not Too Good.
Let’s hop in the SouthsideCentral Time Machine and go back to October 17th, 2013 where this story began.
And here we are out at the Institute on October 17th, 2013 where this announcement is made…
The Regional Industrial Facility Authority and the Industrial Development Authority of Danville announce that Zeyuan Flooring International Corp. is locating its first United States manufacturing facility in Cane Creek Centre. The company will invest $15 million and employ 100 people over a three-year period.
The Regional Industrial Facility Authority is providing Lot 8 in Cane Creek for the Industrial Development Authority of Danville to build initially a 40,000 square-foot building for the project. This lot is located behind GOK International on Cane Creek Parkway. It will take approximately nine months to build the facility.
“To manage expectations, it should be noted that it will take some time to execute documents and leases, grade the site and build the facility before the majority of the people can be hired. While the new building is being constructed, the company initially will operate out of GOK International next door with a small staff,” said Danville City Manager Joe King.
Andy Yang of GOK International at 434-791-2100 will be the contact person for job inquiries while the factory is being built in Cane Creek since GOK will be helping Zeyuan Flooring with product distribution and sales during the time period. This start-up process will require a small number of employees.
For the past 15 years, Zeyuan Flooring has been a processor of solid wood flooring in China. Zeyuan owns a modern wood drying kiln, with more than 1.5 million square meters capacity. The global sourcing network of carefully selected raw materials, a short production cycle, and strict quality management provide customers with timely and stable quality products.
Zeyuan Flooring products include several styles of solid wood flooring, wood composite series, bamboo flooring and parquet flooring. The products will be exported to Canada, Europe and other countries, and sold throughout the U.S. The company will be actively developing new products and providing personalized service and sample processing, while continuing reasonable pricing to meet customer requirements.
“We initially thought about locating our manufacturing plant in Los Angeles since everybody in China knows about this area. Kevin Liao of GOK International and Danville officials made a great case based on location and resources that Danville was a better choice for us. We have been overwhelmed with the level of support and kindness that everybody has shown us,” said Zeyuan Flooring CEO Sindy Cui.
Liao, president of GOK International, provided the company lead to the region through his vast network in China. Liao and Danville officials met with the company for the first time in April. A second visit occurred in June with Danville City Manager Joe King touring the factory in Tianjin to solidify the relationship and conduct due diligence. Zeyuan Flooring company officials have been visiting Danville since early October to explore the region, set up accounts and sign the necessary paperwork to locate in Cane Creek Centre.
Mayor Sherman Saunders, chairman of the Danville Pittsylvania County Regional Industrial Facility Authority, said, “The owners of Zeyuan Flooring are the most delightful people and will be a huge asset for the region for many years to come. Danville has been crafting a great China strategy to bring jobs to our region. It has taken a lot of patience and hard work, but we are starting to see the fruits of our labor.”
James Snead, chairman of the Pittsylvania County Board of Supervisors, said, “We are excited to have a second Chinese company within a year agree to create new jobs and invest several million dollars in the region. These manufacturing jobs will help re-employ a part of the workforce that needs jobs the most.”
Delegate Danny Marshall, also a member of the Tobacco Commission, said, “The Tobacco Commission is all about improving the economy of the regions that it serves. This project is one which the commission was able to support with a $350,000 grant from its Tobacco Region Opportunity Fund, and it is just the kind of project that we need in our community to improve our local economy.”
Hey, with big names like GOK & Kevin Liao, how could something like this turn into a Job Bust? The mood was so good at the Institute that day that Joe King was proud to present Sindy Cui with the Fancy Chocolate Macaroon Cookie award (or something like that).
Let’s make the trip back to the present. Sadly, GOK is deader than disco still reorganizing. In the meantime, Zeyuan Flooring is going to use part of the GOK building to start their business, and they said they’d surely be up and running by October November December mid-January. Let’s take a look at how that’s going!
Well then. At least they’ve got their sign up by now. See?
Well then. At least some part of the company is outstanding in the field. Or at least Out Standing In The Field.
Thanks for riding along in the SouthsideCentral Time Machine!
So what is the timeline on this tobacco money grant
No grants on this one. They were a Job Bust all by themselves.
Thanks for reporting on these companies. Will there ever be any reprisals at city hall for the many failed companies in Danville? Everything just continues as if nothing is happening.
Yesterday Virginia Business listed awards for the top fastest growing companies in the state and I don’t think one was from China. Yet Danville had another trip to China recently to recruit companies after it has had repeated failures of China-based companies.
According to WSET there was a 350k grant given to Zeyuan from the Tobacco Commission. King and other city officials went to China to help recruit the company? Was RIFA to invest in locating property? Was the IDA going to build a 40,000 sq. ft. building?
http://www.wset.com/story/23720548/chinese-company-bringing-100-jobs-to-danville
http://www.woodworkingnetwork.com/wood-market-trends/woodworking-industry-news/production-woodworking-news/Chinese-To-Open-Flooring-Factory-in-US-Investing-15-Million-228355061.html#sthash.nRSkMS6x.dpbs
WSET? Haha. Anyway, the money went to site preparation and not to the company.
From above: Delegate Danny Marshall, also a member of the Tobacco Commission, said, “The Tobacco Commission is all about improving the economy of the regions that it serves. This project is one which the commission was able to support with a $350,000 grant from its Tobacco Region Opportunity Fund, and it is just the kind of project that we need in our community to improve our local economy.” Are you now saying that they did not get grant or any assistance?
The TROF money went to RIFA to grade the site and make it industry ready. It didn’t go to the company directly. So whether that company ever does anything or not, the money will have been spent to improve the industrial park. Not an issue.
So no big deal. The land was graded and is ready for construction. Well that’s great, I guess the IDA or RIFA is really ecstatic the land was graded for such a low price. I just have a hard time believing if grant money was transferred, and none of the performance incentives were met; that everyone is going just to say, oh well least we got the lot graded. What happens with the performance agreement that is supposed to be in place with the Tobacco Commission? That money would have to be repaid wouldn’t it??
There were no performance agreements because the money was given to RIFA for site development.