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Location key for China construction

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Doug Krizner: China’s a low-cost labor magnet for manufacturing. But today, an interesting twist: a Chinese machinery maker is expected to announce plans to build a new $60 million plant in Georgia. Marketplace’s Jeff Tyler reports.


Jeff Tyler: Sany Heavy Industry Company would be the first Chinese firm to manufacture construction equipment in the U.S.

But, you might wonder, isn’t it cheaper for them to build their products in China?

Dennis Slater: It’s not about the cost of manufacturing, really. It’s more about having the product available and also having product support.

That’s Dennis Slater, president of the Association of Equipment Manufacturers.
It’s an industry, he says, where you need a local presence in order to compete.

Slater: I think the Chinese recognize the U.S. market/North America being one of the biggest markets for construction equipment. If they’re going to be a world player, they have to enter this market here.

More Chinese manufacturers are expected to follow. As for the impact on home-grown construction equipment companies, Slater says American firms are very competitive and produce more than they can sell in the U.S. market.

I’m Jeff Tyler for Marketplace.

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