$100 million aluminum extrusion plant announced, To employ 150 – 200 in Lafayette
City welcomes Nanshan America Advanced Aluminum Technologies
February 16, 2011—A division of the Nanshan Group, based in the People’s Republic of China, is building and equipping a $100 million, 435,000-square-foot aluminum extrusion manufacturing facility and office in Lafayette. It is slated to open in early 2012 and will employ 150 to 200 within two years.
The Lafayette plant, the company’s first manufacturing site in the United States, will be known as Nanshan America Advanced Aluminum Technologies and located on 50 acres in Park 350, a 330-acre industrial park near Veterans Memorial Parkway and U.S. 52.
The announcement was made by Lijun Du, president of parent company Nanshan America Co. Ltd., at a news conference at Ross-Ade Pavilion in West Lafayette. He was joined by Indiana Governor Mitch Daniels, Lafayette Mayor Tony Roswarski and Tippecanoe County Commissioner David Byers, among others.
“The site we purchased in Lafayette makes a lot of sense for our business,” Du said. “It is close to our main market. We have easy access to Interstate 65, a truck diesel station nearby, low business costs, technical support from Purdue, a strong workforce base and training capabilities at Ivy Tech Community College.”
The community’s open arms were also a factor, he said. “During the process of this strategic decision making, we have had a feeling that we are coming back home. The whole community is welcoming Nanshan as a friend coming back. And that is important for a Chinese company making its first $100-million U.S. investment in the largest economy in the world.”
Du’s Lafayette ties include earning a master’s of science in industrial administration in 2004 from Purdue University and formerly serving as director of China operations for Oscar Winski Co. Inc., a Lafayette-headquartered business.
“The Nanshan facility in Lafayette will make high-end aluminum extrusions used in mass transportation, automotive, distribution, industrial and electrical industries,” Du said. “We will also make train-body material for the upcoming high-speed rail industry. It will be a very competitive combination—Chinese capital, state-of-the-art equipment from Europe and the U.S. with the most recently patented technology, experienced and innovative American management and a talented local workforce.”
Phase 1 construction begins immediately, he said. “We plan to install equipment in January 2012, with production slated to begin in the second quarter of 2012. Average wages will be $15.27 per hour, plus benefits.”
“The positives in today’s announcement are both abundant and ongoing, tangible and intangible,” said Lafayette Mayor Tony Roswarski.
“At the top of the list is the jobs—150 new jobs. Next is the long-term economic impact. Greater Lafayette Commerce, which worked closely with the company to bring its manufacturing plant here, estimates that the local impact will be $412 million in the company’s first decade here,” Roswarski said.
“Less tangible but of great significance to Lafayette are the global implications of Nanshan America’s decision,” he said. “It’s a big world, a world with many countries, states, cities and towns looking for a company like this to choose them. And Lafayette was chosen.
“That says a lot about our community, our readiness for new industry, what we offer and our stature on the world stage,” Roswarski said. “This surely enhances our standing on that global stage even more. Today’s announcement also brings our community a special opportunity to enrich our diversity and understanding of other cultures. It’s an opportunity to learn, to grow and to demonstrate that Lafayette truly values and welcomes people of every culture and custom.”
David Byers, president of the Tippecanoe County Commissioners, said, “It’s a big day when we can make an announcement of such significance and importance to Tippecanoe County. To be selected as the site for Nanshan America’s first North American operations means a lot of people are working hard together. We work as a team here in Tippecanoe County. We ready our community to be in a position to do what it takes to land a new industry. We communicate a business-friendly spirit, and that speaks volumes to companies like Nanshan America.”
Purdue President France Córdova welcomed the return of a Purdue graduate to the community. “This is a proud day for Purdue, as another one of our graduates has become a successful leader and role model for our students,” she said. “We are prepared to help Nanshan build a profitable, healthy business by assisting with recruiting support and employee training programs. We also look forward to working with Nanshan through internships and co-op programs, fulfilling the company’s needs and providing our students with invaluable experiential learning.”
Michael Gibson, chairman of the board of Greater Lafayette Commerce, attended the news conference. “Welcoming a new industry to town is one of the shining moments for Greater Lafayette Commerce, where a talented staff and a corps of volunteers are dedicated to working together to make our community all it can be. Today’s announcement is significant—in jobs, in opportunity and in economic impact.”
Another attending was Vic Lechtenberg, vice provost for engagement at Purdue University, which entered into a partnership proposal with the company to facilitate several services.
“Each fall, Purdue University welcomes thousands of students to campus,” Lechtenberg said. “Most will go on to outstanding careers and achievements. Some will return to launch a business here. That’s the case with Lijun Du. When his career put him in a position to be instrumental in selecting a site for a new venture, he remembered our community. While good business called for him to explore other sites, Lafayette and Tippecanoe County ultimately won out.”
Purdue is establishing an administrative team to assist with services, from education, workforce development and consulting experts to recruiting interns, graduates and alumni. “We are also offering affordable access to our state-of-the-art equipment and laboratories when use would not conflict with our research or education programs,” Lechtenberg said.
Joseph Seaman, president and chief executive officer of Greater Lafayette Commerce, highlighted the multiple benefits of the announcement. “The benefit tally is long—jobs, a dynamic product with great sales potential, growth in a new industrial park, positive economic impact throughout our community and greater diversity in our manufacturing mix are among them,” he said. “Obviously, we believe Nanshan has made a wise choice for its first U.S. manufacturing facility. We welcome the company and its success and growth here.”
Greater Lafayette Commerce worked closely with Nanshan representatives, said Jody Hamilton, director of economic development.
“From the first notice we received that Nanshan America Co. Ltd. might be interested in Lafayette to the time we knew they had chosen our community was an amazingly short period of time—only about two months,” she said. “That kind of timeline is quite unusual. Because we continually work on recruitment, we were able to pull our team together and respond immediately. We were ready.”
Greater Lafayette Commerce first learned of the company’s interest in early November.
“We didn’t know it then, but company representatives had already visited here three times,” Hamilton said. “I began direct communications with the company on December 21 and met with their site team on January 5. Their company chairman visited here on January 7, and we were soon finalizing details.
“It was not a slam dunk, however,” she said. “We did have competition, others who wanted this company in their town. One was another Indiana community and two other states were in the running, too. In the end, what Lafayette had to offer proved to be the best, and today we welcome a new industry to town.”
The city of Lafayette, Tippecanoe County, WorkOne West Central Indiana office and its REACH Center are providing a combined local incentive package valued at $7.6 million. It includes $1.2 million in Tax Increment Financing funds toward land, equipment and capital improvements; proposed $6.1 million, 10-year tax abatements; up to $200,000 in training funds; and assistance from WorkOne.
About Nanshan. Lafayette-headquartered Nanshan America Advanced Aluminum Technologies is owned by Chicago-based Nanshan America Co. Ltd., established in 2007. Its parent company is Shandong Nanshan Aluminum, founded in 1993 and headquartered in the People’s Republic of China. These companies are part of China’s Nanshan Group, founded in 1978.
About Greater Lafayette Commerce. Headquartered at 337 Columbia St. in Lafayette, Greater Lafayette Commerce (www.greaterlafayettecommerce.com), whose roots go back nearly 85 years, is a nonprofit membership organization supported by local industries and governments. Its mission is to advance economic and community prosperity for a superior quality of life.
Backgrounder: Nanshan America Advanced Aluminum Technologies
Company. Nanshan America Advanced Aluminum Technologies is building an aluminum extrusion plant in Lafayette, Ind. The plant will be headed by an American management team and operated by an American workforce under the leadership of Lijun Du, president of Nanshan America Co. Ltd., the company that will own the Lafayette plant. Du’s Lafayette ties include earning a master’s of science in industrial administration in 2004 from Purdue University and formerly serving as director of China operations for Oscar Winski Co. Inc., a Lafayette, Ind.-headquartered business.
Product. The Lafayette facility will make high-end aluminum extrusions used in mass transportation, automotive, distribution, industrial and electrical industries. It will also make train-body material for the upcoming high-speed rail industry.
Site and Building. The company is purchasing 50 acres in Park 350, a 330-acre industrial park near Veterans Memorial Parkway and U.S. 52 in Lafayette’s city limits. This will be the second building in Park 350. Nanshan will have entrances to its site from both U.S. 52 and Veterans Memorial Parkway. Plans are to build a 420,000-square-foot manufacturing plant and 15,000-square-foot office building.
Investment. The company is investing $100 million for phase I of the plant and equipment.
Jobs. The company expects to employ 150 to 200 within its first two years. Average wages will be $15.27 per hour, plus benefits.
Timeline. Construction begins immediately; equipment installation is expected to begin in January 2012. The company hopes to begin production by the second quarter of 2012.
Economic Impact. In the company’s first 10 years of operations, the estimated economic impact for the community is $412 million—for payroll, new construction, new equipment, taxes and supplier purchases.
Incentives. The local incentive package valued at more than $7.6 million includes:
- Tax Increment Financing (TIF) funds of $1.2 million to help offset land, equipment and capital improvements.
- The company will ask for $3.5 million in a 10-year, personal property tax abatement on its $76.5 million personal property investment, and $2.6 million in a 10-year, real estate tax abatement on its $22 million real estate investment.
- Through Greater Lafayette Commerce’s Training Loan/Grant program, the company will receive up to $200,000 in training funds over two years, funded equally by the city of Lafayette and Tippecanoe County.
- WorkOne West Central Indiana and its REACH Center will provide recruiting, interviewing, candidate and position assessments valued at $168,220.
Corporate Background. Nanshan America Advanced Aluminum Technologies is the name of the company that will operate in Lafayette, Ind. It is owned by Nanshan America Co. Ltd., established in 2007. Nanshan America Co. Ltd. currently operates a sales office on Fifth Avenue in New York City and a new warehouse in Los Angeles, and it recently purchased a Chicago building for its U.S. headquarters.
Besides the aluminum extrusion facility in Lafayette, Nanshan America Co. Ltd. is also in charge of aluminum coil product sales in North and South America. Those include substantial can material, hot roll and cold roll coils, and foil products.
Nanshan America Co. Ltd.’s parent company is China-headquartered Shandong Nanshan Aluminum Co. Ltd., established in 1993 and since 1999 traded on the Shanghai Stock Exchange. It is a global enterprise, providing the complete aluminum industrial chain from electric power to electrolytic aluminum, alumina, aluminum extrusion, construction extrusion, melting and casting, hot rolling, cold rolling and foil rolling.
Shandong Nanshan Aluminum Co. Ltd. is a member of the Nanshan Group, headquartered in China. The Nanshan Group (www.nanshan.com.cn) was established in 1978 and today operates some 60 companies in China, America, Australia, Canada and Italy. The companies include financial, tourism and education institutions; real estate companies; and aluminum and textile manufacturers.
Lafayette will be Nanshan Group’s first U.S. manufacturing operation.
Quick glance:
Nanshan Group, China, established 1978
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Shandong Nanshan Aluminum, China, established 1993
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Nanshan America Co. Ltd., Chicago, established 2007
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Nanshan America Advanced Aluminum Technologies, Lafayette, building 2011
