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* Whatever happens in Sunday’s big football game, there’s no way a major international business conference like this would’ve been held in Green Bay, or Indianapolis for that matter…
Gov. Pat Quinn, U.S. Sen. Mark Kirk and other dignitaries’ participation in a signing ceremony Thursday of business deals between Illinois and Chinese companies signaled how China’s growing middle class is opening potentially explosive revenue-growth opportunities.
Midwestern agricultural giants Archer Daniels Midland of Decatur, Cargill, Bunge, soybean and renewable-energy company Louis Dreyfus and farmers represented by the Illinois Soybean Association and other advocacy groups will benefit from the deals, worth a total of $1.8 billion. The deals signed Thursday at the Chicago Hilton represented eight U.S. and 24 Chinese companies. One-fourth of the total, or $450 million, will go to purchase Illinois soy this year, according to state government statistics. Indeed, one of every four rows of soybeans planted in Illinois is exported to China each year, helping make Illinois the sixth-largest state exporter to China, according to Quinn and the Illinois Soybean Association.
The event was tied to China President Hu Jintao’s historic visit to the United States and Chicago but took place a few hours before his arrival.
From karaoke equipment makers to wind turbine manufacturers, Chicago area companies and business groups are looking for ways to capitalize on the burgeoning market in China and welcome the Chinese president’s visit here.
President Hu Jintao’s two-day stop here includes a trade and economic cooperation forum at the Hilton Chicago today at which some 350 Chinese executives and more than 500 U.S. executives will gather.
* But the state needs to get cracking soon if it wants to keep this Rochelle project on track…
The economic downturn has been one with many twists and turns and no one is totally immune, even where things are going well.
Last fall, Japanese firm Nippon Sharyo held a ground breaking ceremony for its newest railcar manufacturing facility to be located just west of Rochelle. It was a highly-attended event, including Gov. Pat Quinn and other politicians, with extensive media coverage.
On Wednesday, Rochelle City Manager Ken Alberts confirmed that the Black Earth Development Resources, LLC., which is developing the property, is having difficulty securing financing for the project.
“I can confirm that there is an issue, and the issue relates to the financing of the infrastructure above and beyond what is being paid for by grants,” Alberts said.
The state grants still left the locals about $2 million short. They’ve been applying for other grants, but you’d think DCEO would step in with at least some paperwork assistance, since Gov. Quinn made such a big deal about this facility last year.
*** UPDATE *** Just this week, Gov. Quinn used the Rochelle manufacturer as an example of how Illinois one-upped Wisconsin by taking Nippon Sharyo away from the Cheesehead State. Check it out…
If taking that company away from Wisconsin is such a big deal to you, governor, it’s time to make sure this deal doesn’t fall apart.
* And while they’re at it, they might want to give this guy a call…
Sam Beelman has dealt with taxing issues as an Illinois-based business before, but the recent round of income tax hikes may force him to move more of his trucking business out of the state, he says.
“I think it’s ridiculous,” said Beelman, who owns and operates Beelman Truck Co. in Alorton. “We will try to move whatever business we can out of this state.”
* And a thank you note and a promise to do better to this businessperson might also be in order…
The leaders at Allsup Inc., a Belleville-based business that helps clients maximize their access to Social Security disability insurance and Medicare, are also dismayed with the increasingly cost of doing business in Illinois. However, company spokeswoman Mary Dale Walters said there are no plans to move.
“Like every other business in the state of Illinois, we’re disappointed that this has occurred,” Walters said. “We really haven’t completed any analysis of what the impact will be in the end. We’re not going anywhere. Jim (Allsup) built the business here, and it continues to grow here. We will add (90) more jobs here, and we had our best year ever last year.”
* Your Moment of Zen for today is from the Jacksonville Journal-Courier’s “Open Line” section…
“Today’s message is brought to you by the Illinois Labor Union Mafia: We would like to thank the Democratic Socialist Party of Illinois for doing just what we bought them to do, continue to pump us billions of dollars at taxpayer expense. We know that the union system is unsustainable without extorting money from the general public, so thank you for a job well done.”
* Related…
* Elgin business leader sees positive outcome of meeting with Hu: Wanxiang also opened Wanxiang Energy, a $12.5 million, 40,000-square-foot solar panel manufacturing plant in Rockford, last summer, according to the Rockford Register Star.
* Chinese businesses buying Illinois soybeans
* Mitsubishi’s Normal plant to build new model
* Durbin talks business with chamber members
* Gov. Walker scores victories on tort reform, HSAs - Measures OK’d to create lawsuit protections, provide tax breaks for health savings accounts
posted by Rich Miller
Friday, Jan 21, 11 @ 9:12 am
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Previous Post: Daily Show takes a look at state deficits
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I want to thank you Rich for finally giving us a reason to read the Jacksonville paper.
Comment by Spliff Friday, Jan 21, 11 @ 9:29 am
I wonder which had a greater impact on Mr. Beelman’s company and his subsequent decision to finally move out of Illinois.
#1. The recent tax increase.
#2. The Blago era fee increases on trucks and trucking companies.
Comment by Irish Friday, Jan 21, 11 @ 9:37 am
Gov. Walker invited Hu to make a trade visit to Kenosha. They had a special menu item at the Brat Stop — the Running Dog of Capitalism.
Comment by wordslinger Friday, Jan 21, 11 @ 9:44 am
biting my tongue on this post.
Comment by Living in Oklahoma Friday, Jan 21, 11 @ 9:54 am
Does this mean Quinn is now the international Soy Boy?
Comment by Small Town Liberal Friday, Jan 21, 11 @ 10:06 am
Good point, STL. I think the answer would be “Yes.”
Comment by Rich Miller Friday, Jan 21, 11 @ 10:07 am
Can Illinois afford to keep funding these new business acquisitions? The ‘return’ is quite nebulous. How has the State recovered its investment in Boeing, or the grants to Motorola?
The money up front has to come from somewhere. There never is any accounting regarding the promised number of jobs or commerce as a result of this kind of spending.
Comment by Plutocrat03 Friday, Jan 21, 11 @ 10:09 am
The better JJC Open Line:
“Tomorrow’s headline: Hu visits zoo, but Hu cares?”
Dr. Suess would be proud.
Comment by zatoichi Friday, Jan 21, 11 @ 10:09 am
Re: Rochelle project
Is there anything that prevents the state from making a loan to this project or taking an equity position? It seems like a low dollar figure ($2 million) to be holding this up, though the article seems to leave room for other factors not mentioned.
Comment by MikeMacD Friday, Jan 21, 11 @ 10:10 am
Soy Boy in Chinese
大豆男孩
(pron Dàdòu nánhái)
Comment by soccermom Friday, Jan 21, 11 @ 10:24 am
Oh, yeah? Well, Wisconsin has the “International Clown Hall of Fame”. Can’t beat that.
Comment by dupage dan Friday, Jan 21, 11 @ 10:40 am
Oh yeah, DD…Ill. does too…we call it the Hall of Governors!
Comment by D.P. Gumby Friday, Jan 21, 11 @ 10:47 am
@DD
Don’t forget the goats on the roof restuarant.
Comment by How Ironic Friday, Jan 21, 11 @ 10:47 am