Chinese Van Company to Open Shop in Boca Chica's FTZ

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aegap

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According to this article in today's Listin Diario, Xiamen Golden Dragon, China's second largest automotive company, it planning to construct a regional asembly plant in the Dominican Republic. The plant, if built, would servise Latin America and the Caribbean.

It seem that Xiamen is very serious and in fact a delegation, which includes its president will soon visit the DR.

The initial investment is expected to excede USD$100 million, and create at least 1000 direct jobs.

http://listin.com.do/cuerpos/republica/rep9.htm

Does any one have any additional information on this deal?

Would it go through?

How long would it take for it to be fully operational?

I also find it somewhat odd that they would want to locate in the DR, an island, as oppose to South or Central America.
 
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Chris

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This is interesting. In the ftz? Then we'll perhaps not even be able to reap the benefits of buying cheaper Chinese vehicles (if we wanted to). I cannot see that their local content will be high enough to get permission to sell in the country. But you never know, rules are changing. I did about a year's worth of systems work for a US subsidiary of a Chinese fertilizer plant in the US. It was an experience. I would take the numbers of jobs created with a grain of salt. Out of this working experience, I learnt that the Chinese usually build a little 'city' and use their own workers. They simply add a local worker here and there to fulfil whatever quota they are working towards. They may have changed their modus operandi by now, but this was my experience about 7 years ago.
 
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aegap

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well, Dominican Laws "require" a 80% domestic workforce, so I don't think a Chinese town will be built in Boca Chica.
 
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Escott

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I am sure that the workers would be mostly Chinese. Just not management.

Also I believe you are able to sell a portion of your goods locally if you are a freezone company. Matter of fact for the first couple of years you can sell all of your product I believe.

It would be nice to see some good pricing on vehicles in the DR. The government will find some sort of way to pocket money and change that possibility somehow I fear.
 
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Criss Colon

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Never Happen!!!!!!!!!!!!!!!

They can build it next to the Ukranian "Airplane Factory"(Remember that?)and use power generated from the "Nuclear Power Plant"(Remember that?)and ship the vans from Haina to Santiago on the new "Railroad"(Remember that?)and spend money they make in a casino on the "Artificial Island"(Remember that?)and if they loose everything,they can take the "Metro" home(Remember that?)
"The Economy Is BOOMING!"(Remember that?)as the DR restructures it's international bond payments so they don't default :bandit: :bandit: :bandit: (See DR1 News Archives for "All The Above!)
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Chris

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Escott said:
...Also I believe you are able to sell a portion of your goods locally if you are a freezone company. Matter of fact for the first couple of years you can sell all of your product I believe.
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No, not really. There is a complicated business with % goods that may be sold locally vs local content used in manufacturing. We did not even go this way as it was simply too complicated.
 
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Porfio_Rubirosa

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You have to ask yourself ...

... were I the chief executive of a Chinese van company, why would I want to build an assembly plant in the DR? Labor costs: high. Construction costs: high. Energy costs: astronomical. Local market potential: limited. Export costs to potential largest market (NOT the USA): high (we're on an island).

I agree with Criss, this is going the way of the Ukranian airplane plant and the Haina railroad. The only question is: What's the scam?

That said, if they use this Golden Dragon City Bus instead of building the new underground Metro, then the DR government should subsidize the new factory to the tune of millions of dollars every year. It would save the taxpayers money (and from crushing debt) every damned day.
 
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Pib

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Chris said:
No, not really. There is a complicated business with % goods that may be sold locally vs local content used in manufacturing. We did not even go this way as it was simply too complicated.
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Some free zone companies that were clients of mine in the olden days even prefered to ship to the US and back instead of going through the maze of red tape. Selling locally is not an easy proposition IMHO.

Anc CC, let go on the coffee. :)
 
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aegap

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Porfio_Rubirosa said:
... were I the chief executive of a Chinese van company, why would I want to build an assembly plant in the DR? Labor costs: high. Construction costs: high. Energy costs: astronomical. Local market potential: limited. Export costs to potential largest market (NOT the USA): high (we're on an island).

.
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My Thoughts exactly. China and Taiwan have been ferosiously fighting for influence (political and what not) in the Caribbean, and I think DR is playing them both. Check out how many trips DR President's and upper level menisters have being making to Taiwan. Look what Taiwan has done; it donated most of the money to build one of the most modern hospital in the country (Azua), recently inagurated. Donated most of the fund to construct DR most modern technical Institute, ITLA.


If I remember well, the Taiwanese president even visited DR some time ago.

DR is playing them both

From what I have seen, the relationship with Taiwan has been most fruitful, but a closer relationship with China holds great potential.

I wonder if DR would have to choose favorite.
 
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aegap

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Criss Colon said:
They can build it next to the Ukranian "Airplane Factory"(Remember that?)and use power generated from the "Nuclear Power Plant"(Remember that?)and ship the vans from Haina to Santiago on the new "Railroad"(Remember that?)and spend money they make in a casino on the "Artificial Island"(Remember that?)and if they loose everything,they can take the "Metro" home(Remember that?)
"The Economy Is BOOMING!"(Remember that?)as the DR restructures it's international bond payments so they don't default :bandit: :bandit: :bandit: (See DR1 News Archives for "All The Above!)
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Click to expand...

The mini SD Island is a private venture and won't cost the Government but a water pipe. Now think of the benefits, a beach where you can float on minutes away, a healthier river, the employment, etc. Oh by the way, the initial investment has already been made

If you analyse it correctly. it would definetly make perfect business since. It is set to be completed much in tune with Cap Cana, which is a definete. Atlantica, although still in its infancy, has been more sucessfull then Cap Cana during its opening phase.

Once this places gets built, what CEO would not want to live in Atlantica/ Cap Cana and make the short commute ( by air that is) our soon to be beloved Novo Mundo section of SD. The tax advantages will allow it to compete with others in the area like the Bahamas, Caycos and Turks, Panama, Bermuda, etc.

In response to those that maybe wondering why the money isn't better spent improving Santo Domingo, well this private invvestment not public money. In fact if that is what is desired we should encourage Bofill, as the building of such a project would provide more revenue to the city and incentivize the government to do more in improving other areas of the city.
 
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Lurch

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Porfio_Rubirosa said:
... were I the chief executive of a Chinese van company, why would I want to build an assembly plant in the DR? Labor costs: high. Construction costs: high. Energy costs: astronomical. Local market potential: limited. Export costs to potential largest market (NOT the USA): high (we're on an island).

I agree with Criss, this is going the way of the Ukranian airplane plant and the Haina railroad. The only question is: What's the scam?
Click to expand...

I would agree it is extremely unlikely that the Chinese would determine the RD to be a viable location for the mass production of automobiles. The costs would be beyond logic.

However the Chinese are currently engaged in a rather aggressive and worsening diplomatic campaign with Taiwan. One aspect of this campaign is to offer poor 3rd world nations aid in return for severing all ties with Taiwan. Sometimes the aid is direct ?funding?, other times it is an infrastructure project such as the very recent (< 1 month) clean water project underway in Liberia. Liberia recently severed all diplomatic ties with Taiwan after the Chinese engineers arrived.

The RD currently has relations with Taiwan perhaps this may be China placing their toe in the proverbial water. I would doubt the Chinese would be willing to lose money on the project so I would be curious as to their long term intentions. :chinese:
 
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carl ericson70

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Chris said:
This is interesting. In the ftz? Then we'll perhaps not even be able to reap the benefits of buying cheaper Chinese vehicles (if we wanted to). I cannot see that their local content will be high enough to get permission to sell in the country. But you never know, rules are changing. I did about a year's worth of systems work for a US subsidiary of a Chinese fertilizer plant in the US. It was an experience. I would take the numbers of jobs created with a grain of salt. Out of this working experience, I learnt that the Chinese usually build a little 'city' and use their own workers. They simply add a local worker here and there to fulfil whatever quota they are working towards. They may have changed their modus operandi by now, but this was my experience about 7 years ago.
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You speaketh the truth! My my dad recently retired from a chinese subsidiary and he's mentioned some of the same things that you've brought up. I seriously doubt that if the plan goes though; this will bring alot of employment opportunities for dominicans. If one were to go by the modus operandi of chinese buisinessmen most of the workers will probably be chinese. Inevitably a chinatown is likely to sprout up.

Let's say my prediction is wrong and most of the workers in the plant turn out to be dominican. I wonder if the chinese will be able to adapt to the dominican work ethic and vice-verse.
 
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Chris

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carl ericson70 said:
Let's say my prediction is wrong and most of the workers in the plant turn out to be dominican. I wonder if the chinese will be able to adapt to the dominican work ethic and vice-verse.
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What Dominican Work ethic? ;) (Don't take me seriously, just having fun with stereotypes...)

Seriously, it would be quite strange thing, this bizarre blending of cultures. My recollection of working with a number of 'raw' Chinese 'work exchange type' folks, is a strange juxtaposition. The loud jabbering in the lunch room and the deathly silence and almost 'squaring of shoulders' should a management type walk in... The 'rehearsed' high voice tone and speeches and stilted smiles if a conversation happened to force itself to take place. And the funny smell of funny food. And the total agreement to anything that one proposed... (Aha, something in common with my DR country folks.. Just, nothing ever happened so that one could see it happen...) And the real friendly invitations to show you everything should you decide to visit China, that is, if you cornered one somewhere where there was no opportunity to be overheard by one of the 'management types' and if one happened to be an African and not a "US oppressor and imperialist"... Geez, I never could understand this...

Somehow, my mind blankly refuses to wrap around the concept in the DR.
 
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samiam

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Mar 5, 2003
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aegap said:
The mini SD Island is a private venture and won't cost the Government but a water pipe. Now think of the benefits, a beach where you can float on minutes away, a healthier river, the employment, etc. Oh by the way, the initial investment has already been made.....

QUOTE]

KNowing the DR and the way Dominicans work, that'll be the most expensive water pipe in the world!!

I'd also like to see the island residents taking a nice swim sorrounded by sewage water submarines and garbage....wonder if its gonna have its own atmosphere (like the biodome)...you know, to keep the smell out. They can also tint the biodome, so the poor people looking from the shore cant see them. Once tinted, they can put a giant letters, like the busses, saying something like..."Mi propio esfuerzo"....just a thougt//
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