Copper-tube maker building plant in Texas

Zhejiang Hailiang Co Ltd announced this week that it is investing $165 million to build a copper-tube factory in Sealy, Texas, a small city west of Houston.

Hailiang purchased the former BAE System Facility and will build a 500,000-square-foot facility. The project is expected to bring roughly 250 jobs to the city with a population of more than 7,000, said Robert Worley, executive director at Sealy Economic Development Corporation (Sealy EDC).

As the city's first Chinese investment, Hailing Copper Texas will be the third largest employer in the city after Walmart and the local school district, said Worley. "We are very excited about this Chinese company coming," he said.

Worley expects the hires will come from both Sealy and neighboring Houston. He said that nearby Blinn College will work with Hailing to train workers specific to Hailiang's needs.

The facility will be built by China Construction America, and the first phase is expected to be completed by 2022.

Hailiang is the world's leading copper tube manufacturer, and the US is its largest market outside of China. The company, which has been working on a master plan to set up manufacturing facilities in major markets globally, began to entertain the idea of manufacturing in the US in 2017.

After surveying a few states, including Oklahoma, Arkansas, Kentucky and North Carolina, Hailiang selected Sealy as its site after considering factors including labor, electricity, natural gas, logistics, taxes and incentives.

Michael Jiang, director of investment at Hailiang, said that building a copper-tube plant in US means that Hailing could do business as a local supplier and save the company a minimum 30 days on ocean freight and customs clearance.

"During the due diligence, we could tell that US is quite friendly to foreign direct investment as a mature economy. It's easy to communicate with local county, city, EDC (economic development corporation) and school districts. We are very happy with the local supporting staff, the transparency and efficiency, which make things a lot easier," Jiang said.

Jensen Shen, director for Asia, Australia and Oceania at the Greater Houston Partnership (GHP), said that GHP has been emphasizing the development and diversity of Houston's economy.

"Hailiang is another success story in the durable goods manufacturing sector, which currently is at 4.7 percent in employment by industry. This economic diversity will help Houston's economy continue to grow successfully," said Shen.

Sealy City Manager Lloyd Merrell welcomed the company to the city. "We are going to do everything we can to make it a success," he said.