You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

Deal for former GM plant closer

Chinese company expected to make announcement soon, sources said.


Local officials say the Chinese company Fuyao is expected to announce this month — perhaps within days — that it is going ahead with the purchase of the former General Motors plant in Moraine and will begin transforming the facility into its first U.S.-based auto glass manufacturing factory.

Fuyao has not closed on the deal, they said, contrary to what was reported last week on the China Daily news website. And the $150 million purchase price reported in the story was widely exaggerated, according to Moraine City Manager Dave Hicks and Stu Lichter, founder and principal of Industrial Realty Group, the plant’s current owner.

But both Hicks and Lichter said the deal is close.

“Everything is proceeding on course,” Lichter said. “And I think we’re getting close, hopefully, to a successful conclusion.”

At stake are some 800 jobs Fuyao has said it will eventually bring to the plant.

The March 28 story on the China Daily news web site said the project has been approved by the Chinese “Ministry of Commerce” and Fuyao “bought” the plant for $150 million. It quotes Fuyao Chairman Cao Dewang as saying, “It’s a great deal, and lots of equipment in the plant is still in working order.”

“In the future, Fuyao will take full (advantage) of the geographical location since 85 percent of the automakers in the U.S. are distributed alongside the highway (Interstate 75),” the article quotes Dewang saying.

However, Lichter said the reported purchase price of $150 million is “wildly inaccurate.” He declined to say what the selling price would be. Dave Hicks, Moraine city manager, estimated it would be “south of $20 million.”

Lichter said Fuyao’s pre-purchase “due diligence” research into the plant is proceeding, and he thinks a purchase closing in April “is a good bet.”

Hicks agreed that Fuyao has not bought any of the plant property yet, and he questioned the price reported in the story. Hicks believes Fuyao is weeks away — perhaps days — from a closing, but he believes the company is still researching the site.

Fuyao is not planning to buy the entire plant, company leaders have said.

Montgomery County auditor’s office staff said Monday there was no record of a new purchase. The owner of the plant property was still IRG-Moraine LLC, a staffer in the auditor’s office mapping department said. The last entry in the property record was in November 2013, when the property was most recently re-platted.

Los Angeles-based industrial property investor IRG and its Ohio partners bought the property in early 2011.

On Jan. 10, in a Statehouse ceremony with Ohio Gov. John Kasich, Dewang publicly affirmed his company’s intention to buy the property, which GM shut down in late 2008. The company plans to make automotive glass on the site, eventually employing some 800 workers, Fuyao leaders have said.

A message seeking comment was left with Fuyao’s North American office.

China Daily said Fuyao’s recently opened auto glass plant in Kaluga, Russia will have an annual production of 1 million sets of automotive safety glass in its initial phase of production, reaching 2 million sets eventually.



Reader Comments ...


Next Up in Business

Gmail phishing scam may lead users to give up login info
Gmail phishing scam may lead users to give up login info

A new phishing scam is allowing hackers to gain access to unsuspecting Gmail users' accounts and target their login credentials, according to recent reports. Mark Maunder, CEO of security service Wordfence, described the scam in detail in a blog post, adding that it is also targeting other services beyond Gmail. Tech Times reported that the scam involves...
Millennials spend more on coffee, save less for retirement
Millennials spend more on coffee, save less for retirement

A large number of Millennials spent more on coffee in the past year than they invested in their retirement savings, according to a new study. » RELATED: What makes Millennials tick in the workplace? It may surprise you About 41 percent of the Millennials — ages 18 to 35 — admitted to spending more on coffee than they saved for retirement...
Some worry over impact from health care law repeal
Some worry over impact from health care law repeal

The U.S. House of Representatives on Friday joined the U.S. Senate in passing a budget reconciliation measure that would allow Congress to de-fund key elements of the Affordable Care Act, including tax credit subsidies and federal funding for Medicaid expansion in states like Ohio. While some are rejoicing over the move, replacing President Obama&rsquo...
Will Obamacare repeal leave people in the lurch?
Will Obamacare repeal leave people in the lurch?

As Congress moves forward on a resolution to repeal the Affordable Care Act, experts have warned such a measure could crash the law’s commercial insurance program, jeopardizing coverage for 11.5 million Americans, including more than 230,000 Ohioans. But local industry leaders remain hopeful that congressional Republicans — who are leading...
Holiday retail sales up, but some stores suffering
Holiday retail sales up, but some stores suffering

Retail sales hit about $658 billion for the holiday season, but several chain retailers still announced the closures of hundreds of unprofitable brick-and-mortar stores in January — including several stores locally. “These numbers show that the nation’s slow-but-steady economic recovery is picking up speed and that consumers feel...
More Stories