The Chinese government signed contracts Tuesday valued at a
little more than $87 million with two companies for work that will
be done in the Midlands.
Pennsylvania-based Harsco Corp. was awarded a $68 million
contract with China’s Ministry of Railways for 11 railroad track
maintenance machines that will be produced by its Harsco Track
Technologies division in West Columbia. The deal is the company’s
largest single contract.
Chicago-based ImageMap signed a $19.3 million contract with the
Chinese to provide nine high-speed, laser-powered video systems to
measure track geometry. The work will be done at the ImageMap
Technical Center in Columbia.
The ImageMap contract is the largest ever for that company as
well, president Roger Tracy said in a telephone call from
Beijing.
Financing arrangements through the Export-Import Bank are
expected to be completed within the next four to six weeks.
The contracts followed a year and a half of negotiations that
received support from the U.S. Department of Commerce and S.C. state
and congressional leaders.
The final contracts were signed in Beijing with U.S. Commerce
Secretary Don Evans, U.S. Ambassador to China Clarke Randt and
company officials looking on.
The signing was anticipated after Gov. Mark Sanford and state
Secretary of Commerce Bob Faith met last week with Deputy Director
Chen Juemin at the Ministry of Railroads. Sanford and Faith
witnessed the signing of a letter of intent between the companies
and the Chinese.
The contracts are a positive step toward reducing the U.S.-China
trade imbalance and preserving U.S. manufacturing jobs.
The U.S. trade deficit with China hit $103 billion last year and
could top $130 billion this year.
Included in the Harsco order are nine production grinders, large
machines that repair long distances of track; one switch and
crossing grinder, designed to repair the rail where two tracks
converge; and a Stoneblower, which is used to realign and stabilize
track. The Stoneblower will be the first in China.
The machines will be manufactured over the next three years.
The contract is expected to significantly increase Harsco’s local
work force. The company currently has 400 to 500 employees in West
Columbia at any given time.
Harsco Track president Robert Newman has been reluctant to say
how many jobs would be added until the contract was signed. Newman
was in China for the signing and could not be reached for
comment.
But U.S. Rep. Jim DeMint, R-S.C., in a letter to Sanford urging
him to support the deal, said it could create up to 100 jobs.
The contract with ImageMap also could increase its local
employment, Tracy said.
ImageMap will have to deliver the systems within 13 months.
ImageMap currently has about 25 to 30 employees in its technical
center.
By way of perspective, China is getting systems for nine track
measurement vehicles, and there are only about 12 in the entire U.S.
rail system, Tracy said. “It ensures our sales level for 2004.”
The company’s systems are mounted on railroad cars and measure
track alignment, surface and curvature, said David Ford, vice
president and general manager in Columbia.
The systems primarily help ensure the safety of the rails, he
said. They also can reduce overall maintenance and help the trains
run more efficiently.
DeMint worked with the Chinese Embassy and the U.S. Department of
Commerce to encourage the sale.
In a letter sent to Chinese Ambassador Yang Jiechi in September
2002, DeMint stated, “This project is a very important opportunity
to promote the business and economic cooperation between our two
countries.”
The Chinese ambassador forwarded the letter to government
officials in China. Harsco Track officials confirmed the letter made
its way to the negotiating table in China later that month, DeMint’s
office said.
Harsco Track Technologies has 1,000 employees in South Carolina,
Michigan, Minnesota, Australia and England.
Harsco Corp. is a $2 billion diversified industrial services and
engineered products company employing more than 17,500 people in
more than 40
countries.