Michael Kephart (left), president of American Wonder Porcelain and Jianping Huang, chairman and president of The Wonderful Group, outside of the American Wonder Porcelain plant in Lebanon, Tennessee. PAUL WELITZKIN / CHINA DAILY
Michael Kephart, a veteran of the ceramic tile industry, was hired by Huang to be president and CEO of American Wonder Porcelain. "Our goal is to produce high-quality, finished porcelain tiles that will be used in floors, walls and counters in residential and commercial applications," he said.
Porcelain is made from raw clay and other materials. "We mix it together with water to produce slurry that is dried, milled and processed before it is heated up," Kephart added.
He admitted that he was not surprised to be working for a Chinese company. "I have worked in Europe and Asia before," he said.
In addition to Wonderful Group team members from China who are helping to set up the Lebanon plant, there are workers from Italy and other countries at the facility to help install machinery. There are also residents from the community who need to be trained.
Kephart believes that such diversity may be a harbinger of what a typical American workplace will look like in the future. He also praised Huang for enabling him to set up "a Western type of company". "Despite some language differences, our team is cohesive, productive and dedicated," he said.
The plant has 50 to 60 employees, and when it begins full production, Kephart anticipates a workforce of 175 to 225.
Riley Tang, who worked for The Wonderful Group in China, has been living in the Lebanon area for two years.
"The people are nice and kind to everyone. I like living here and noticed that country music is very popular," he said through an interpreter.
Even with language hurdles, Tang described a smooth operating team. "We get along well, and (they) help me in work and life," he said, adding that he would not object to staying in Tennessee and making a career there.
Brian Messamore has lived in the state for 10 years and is a veteran of the ceramic industry. He said that diversity is a way of life in the sector. "Right now manufacturing porcelain tile in America is a multicultural thing," he said. "There is always a lot of cultural diversity.
"I think there is a lot we can learn from the Chinese, and there is a lot they can learn from us," he added. "There is a bond developing on this team."
Bonds are also important to Sinomax USA, which manufacturers memory foam bedding and related products. It has been a supplier to Walmart since 2006, and the company has since added Costco and Kohl's as clients.
"We were considering making an investment in the US several years ago," said Chen, who comes from Beijing.
"Initially we considered a partner for a joint venture. But that didn't work because it's hard to find the right one," he added.
Chen then thought about acquiring an existing US company, but that did not pan out either. Meanwhile, he said it was getting harder to take care of his US clients from a manufacturing base in China.
In 2013, Walmart unveiled a $250 billion initiative to bring back manufacturing jobs that had been outsourced to China and other nations.
Rightly or wrongly, the company had been blamed for sending thousands of US jobs overseas since the 1990s.
That program turned out to be the tipping point for Chen and his company's ambitions in the world's biggest economy.
"Walmart's program certainly helped us decide to make a US commitment," he said.
Chen then had to decide on a location for his first plant and whether to construct a new building or remodel an existing one.
"Location was very important to us," Chen recalled. "Somewhere in the Southeast would put us close to most of our major customers."
Initially, Chen identified eight states and then narrowed his choice to two-Arkansas and Tennessee. Arkansas offered a very attractive package.
But a closed Whirlpool plant near La Vergne just outside of Nashville met all the requirements Chen was seeking for his $28 million investment.
There was rail access to the building. "That was important to us. But it was also close to major highways, and Tennessee is an ideal location," he added.
While the state provided incentives, there was another important factor in selecting La Vergne.
"The reason we came here wasn't just the incentives," Chen said. "We came here because there are technical schools and community colleges and universities nearby.
"This allows us to recruit a deep talent pool in the area," he added.
Bruce Miller, executive vice-president of operations at Sinomax, assembled a team for the Tennessee facility. When he told everyone the company owners were from China, the response was interesting.
"At first, the reaction was most jobs are going from the US to China. Now a Chinese company is bringing jobs to the US," Miller said.
"It was a change and it was, 'Wow this is a great new trend.' American workers can compete with those from outside of the country," he added.
When Tao Zhu was one year old, he and his parents left Fuzhou in Fujian province and moved to Minneapolis. Zhu was educated in Minneapolis and received his bachelor's degree from the University of Minnesota. He is now an engineer at Sinomax.
"I never really expected it," he said of learning that Sinomax was a Chinese-owned company.
"I didn't see that many Chinese companies in the US. I was more aware of outsourcing to China, especially in manufacturing," Zhu added. "I feel lucky to be a part of this company. Having them build this plant here shows they are taking the initiative to bring jobs here."