Delegation in Beijing proves hopeful for state and Loring Development Authority officials

LIMESTONE, Maine — President and CEO of Loring Development Authority Carl Flora recently traveled along with a delegation led by Gov. Paul LePage to visit officials from Norinco Motors Co. in Beijing.
The Chinese company has been discussing the possibility of opening a rail car manufacturing business inside the Loring Commerce Centre — a move that Gov. LePage previously claimed could bring upward of 150 jobs to the town of Limestone. The group of delegates traveling to Beijing left on June 21, in hopes of learning more about their potential future business partners.
“Dealing with Chinese companies is slightly different than doing business with an American company,” said Flora. “In America, we usually crunch the numbers, and if they work, we dive in. However, with the Chinese it’s more about relationship building than just simply knowing the money is right. We haven’t had any guarantees yet, but we’ve had some soft agreements and we believe we’re on the right track.”
Talks with LDA and Norinco have been ongoing since early in the year. The Chinese company — a business mainly specializing in the manufacturing of products such as military weapons systems and firearms. The company was founded in 1980 and has become a global manufacturer, however, not without some controversy. In the 1990s, it was sanctioned and prohibited from selling its firearms in the United States after being implicated in a sting operation conducted by the Bureau of Alcohol, Tobacco and Firearms. That ban expired in 2007. It was also sanctioned by the U.S. government in 2003.
In May, the organization Human Rights Watch reported the company’s name was found on canisters of chlorine gas allegedly used in a chemical attack in Syria, which the company denied, according to Bloomberg.
Norinco has operations in 27 countries that do not include the United States, according to its website. Its international engineering work is done through the entity Northern International Cooperation Co. Ltd.
Flora said he has asked company officials about the past U.S. sanctions, but there appears to be no connection to the project Norinco’s rail transportation division is considering at Loring.
During a meeting at the Loring development authority, it was explained that Norinco’s president was scheduled to visit in December to tour facilities, meet with the Maine Military Authority, LDA board members and LePage.
In February, according to board minutes, the LDA approved a $40,000 option agreement with Norinco that paid to heat the Blue Goose building, occupied by MMA, which was forced to lay off about 140 employees last November because of contracts it lost last August.
Flora told LDA board members in March that the company wants to manufacture railcars at Loring to meet demand for railcars that meet new safety standards. He said the company would hope to serve customers in the United States and Canada. As part of the deal, Flora said the company would seek repairs to the rail line running from Limestone to Caribou, an estimated $7 million in cost that would likely require state assistance.
In regard to the trip itself, Flora spoke on Tuesday about how the visit went and where he sees things going from here.
“It went very well,” said Flora. “Gov. LePage led the delegation and the experience was very productive. I believe we’re in a very good position.”
According to Flora, there is still much work to be done and all parties involved seem to be willing to put forth the effort to keep things moving forward.
“The deal provides a great opportunity for Loring. Nothing is official, but we will continue to plug away and just keep watching to see what happens next,” said Flora.
Flora returned from Beijing on June 28, seven days after leaving for China, while Gov. LePage returned a few days prior to him. Business dealings with Norinco are still in full-swing, and although no dotted lines have yet been signed, on the surface it would appear that both sides are still very interested in the prospect of a future partnership.