Doyle touts importance of water technology for China

Sep 22, 2009 (Milwaukee Journal Sentinel - McClatchy-Tribune Information Services via COMTEX) -- AOS | Quote | Chart | News | PowerRating -- Highlighting how water technology has captured the collective imagination of Wisconsin's leaders, both Gov. Jim Doyle and executives of Milwaukee-based A.O. Smith Corp. have been independently touring China to talk about the economics of water engineering.

"This is an enormous opportunity for us," Doyle said in a telephone news conference from Shanghai.

Doyle, nearing the end of a four-city trade mission in China, on Monday cited that country's massive need for fresh water as he touted the potential to export water technology from Milwaukee-area companies.

"At every level, from the national and provincial level, we have had good discussions on the potential for water technology," Doyle said. "Only 40% of the water in China is usable. They have a huge need to clean water and use water efficiently and return water safely back into their waterways."

By coincidence, Doyle was in China at the same time that A.O. Smith finalized its $77 million acquisition of Tianlong Holding Co. Ltd., which the Milwaukee company calls "the leading residential and commercial water purification company" in the world's most populous nation. Doyle, like Milwaukee's business community, hailed the A.O. Smith acquisition as a sign of the growth potential for Wisconsin's water engineering industries.

A.O. Smith sees strong growth because Tianlong, which specializes in reverse-osmosis filtration systems, operates in a market in China that is estimated to grow anywhere between 15%-35% through 2012, the company has said. A.O. Smith is active in the Milwaukee Water Council, a trade group of water-related industries.

"A.O. Smith is obviously a company with great potential, but I think that's true for a large number of water related business," Doyle said.

Doyle met Monday with the mayor of Shanghai and "spoke to him specifically about water."

Separately, Doyle said that investors in China have become noticeably more interested in investing in Wisconsin, and that he used his meeting to tout investment opportunities in the state as well as export opportunities.

He met with a group of Chinese investors who have taken a stake in the former Northridge Mall at W. Brown Deer Road and N. 76th St. on the northwest side of Milwaukee. The group is exploring using the largely empty site as a center where Chinese companies can sell and distribute goods.

"The concept Gov. Doyle discussed in his call today was one of the ideas we talked about," said Martha Brown, deputy commissioner of Milwaukee's Department of City Development. "We haven't yet seen detailed plans from the owners and look forward to receiving them in order to more fully evaluate the development plan."

Also on the governor's visit:

--Doyle's group became the first state trade delegation to meet with President Barack Obama's newly installed U.S. ambassador to China, Jon Meade Huntsman Jr. Huntsman, who was the Republican governor of Utah from 2005 until this year, speaks fluent Chinese and is considered America's point man for one of the trickiest and most crucial foreign relationships.

--In the city of Harbin, Doyle witnessed the signing of an agreement between Wisconsin-based Cooperative Resources International, which specializes in dairy and beef genetics, and Flying Crane Dairy, one of China's leading producers and distributors of premium infant formula and milk powder. Doyle said dairy and cattle industries are growing rapidly as China seeks new forms of protein to feed the migration of workers into its cities.

--Doyle renewed the Sister-State Agreement with the state of Heilongjian, which was first signed in 1982. He met with his Chinese counterpart, Gov. Li Zhanshu, whose state lies in northeastern China, bordered by Russia. He also signed an educational exchange.

Doyle concludes his trip Tuesday. The trade mission began Sept. 12 in Japan and then moved to China.

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