John Pitre, CEO of Variety Global Business Group of Houston, said in an Aug. 18 telephone interview that the plants will handle both processing and distribution. He has been visiting communities in 15 states to narrow down the possible sites, with stops in Ohio, Indiana, Maryland and Georgia in his itinerary.

VGB President John Lin said VGB is a technology transfer consulting company working with Dongguan Honghao High-New Technical Development Co. of Dongguan, China to expand its technology to North America.

Dongguan Honghao opened in 2000 to manufacture food containers from biodegradable corn starch, and to sell its turnkey production lines to other companies that also want to make products from bioplastics. Lin said the small Chinese company employs about 80 and has exported its machinery lines to Vietnam, America and Iran.

Requests to Dongguan Honghao for comment were directed to VGB.

Honghao and VGB want to manufacture their tableware and other products in the U.S. because shipping from China is expensive, and U.S. consumers have more confidence in goods made in America, Lin said.

“I think we will make it happen,” he said.

VGB and Honghao are seeking between $2 million and $20 million in funding to finance its manufacturing in the U.S., which will employ up to 120 people at each location.

Lin said the company has not found any investors but has “a lot of potential interest.”

Pitre joined VGB in September and said he has sought out communities with empty industrial spaces and experienced workers.

Pitre disputed claims from a former employee at a former company who has raised questions about Pitre’s background. John Armstrong, formerly sales manager with a credit consulting business in Houston called Your Credit Coach Co., is a disgruntled former worker trying to “muddy up” the waters in trying to connect that closed business with VGB.

According to Armstrong, starting in mid-April 2008, Your Credit Coach’s paychecks bounced. Pitre said it was a snafu with the bank, but two weeks later, they bounced again. After the third time, Armstrong and the other employees resigned.

Armstrong eventually filed a claim with the state commission in Texas to try and get the more than $7,000 he was owed.

In January, the commission notified Armstrong that it determined “the employer violated provisions of the Texas payday law.”

The state’s case against Pitre now lists a total amount due of $14,736.84, Givens said. It froze five bank accounts with “inconclusive results,” Givens said. The next step from the state would be to place administrative liens on Pitre’s holdings if the freezes “fail to produce results.”

Armstrong, who now is CEO of another Houston-based credit company, Platinum Corporate Credit Inc., said he just wants potential business sites to be aware.

“This caused quite a hardship for the people down here and their families,” he said. “I hate to see that happen to someone else.”

There is no connection between Your Credit Coach and VGB, both Pitre and Lin said, and Pitre added that he only agreed to a $14,736.84 settlement with the state of Texas’ Workforce Commission to quiet Armstrong’s complaints, and that the amount will be paid as soon as possible. Pitre also said that he lost more than $100,000 when his former business failed, and that he has worked without pay to launch VGB and the foodservice product plants because he believes this is a good opportunity to bring “green” jobs to the U.S. from China.

“I’m focused on making that happen,” Pitre said. “I’m not focused on John Armstrong.”