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Snyder: 14 companies to invest $1.1 billion, add 4,590 jobs in stateWednesday, January 23, 2013
LANSING, Mich. - Gov. Rick Snyder today announced the Michigan Strategic Fund's approval of state incentives to support 14 business expansions that are expected to generate more than $1.1 billion in investments and add 4,590 jobs in Michigan.
"Our reinvention of Michigan is all about more and better jobs for families and bright futures for our children," Snyder said. "At the end of the day, that's what this announcement really means. The fact that these companies are choosing to stay and grow in Michigan reinforces our well-earned reputation as America's comeback state. The commitment and innovation of these job creators, coupled with the high quality of Michigan's talent, will keep our state moving forward. I applaud this tremendous investment in Michigan's future."
The Michigan Strategic Fund today approved:
Michigan Business Development Program incentives
Cosma International is an operating unit of Magna International, a leading global automotive supplier. Cosma International plans to open an automotive casting components and systems facility in the city of Battle Creek, subject to completing all necessary commercial arrangements and receiving necessary approvals. Once established, the facility will be known as Cosma Casting Michigan and is expected to create up to 572 new jobs based on investment of up to $162 million. As a result, the company has been awarded a $1.6 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites. The city of Battle Creek has offered support to the project in the form of property tax abatements.
DENSO International America Inc., the North American regional headquarters of DENSO Corp., supports design, engineering and testing for powertrain, climate controls, body electronics and safety automotive products. The company plans to expand its new product research and development operations in the city of Southfield, investing $45.7 million and creating 176 jobs. As a result, DENSO International has been awarded a $1.54 million Michigan Business Development Program performance-based grant. Michigan was chosen over existing facilities in Japan and Tennessee. The city of Southfield has offered five-year property tax abatements valued at $1.5 million.
Fair Oaks Farms Brands Inc. is part of a cooperative owned by a group of large dairy farming operations in the upper Midwest. Fair Oaks plans to manufacture nutritionally enhanced liquid milk products at a newly constructed facility in the city of Coopersville. The applicant expects to invest $127 million and create 133 jobs, resulting in a $900,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in New York, Pennsylvania and Indiana. The city of Coopersville has offered support in the form of 12-year property tax abatements.
Integrated Manufacturing and Assembly, a Lear subsidiary, manufactures and assembles automotive seating components. The company plans to expand operations at an existing facility, install new machinery and equipment and expand into a new facility in the city of Detroit. The company plans to invest $13.85 million and create 755 jobs, resulting in a $3 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Indiana and Ohio. The city of Detroit is considering 12-year property tax abatements for the existing facility valued at $942,479.
Lear Corp., headquartered in Southfield, is a world leader in providing complete seating and electrical distribution for the automotive and aircraft industries. Lear plans to expand its operations in an additional facility in the city of Highland Park, investing $18.75 million and creating 334 jobs. As a result of the expansion, Lear has been awarded a $1.6 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Ohio and Indiana. The city of Highland Park is supporting the project with 12-year property tax abatements valued at $3.4 million.
Moran Iron Works Inc. is a custom fabrication facility that has been designing, developing and manufacturing custom large metal modular components since 1978. The company has the opportunity to make larger products, and in order to do so, needs to expand its facility in the city of Onaway and make dock and facility improvements at the Port of Calcite in Rogers City. The company plans to invest $16.2 million and create 75 jobs, resulting in a $2 million Michigan Business Development Program performance-based grant. Presque Isle County has offered support to the project in the form of a purchase of a boom crawler crane to be used at the Port of Calcite.
Norplas Industries Inc. is a manufacturing division of Magna Exteriors and Interiors, an operating unit of Magna International, one of the world's most diversified auto suppliers. Norplas plans to open a new state-of-the art robotic paint line and injection molding process operation in Delta Township and a new operation for light assembly and sequencing of front-end modules in Brownstown Township. The company plans to invest $81.75 million and create 658 jobs, resulting in a $2,000,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites. Both Delta Township and Brownstown Township are offering support to the project in the form of property tax abatements.
Rigaku Innovative Technologies Inc. is a subsidiary of Rigaku Corp., a manufacturer of high-tech optical products. RIT manufactures optical products that are critical in global high-tech manufacturing. RIT plans to expand into new markets including the semiconductor industry and grow research and development, and production operations at its manufacturing facility in the city of Auburn Hills, investing $55.7 million and creating 27 jobs. As a result of the expansion, RIT has been awarded a $2 million Michigan Business Development Program performance-based grant. Auburn Hills was chosen over a site in California. The city of Auburn Hills is offering 12-year property tax abatements in support of the project valued at $241,146.
Van-Rob Inc., through its Michigan subsidiaries including Lenawee Stamping Corp., produces metal stamping and welded fabrications and assemblies for auto bodies and substructures. Van-Rob is considering adding several programs at its facility in the city of Tecumseh (subject to receiving all necessary approvals) and a new facility in Michigan. The company plans to invest $30.7 million and create 530 total jobs, resulting in a $5.3 million Michigan Business Development Program performance-based grant. The city of Tecumseh has offered seven-year property tax abatements valued at $1.3 million.
Whirlpool Corp., founded in Benton Harbor in 1911, is the world's largest home appliance company. It plans to relocate refrigeration research and development operations from Evansville, Ind., to a former Whirlpool manufacturing facility in the city of Benton Harbor. Whirlpool plans to invest $18.9 million and create 180 jobs, resulting in a $2.4 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Iowa and Mexico. The city of Benton Harbor is offering 12-year tax abatements valued at $1.85 million.
Michigan Community Revitalization Program incentive
Whitney Partners LLC, a commercial real estate development company, has been awarded a $1 million Community Revitalization Program performance-based grant and a $7.5 million performance-based loan to renovate the historic 19-story David Whitney building property in the central business district of Detroit. The project will transform the building into 108 residential apartments, 135 hotel rooms and retail space on the first floor, and will restore access to the Detroit People Mover. The project is expected to create 75 permanent full-time jobs and capital investment of $82.5 million.
Michigan Economic Growth Authority (MEGA) amendments
Axle Alliance MEGA amendment - A subsidiary of Detroit Diesel Corp., Axle Alliance manufactures axles for commercial vehicles and provides consulting services to other axle plants. The addition of the Detroit DT12 automated manual transmission and DD15 proprietary asymmetric turbo to the full line of Detroit brand engines and axles at the Redford Township facilities represents a capital investment of more than $100 million and an additional 204 jobs. As a result of the expansion, the Michigan Strategic Fund approved an increase in the maximum allowance for qualified new jobs on the company's MEGA tax credit from 215 to 419.
Perrigo Company MEGA amendment - Perrigo is a leading global supplier, developer and manufacturer of over-the-counter and generic prescription medications, infant formulas, nutritional products and dietary supplements. The company is planning to add infrastructure and equipment to its site in the City of Allegan and a new facility and new equipment in Holland Charter Township, investing an additional $242 million and creating 650 jobs to support a tablet expansion for its over-the-counter business. As a result of the expansion, the Michigan Strategic Fund approved an increase in the maximum allowance for qualified new jobs on the company's MEGA tax credit from 400 to 1,050. Holland Charter Township and the city of Allegan have offered property tax abatements in support of this project.
"These investments reach all parts of our state, from Alpena in the north, Benton Harbor in the south, Holland to Detroit, and promise new job creation in automotive manufacturing, robotics, home appliances, pharmaceuticals and high-tech optical products," said MEDC President and CEO Michael A. Finney. "In the last two years we have greatly improved Michigan's business climate and infrastructure, making it easier for our businesses to find new paths to prosperity, and the changes are paying off."
The Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.
The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
The Michigan Community Revitalization Program provides grants, loans, or other economic assistance of up to $10 million to projects that will revitalize regional urban areas, act as a catalyst for additional investment in a community, reuse vacant or historic buildings and promote mixed use and sustainable development.
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