April 13, 2004
April 13, 2004
Governor Jennifer M. Granholm announced today that ICG Berrien, Inc. will expand in the southwest Michigan community of Bridgman rather than at a competing site in Wisconsin, resulting in the creation of 341 new jobs for Michigan workers. The company plans to invest an estimated $12.5 million to expand its aluminum die casting operations.
“The fact that ICG has chosen Michigan for its expansion is a tribute to our state’s highly skilled workforce and our competitive business climate,” Granholm said. “We appreciate that this employer has chosen to stay and grow in Michigan.”
In her 2004 State of the State address, Governor Granholm announced a focused seven-point plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 5,298 jobs as a result of targeted assistance provided by the MEDC.
The ICG expansion is one of three projects approved today by the MEDC. Combined, these most recent projects will create or retain a total of 464 jobs. The other projects involve the redevelopment of a brownfield site in East Lansing and the expansion of an automotive semi conductor R & D and marketing facility in Livonia.
ICG Berrien is a wholly owned subsidiary of ICG Castings, Inc. Formed in 2003, ICG Castings manufactures highly engineered aluminum die cast components primarily for the automotive and appliance industries. The company currently employs 243 people at its Dowagiac facility.
ICG considered locating the new die casting operations at a competing site in Oshkosh, Wisconsin. However, a Single Business Tax credit offered by the MEDC worth more than $2.3 million over the next 10 years helped convince the company to stay and grow in Michigan.
“ICG Castings is very enthused and excited about the opportunity to expand operations and business at the Bridgman manufacturing facility,” said Jim Partlow, ICG Castings president. “I personally view this project as a team effort between ICG, the county and state representatives. Without question, this is a win-win situation for the county, ICG and U.S. manufacturing. New jobs will be created with the ability to compete against offshore competition.”
Berrien County has also agreed to provide the company with a $2.5 million loan to support the project.
“Berrien County is very pleased to partner with ICG Berrien, the state of Michigan and the Michigan Economic Development Corporation to bring this deal together,” said Bret Witkowski, chairman of the Berrien County Board of Commissioners. “The creation of these jobs is great news and the beginning of a long-term relationship with ICG Berrien.”
An economic analysis conducted by the University of Michigan estimates that another 101 jobs will be created indirectly as a result of the expansion, in addition to the 240 jobs being added directly by the company over the next four years. The project will result in a net state revenue gain of more than $10.9 million over the life of the tax credit.
“The timing on this announcement could not be better,” said MEDC President and CEO Don Jakeway. “Berrien County like the rest of the state has weathered plant closings and the loss of manufacturing jobs. This expansion is welcome news to the community and proves that there is light at the end of the tunnel for manufacturing in Michigan.”
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation’s initiatives and programs, visit the Web site at www.michigan.org.
ICG Berrien, Inc.
Economic Analysis
Summary Estimates
(All estimates in 2004 dollars)
TOTAL JOBS CREATED 341
Direct 240
Indirect 101
NET POSITIVE STATE REVENUE IMPACT $ 10,988,000
Revenue Foregone $ 2,373,000
Revenue Gain $ 13,361,000
Average Wage $ 510
Personal Income Generated Over
Life of the Tax Credit Agreement $173,554,000
