November 15, 2005
November 15, 2005
Governor Jennifer M. Granholm announced today that Cadillac Casting Inc. is one step closer to acquiring and continuing operations at the Hayes Lemmerz International iron foundry in Cadillac. The project is expected to retain 713 jobs, including 375 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince Cadillac Casting to invest in Michigan.
“This acquisition would anchor Cadillac Casting in this community for decades to come,” Granholm said. “The company’s decision to keep these jobs in the state is further proof that Michigan’s business climate is competitive in today’s global economy.”
Governor Granholm signed legislation on October 24 to amend the Michigan Economic Growth Authority Act to help make Cadillac Casting’ project eligible for Single Business Tax credits. The MEDC approved a Single Business Tax credit valued at more than $2.7 million over seven years to win the project.
The next step for Cadillac Casting is to continue its negotiation with Hayes Lemmerz for the sale of the facility.
A University of Michigan economic analysis estimates that increased economic activity from the foundry will retain an additional 338 indirect Michigan jobs, in addition to the 375 retained directly by the company. The project is expected to create more than $250 million in personal income for Michigan workers over the life of the tax credit.
“I grew up in Cadillac, so I know how much this business means to the employees and the community,” said Dan Minor, president of Cadillac Casting. “I am impressed with the speed at which the city and state have reacted to this real threat, and each has made large commitments to the project. Hayes Lemmerz has also shown great patience by providing us time to coordinate with the city and state when other options were immediately available.”
The proposed acquisition is one of nine economic development projects the Governor announced today. In all, they are expected to create and retain a total of 1,573 Michigan jobs.
“These jobs were saved by the incentive package we developed with the city of Cadillac,” MEDC President and CEO James Epolito said. “Retaining auto-related jobs is just as important as creating them in an increasingly competitive global marketplace.”
Cadillac Casting was formed specifically to purchase the existing ductile iron foundry from Hayes Lemmerz. The foundry has been in operation since 1920 and supplies cast moldings primarily to the auto industry.
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 64,000 jobs as a result of targeted assistance provided by the MEDC.
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.
