November 15, 2005
November 15, 2005
Company Chooses Michigan for $327 Million Investment
Governor Jennifer M. Granholm today announced that Hemlock Semiconductor will invest $327 million in a two-phase expansion of its operations in Hemlock. The project will create 463 new jobs, including 150 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan over a competing U.S. site.
“This expansion will continue to strengthen Hemlock Semiconductor’s presence in Saginaw County,” Granholm said praising the company’s leaders. “Their decision to choose Michigan over Kentucky is a testament to the state’s leadership in competitive-edge technologies and will create jobs in the high-tech field of alternative energy investment and research.”
A University of Michigan economic analysis estimates the company’s expansion will generate 313 indirect Michigan jobs as a result of increased economic activity, in addition to the 150 jobs created directly by the company. The project is expected to generate more than half a billion dollars in personal income for Michigan workers over the life of the tax credit.
“We received excellent support from Governor Granholm’s office, Michigan Economic Development Corporation, Thomas Township, the city of Saginaw, Saginaw Future Inc., the Department of Environmental Quality and Consumers Energy,” Donald E. Pfuehler, president and CEO of Hemlock Semiconductor said. “We appreciate the support of these groups which enabled our expansion to remain at this site.”
The MEDC approved a Single Business Tax credit valued at more than $5.1 million over 15 years to win the project. Thomas Township and the city of Saginaw have
partnered to propose a 30-year abatement of the company’s personal property tax worth an estimated $52 million. The township is also considering an additional abatement on the company’s real property valued at approximately $2.4 million over 12 years
“These are exactly the type of high-tech jobs Michigan needs to build its 21st century economy,” MEDC President and CEO James Epolito said. “Hemlock’s continued investment in Michigan signals to all that this is a good place to grow a business, where state and local collaboration will help a company to prosper.”
The expansion is one of nine economic development projects the Governor announced today. In all, they are expected to create a total of 1,573 Michigan jobs.
Hemlock Semiconductor was formed as a wholly owned subsidiary of Dow Corning Corporation in 1979. In 1984, the company formed a joint venture with two of Japan's largest silicon wafer manufacturers, Shin-Etsu Handotai Company Limited and Mitsubishi Materials Corporation. HSC is the world's leading producer of polycrystalline silicon, a component of photovoltaic cells used to produce solar energy and various electronic devices for the semiconductor 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.
