December 20, 2005
December 20, 2005
Company to Invest $94 Million, Create 1,014 New Jobs in Superior Township
Governor Jennifer M. Granholm announced today that Hyundai will invest $94 million to expand its newly opened, state-of-the-art technical center in Superior Township near Ann Arbor. The expansion will create 1,014 new jobs, including 600 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to expand in Michigan over Alabama.
“Hyundai’s continued investment in our state is a testament to our global leadership in automotive R&D,” Granholm said. “The high-tech, high-paying jobs created are exactly what we need to transform our economy to meet the demands of the 21st century.”
The MEDC approved a Single Business Tax credit valued at more than $32.6 million over 20 years to win the company’s business. Superior Township has proposed a tax abatement valued at $12.1 million over 12 years to support the project.
A University of Michigan economic analysis estimates that increased economic activity from the expansion alone will generate an additional 414 indirect Michigan jobs, in addition to the 600 created directly by the company. The project is expected to generate more than $1.7 billion in personal income for Michigan workers over the life of the tax credit.
“On behalf of Hyundai America Technical Center, Inc. we would like to thank Governor Granholm, the Michigan Economic Development Corporation and Superior Township for their outstanding assistance with this project,” Hyundai America Technical Center President Dr. Won Suk Cho said. “Our continued commitment to Michigan is a sign of our support of the state’s research and development sector and the Governor’s overall economic plan.”
Michigan is home to more automotive-related R&D activity than the other 49 states, Canada and Mexico combined, and has 215 of the world’s vehicle-related R&D centers. The Granholm administration and MEDC are aggressively pursuing an automotive strategy to attract more new automotive manufacturing and R&D investments to the state.
“Michigan has become an international magnet for automotive R&D investment,”
MEDC President and CEO James Epolito said. “This is yet another incredible win for the state and its talented workforce.”
The expansion is one of five economic development projects the Governor announced today. In all, they are expected to create a total of 1,074 Michigan jobs.
The Hyundai America Technical Center was established in 1986 and is a wholly owned subsidiary of Hyundai Motor Company of Korea. The company’s previous tech center was located in Pittsfield Township near the site of the new, expanding facility.
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 65,000 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.
Hyundai-Kia Technical Center
Economic Analysis
Summary Estimates
(All estimates in 2005 dollars)
TOTAL JOBS CREATED 1,014
Direct 600
Indirect 414
NET POSITIVE STATE REVENUE IMPACT $ 103,523,000
Revenue Foregone $ 32,623,000
Revenue Gain $ 136,146,000
Average Wage $ 1,350
Personal Income Generated Over
Life of the 20-Year Tax Credit Agreement $1,770,423,000
