March 13, 2007
March 13, 2007
As FACTON, Kostal, MBTech invest, Granholm in Germany seeking more
Governor Jennifer M. Granholm today announced three Germany-based firms, FACTON Inc., Kostal of America and MBtech Autodie, will expand operations in Michigan as a result of assistance from the Michigan Economic Development Corporation. The projects are expected to create and retain more than 700 jobs and involve a total of $20 million in capital investment. Granholm made the announcement in Germany following individual meetings with officials from the three companies and MEDC President and CEO James C. Epolito. Granholm and Epolito are on the second day of an investment mission to encourage German companies to invest and create jobs in the state.
Each of the companies chose Michigan over competing states and countries, including North Carolina and Canada. Granholm used the meetings in Germany to "seal the deal" with company executives and press for continued investment in Michigan.
"I am continuing to go anywhere and do anything to recruit jobs and investment and build relationships with businesses - and it's beginning to pay off," Granholm said. "These companies' decision to invest in Michigan brings us one step further in our work to diversify and grow our economy and create jobs for our workers."
The three projects announced today:
FACTON Inc. - High-tech software company FACTON, a leading software vendor in the area of cost process optimization (CPO) in Europe, plans to invest $1 million to locate its new North American office in Auburn Hills. The project will create 93 new Michigan jobs, including 59 directly by the company. FACTON currently focuses on the automotive industry and helps companies perform cost analysis, simulations and optimizations of future product costs. A state tax credit valued at $509,000 over five years helped convince the company to choose Michigan over a competing site in North Carolina. The city of Auburn Hills has proposed a tax abatement for up to eight years worth $11,000 to support the project. The affiliate of FACTON GmbH was formed to safeguard employment in the US automotive market by
Kostal of America Inc. - The subsidiary of the Kostal Group will relocate its Novi operations to Troy and expand to become one of three new Kostal Group international research and development centers of excellence. The expansion will create 203 new high-tech jobs and involve approximately $13.6 million in capital investment. A state tax credit valued at more than $5 million over 10 years helped win the company's investment and new jobs over a competing site in Canada. The MEDC will provide job-training assistance through the Economic Development Job Training program and the city of Troy has proposed a 12-year tax abatement valued at $255,180 to support the project.
MBtech Autodie, LLC - A company within the MBtech Group plans to invest approximately $5 million in the former Autodie facility in Grand Rapids. The project is expected to retain 422 Michigan jobs, including 200 directly by the company. A state tax credit valued at more than $2.6 million over eight years, combined with six-year, tax-free Redevelopment Renaissance Zone valued at $1.1 million and supported by the city of Grand Rapids, helped convince the company to invest and keep jobs in Michigan. The MEDC's ability to support MBtech was made possible by changes in the Michigan Economic Growth Authority Act and the Michigan Renaissance Zone Act enacted by the Legislature and signed by Governor Granholm last December.
"Michigan has the tools and resources to compete with any location in the world," Epolito said. "The new investments being made by these German companies will benefit Michigan's economy, and also provide job opportunities for hundreds of Michigan families."
The projects are three of 10 announced by the governor today. In all, they are expected to create and retain a total of 14,358 Michigan jobs.
In her 2007 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 181,000 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.
