July 19, 2007
July 19, 2007
Japanese auto supplier investing $22 million, adding 260 jobs
LANSING - Governor Jennifer M. Granholm today joined company and local officials to celebrate the groundbreaking for a new manufacturing plant in the village of Capac in St. Clair County. Keihin Indiana Precision Technology (KIPT), the North American subsidiary of Japan-based Keihin Corporation, will invest $22 million in the facility to be known as Keihin Michigan Manufacturing LLC. The company plans to hire up to 260 new employees.
"Keihin Corporation's investment in Michigan shows that our economic plan is beginning to pay dividends and create jobs here in St. Clair County," Granholm said. "With our competitive business tax in place, I will continue working our plan to create jobs, support advanced manufacturing, and bring more companies like Keihin to Michigan."
Assistance offered through the Michigan Economic Development Corporation (MEDC) in April helped Keihin select Capac over a competing U.S. site. The MEDC package includes a state employment credit valued at more than $3 million over 11 years and up to $350,000 through the federal Community Development Block Grant program for public infrastructure improvements needed to support the facility.
"Michigan is competing hard for every new manufacturing project and the good-paying jobs they create," said MEDC President and CEO James C. Epolito who also participated in today's groundbreaking. "This project has special significance as the first major Honda supplier to set up operations in Michigan."
KIPT manufactures and supplies air and fuel management systems, HVAC and electronic control systems, selling its products to Honda of America Mfg. Inc. and its affiliates primarily in the United States and Canada. The new 120,000-square-foot facility in Capac will produce some 680,000 intake manifold assemblies and 200,000 HVAC systems annually, enabling the company to keep pace with Honda's increased presence in the North American market. It is expected to begin operation in the fall of 2008 and will be the Keihin Corporation's fourth U.S. plant.
"This new facility will allow us to strengthen our foundation in the state of Michigan and support the long-term growth of our North American automotive business and expansion of sales and engineering activities," said Masaaki Matsuo, president and CEO of Keihin Indiana Precision Manufacturing. "It also demonstrates our commitment to the state of Michigan and gives us access to a highly-trained work force that enables Keihin to continue bringing innovative and highly engineered engine products to our customers."
In addition to MEDC, the village of Capac is providing a 12-year tax abatement estimated at $2.3 million to support the project.
"We are pleased to attract a company of Keihin's quality to our community," said Doug Alexander, executive director of the Economic Development Alliance of St. Clair County. "They have consistently grown since establishing U.S. operations in 1989 and are now the largest supplier to Honda in the United States. We look forward to many years of successful operations for Keihin Michigan Manufacturing in the village of Capac."
An economic analysis conducted by the MEDC estimates that increased economic activity created by the project will result in an additional 310 indirect Michigan jobs in addition to the 260 created directly by the company. The project is expected to generate as much as $410 million in personal income for Michigan workers over the life of the tax credit.
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.
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