August 24, 2007
August 24, 2007
Atlas Copco, EDAG growing Michigan operations; Chemrac, NewPage look to launch biofuel production process in Escanaba
FRANKFURT, Germany - Governor Jennifer M. Granholm today concluded her five-day investment mission to Sweden and Germany by meeting with executives from Brose Fahrzeugteile and ZF Lemforder to thank the global auto suppliers for their past commitment to Michigan and to encourage their future growth in the state.
"This mission was about highlighting our leadership in automotive R&D and our emerging strength in high-tech industries like alternative energy that make Michigan the perfect location for international companies looking to grow or establish their presence in North America," Granholm said. "Not only did we bring new investment and jobs home, we laid the groundwork for additional investment and jobs in the future."
Granholm and Michigan Economic Development Corporation (MEDC) President and CEO James C. Epolito were in Sweden and Germany this week to make the case for Michigan to companies seeking to expand their presence in the U.S. In these discussions, Swedish and German business executives were impressed with the Michigan Business Tax (MBT), which goes into effect January 1. The MBT provides a tax cut for more than seven out of ten Michigan businesses and will help stimulate the state's economy by providing tax credits to companies that locate in Michigan or create new jobs in the state. The investment mission was the fifth of the governor's tenure, her first to Sweden and third to Germany.
This week, Governor Granholm announced:
- German-based EDAG Engineering and Design plans to invest approximately $7 million to expand its operations in Auburn Hills and Troy over the next two years, creating 140 new jobs;
- Swedish-based Chemrec AB and Ohio-based NewPage Corporation have formed a partnership to explore possible development of a plant that would produce renewable biomass-based fuels at the NewPage paper mill in Escanaba; and,
- Atlas Copco, a Swedish industrial equipment manufacturer, plans to hire 30 new electrical engineers and sales/marketing staff at its facilities in Oakland County.
"This mission was an excellent opportunity to meet face-to-face with decision makers to promote Michigan as the best place in North America to do business," Epolito said. "Companies are impressed with our economic strategy and are excited about the opportunity to grow their business here."
Granholm's schedule included numerous meetings with company executives, government leaders, alternative energy experts, a speech during the opening ceremonies of the Swedish American Chamber of Commerce Entrepreneurial Days, and a dinner with leading Swedish CEOs from alternative energy companies and automotive suppliers. At a business roundtable hosted by Business Region Gothenburg, the governor discussed Sweden's alternative energy programs and how they could impact Michigan's alternative energy strategy. Also outlined was the Michigan and Sweden Vehicle Communications Systems Partnership designed to share vehicle communications-related technology.
Nearly 50 Swedish companies currently have operations in Michigan, employing more than 6,000 workers.
Governor Granholm also met with executives from German-based Behr-Hella Thermocontrol to convince them to build a new production facility in Michigan. More than 170,000 Michigan workers are employed by more than 300 German-owned companies that operate in the state. German-owned companies are defined as those with at least 50 percent German ownership. These companies, representing a wide range of industry sectors, are heavily concentrated in advanced automotive manufacturing and research and development.
Granholm's previous investment missions to Germany and Japan have resulted in the announcement of more than $302 million in new investments and more than 2,300 new jobs.
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