May 19, 2009
LANSING - Governor Jennifer M. Granholm today announced Michigan's aggressive strategy to diversify the economy and attract investment to Michigan has resulted in 16 job-creating projects, which will generate more than 3,900 new jobs, retain another 360 and bring more than $103 million in new investment to communities across the state.
The projects include two auto suppliers diversifying into the high-tech medical and alternative energy sectors; an expansion by a company founded by former Pfizer employees; a start-up manufacturer of small-scale wind turbines; and a brownfield redevelopment that will transform an abandoned site into a new center of economic growth and activity.
"We are working every day to bring new jobs to Michigan and show companies that we have the talent, work ethic and tools to help them grow," Granholm said. "The companies making announcements today, from a global automotive supplier moving into the alternative energy sector to a pharmaceutical company started by former Pfizer employees, highlight the impact of our aggressive economic diversification plan."
Project details include:
- Asset Acceptance -- A specialty financial services company which purchases and collects charged-off consumer debt, plans to invest $8.1 million to embark on an aggressive growth strategy that expands existing core competencies while building analytical and technical capabilities to fuel future growth in Warren. The Michigan Economic Development Corporation (MEDC) estimates the increased economic activity created by the facility will create 601 new jobs, including 432 directly by the company. Based on the MEDC recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $2.7 million over seven years to help convince the company to locate in Michigan over a competing site in Ohio. The city of Warren is considering a six-year abatement in the amount of $172,305. http://www.assetacceptance.com/
- Autovan -- The manufacturer of an innovative new form of handicap-accessible vehicles plans to invest $2.8 million to expand operations in Battle Creek. It will develop a new front-entry conversion platform that takes less space and increases seating capacity in the vehicle, the first product of its kind. The project is expected to create 469 new jobs, including 140 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 329 indirect jobs. Based on the MEDC recommendation, the MEGA board today approved a state tax credit valued at $600,399 to help convince the company to expand in Michigan over a competing site in Indiana. The city of Battle Creek is considering a 12-year abatement valued at $118,000 to support the project. http://www.autovan.com/
- GRW Technologies - The provider of precision injection molding designs and supplier of ABS, powertrain and sensor systems for the automotive industry, plans to invest $2 million to purchase equipment for Continental Inc. to take over their production of plastic auto parts in Kentwood. The project is expected to create 149 new jobs, including 66 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 83 indirect jobs. Based on the MEDC recommendation, the MEGA board today approved a state tax credit valued at $606,963 over seven years to encourage the company to expand in Michigan over a competing site in Mexico. To support the project, the city of Kentwood in considering an abatement.
- Mann + Hummel USA -- The designer and producer of air-intake manifolds, air-cleaner systems and fluid reservoirs for the automotive and industrial markets plans to bring investment $19.8 million to expand its operations in Portage. The project is expected to create 200 now direct jobs. The MEDC estimates the increased economic activity created by the project could also create an additional 478 indirect jobs, for a total of 678 jobs. Based on the MEDC recommendation, the MEGA board today approved a state tax credit valued at $2.4 million over seven years to help convince the company to expand in Michigan over competing sites in Indiana and Kentucky. The city of Portage is considering an abatement to support the project. http://www.mann-hummel.com/
- Windtronics - The start-up manufacturer of small-scale wind turbines for commercial and residential use will invest $4.4 million to locate a manufacturing facility in Muskegon. The project is expected to create 462 new jobs, including 219 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 243 indirect jobs. Based on the MEDC recommendation, the MEGA board today approved a state tax credit valued at $3.7 million over 10 years to convince the company to choose Michigan over a competing site in Oregon. The city of Muskegon is considering an abatement to support the project. http://www.earthtronics.com/
- WJG Enterprises - The plastic-injection molding company producing low-volume service parts for the automotive industry will diversify into production of new high-tech medical devices used in MRI and lab equipment through GE Healthcare Supplier Diversity Initiatives lead by Michael Lucas and Raphael Strosin. This has been made possible through the development of a strategic plan created by Christopher Baskel of Spectrum Health in Grand Rapids. This plan includes the mentorship of minority-owned companies to enter into the complex world of healthcare with the assistance of Donna Clutter and Lamont Robinson. WJG plans to invest $4 million in its facility in Charlotte, which is expected to create 251 new Michigan jobs, including 109 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 142 indirect jobs. Based on the MEDC recommendation, the MEGA board today approved a state tax credit valued at $993,024 over seven years to help win the proct for Michigan over competing sites in Ohio and Tennessee. The city of Charlotte is considering abatements to support the project. http://www.wjgenterprises.us/
- CAS-MI Laboratories -The independent testing laboratory specializing in paints and coatings, plastics and polymers, and adhesives and sealants plans to open an Innovation Center to help entrepreneurs and established companies create new specialty chemical products from concept to commercialization. Based on the MEDC's recommendation, the Michigan Economic Growth Authority approved a state tax credit for CAS-MI valued at $1.2 million over 10 years. This tax credit is making it possible for CAS-MI to expand to an 11,000 square-foot facility in Ypsilanti Township as opposed to a competing location in Missouri. The project is expected to create 124 jobs, including 60 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 64 indirect jobs. Ypsilanti Township will consider a tax abatement to also support the project. http://www.cas-mi.com/
- DornerWorks Ltd. -- The high-tech engineering company anticipates doubling in size over the next five years as the result of its focus in the national aerospace market. The company plans invest $1.5 million to expand in Grand Rapids. The project will create 92 total jobs, including 50 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 42 indirect jobs. Based on the MEDC recommendation, the MEGA board today approved a state tax credit valued at $600,398 to encourage the company to expand in Michigan over competing sites in Virginia, Arizona, Iowa and Utah. The city of Grand Rapids is considering an abatement to support the project. http://www.dornerworks.com/
- Energy Components Group - The company, created in 2008 to diversify from the automotive industry and into the alternative energy sector, will invest over $20 million over five years to expand its manufacturing and R&D capabilities in St. Clair. The project is expected to create 513 jobs: 250 as direct hires in the company, and an additional 263 indirect jobs due to increased economic activity. Based on the MEDC recommendation, the MEGA board today approved a state tax credit valued at approximately $2 million over seven years to help convince the company to expand in Michigan over a competing site in New Mexico. The city of St. Clair and St. Clair County plan to approve a Renewable Energy Renaissance Zone to support the project. In addition, the MEDC will provide an employee training grant of up to $250,000 through the Economic Development Job Training program.
- Essen Instruments Inc. - The inventor and manufacturer of life science instrumentation equipment will open a new Discovery Services Unit , a team of contract research scientists, technicians and instrument operators in Pittsfield Township. The company plans to invest $3.1 million and create 244 total jobs, including 43 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 201 indirect jobs. Based on the MEDC recommendation, the MEGA board today approved a state tax credit valued at $490,940 over seven years to encourage the company to expand in Michigan over a competing site in California. Pittsfield Charter Township plans to support the project by paying administrative costs. http://www.essen-instruments.com/
- Pump Engineering LLC - The manufacturer of high-efficiency pumps and energy recovery turbochargers that are used mainly in the desalination industry plans invest $4.2 million to expand in Huron Charter Township in Wayne County. The project will create 110 total jobs, including 51 directly by the company. The MEDC estimates that increased economic activity created by the project will create an additional 59 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $686,936 over seven years to encourage the company to expand in Michigan over a competing site in Ohio. Huron Township is considering an abatement to support the project. http://www.pumpengineering.com/
- Velesco Pharmaceutical Services - The company was founded by former Pfizer employees in 2007 provides analytical and drug formulation to small- and medium-sized pharmaceutical companies. The company plans invest $1.8 million to expand in Comstock Township to manufacture clinical trial supplies and enhance operations in Plymouth Township. The project will create 109 total jobs, including 35 directly by the company. The MEDC estimates that increased economic activity created by the project will create an additional 74 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $431,536 over seven years to encourage the company to expand in Michigan over competing sites in California and Massachusetts. Township plans to support the project by paying administrative costs. http://www.velescopharma.com/
- Kilwin's Quality Confections Inc. -- The candy company plans to invest $7.5 million to expand and consolidate their manufacturing, administrative, and distribution operations in Petoskey. The project will create 84 total jobs, including 40 directly by the company. The MEDC estimates that increased economic activity created by the project will create an additional 44 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $557,643 over seven years to encourage the company to expand in Michigan over a competing site in Florida. The city of Petoskey is considering a tax abatement to support the project. http://www.kilwins.com/
- Martinrea Industries Inc. -- The developer and manufacturer of state-of-the-art metal forming and fluid management systems for the automotive sector plans invest $18.4 million to renovate and bring new jobs to the former SKD facility in Jonesville. The project will create 361 total jobs, including 104 directly by the company, and retain 109 jobs. The MEDC estimates that increased economic activity created by the project will create an additional 257 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.5 million over seven years to encourage the company to expand in Michigan over a competing site in Ontario. The village of Jonesville is considering a tax abatement valued at more than $1 million to support the project. http://www.martinrea.com/Public/Home.aspx
- City of Grand Rapids - State and local tax capture valued at $101,200 will support the redevelopment of a 3,500-square-foot industrial building at 502 Second Street. The two-story building will be 100 percent office space; tenants will include M Retail and Catalyst Partner. The project will generate $500,000 in new capital investment and is expected to create up to four new jobs.
- DC Equities LLC d/b/a Grindstone Capital, and iTrack - Grindstone Capital, an investment entity with common ownership in Royal Oak Industries, a leading supplier of precision machine components, will partner with iTrack, a company researching and developing a Local Positioning and Tracking System (LPTS) to continue to develop and commercialize the LPTS system, which is essentially a tracking system for first responders. The companies will invest $700,000 in the project, which will create up to 35 jobs. iTrack is currently operating from the Oakland University Incubator.
"All of these projects are the result of a proactive economic development strategy," MEDC President and CEO Greg Main said. "We have identified key growth sectors, such as alternative energy, and we are aggressively targeting those projects that will help us diversify Michigan's economy."
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 MEDC's initiatives and programs, visit the Web site at www.TheMEDC.org.
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