July 21, 2009
July 21, 2009
Companies investing more than $349.5 million to grow in state
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping seven companies grow in Michigan and is backing one alternative energy brownfield redevelopment project. Combined, the eight projects are expected to create 6,372 new jobs (2,720 direct), retain 8,586 jobs (3,359 direct) and generate over $349.5 million in new investment in the state.
"Our aggressive economic strategy - combined with our competitive business climate and outstanding workforce - continues to generate new corporate investment and new expansion projects in Michigan despite a national recession," Granholm said. "The projects announced today are the types of projects that will transform our economy and create good-paying jobs for our workers."
The Michigan Economic Growth Authority (MEGA) board today approved state tax credits to win the following projects for Michigan over competing states and countries:
Magna Seating - The automotive supplier of complete seat solutions and seat mechanisms plans to invest $18 million in a multi-product facility in Highland Park. The project will create 1,414 new jobs, including 420 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 994 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.5 million over seven years to help convince the company to locate in Michigan. The city of Highland Park is considering an abatement valued at $1.5 million in support of the project. http://www.magna.com/capabilities/seating-systems
Attwood Corporation - The marine parts and accessories supplier plans to consolidate the MotorGuide operations based in Tulsa, Oklahoma, to its headquarters in Lowell. Both companies are divisions of Mercury Marine. This will be the second business consolidation in as many years for Attwood, with the previous consolidation of its Lancaster, Texas, operations to Lowell after the company received a MEGA credit in July 2008. The company plans to invest $2 million in the project, which will create 92 new jobs, including 51 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 41 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $483,026 over seven years to help convince the company to expand in Michigan over competing sites in Georgia, Oklahoma, Wisconsin and Mexico. The city of Lowell is considering a 12-year abatement to support the project. http://www.attwoodmarine.com/
AVL Powertrain Engineering Inc. - The powertrain research and development company plans to invest $2.6 million to create a hybrid and alternative fuel development center in Ann Arbor to develop powertrains for electric vehicles. The project will create 76 total jobs, including 40 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 36 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $298,559 over five years to encourage the company to expand in Michigan over a competing site in California. The city of Ann Arbor is considering an abatement to support the project. http://www.avl.com/wo/webobsession.servlet.go?app=bcms&page=view&nodeid=400012976
Molded Materials Inc. - The 40-year-old Michigan company that designs and manufactures tooling and molded composite components for the automotive, life sciences, defense and heavy truck industries plans to invest $2.9 million to consolidate its Plymouth operations to a new facility in Saline. The project is expected to create 69 new jobs, including 29 directly by the company. The MEDC estimates the increased economic activity created by the project could also create an additional 40 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $420,388 over seven years to help convince the company to expand in Michigan over a competing site in Ohio. A tax abatement is also expected from the city of Saline to help this industry grow in Michigan. http://moldedmaterials.com/home.html
Ventra Ionia - The producer of plastics, metals and mechanical assemblies for the automotive industry plans to invest $42 million to acquire four former Meridian Automotive facilities located in Ionia, Fowlerville and two in Kentwood. The project is expected to retain 3,126 jobs, including 934 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 2,192 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.6 million over six years. The cities of Ionia, Fowlerville and Kentwood plan to support the project. http://www.flex-n-gate.com/
Quicken Loans Inc. - The nation's largest online lender and fifth largest retail mortgage lender in the United States plans to relocate its headquarters to Detroit, consolidating its executive, management, loan production, title production and administrative functions. The company plans to invest $240 million in the project, which will create 4,019 jobs, including 1,800 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 2,219 indirect jobs. The project also is expected to retain 4,967 jobs, including 2,200 directly at the company and an additional 2,767 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $18.1 million over 12 years to help win the project for Michigan over a competing site in Ohio. The MEGA board also approved a $29.1 million retention credit over 12 years to keep jobs in Michigan. The city of Detroit is considering local incentives to support the project. https://www.quickenloans.com/
Continental Automotive Systems Holding US Inc. - State incentives have been approved to encourage the company to expand operations in Auburn Hills. The proposed $26.9 million project, pending company approval, is expected to create up to 230 new direct jobs. The MEDC estimates the increased economic activity created by the project will create an additional 322 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a 10-year state tax credit valued at $14.1 million to help convince the company to create new jobs in Michigan. In addition, the MEGA board approved a 10-year state tax credit valued at $10.3 million to encourage the company to retain approximately 225 Continental jobs and 268 indirect jobs in Michigan. The city of Auburn Hills is considering an abatement to support the project. http://www.conti-online.com/generator/www/de/en/cas/cas/general/home/index_en.html
Whitehall Township - State and local tax capture valued at $491,767 will support the redevelopment of the former Muskegon County Whitehall-Montague wastewater treatment plant. The developer will incorporate a number of activities, ranging from agriculture feedstock to cellulosic ethanol production to a recycling center and recreation areas. The energy produced at the site will be used to power the ethanol operations and other facilities on the property. The project will generate $13.3 million in new capital investment and is expected to create up to 150 new jobs.
"These job-creating and job-retaining projects are the result of successful collaboration and teamwork with our outstanding economic development partners around the state to bring these projects to Michigan against some very stiff national and international competition," MEDC President and CEO Greg Main said.
The Michigan Economic Growth Authority (MEGA), the state's response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Since January 2009, more than 47,900 new and retained jobs have been announced as a result of the MEGA program.
The Michigan Economic Development Corporation (MEDC), 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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