February 25, 2010
February 25, 2010
$804 million being invested in several sectors
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping 10 companies grow in Michigan and backing a brownfield redevelopment project that will enable a company to expand. Combined, the 11 projects are expected to create 17,321 new jobs (5,749 direct and 11,572 indirect) and generate over $804 million in new investment in the state.
The projects include a new research and development facility in Northville Township that will supply materials for lithium-ion battery cells, the re-launch of a facility in Cadillac that manufactures boats, and the expansion in Perry Township of a high-tech firm that provides automotive engineering and test development services.
"Companies are choosing to invest and grow in Michigan because we are a great state in which to do business," Granholm said. "From solar shingles and advanced batteries to boats and scrap-tire recycling, we are creating a diversified economy where firms across a wide spectrum of industries are finding success and growing new jobs."
The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects for Michigan over competing states and countries:
Advanced Integrated Tooling Solutions LLC - The new-to-Michigan subsidiary of Advanced Integration Technology Inc. is a global supplier of fabrication, installation and maintenance of fully integrated plant floor systems. The company plans to invest $13.3 million to manufacture equipment for commercial, retail and military aircraft in Chesterfield Township. The project is expected to create 1,435 new jobs, including 275 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 1,160 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $3.2 million over eight years to encourage the company to expand in Michigan over competing sites in Ohio, Texas and Pennsylvania. Chesterfield Township is considering an abatement in support of the project. http://www.aint.com/
ALTe LLC - The automotive supplier engaged in the engineering, assembly and integration of battery powertrain systems plans to invest $51.3 million to open an assembly facility in Auburn Hills to retrofit existing fleet and other high-mileage vehicles. The project is expected to create 1,147 new jobs, including 305 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 842 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $8.4 million over seven years to help convince the company to expand in Michigan over competing sites in North Carolina, South Carolina, Illinois and Ohio. The city of Auburn Hills has approved a four-year abatement valued at $242,500 in support of the project. http://www.altellc.com/
CIBER Inc. - The provider of IT outsourcing and consultancy services to clients in government, finance and manufacturing plans to invest $8 million to establish a U.S. development center in Southfield to provide a comprehensive range of services, including IT infrastructure, operations, application management and support. The project is expected to create 1,394 new jobs, including 700 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 694 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $10.1 million over seven years to encourage the company to expand in Michigan over a competing site in Florida. The city of Southfield has approved an abatement valued at $1.2 million in support of the project. http://www.ciber.com/
Cobalt Holdings LLC - The new-to-Michigan recycler and processor of scrap tires plans to invest $6.1 million to expand and consolidate in Sturgis. The project is expected to create 187 new jobs, including 100 directly by the company, over five years. The MEDC estimates the increased economic activity created by the project will create an additional 87 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $353,685 over five years to encourage the company to expand in Michigan over a competing site in Indiana. The city of Sturgis is considering an abatement valued at $169,000 over 12 years in support of the project.
The Dow Chemical Company - The MEGA board approved a new jobs creation state tax credit valued at $61.3 million over 15 years for Dow projects, which include the full-scale production facility in Midland for the company's DOW™POWERHOUSE™ Solar Shingle, subject to finalizing local, state and federal funding. The solar project is expected to generate $249 million in private investment and create 6,100 new jobs in the value chain, including 1,275 direct Dow jobs. Additional projects over the life of the tax credit could create up to an additional 425 jobs and $351 million in additional investment. www.dow.com
Dow Kokam - The joint venture between Dow Chemical Company and Townsend Ventures was formed to manufacture cells and batteries for electric and hybrid vehicles. As previously announced, the company plans to invest $342 million as part of the second phase of a project to build a large-scale manufacturing facility in Midland. The project will create 480 total jobs. Based on the MEDC's recommendation, the MEGA board today approved an advanced- battery tax credit valued at $42 million to support the company's battery-cell manufacturing operations. The city of Midland is considering local incentives in support of the project. The Michigan Department of Energy will support the project with up to $300,000 in training funds. http://www.dowkokam.com/
Four Winns LLC - The manufacturer of recreational fiberglass boats has defined a project to invest up to $63 million over the next eight years, an average of $7.9 million per year, to expand in Cadillac to support increased production of Four Winns, Wellcraft and Glastron boat brands currently produced in Cadillac and Little Falls, Minnesota. Assuming a return to peak manufacturing levels, the project has the potential to create 5,255 total jobs, including up to 2,320 directly by the company, between now and 2018. The MEDC estimates the increased economic activity created by the project could create an additional 2,935 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $27.1 million over eight years to encourage the company to expand in Michigan over competing sites in Minnesota and Tennessee. The city of Cadillac is considering an abatement in support of the project. http://www.fourwinns.com/
Katcon USA Inc. - The global supplier of catalytic converters, exhaust modules and complete exhaust systems plans to invest $3.7 million to create a new technical center in Auburn Hills. The project will create 74 total jobs, including 35 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 39 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $534,633 over seven years to encourage the company to expand in Michigan over a competing site in Mexico. The city of Auburn Hills is considering an abatement to support the project. http://www.katcon.com/
Sakor Technologies - The designer and builder of advanced dynamometer systems for testing engines, power-trains, and electrical power equipment plans to invest $1.1 million to expand to a new facility in Perry Township. The project will create 46 total jobs, including 25 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 21 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $363,975 over seven years to encourage the company to expand in Michigan over a competing site in Colorado. The township of Perry is considering a 12-year abatement valued at approximately $49,472 to support the project. http://www.sakor.com/
TSC Michigan Inc. - The new-to-Michigan subsidiary of Techno SemiChem Corp. plans to invest $31.1 million to locate its North American headquarters in Northville to conduct research and development and pilot production efforts to produce electrolyte for advanced lithium ion battery cells. The project will create 1,673 total jobs, including 279 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 1,394 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $3.2 million over seven years to encourage the company to expand in Michigan over a competing site in South Korea. The township of Northville is considering an abatement to support the project.
Charter Township of Brownstown - State and local tax capture valued at $58,500 will support the redevelopment of a vacant parcel adjacent to National Wine and Spirits Inc. (NWS) to expand the company's warehousing and office operations. As part of the project, NWS will demolish an existing building on the site and construct a new building. The expansion will also require soil and underground storage tank removal and remediation. The project will generate $26.5 million in new capital investment and create up to 10 new jobs.
"These job-creating company expansions and brownfield redevelopment projects are the result of successful collaboration and teamwork with our economic development partners around the state to bring these projects to Michigan against some very intense 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 2010, nearly 25,000 new and retained jobs have been announced as a result of the MEGA program.
Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial or residential purposes and to keep that property in productive use or return it to productive use. Brownfield incentives can be used for functionally obsolete, blighted or contaminated property.
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.MichiganAdvantage.org. For updates on MEDC programs, events, success stories and more, follow us on Twitter (www.twitter.com/MIAdvantage), become a fan on Facebook (www.Facebook.com), read our blog at (http://blog.michiganadvantage.org).
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