April 20, 2010
April 20, 2010
Projects will generate $128 million in private investment and retain over 1,490 jobs
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping nine companies grow in Michigan and backing a brownfield redevelopment project. Combined, the 10 projects are expected to create 15,795 new jobs (8,133 direct), retain 1,493 total jobs and generate $128 million in new investment in the state.
The companies planning expansions in Michigan represent a diverse cross section of traditional and high-tech sectors from metal stamping to pharmaceuticals to aerospace.
"Our aggressive diversification strategy is paying off," Granholm said. "Very few places have the one-two punch of a competitive business climate and highly skilled workforce like Michigan that can attract new investment and jobs from companies competing across a wide spectrum of industries."
The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects for Michigan over competing states and countries:
The Minacs Group USA - The provider of marketing solutions and business support services focused on Fortune 500 companies, plans to invest $11 million to expand in a new facility in Southfield. The project is expected to create 2,756 new jobs, including 1,928 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 828 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $9.1 million over four years to help convince the company to expand in Michigan over a competing site in Ontario. The city of Southfield is considering an abatement in support of the project. http://www.minacs.com/
Aeroflex/Inmet - The designer, manufacturer and marketer of microelectronic components used in a wide variety of wireless communications applications plans to invest $3 million to expand its Scio Township operations to house a product line currently made in New Jersey. The project is expected to create 288 total jobs, including 47 directly by the company. The MEDC estimates the increased economic activity created by the project is expected to create an additional 241 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $466,004 over seven years to encourage the company to expand in Michigan over a competing site in New Jersey. The township of Scio is considering an abatement to support the project. http://www.aeroflex.com/inmet
Diplomat Specialty Pharmacy - One of the nation's largest, privately held specialty pharmacy offering dispensing and delivery services, patient call-center support and patient database management plans to invest $12 million to consolidate and expand in Flint. The project is expected to create up to 139 jobs in the first year, 1,039 jobs over the next five years, and up to 4,000 jobs over the next 18 years. The MEDC estimates the increased economic activity created by the project may create an additional 3,274 indirect jobs over 18 years. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $61.5 million over 18 years to encourage the company to expand in Michigan over a competing site in Ohio. Flint is considering a property tax abatement in support of the project. In addition, Genesee/Shiawassee Michigan Works will provide up to $14 million over 10 years for worker retraining. http://www.diplomatpharmacy.com/
GalaxE. Solutions Inc. - The New Jersey-based IT provider in the business of developing and modifying software, particularly in the healthcare, retail, and financial services industries, plans to invest $4.2 million to expand its U.S. presence in Detroit. The company's first operation in Michigan is expected to create 987 total jobs, including 500 directly by the company. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.6 million over five years to convince the company to locate in Michigan over a competing site in New Jersey. The city of Detroit is considering a personal property tax abatement in support of the project. http://www.galaxesolutions.com/
Lenawee Stamping - The producer of metal stamping and welded fabrications for the automotive industry plans to invest $2.5 million to expand its Tecumseh facility to accommodate new GM programs. The project will create 136 total jobs, including 78 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 58 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $414,322 over four years to encourage the company to expand in Michigan over a competing site in Ohio. The city of Tecumseh is considering an abatement valued at $241,381 over 12 years to support the project. http://lenaweestamping.com/
Magna Holdings of America - The designer, developer, and manufacturer of automotive components and systems plans to invest $49.2 million to expand its manufacturing, engineering and product-testing operations in Michigan, including sites in Auburn Hills, Troy, Lansing and Shelby Township. The project is expected to create 1,828 new jobs, including 508 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 1,320 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $5.6 million over seven years to encourage the company to expand in Michigan over competing sites in other states. The cities of Auburn Hills and Troy are considering abatements in support of the project. www.magna.com
Parker Hannifin - The global corporation that engineers and produces products and technology in numerous industries, including aerospace and electromechanicals, plans to invest $15.5 million in its Kalamazoo facility to accommodate new work in hydraulic systems in many new aircraft models. The project will retain 1,493 total jobs, including 608 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 58 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.3 million over five years to encourage the company to expand in Michigan over a competing state. The city of Kalamazoo is considering an abatement valued at $305,868 over five years to support the project. http://www.parker.com/portal/site/PARKER/
PSCU Holding Services - The financial service provider to credit unions across the country plans to invest up to $12 million to expand its software development, sales and technology-based call center and related support services in Auburn Hills. The project is expected to create 1,792 new jobs, including 837 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 955 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit with a maximum value of $3.5 million over five years to encourage the company to expand in Michigan over competing sites in Florida and Arizona. The city of Auburn Hills is considering an abatement in support of the project. http://www.pscufs.com/
Tenneco Automotive - The manufacturer of automotive emission and ride control products plans to invest up to $15.6 million to expand to make next-generation emissions products for light-duty and commercial vehicles in Litchfield, Marshall, Grass Lake and Monroe. The project is expected to create 684 total jobs, including up to 185 directly by the company. The MEDC estimates the increased economic activity created by the project could create an additional 499 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.8 million over seven years to encourage the company to expand in Michigan over competing sites in North America. The city of Litchfield is considering an abatement valued at up to $554,000 in support of the project. The city of Marshall and village of Grass Lake are also considering abatements in support of the project. http://www.tenneco.com/
City of Grand Rapids - State and local tax capture valued at $296,187 and a Brownfield MBT worth $556,000 will support the redevelopment of three vacant buildings on Cherry Street and Lake Drive, and construction of two new LEED buildings that will encompass a mixed-use development with residential, commercial/retail and light industrial space. The project will generate $3 million in new capital investment and create up to 50 new jobs.
"These projects announced today are the result of successful collaboration and teamwork with our economic development partners around the state," MEDC President and CEO Greg Main said. "We were able to win the projects over other states and countries thanks, in part, to our diverse economic toolbox."
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 45,598 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 website 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 and subscribe to the MEDC YouTube channel (www.youtube.com/user/michiganupperhand).
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