March 16, 2010
March 16, 2010
Companies investing over $724million in multiple sectors
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping 10 companies grow in Michigan and also backing two brownfield redevelopment projects. Combined, the 12 projects are expected to create 5,369 new jobs (2,025 direct and 3,344 indirect), retain 781 total jobs, and generate over $724 million in new investment in the state.
The projects include: an overseas company launching its U.S. operations in Muskegon Township to research and develop rechargeable batteries; a new-to-Michigan renewable energy, water and telecommunications company planning a new headquarters in Flint; and an expansion in Plymouth Township by a company that specializes in three-dimensional, medical-image processing used to help injured soldiers returning from Iraq and Afghanistan.
"Michigan has the most aggressive strategy of any state to grow jobs and diversify our economy, and the strategy is working as demonstrated by these projects announced today," Granholm said. "From advanced batteries to homeland security and life sciences to building materials, companies across all industry sectors are choosing Michigan for their growth plans, because our state is a great state in which to do business."
The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects over competing states and countries:
ADCO Products Inc. - producer of sealants and adhesives for the roofing, transportation, construction and solar markets plans to invest $17.3 million to consolidate in Michigan Center and further establish itself in the solar panel industry by making an investment in the photovoltaic panel adhesive market. The project is expected to create 673 new jobs, including 212 directly by the company. The MEDC estimates that the increased economic activity created by the project will create an additional 461 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.2 million over five years to encourage the company to expand in Michigan over a competing site in Indiana. Leoni Township is considering an abatement in support of the project. http://www.adcocorp.com/
Ash Stevens Inc. - The provider of life sciences research services to the federal government and pioneer in cancer-treating drugs plans to invest $14.9 million in an expansion to address new market segments at its facility in Riverview. The project is expected to create 202 new jobs, including 60 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 142 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $710,019 over seven years to help convince the company to locate in Michigan over a competing site in Massachusetts. The city of Riverview is considering local incentives in support of the project. http://www.ashstevens.com/
fortu PowerCell - The international researcher and developer of rechargeable batteries plans to invest $623 million in a new integrated battery-cell manufacturing plant in Muskegon Township. The multi-phase project is expected to create 1,971 new jobs, including 726 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 1,245 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $12.6 million over 10 years to encourage the company to locate and expand in Michigan. In addition, the company has been approved for a battery cell manufacturing tax credit of $100 million over four years. Muskegon Township is considering local incentives in support of the project.
Masco Cabinetry Company - The manufacturer of kitchen and bath cabinets plans to invest $20.6 million to establish a new facility in Ann Arbor Township to house executive oversight, research and development resources, corporate finance, marketing and IT services. The project is expected to create 686 new jobs, including 250 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 436 indirect jobs. The project also is expected to retain 535 jobs, including 206 directly by the company and an additional 329 spin-off jobs. Based on the MEDC's recommendation, the MEGA board today approved two state tax credits to convince the company to invest in Michigan over a competing site in Ohio - a $7.3 million tax credit over 10 years to encourage the company to create new jobs and a $5.7 million tax credit over 10 years to encourage the company to retain jobs. Ann Arbor Township is considering an abatement valued at $204,588 in support of the project. http://www.masco.com/
Materialise USA - The subsidiary of Belgian-based Materialise NV, a company that specializes in three-dimensional medical image processing, plans to invest $12.5 million in a Plymouth Township facility to focus on the market development of software applications used in surgery and other medical applications. The project is expected to create 226 new jobs, including 80 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 146 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $563,119 over seven years to help convince the company to expand in Michigan over a competing site in Indiana. Plymouth Township is considering local incentives to support the project. http://www.materialise.com/
Oasis Advanced Engineering, Inc. - An Auburn Hills-based research and development company specializing in software and embedded electronics for military combat vehicles plans to invest $7.5 million to expand its research and development capabilities and establish a production capability for switchable vision blocks for current and future force military vehicles and for the design and fabrication of training devices for the Army and National Guard. The project is expected to create 204 jobs, including 100 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 104 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.4 million over seven years to encourage the company to expand in Michigan over a competing site in Florida. The city of Auburn Hills is considering local incentives to support the project. http://www.Oasis-AE.com/
Oshkosh Corporation - The manufacturer and marketer of access equipment; commercial, fire, emergency and military vehicles; and vehicle bodies plans to invest $6.5 million to open a new state-of-the-art technical facility in Warren designed to provide advanced systems engineering for Army medium truck fleets. The project is expected to create 396 new jobs, including 190 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 206 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $6.4 million over 12 years to encourage the company to expand in Michigan over a competing site in Wisconsin. The city of Warren is considering an abatement to support the project. http://www.oshkoshcorporation.com/
RECARO North America - The designer and manufacturer of high-end mobile seating for the automotive market plans to invest $6 million to consolidate some of its operations from China to its Auburn Hills facility. The consolidation will expand RECARO's involvement in its child restraint and OEM business units creating a rare diversification for a Michigan automotive manufacturer. The project is expected to retain 246 new jobs, including 69 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 177 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $519,000 over five years to encourage the company to expand in Michigan. The city of Auburn Hills is considering local incentives in support of the project. http://www.recaro.com/
Saab Cars North America - The global automaker plans to invest $2.4 million to establish its North American headquarters in Royal Oak, focusing on marketing, sales and product evaluation. The project is expected to create 158 total jobs, including up to 60 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 98 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.2 million over five years to encourage the company to expand in Michigan over a competing site on the East Coast. The city of Royal Oak has approved an abatement valued at $29,000 to support the project. http://www.saabusa.com/
Toda America - Based on the MEDC's recommendation, the MEGA board today approved key incentives to move the previously announced project forward: a brownfield tax credit valued at $7.9 million as well as a federal contracting Michigan Business Tax (MBT) credit, which has a projected value of $395,000. Last November, the manufacturer of iron oxide and mixed metal oxide particles used in rechargeable lithium-ion batteries was approved for a state tax credit of $1.6 million over 12 years to encourage the company to invest $70.1 million in a new cathode material manufacturing facility in Battle Creek in support of the lithium-ion battery industry. The two-phase project will, when complete, have the capacity to supply batteries for hundreds of thousands of hybrid electric vehicles and plug-in hybrid electric vehicles. The project is expected to create 148 total jobs, including 57 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 91 indirect jobs. The company has also been awarded a $35-million U.S. Department of Energy grant. http://www.americatoda.com/
City of Lansing - State and local tax capture valued at $374,000 will help prepare the site of the vacant Governor's Inn Hotel in Lansing for a proposed 1,900 square-foot Sonic restaurant. In addition, the project will prepare three acres of land for future development. The project is expected to generate $1.45 million in new private investment and create up to 72 new jobs.
City of Detroit - State and local tax capture valued at $297,000 will help support the redevelopment of the historic Forest Arms apartment building on 2nd Avenue in the Midtown neighborhood. The development team will perform a historic rehabilitation on the property, constructing 74 residential apartment units and two commercial units. The project is expected to generate $11.8 million in new private investment.
"Economic development is a team sport, and we collaborated with communities across the state to win these projects against intense national and global competition," MEDC President and CEO Greg Main said. "At the end of the day, it was the one-two punch of our competitive business climate and innovative incentive tools that helped us make a compelling business case that Michigan was the best place in North America for these companies to invest and grow."
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 MBT to companies expanding or relocating their operations in Michigan. Since January 2010, more than 28,000 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 us at www.MichiganAdvantage.org; follow us on www.twitter.com/MIAdvantage; fan us at www.facebook.com; read us at http://blog.michiganadvantage.org; and watch us at www.youtube.com/user/michiganupperhand.
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