An historic $2.1 billion total investment by companies in Michigan -- including some $850 million from Ford -- is expected to create more than 6,000 new jobs for state workers while retaining more than 216,000 others.
It's all part of a package through which tax-break czars at the Michigan Economic Development Corporation are aiding the growth of 16 companies and one brownfield redevelopment project. Included are major investments by Ford, General Motors and Chrysler, which analysts say bolsters the auto industry's long-term future in Michigan. Combined, the projects are expected to create 6,182 total new jobs, retain 216,420 jobs and generate $2.1 billion in new investment in the state.
Governor Granholm's perspective: "This historic investment means thousands of new jobs for our state and the retention of tens of thousands more. Our continuing efforts to bring new investment and jobs to Michigan are paying dividends."
MI perspective: Two cheers for the Big Three, their fight to return to solvency and new investment in Michigan. Why not three cheers? First, because the "Big Three" clearly ain't what they used to be, and what they used to be wasn't so great anyway. Victims of their own mismanagement but also buffeted by flighty consumer trends ("We want our gas guzzlers! No we don't! Yes we do!") and international political conflicts (e.g., oil crises), these companies have survived largely with mercy from a $17.4 billion government bailout, foreign investment (e.g., Fiat) and union concessions. Congrats for their new attention to advanced engineering and hybrid cars, though "fuel efficiency" still doesn't roll smoothly off their tongues. Second, it must be noted in context that Michigan lost more than 790,000 jobs in past 10 years, and the new auto industry investments do nothing to lessen the importance of the state's diversification into new areas such as life sciences, homeland defence, advanced engineering and entertainment.
Still, the new investments are great news for The Great Lake State. Here are some of the MEGA-approved incentives to win the following projects for Michigan over competing states and countries:
Cequent Performance Products Inc. - The designer, manufacturer and marketer of a broad range of aftermarket accessories for the transportation industry plans to invest $3.4 million to broaden its research and development and sales operations in Plymouth Charter Township. The project is expected to create up to 115 total jobs, including the potential for as many as 60 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 55 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $896,963 over six years to convince the company to expand in Michigan over a competing site in Indiana. http://www.trimascorp.com/performance.htm
Chrysler Group LLC - The company that designs, manufactures and assembles cars and trucks under the Chrysler, Jeep, Dodge and Ram Truck brands is considering a $1 billion investment in its Sterling Heights Assembly Plant and the Global Engine Manufacturing Alliance (GEMA) in Dundee to produce future models predicated on receiving inducements from the state as well as local governments. The project is expected to retain up to 92,920 total jobs, including up to 20,000 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 72,290 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.3 billion over 20 years to encourage the company to expand in Michigan over a competing site in Ohio. The city of Sterling Heights is considering an abatement to support the project. http://www.chryslergroupllc.com
Creative Foam Corporation - The designer and manufacturer of foams and plastics for customers in the automotive and medical industries plans to invest $1.5 million in an expansion in Fenton to manufacture materials to supply the renewable energy market, with the final product being a core kit that is used in the production of wind turbine blades. The project is expected to create up to 144 total jobs, including 63 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 81 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $362,386 over five years to encourage the company to expand in Michigan over a competing site in Colorado. http://www.creativefoam.com/
Dematic Corp. - The designer and manufacturer of automated material-handling systems plans to invest $10.9 million to expand its R&D, administrative services, sales and in-house production in Grand Rapids. The project is expected to create up to 910 total jobs, including 505 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 405 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $3.2 million over five years to encourage the company to expand in Michigan instead of competing sites in Kentucky and Utah. http://www.dematic.com/na/Home/Dematic-North-America/page30322.htm
Dokka Fasteners Inc. - The new-to-Michigan manufacturer of hot-formed bolts primarily for the wind industry plans to invest $21 million to establish a manufacturing, coating and distribution operation in Auburn Hills. The company is expected to create up to 168 total jobs, including 90 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 78 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 convince the company to expand in Michigan over competing sites in Missouri and Illinois. The MEDC is also supportive of EDJT funding in the amount of $60,500 and a State Education Tax abatement valued at $28,000. http://www.arvidnilsson.com/DOKKA-FASTENERS.aspx?ID=245
Dynamic Captioning LLC - The provider of broadcast-quality captioning, encoding and subtitling services to media companies within the film and television industries plans to invest $554,000 to establish a service center in Grand Rapids. The project is expected to create 56 total jobs, including 40 directly at the company. The MEDC estimates the increased economic activity has the potential to create an additional 16 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $169,629 over five years to encourage the company to permanently locate in Michigan over a competing site in New York.
EnovateIT LLC - The manufacturer of computer workstations for the health care industry plans to invest $4 million to expand its design and production operation in Canton Township. The project is expected to create up to 387 total jobs, including 160 directly at the company. The MEDC estimates increased economic activity created by the project has the potential to create an additional 227 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over six years to help convince the company to expand in Michigan over a competing site in Ohio. http://www.enovateit.com/
Eovations LLC - The new-to-Michigan venture will commercialize a new, next-generation composite building material called EoTek. The company plans to invest $16 million to establish an R&D and production center in Bay City. The project is expected to create up to 64 direct jobs at the company within the next five years. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.3 million over seven years to convince the company to expand in Michigan over a competing site in Ohio.
Ford Motor Company - Ford plans to invest $850 million to secure global product platforms and operational activities statewide. The project is expected to create 1,200 new jobs and retain up to 115,400 total jobs, including 28,000 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 88,600 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $909 million over 15 years to encourage the company to expand in Michigan over competing sites in India, South Africa, Europe and Asia. This MEGA credit will replace three MEGA credits that were previously awarded to Ford Motor Company. http://www.ford.com
General Motors LLC - The automotive OEM plans to amend the global MEGA incentive it received in June 2009 to add a Hybrid Electric Vehicle battery and vehicle engineering and development operation at the existing battery development center at the Warren Technical Center. This new addition is expected to generate an additional $112 million investment, and could create up to 900 additional jobs at the Warren Technical Center and retain an additional 8,100 jobs statewide. This investment and additional jobs are dependent upon the development of a successful, competitive business case. http://www.gm.com
GM Subsystems Manufacturing LLC - The wholly owned subsidiary of GM plans to amend a Retention MEGA credit it received in February 2009 to expand in-house support for battery module and pack assembly at its Brownstown facility. The expansion is expected to generate an additional $39.7 million investment and retain 150 additional jobs. This investment and additional jobs are dependent upon the development of a successful, competitive business case. http://www.gm.com
Mountain Valley Recycling LLC - The new-to-Michigan recycler of plastic waste into sustainable, post-consumer resins plans to invest $29.5 million to establish a facility that will incorporate new, state-of-the-art green technology in Sterling Heights. The project is expected to create up to 1,303 total jobs, including 396 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 907 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $5.1 million over seven years to encourage the company to expand in Michigan over competing sites in Oregon, Arizona and Nevada. http://www.mvrecycling.com/
P3 North America Inc. - The Troy-based provider of professional management services and engineering solutions for alternative power train and advanced vehicle technologies plans to invest $332,000 to expand in the areas of product development and management services for electric device technology and laboratory testing for infotainment systems and other connected vehicle technologies. The project is expected to create up to 129 total jobs, including 65 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 64 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $485,958 over five years to convince the company to expand in Michigan over a competing site in New Jersey. http://www.p3-group.com/northamerica/enn
Powertrain Integration LLC and New Eagle LLC - Powertrain Integration, the Madison Heights-based provider of a broad range of systems, engine components and services for niche auto OEMs, plans to issue a contract to New Eagle, located in Ypsilanti, to generate a unique software code for use in an automotive engine control module. Powertrain Integration will invest $2 million to commercialize the only large-bore, spark-ignited engine available to the on-highway market, which will create up to 41 jobs. Based on the MEDC's recommendation, the MEGA board today approved a state Technology Collaboration tax credit valued at up to $300,000. http://powertrainintegration.com/
Roush Clean Tech LLC - The developer of alternative energy solutions to fleet vehicles plans to invest $2.1 million to establish an R&D center in Plymouth Township. The project is expected to create up to 85 total jobs, including 54 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 31 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over seven years to convince the company to expand in Michigan over competing sites in North Carolina, Florida, Nevada, Oregon, Minnesota, Texas, Ohio, Indiana and Wisconsin. http://www.roushcleantech.com/
Yanfeng USA Automotive Trim Systems Inc. - The manufacturer of components for major U.S. auto OEMs plans to invest $17 million to expand to accommodate additional work in Harrison Charter Township. The company is 51%-owned by SAIC (China's 3rd largest automaker) in partnership with Visteon. The project is expected to create up to 466 total jobs, including 131 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 335 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over seven years to encourage the company to expand in Michigan over a competing site in Missouri.
"From new-to-Michigan companies to automotive leaders who have called Michigan home for decades, our innovative economic development toolbox is providing a framework that makes a strong business case for future investments," said MEDC President and CEO Greg Main.
It's all part of a package through which tax-break czars at the Michigan Economic Development Corporation are aiding the growth of 16 companies and one brownfield redevelopment project. Included are major investments by Ford, General Motors and Chrysler, which analysts say bolsters the auto industry's long-term future in Michigan. Combined, the projects are expected to create 6,182 total new jobs, retain 216,420 jobs and generate $2.1 billion in new investment in the state.
Governor Granholm's perspective: "This historic investment means thousands of new jobs for our state and the retention of tens of thousands more. Our continuing efforts to bring new investment and jobs to Michigan are paying dividends."
MI perspective: Two cheers for the Big Three, their fight to return to solvency and new investment in Michigan. Why not three cheers? First, because the "Big Three" clearly ain't what they used to be, and what they used to be wasn't so great anyway. Victims of their own mismanagement but also buffeted by flighty consumer trends ("We want our gas guzzlers! No we don't! Yes we do!") and international political conflicts (e.g., oil crises), these companies have survived largely with mercy from a $17.4 billion government bailout, foreign investment (e.g., Fiat) and union concessions. Congrats for their new attention to advanced engineering and hybrid cars, though "fuel efficiency" still doesn't roll smoothly off their tongues. Second, it must be noted in context that Michigan lost more than 790,000 jobs in past 10 years, and the new auto industry investments do nothing to lessen the importance of the state's diversification into new areas such as life sciences, homeland defence, advanced engineering and entertainment.
Still, the new investments are great news for The Great Lake State. Here are some of the MEGA-approved incentives to win the following projects for Michigan over competing states and countries:
Cequent Performance Products Inc. - The designer, manufacturer and marketer of a broad range of aftermarket accessories for the transportation industry plans to invest $3.4 million to broaden its research and development and sales operations in Plymouth Charter Township. The project is expected to create up to 115 total jobs, including the potential for as many as 60 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 55 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $896,963 over six years to convince the company to expand in Michigan over a competing site in Indiana. http://www.trimascorp.com/performance.htm
Chrysler Group LLC - The company that designs, manufactures and assembles cars and trucks under the Chrysler, Jeep, Dodge and Ram Truck brands is considering a $1 billion investment in its Sterling Heights Assembly Plant and the Global Engine Manufacturing Alliance (GEMA) in Dundee to produce future models predicated on receiving inducements from the state as well as local governments. The project is expected to retain up to 92,920 total jobs, including up to 20,000 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 72,290 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.3 billion over 20 years to encourage the company to expand in Michigan over a competing site in Ohio. The city of Sterling Heights is considering an abatement to support the project. http://www.chryslergroupllc.com
Creative Foam Corporation - The designer and manufacturer of foams and plastics for customers in the automotive and medical industries plans to invest $1.5 million in an expansion in Fenton to manufacture materials to supply the renewable energy market, with the final product being a core kit that is used in the production of wind turbine blades. The project is expected to create up to 144 total jobs, including 63 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 81 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $362,386 over five years to encourage the company to expand in Michigan over a competing site in Colorado. http://www.creativefoam.com/
Dematic Corp. - The designer and manufacturer of automated material-handling systems plans to invest $10.9 million to expand its R&D, administrative services, sales and in-house production in Grand Rapids. The project is expected to create up to 910 total jobs, including 505 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 405 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $3.2 million over five years to encourage the company to expand in Michigan instead of competing sites in Kentucky and Utah. http://www.dematic.com/na/Home/Dematic-North-America/page30322.htm
Dokka Fasteners Inc. - The new-to-Michigan manufacturer of hot-formed bolts primarily for the wind industry plans to invest $21 million to establish a manufacturing, coating and distribution operation in Auburn Hills. The company is expected to create up to 168 total jobs, including 90 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 78 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 convince the company to expand in Michigan over competing sites in Missouri and Illinois. The MEDC is also supportive of EDJT funding in the amount of $60,500 and a State Education Tax abatement valued at $28,000. http://www.arvidnilsson.com/DOKKA-FASTENERS.aspx?ID=245
Dynamic Captioning LLC - The provider of broadcast-quality captioning, encoding and subtitling services to media companies within the film and television industries plans to invest $554,000 to establish a service center in Grand Rapids. The project is expected to create 56 total jobs, including 40 directly at the company. The MEDC estimates the increased economic activity has the potential to create an additional 16 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $169,629 over five years to encourage the company to permanently locate in Michigan over a competing site in New York.
EnovateIT LLC - The manufacturer of computer workstations for the health care industry plans to invest $4 million to expand its design and production operation in Canton Township. The project is expected to create up to 387 total jobs, including 160 directly at the company. The MEDC estimates increased economic activity created by the project has the potential to create an additional 227 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over six years to help convince the company to expand in Michigan over a competing site in Ohio. http://www.enovateit.com/
Eovations LLC - The new-to-Michigan venture will commercialize a new, next-generation composite building material called EoTek. The company plans to invest $16 million to establish an R&D and production center in Bay City. The project is expected to create up to 64 direct jobs at the company within the next five years. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.3 million over seven years to convince the company to expand in Michigan over a competing site in Ohio.
Ford Motor Company - Ford plans to invest $850 million to secure global product platforms and operational activities statewide. The project is expected to create 1,200 new jobs and retain up to 115,400 total jobs, including 28,000 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 88,600 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $909 million over 15 years to encourage the company to expand in Michigan over competing sites in India, South Africa, Europe and Asia. This MEGA credit will replace three MEGA credits that were previously awarded to Ford Motor Company. http://www.ford.com
General Motors LLC - The automotive OEM plans to amend the global MEGA incentive it received in June 2009 to add a Hybrid Electric Vehicle battery and vehicle engineering and development operation at the existing battery development center at the Warren Technical Center. This new addition is expected to generate an additional $112 million investment, and could create up to 900 additional jobs at the Warren Technical Center and retain an additional 8,100 jobs statewide. This investment and additional jobs are dependent upon the development of a successful, competitive business case. http://www.gm.com
GM Subsystems Manufacturing LLC - The wholly owned subsidiary of GM plans to amend a Retention MEGA credit it received in February 2009 to expand in-house support for battery module and pack assembly at its Brownstown facility. The expansion is expected to generate an additional $39.7 million investment and retain 150 additional jobs. This investment and additional jobs are dependent upon the development of a successful, competitive business case. http://www.gm.com
Mountain Valley Recycling LLC - The new-to-Michigan recycler of plastic waste into sustainable, post-consumer resins plans to invest $29.5 million to establish a facility that will incorporate new, state-of-the-art green technology in Sterling Heights. The project is expected to create up to 1,303 total jobs, including 396 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 907 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $5.1 million over seven years to encourage the company to expand in Michigan over competing sites in Oregon, Arizona and Nevada. http://www.mvrecycling.com/
P3 North America Inc. - The Troy-based provider of professional management services and engineering solutions for alternative power train and advanced vehicle technologies plans to invest $332,000 to expand in the areas of product development and management services for electric device technology and laboratory testing for infotainment systems and other connected vehicle technologies. The project is expected to create up to 129 total jobs, including 65 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 64 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $485,958 over five years to convince the company to expand in Michigan over a competing site in New Jersey. http://www.p3-group.com/northamerica/enn
Powertrain Integration LLC and New Eagle LLC - Powertrain Integration, the Madison Heights-based provider of a broad range of systems, engine components and services for niche auto OEMs, plans to issue a contract to New Eagle, located in Ypsilanti, to generate a unique software code for use in an automotive engine control module. Powertrain Integration will invest $2 million to commercialize the only large-bore, spark-ignited engine available to the on-highway market, which will create up to 41 jobs. Based on the MEDC's recommendation, the MEGA board today approved a state Technology Collaboration tax credit valued at up to $300,000. http://powertrainintegration.com/
Roush Clean Tech LLC - The developer of alternative energy solutions to fleet vehicles plans to invest $2.1 million to establish an R&D center in Plymouth Township. The project is expected to create up to 85 total jobs, including 54 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 31 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over seven years to convince the company to expand in Michigan over competing sites in North Carolina, Florida, Nevada, Oregon, Minnesota, Texas, Ohio, Indiana and Wisconsin. http://www.roushcleantech.com/
Yanfeng USA Automotive Trim Systems Inc. - The manufacturer of components for major U.S. auto OEMs plans to invest $17 million to expand to accommodate additional work in Harrison Charter Township. The company is 51%-owned by SAIC (China's 3rd largest automaker) in partnership with Visteon. The project is expected to create up to 466 total jobs, including 131 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 335 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over seven years to encourage the company to expand in Michigan over a competing site in Missouri.
"From new-to-Michigan companies to automotive leaders who have called Michigan home for decades, our innovative economic development toolbox is providing a framework that makes a strong business case for future investments," said MEDC President and CEO Greg Main.
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