Tuesday, June 21, 2005
Michael Shore, MEDC
Incentives Convince Company to Modernize Steel Mill In Michigan
Governor Jennifer M. Granholm announced today that global steel producer Severstal Group will invest up to $250 million to upgrade its steel mill facility in Dearborn, retaining a total of 11,300 Michigan jobs including 2,005 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan over competing sites in other states.
"Severstal is just one of a growing number of international companies making job-creating investments here in Michigan," Granholm said. "By working with the company to retain its operations here, we were able to keep thousands of workers employed throughout Southeast Michigan."
The Severstal Group is a major steel manufacturer based in Russia with locations in 14 Russian Federation states. It is the 18th largest steel company in the world, and employs approximately 150,000 people worldwide. To establish a presence in the North American market, the company acquired Dearborn's Rouge Steel in April 2004.
The MEDC approved a Single Business Tax credit valued at more than $28.7 million over 20 years to win the project. The city of Dearborn has approved a 50 percent abatement of the steel producer's new real and personal property taxes for 12 years valued at approximately $19 million.
The Severstal expansion is one of three economic development projects the Governor announced today. In all, they are expected to create and retain a total of 11,606 Michigan jobs, including 2,300 directly by the company expansions and redevelopment.
"We made a good strong business case to assure that these manufacturing jobs would not leave Michigan," MEDC President and CEO Don Jakeway said. "This commitment confirms the importance of incentives in winning the competition for business investment."
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005 the Governor and the MEDC have announced the creation or retention of more than 53,301 jobs as a result of targeted assistance provided by the MEDC.
The Michigan Economic Development Corporation, 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.
Severstal North America Inc.
(All estimates in 2005 dollars)
|TOTAL JOBS RETAINED||11,300|
|NET POSITIVE STATE REVENUE IMPACT||$889,643,000|
|Personal Income Generated Over|
|Life of the 20-Year Tax Credit Agreement||$11,943,170,000|