Tuesday, March 13, 2007
Companies investing over a half a billion dollars in Michigan
Governor Jennifer M. Granholm today announced the Michigan Economic Development Corporation is helping eight companies grow in Michigan and is backing two redevelopment projects expected to create and retain a total of 14,358 jobs and involve more than $714.7 million in new capital investment in communities throughout the state.
The 10 projects announced today:
- FACTON Inc.Auburn Hills
- Kostal of America Inc.The subsidiary of the Kostal Group will relocate its Novi operations to Troy
- MBtech Autodie, LLC.A company within the MBtech Group plans to invest approximately $5 million in the former Autodie facility in Grand Rapids
- General Motorsis considering a potential investment of approximately $225.5 million in Orion Assembly for a new vehicle product and Saginaw Metal Casting for a new casting program. In addition, GM is considering future investments of approximately $274.5 million in other projects in Michigan over the next two to three years. Combined, the projects would retain 6,711 jobs including 880 directly by the company. A state tax credit valued at $6.6 million over 10 years helps ensure that the plants remain open as GM looks to achieve cost savings and efficiencies. To support the potential project, Orion Township has proposed a local abatement valued at approximately $70,000 and the city of Saginaw will provide assistance through the local Workforce Development Board.
- Delphi Corporationplans to invest $42 million to consolidate R&D, engineering and business operations to a single location in Auburn Hills. The project will retain 2,004 jobs including 910 directly by the company. A state tax credit valued at $12.1 million over seven years helped make the case for a Michigan location rather than competing sites in Mexico, China and Poland. Auburn Hills has proposed an eight-year abatement worth approximately $70,000 to support the project.
- Lycera Corporationplans to invest $676,000 to establish operations in Ann Arbor
- Netlink Software Groupwill invest $4 million to expand and relocate its facilities from Southfield to Madison Heights. The project is expected to create 473 new jobs, including 298 directly by the company. A state tax credit valued at $3.6 million over seven years helped convince the provider of professional information technology services to choose Michigan over a competing site in Denver, Colorado. Madison Heights will propose a tax abatement to support the project.
- The Hybrid Development Centerin Troy, a joint venture of GM, DCX and BMW, is being supported by a state tax credit valued at approximately $19.1 million over the next 10 years. The three companies will create and retain a combined 437 jobs at the center.
- State and local tax capture valued at $12,661,770 will support the redevelopment of a 206.4-acre industrial property in Grand Rapids bounded by 36th and 44th streets and Eastern Avenue and formerly owned by Steelcase. Developer Ashley Capital will undertake demolition of six obsolete manufacturing buildings, redevelopment of 12 existing industrial and support structures and construction of just over three million square feet in new industrial, commercial and residential facilities. The new complex will generate $145 million in new capital investment and create more than 3,960 new jobs.
- Redford Township
MEDC President and CEO James C. Epolito said.
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