Tuesday, November 15, 2005
Governor Granholm signed legislation on October 24 to amend the Michigan Economic Growth Authority Act to help make the Cadillac Casting project eligible for Single Business Tax credits. The MEDC approved a Single Business Tax credit valued at more than $2.7 million over seven years to win the project.
The next step for Cadillac Casting is to continue its negotiation with Hayes Lemmerz for the sale of the facility.
A University of Michigan economic analysis estimates that increased economic activity from the foundry will retain an additional 338 indirect Michigan jobs, in addition to the 375 retained directly by the company. The project is expected to create more than $250 million in personal income for Michigan workers over the life of the tax credit.
The proposed acquisition is one of nine economic development projects the Governor announced today. In all, they are expected to create and retain a total of 1,573 Michigan jobs.
Cadillac Casting was formed specifically to purchase the existing ductile iron foundry from Hayes Lemmerz. The foundry has been in operation since 1920 and supplies cast moldings primarily to the auto industry.
Cadillac Casting Inc.
(All estimates in 2005 dollars)
|TOTAL JOBS RETAINED|
|Personal Income Generated Over Life of the Seven-Year Tax Credit Agreement|
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