©2016 Michigan Economic Development Corporation

Dawn Food Products to Expand and Relocate HQ, Create 401 Jobs

Tuesday, May 18, 2004

Paul Krepps
(517) 335-4590

Michigan Wins $12 Million Expansion From Ohio

Governor Jennifer M. Granholm announced today that Dawn Food Products plans to consolidate and expand its Michigan headquarters in Leoni Township near Jackson, resulting in the creation of 401 new jobs, including 110 directly by the company. The Michigan Economic Development Corporation (MEDC) approved a Single Business Tax Credit (SBT) to convince Dawn to invest an estimated $12 million to facilitate the project in Michigan over a competing site in northwest Ohio.

"Dawn has been a Michigan tradition since 1920 and sells and markets around the world," Granholm said. "I am glad the company finds it necessary to add new space in the process of consolidating and centralizing operations. Dawn is a great example of the diversity of the companies being announced today. Growth is good, especially when Michigan companies are leading the way."

In her 2004 State of the State address, Governor Granholm announced a focused plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 14,321 jobs as a result of targeted assistance provided by the MEDC.

The Dawn project was one of nine major expansions and relocations announced by Governor Granholm today. The projects are expected to create and retain a total of 8,683 new jobs for Michigan workers, including 2,866 directly by the nine companies.

Dawn Food Products manufactures and distributes high-quality baking supplies including ready-to-bake and ready-to-sell products to the baking industry worldwide. A wholly owned subsidiary of Dawn Foods, one of the worlds largest full service, family-owned baking industry suppliers, the company is headquartered in Jackson and currently employs 274 workers in Michigan

Dawn had considered locating the project at a competing site in northwest Ohio. However, an SBT credit offered by the MEDC worth more than $1.9 million over the next 15 years convinced the company to stay and grow in Michigan.

"All of the people of Dawn Food Products wish to express their thanks and appreciation to Governor Granholm and the Michigan Economic Development Corporation, for making this MEGA credit available to our organization," said Miles Jones, executive vice president, Dawn Food Products. "We also wish to thank Leoni Township, the township trustees and the Enterprise Group of Jackson for their support in helping to secure the credit and the proposed abatements. We are looking forward to being able to move forward with this project soon."

Leoni Township has proposed a 50 percent abatement of the company's new real and personal property for 12 years. The abatement valued at approximately $529,200 is expected to be approved by the township on May 19.

A University of Michigan economic analysis estimates that 291 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 110 jobs created directly by the company. The project is expected to generate more than $259 million in personal income for Michigan workers over the life of the tax credit.

"We are pleased that this world-class corporation has chosen to stay with us," said MEDC President and CEO Don Jakeway. "Once again, our business climate made it possible for us to compete with Ohio and keep jobs in Michigan."

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.

Dawn Food Products, Inc.
Economic Analysis
Summary Estimates
(All estimates in 2004 dollars)

Revenue Foregone$1,940,000
Revenue Gain$19,944,000
Average Wage$645/week
Personal Income Generated Over
Life of the Tax Credit Agreement