©2016 Michigan Economic Development Corporation

Escanaba Area Wins Major Expansion Project

Thursday, October 15, 1998

John Truscott
(517) 335-6397

304 New Jobs for Escanaba, StateGovernor John Engler announced today that Engineered Machined Products, Inc., has accepted a proposal that will create 304 new jobs, 175 created directly by the company in Escanaba. Under the agreement, Engineered Machined Products, Inc., expects to invest approximately $5 million to construct a new research and development facility and expand its manufacturing operations in Escanaba. Engineered Machined Products, Inc., designs, manufactures and tests components for the diesel engine industry, primarily water and oil pumps, cylinder heads, and various other components for the heavy duty vehicle industry. The City of Escanaba was in competition with several sites in Indiana for the project. "Engineered Machined Products' decision to expand in Escanaba means that 175 new jobs will stay right here in Michigan rather than going to Indiana," Engler said. "Keeping companies like Engineered Machined Products in Michigan is the reason why we were the number one state in new plants and expansions in 1997, and the reason we will be on the top of that list again in 1998." Engineered Machined Products, Inc., will create up to 175 new jobs in Escanaba as a result of the expansion. Its investment also will generate an estimated 129 additional jobs in the state, primarily from increased purchases from Michigan suppliers and spending by people who receive income from the jobs at Engineered Machined Products, Inc., according to an economic analysis done by the University of Michigan. Engler also announced the approval of a tax credit for Engineered Machined Products, Inc., worth an estimated $2,053,000, voted on by the Michigan Economic Growth Authority. "A research and development facility in Escanaba will speed the process by which our new products can be sold to customers, thereby creating opportunities for existing and new employees," said Brian Larche, President of Engineered Machined Products. "We expect that at least 30% of the new jobs will be at the engineering or technical level, with the balance filling the need for increased manufacturing capacity." The Engineered Machined Products, Inc., project will provide more than $16 million in revenue to the state over the life of the agreement, resulting in a net positive gain to the state of over $14 million after the MEGA credit. The project is expected to generate over $204 million in personal income. Engineered Machined Products, Inc., officials accepted the credit today and announced their plans during an event held at Escanaba's City Hall building. In attendance were several local officials, Brian Swift, Director of Governor Engler's Northern Michigan Office, and company officials. The company expects the new facility to be operational by November of 1999.

(All estimates in 1998 dollars)

    • Direct 175
    • Indirect 129
    • Revenue Forgone $ 2,053,000
    • Revenue Gain $16,333,000
    • Average Wage $457/week
  • Personal Income Generated Over Life of MEGA Agreement$204,162,000