Tuesday, March 13, 2007
MEDC-Assisted Projects Would Generate $542 Million in Capital Investment
Governor Jennifer M. Granholm today announced that theMichigan Economic Development Corporation is providing assistance to encourage General Motors to invest $225.5 million in its Orion Assembly and Saginaw Metal Casting plants, and an additional $274.5 million at other Michigan sites, over the next two to three years. Delphi plans to invest $42 million at its Auburn Hills location. Together the projects are expected to retain 8,715 jobs and generate $542 million in new capital investment.
The projects approved for tax credits today:
- General Motors is 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 projects, 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.
MEDC President and CEO James C. Epolito said.
The projects are two of 10 approved for economic incentives announced by the governor today. In all, they are expected to create and retain 14,358 Michigan jobs.
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