Thursday, December 23, 2004
Mike Shore, MEDC
German-Based Auto Supplier Schefenacker to Expand
Governor Jennifer M. Granholm today announced that a $1 million grant will be made to the city of Marysville to support the $8 million expansion of Schefenacker Vision Systems Inc., leading to the creation of 50 new jobs. The Governor's announcement comes on the heels of her return from a successful five-day investment mission to Germany, in which a number of companies agreed to add or expand operations in the state.
"Schefenacker's is the latest German-based company to invest in Michigan, and it is this type of growth and commitment that creates a healthy economy for our state." Granholm said. "The new jobs that will be gained in Marysville as a result of this expansion will be a big boost to the community."
The city of Marysville will use the funding to make a performance-based loan to Schefenacker that will enable the company to purchase new equipment and provide working capital for construction of a new paint facility. The injection mold company manufactures automotive mirror assemblies and currently employs more than 750 people. The city has committed an additional $375,000 to the project and the Economic Development Alliance (EDA) of St. Clair County will also contribute $3.1 million.
The grant is being made available by the Michigan Economic Development Corporation with funds provided by the federal Community Development Block Grant program.
"We appreciate the opportunity to work with Schefenacker and the EDA of St. Clair County on this critical effort to expand and more importantly, preserve the operations of our third largest taxpayer," Marysville Mayor Gary Orr said. "The company employs 750 people, many of whom are Marysville residents."
The Michigan Economic Development Corporation administers the state's Community Development Block Grant funds received from the U.S. Department of Housing and Urban Development. These funds are used to provide grants and loans to eligible counties, cities, villages and townships-typically those with populations less than 50,000-for economic development, community development and housing projects. Larger communities receive block grant funds directly from the federal government.
"Schefenacker's expansion is another positive sign that Michigan's increasingly high-tech automotive industry remains strong," MEDC President and CEO Don Jakeway said. "Our state's business-friendly climate and highly skilled workforce continue to attract investment from international companies, strengthening our ongoing leadership in the automotive industry."
The MEDC is able to award approximately $50 million in federal CDBG funds each year. There are 1,655 local governments within the state eligible to apply for these funds. Projects are approved contingent upon compliance with state and federal requirements.
In her 2004 State of the State address, Governor Granholm announced her plan to make Michigan a global economic powerhouse in the 21st century. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 54,144 jobs as a result of targeted assistance provided by the MEDC.
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.