Thursday, August 25, 2005
Michael Shore, MEDC
Gestamp Automotive to Expand, Invest $784,430
"Gestamp continues to create the auto-related manufacturing jobs that will help bolster Michigan's economy," Granholm said. "The company's commitment to strengthening its workforce will encourage further investment in the Lapeer community."
The grant is being made available by the Michigan Economic Development Corporation with funds provided by the federal Community Development Block Grant program.
The city of Lapeer will use the funding to make road improvements on Fair Street and construct a new road from the facility to Oregon Road to accommodate increased truck traffic due to the expansion. The city will contribute $104,500 to the project.
"The city of Lapeer is pleased to provide infrastructure improvements that will help locate Gestamp Corporation's newest plant in the city," City Manager Dale Kerbyson said. "With the Lapeer Development Corporation, we continue to search out development opportunities for our community."
Spanish-owned Gestamp manufactures metal-stamped automotive chassis structural components. The company has 30 plants worldwide and currently employs 47 at its facility in Lapeer.
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.
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.
"Michigan continues to attract investment from companies based outside the U.S.," MEDC President and CEO Don Jakeway said. "This is a great sign that we remain a global competitor for manufacturing jobs and investment."
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005 the Governor and the MEDC announced the creation or retention of more than 60,000 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.