©2016 Michigan Economic Development Corporation

Governor Announces Kellogg Expansion in Wyoming, Resulting in 664 New Jobs

Tuesday, October 18, 2005

Michael Shore, MEDC
(517) 335-4590

Company Chooses Michigan over Georgia for $5.6 Million Investment

Governor Jennifer M. Granholm today announced that Kellogg Company will invest $5.6 million and add 352 new jobs to begin production at the Wyoming facility it acquired earlier this year. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan over a competing site in Georgia.

"Once again, we beat-out the competition to win a major corporate expansion and hundreds of new jobs," Granholm said. "With our world-class workforce and business-friendly environment, Michigan is the right place for companies to grow and compete in the 21st century."

The MEDC approved a Single Business Tax credit valued at more than $3.8 million over 10 years and an Economic Development Job Training (EDJT) grant valued at $176,000 to win the project. The city of Wyoming has also proposed a tax abatement worth an estimated $608,000 over 12 years.

"We're extremely pleased that our new Wyoming plant will be up and running soon, with more than 350 new Kellogg employees. This is in large part due to the assistance of the State of Michigan and the Michigan Economic Development Corporation," Kellogg Company chairman and CEO Jim Jenness said. "Michigan has been home to Kellogg's headquarters for nearly 100 years, and we're delighted to be expanding our operations with the addition of the Wyoming plant."

A University of Michigan economic analysis estimates that an additional 312 indirect Michigan jobs will be created as a result of increased economic activity associated with Kellogg's expansion in addition to the 352 jobs created directly by the company. The project is expected to generate more than $320 million in personal income for Michigan workers over the life of the tax credit.

"This is a win for all of us," Right Place President Birgit Klohs said. "Kellogg's choice to invest $5.6 million in Wyoming brings a manufacturing facility back to life, strengthens the surrounding neighborhood and returns 352 jobs to our region. We are deeply grateful for this investment, as well as the partnership of the MEDC and the city of Wyoming for making it possible."

The expansion is one of four economic development projects the Governor announced today. In all, they are expected to create a total of 967 Michigan jobs.

"The incentive package offered to Kellogg's today literally made this project possible," MEDC President and CEO James Epolito said. "This many good-paying manufacturing jobs are worth far more than the tax dollars that the state will forego. This is smart economic development."

With 2004 sales of almost $10 billion, Kellogg Company is the world's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts, and ice cream cones. The company's brands include Kellogg's, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, Morningstar Farms, Famous Amos, Carr's and Kashi. Kellogg products are manufactured in 17 countries and marketed in more than 180 countries around the world. For more information, visit Kellogg's web site at www.kelloggcompany.com. Kellogg's employs approximately 2,500 workers in Michigan.

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 have announced the creation or retention of more than 62,000 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.

Kellogg Company
Economic Analysis
Summary Estimates
(All estimates in 2005 dollars)

TOTAL JOBS CREATED664
352
Indirect312
NET POSITIVE STATE REVENUE IMPACT$20,815,000
Revenue Foregone$3,857,000
Revenue Gain$24,672,000
Average Wage$657
Personal Income Generated Over
Life of the 10-Year Tax Credit Agreement
$320,834,000