Tuesday, October 18, 2005
Michael Shore, MEDC
Michigan Wins $595,000 Investment over Missouri
Governor Jennifer M. Granholm announced today that Michigan Rubber Products Inc. will invest $595,000 to expand its manufacturing facility in Cadillac. The expansion will create 103 new jobs, including 73 jobs directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan over a competing site in Missouri.
"These jobs are a welcome addition to Michigan's manufacturing base," Granholm said. "Auto suppliers like Michigan Rubber bolster our economy by fueling investment and creating jobs in related engineering and R&D in the state."
The MEDC approved a Single Business Tax credit valued at approximately $513,000 over 10 years to win the project. The city of Cadillac has also proposed a tax abatement worth an estimated $25,000 over 12 years.
"This project was only able to move forward due to the efforts and assistance of state and local government," President of Michigan Rubber Products Dennis Brovont said. "It is critical to Michigan Rubber Products to add some non-automotive market diversity and to be able to work with Michigan state officials that recognize the highly competitive market conditions and are willing to work with industry to create job growth."
A University of Michigan economic analysis estimates that 30 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 73 jobs created directly by the company. The project is expected to generate more than $32.5 million in personal income for Michigan workers over the life of the tax credit.
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 globalization of the auto industry has created the fiercest competition we have ever known," MEDC President and CEO James Epolito said. "By offering targeted incentives, we have made it possible for Michigan Rubber to stay competitive and keep creating manufacturing jobs here in the state."
Michigan Rubber Products, a subsidiary of Myers Industries, has been a leader in custom molded rubber products for more than 30 years, employing more than 400 workers in Cadillac. The company was acquired from Applied Tech Products by Myers Industries in 2004. Myers, an international manufacturer of polymer products for a variety of markets, is headquartered in Akron, Ohio and owns 31 manufacturing facilities in North America and Europe with 5,300 workers worldwide.
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.
Michigan Rubber Products Inc.
(All estimates in 2005 dollars)
|Personal Income Generated Over||$32,548,000|