©2016 Michigan Economic Development Corporation

Governor Announces Retention of 411 Jobs in U.P. as Smurfit-Stone Upgrades Ontonagon Plant

Thursday, June 15, 2006

Michael Shore, MEDC
(517) 335-4590

Company Investing $5 Million in New Pollution Control Equipment

Governor Jennifer M. Granholm today announced Smurfit-Stone Container Corporation plans to invest more than $5 million in its paper production facility in Ontonagon. The project will retain 411 Michigan jobs, including at least 228 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to invest in the Michigan facility instead of a competing site in the United States.

Smurfit-Stone will invest $5 million in pollution control equipment enabling the future use of low cost fuels in its manufacturing processes to significantly reduce manufacturing costs.

The MEDC approved a Single Business Tax credit valued at more than $4.8 million over 10 years to convince the company to grow in Michigan. The city of Ontonagon has proposed a 12-year tax abatement valued at $57,000.

An economic analysis conducted by the University of Michigan estimates that increased economic activity created by the investment in the facility will retain an additional 183 Michigan jobs, in addition to the 228 retained directly by the company. The project is expected to generate more than $243 million in personal income for Michigan workers over the life of the tax credit.

Based in Chicago, Smurfit-Stone manufactures paper products for the packaging industry. The company operates more than 200 manufacturing facilities in 37 states. The Ontonagon location manufactures containerboard roll stock used to make corrugated containers and other packaging products.


Smurfit-Stone Container Corporation
Economic Analysis
Summary Estimates
(All estimates in 2006 dollars)







Revenue Foregone

$ 4,848,000


Average Weekly Wage


Personal Income Generated OverLife of the 10-Year Tax Credit Agreement