Tuesday, June 15, 2004
Cobasys and MSC to Expand in Southeast Michigan
Governor Jennifer M. Granholm announced today that assistance offered through the Michigan Economic Development Corporation (MEDC) will make it possible for two high-tech manufacturers to expand in Orion and Plymouth Townships, creating 139 new Michigan jobs and $19 million in private investment. Single Business Tax (SBT) credits valued at more than $4.7 million combined convinced Cobasys and Material Sciences Corporation (MSC) to expand operations in Michigan rather than other states.
"These are the types of jobs and investment that we need to continue to attract to Michigan," said Governor Jennifer Granholm. "Our state's economic development incentives and our highly skilled workforce enable Michigan to successfully compete for and win high-tech projects like these."
In her 2004 State of the State address, Governor Granholm announced a focused seven-point plan for making Michigan an economic powerhouse in the 21st century. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 17,000 jobs as a result of targeted assistance provided by the MEDC.
These expansions are among six major economic development projects announced today. In all, they are expected to create a total of 1,511 new jobs for Michigan workers.
Formerly known as Texaco Ovonic Battery Systems LLC, Cobasys was formed as a joint venture between the ChevronTexaco Corporation and Energy Conversion Devices, Inc. in July 2001.
An economic analysis by the University of Michigan estimates that more than $97.5 million in new personal income will result from the project over the next 10 years.
Orion Township is expected to approve a 50 percent abatement of the company's new personal property taxes valued at $92,000 for 12 years.
MSC had considered a competing site in Ohio for the expansion. However, an SBT credit worth $800,000 convinced the company to expand in Michigan.
Plymouth Township is expected to approve a 50 percent abatement of the company's new real and personal property taxes for 12 years. The value of the abatement is estimated at more than $1.4 million.
An economic analysis by the University of Michigan estimates that more than $14.4 million in new personal income will be generated from the project over the life of the agreement.
"These are fantastic jobs that will further reinforce the state's reputation as a hotbed for high-tech development," said MEDC President and CEO Don Jakeway. "The fact that companies like Cobasys and MSC are expanding in Michigan demonstrates the strength of the state's advanced automotive manufacturing sector."
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.