©2016 Michigan Economic Development Corporation

Granholm Announces 7,350 New Jobs Planned for Michigan

Monday, December 15, 2008

Bridget Beckman, MEDC
(517) 335-4590 beckmanb1@michigan.org

Companies investing more than $2.3 billion to grow in state

LANSING– Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping 16 companies grow in Michigan and is backing four brownfield redevelopment projects. Combined, the 20 projects are expected to create and retain 7,446 new jobs (96 jobs retained) and generate over $2.3 billion in new investment in the state.

“We are working every day to diversify our economy and bring new jobs to Michigan,” Granholm said. “These company expansions and community redevelopment projects highlight that despite our challenged national economy, our comprehensive and aggressive economic plan and ‘go anywhere, do anything’ approach to bring jobs to Michigan is having a positive impact on communities throughout the state.”

The 20 projects announced today are:

 Hemlock Semiconductor Corp. (HSC)  – The world’s leading producer of polycrystalline silicon, a component of photovoltaic cells used to produce solar energy and various electronic devices for the semiconductor industry, will invest up to $1 billion to expand its manufacturing facility in Hemlock. In addition, Dow Corning announced today it will begin manufacturing high purity monosilane, a key specialty gas used to manufacture thin-film solar cells and liquid crystal displays (LCDs). This investment includes construction of a new monosilane manufacturing facility adjacent to HSC’s polysilicon manufacturing site. The HSC expansion is expected to create 576 new jobs, including 190 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $8.4 million over 20 years to win the company’s investment. The HSC project is the first to be designated for Anchor New Jobs and Anchor District incentives created by legislation signed into law by Governor Granholm in April. Under the designations, a company that attracts or influences a supplier or customer to locate or expand in Michigan (Anchor New Jobs) and a company that encourages a customer or supplier to locate within a 10-mile radius (Anchor District) can qualify for tax credits. Additional state and local support will include tax abatements from Thomas Township, job-training assistance program, and funding for infrastructure improvements.

 Faurecia The world’s eighth-largest Tier 1 supplier of automotive components will invest $8.8 million to expand its operations in Fraser. The expansion is expected to create 281 new Michigan jobs, including 82 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $704,000 over eight years to help convince the company to expand in Michigan over a competing site in Ontario. The city of Fraser is considering a tax credit to support the project.

Northern United Brewing LLC – The start up plans to manufacture and bottle beer, distilled spirits and wine in Ann Arbor, Dexter and Peninsula Township. The company will invest approximately $5.8 million in the project, which is expected to create 398 new Michigan jobs, including 158 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $931,000 over seven years to help convince the company to expand in Michigan over competing sites in Ohio and Indiana. Ann Arbor SPARK and the Traverse City Economic Development Corporation have proposed administrative assistance. 

 White & Green Motors – The company plans to manufacture electric and recoil starters for gas engines in Eaton Rapids. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1 million over seven years to convince the company to choose Michigan over a competing site in Mexico. White & Green Motors anticipates creating up to 60 jobs initially and up to 122 over the term of the tax credit. An economic analysis conducted by the MEDC estimates the project will create 157 indirect jobs. The city of Eaton Rapids is considering a 12-year abatement to support the project.

 ZF Group – The manufacturer and assembler of automotive components and systems sold to various OEMs plans to lease part of the facility that Chrysler has under construction and invest $143.4 million to expand its operations in Marysville. The expansion is expected to create 1,657 new Michigan jobs, including 475 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $5.8 million over 10 years to help convince the company to expand in Michigan over competing sites in other states. To support the project, the city of Marysville is considering a tax abatement to support the project.

 Fisher Coachworks LLC – The producer of ultra light-weight hybrid vehicles plans to invest $7 million to establish a Livonia facility to produce an innovative, fuel-efficient “plug-in” series mass transit bus. The project is expected to create 1,955 new Michigan jobs, including 539 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $11.3 million to help convince the company to expand in Michigan over a competing site in Tennessee. The city of Livonia is considering a 12-year tax abatement to support the project.

 FKA Distributing, d/b/a HoMedics –The world’s leading wellness brand specializing in high-quality home healthcare products plans to invest $11 million to establish a Commerce Township facility to develop new wireless-charging device technology. The project is expected to create 127 new Michigan jobs, including 62 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approveda state tax credit valued at $1.1 million to help convince the company to expand in Michigan over a competing site in New Mexico. Granholm met with company executives in Israel during her investment mission to the country in November to encourage them to expand in Michigan. Oakland County will support the project with workforce-training funds valued at $30,000, and Commerce Township will support the project with a tax abatement.

Global Wind Systems Inc.The start-up wind turbine generation system OEM will invest $32.3 million to locate its first facility in Novi. The project is expected to create 807 new Michigan jobs, including 356 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at approximately $7.3 million over nine years to help convince the company to expand in Michigan over competing sites in Ohio, Iowa and Nebraska. Oakland County Michigan Works! will provide employee-training assistance to support the project, and the city of Novi will partner with the Oakland County Road Commission on future upgrade and widening of Twelve Mile Road to support Global Wind Systems operations.  

Hart & Cooley Inc.– A leading manufacturer of air distribution and vent products for heating, plumbing and air conditioning systems whose product lines include grilles, registers, diffusers, flexible duct, gas vent, chimney system and duct system components plans to invest $3.9 million to consolidate a portion of its U.S. and Canadian operations to its Grand Rapids facility. The project will create 98 new Michiganjobs, including 48 direct jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.3 million over 10 years to help convince the company to expand in Michigan over competing sites in Texas, Colorado, Illinois and Ohio. Cascade Charter Township will support the project with a 12-year tax credit.

 Kongsberg Automotive –A global leader in the design, validation and manufacture of motion control and seat systems, arm rests and head restraints for the automotive industry plans to invest $4.4 million to expand its technical center in Novi. The project is expected to create 113 new Michigan jobs, including 58 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $875,000 to help convince the company to expand in Michigan over a competing site in Texas. Oakland County has offered employee-training assistance to support the project.

Novixus LLC– Novixus will build the first national distribution and services center using automated processing of prescriptions for central fill and home delivery, to be located in Novi. The company will invest approximately $3.4 million in its Novi center and will create 428 new Michigan jobs, including 192 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $3.1 million over seven years. Through the Economic Development Job Training (EDJT) fund, the MEDC will provide an employee-training grant valued at $63,750. Oakland County and the city of Novi also will support the project with job-training and other assistance.  

  • Golden Rectangle LLC– State brownfield tax credits totaling $4.7 million will support the Ten Fifteen Spruce project, which entails the redevelopment and conversion of the Detroit Creamery building and surrounding areas into a luxury residential and retail complex. The project will generate $38 million in new capital investment and is expected to create 50 new jobs.
  • ScrippsPark Associates LLCThe development team will partner with the city of Detroit and the Detroit Housing Commission to invest $35 million to redevelop an abandoned public housing development into 180 affordable townhouses. State brownfield tax credits totaling $5 million will support the project.
  • Severstal North America Inc.The fourth-largest steelmaker in the U.S. plans to invest $700 million to rehabilitate, modernize and enhance aging facilities in Dearborn to improve its steel mill. The project is expected to retain 76 Michigan jobs. State brownfield tax credits totaling $40 million will support the project.
  • Grand Traverse County/Pine Street One Development LLC– State brownfield tax credits totaling $1.6 million and state and local tax capture valued at $5.6 million will assist developers with the River West project, which consists of the construction of a 140,000 square-foot, mixed-use building, including a multi-screen cinema, in Traverse City. The project will generate $33 million in new capital investment and is expected to create 175 new jobs.
  • Washtenaw County/601 Forest LLC – Green Urban Living– State brownfield tax credits totaling $10 million and state and local tax capture valued at morethan $4.7 million will support a proposed redevelopment project in Ann Arbor. The development will include a 14-story, mixed-use building with up to 180 apartments and will incorporate alternate energy sources such as geothermal heating and cooling and solar panels. The project will generate $82.8 million in new capital investment and up to 80 new jobs.
  • City of Detroit– State and local tax capture valued at more than $1 million will support a proposed redevelopment of the former Greater Detroit Hospital. The development will include a modern medical office and assisted living facility. The project will generate $8.9 million in new capital investment and up to 251 new jobs.
  • City of Grand Rapids– State and local tax capture valued at $364,050 will support a proposed redevelopment project in Grand Rapids. The development will include a three-story, mixed-use building with a green design, and the goal of the building is to be west Michigan’s first zero carbon-footprint project. The project will generate $3.1 million in new capital investment and up to 30 new jobs.
  • Grand Traverse County– State and local tax capture valued at $215,645 will support the proposed commercial and parking construction project on Front Street in Traverse City. The new site will address historical contamination issues and provide a new office building for a variety of medical professionals. The project will generate $4.9 million in new capital investment and up to 15 new, full-time jobs and will retain 20 jobs.
  • Washtenaw County– State and local tax capture valued at $589,269will support a proposed redevelopment project in Ann Arbor. The development will include an Aldi Food Center and additional retail shops with associated parking, rain gardens, and extended sidewalks. The project will generate $8 million in new capital investment and up to 30 new jobs.

“Successful collaboration and teamwork between the state and our economic development partners were keys in bringing these projects to Michigan against some very intense national and international competition,” MEDC Presidentand CEO James C. Epolito said. “I want to thank all of the communities who helped us make the strongest business cases possible.”   

In her 2008 State of the State address, Granholm emphasized the importanceof creating opportunity in the changing world of the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 297,000 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. For more information on the MEDC’s initiatives and programs, visit the Web site at www.TheMEDC.org.  

                                                                                               

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