Tuesday, June 15, 2004
Guardian Fiberglass and Spartan Chassis to Invest $33.8 Million
Governor Jennifer M. Granholm announced today that assistance offered through the Michigan Economic Development Corporation (MEDC) will make it possible for two manufacturing companies to expand in Albion and Charlotte, creating 1,344 jobs for Michigan workers. Single Business Tax (SBT) credits valued at more than $5.9 million convinced Guardian Fiberglass and Spartan Chassis, Inc. to expand their operations in Michigan rather than other states.
"These expansions along with the others we most recently announced indicate that manufacturing is still alive and well in Michigan," the Governor said. "The tax credits offered today will make it possible for these companies to continue to keep and create good-paying jobs in Michigan."
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.
Guardian Fiberglass will invest $26.5 million to expand its manufacturing operations in Albion. It is hoped that an SBT credit valued at $1.6 million, combined with local tax incentives will convince the company to expand in Michigan instead of a competing site in Texas. A subsidiary of Guardian Industries in Auburn Hills, the Albion facility manufactures fiberglass insulation for residential and commercial buildings. The expansion will create a total of 288 jobs including 150 directly by the company. Guardian Industries currently employs 1,543 in the state including 224 at the Albion facility.
An economic analysis by the University of Michigan estimates that more than $162 million in new personal income will result from the project over the life of the agreement.
The city of Albion is expected to approve a 100 percent abatement of new real property taxes valued at more than $4.2 million for 10 years.
Spartan Chassis, Inc., a manufacturer of custom chassis for motor homes, fire trucks and other specialty vehicles, plans to invest $7.3 million to expand its operations in Charlotte. The project will permit the community's largest employer to grow its current product line in response to the company's recent contracts with Fleetwood RV and Newmar Corporation. It is expected to create 415 direct jobs and an additional 641 jobs as a result of the increased economic activity created by the expansion.
Spartan had considered a site in Kentucky, but an SBT credit worth $4.3 million convinced the company to expand in Michigan. Spartan currently employs 438 people in the state.
The city of Charlotte has approved a 50 percent abatement of the company's new real and personal property taxes valued at $881,000 over 12 years.
An economic analysis by the University of Michigan estimates that nearly $603 million in new personal income will be generated from the project over the life of the agreement.
"This is great news for the manufacturing industry," said MEDC President and CEO Don Jakeway. "The Governor has fought hard to keep and grow manufacturing in Michigan. The horizon is looking bright again for growth in our bedrock industry 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/retain good jobs and a high quality of life.