©2016 Michigan Economic Development Corporation

Granholm Announces Four Manufacturing-Related Expansions in Oakland County Creating 1,469 Jobs

Tuesday, September 23, 2008

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

Faurecia, Hino Motors, Mando, Plexus Systems investing $47.3 million

Governor Jennifer M. Granholm today announced a maker of manufacturing systems software, a heavy truck manufacturer and two auto suppliers will expand in Auburn Hills, Farmington Hills, Novi and Troy. Combined, the projects are expected to create 1,469 direct and indirect new Michigan jobs and generate more than $47 million in new capital investment. Assistance offered through the Michigan Economic Development Corporation (MEDC) helped convince the companies to choose Michigan over competing sites in other states. 

“The choice of a Michigan location by leaders in their respective industries speaks volumes about our state’s advantages as a place to do business,” Granholm said. “With world-class research facilities, technological innovation and a technically skilled workforce – Michigan has everything a company needs to compete and win in the global economy.” 

The projects announced today:            

Faurecia USA Holdings Inc.Faurecia currently has 1,868 employees in nine locations around Michigan: technical centers in Auburn Hills and Troy, a research center in Holland, and manufacturing plants in Auburn Hills, Fraser, Shelby Township, Sterling Heights, and Lansing. The company plans to invest $23.3 million to relocate and expand its Interiors Division tech center and North American headquarters, as well as increase staffing at its Troy location. The combined expansions will create up to 219 direct new engineering, technical, professional, managerial and clerical jobs, plus 192 spin-off jobs. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) approved a state tax credit valued at $2.7 million over seven years to win the company’s investment over a competing site in Ohio. The cities of Auburn Hills and Troy support the project and anticipate approval of state and local property tax abatements. 

Mando American Corporation The manufacturer of brake, steering and suspension systems for the automobile and truck industries in North America is planning on moving their current Plymouth operations to Novi rather than out-of-state. Recent work by the state, county and business organization have allowed Mando America to propose moving the current R& D and Test activities to a center in Novi. If approved by Mando's senior executives in Korea, the proposed “Michigan move” would happen some time after the end of this year.The State's proposal will create 101 direct new jobs for Mando and the local community over the span of 5 to 10 years. The city of Novi has approved $20,000 for public infrastructure improvements to support the project. 

Plexus Systems Inc.– The Auburn Hills-based software company is expanding its operations to support current and future development of its Web-based solution, Plexus Online. Plexus Online provides discrete manufacturers with all of the tools and information they need to maximize their operational efficiency, and to achieve new levels of revenue growth and profitability. Plexus currently has 106 employees in Michigan. The company plans to invest $3.9 million at two Auburn Hills locations. The project is expected to create 298 new direct jobs and 488 spin-off jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $7.98 million over ten years to win the project over competing sites in North Carolina, Washington and Arizona. The city of Auburn Hills will consider a property tax abatement to support the project. 

Hino Motors Manufacturing (HMM) USA Inc.– HMM is a wholly owned subsidiary of Japan-based Hino Motors Ltd. HMM is considering consolidating and expanding its administrative, R&D and quality assurance functions at its facility in Farmington Hills. The proposed project will result in 34 new jobs at the company and an additional 31 spin-off jobs. Total capital investment is expected to be $3 million. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $503,000 over seven years to win the company’s investment over competing sites in West Virginia, Arkansas and California. Oakland County is considering providing job training assistance to support the project. Governor Granholm met with Hino officials in Japan last week during her investment mission to the country to encourage the company to move forward with its expansion plans in Michigan.      

“Innovative use of economic development incentives and solid teamwork with our partners in four Oakland County municipalities were the key to successfully securing these expansions and new jobs in Michigan,” MEDC President and CEO James C. Epolito said. 

The Oakland County economic development projects are four of 18 the governor announced today. In all, they are expected to create and retain a total of 21,602 Michigan jobs.             

“This collection of projects shows that companies from around the world look to Oakland County as the right place to expand their world-wide bases,” Oakland County Executive L. Brooks Patterson said. “We’ve worked hard on each of these projects to ensure that our communities and our residents benefit from these significant investments.” 

In her 2008 State of the State address, Granholm emphasized the importance of 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 279,000 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.MichiganBusiness.org.