Tuesday, August 19, 2008
Bridget Beckman, MEDC
Michigan Wins Projects over North Carolina, Maryland, California
Governor Jennifer M. Granholm today announced two high-tech projects planned for Ann Arbor, an expansion by GDI Infotech and relocation and expansion of Terumo Cardiovascular Systems from California. Combined, the projects are expected to create 390 new jobs and involve nearly $5.5 million in new capital investment. Assistance provided by the Michigan Economic Development Corporation (MEDC) helped win the projects for Michigan over competing states.
“Attracting investment by companies like GDI Infotech and Terumo Cardiovascular Systems is an essential part of our strategy to diversify Michigan’s 21st century economy,” Granholm said. “These high-tech projects are another example of our efforts to go anywhere and do anything to bring jobs to Michigan.”
The projects announced today:
- Terumo Cardiovascular Systems– The subsidiary of Tokyo-based Terumo Corporation manufactures and markets products for cardiac and vascular surgery to hospitals worldwide. Terumo CVS will invest $3.57 million in relocation and expansion of its R&D and manufacturing operations from Tustin, Calif. to Ann Arbor (Scio Township). The project adding 14,000 square feet and a new chemistry lab is expected to create 157 new jobs, including 65 directly by the company. An economic analysis conducted by the MEDC estimates that the project will generate an additional 92 indirect jobs. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $855,000 over seven years to win the project over an alternate company site in Maryland. Scio Township anticipates approval of an eight-year tax abatement to support the project.
- GDI Infotech Inc.– The Ann Arbor-based Information Integration services and solutions firm has launched a new Solutions Division. This division is offering new solutions and products for breaking down information silos, building Solid Data Foundation and providing Business Intelligence reports. The project is expected to create 233 new jobs, including 121 directly by GDI. An economic analysis conducted by the MEDC estimates the project will create 112 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.5 million over seven years to win the project over a competing site in North Carolina. The city of Ann Arbor anticipates approval of a property tax abatement in support of the project.
“We worked closely with the city of Ann Arbor to make a strong business case for Michigan inthe competition for these expansions,” MEDC President and CEO James C. Epolito said. “Teamwork paid off.”
The Ann Arbor projects are two of 20 economic development projects the governor announced today. In all, they are expected to create a total of 9,495 Michigan jobs.
“Today’s announcement highlights two unique growing companies whoexemplify the entrepreneurial climate that exists in the Ann Arbor region. Both Terumo Cardiovascular and GDI Infotech are leaders in their industries and have found the resources, talent, business development and regional and state partners to grow their business,” Ann Arbor SPARK President and CEO Michael Finney said. “We are thrilled to partner with Washtenaw County ETCS (Employment Training and Career Services) who supported the GDI retention project through workforce development training assistance. It’s a perfect example of community building though multiple stakeholder participation.”
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 257,000 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.
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