Tuesday, May 18, 2004
Jatco, RLP Technologies, TGNA to Invest Nearly $20.3 Million
Joined by company and community officials Governor Jennifer M. Granholm announced today that assistance offered through the Michigan Economic Development Corporation (MEDC) will make it possible for three auto-related companies to expand in Oakland County, creating 747 new jobs for Michigan workers. A Single Business Tax (SBT) credit valued at nearly $9 million convinced Jatco USA, RLP Technologies and TG North America to expand their operations in Michigan rather than other states.
"The fact that three leading high-technology firms need more room to grow confirms that the 21st-century economy is thriving in Michigan. Our state is still the vital hub of automotive R&D," said Governor Jennifer Granholm. "The diversity and sheer number of the projects announced today are proof that Michigan's business climate remains friendly to companies that want to invest and create jobs here."
In her 2004 State of the State address, Governor Granholm announced a focused seven-point plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 14,321 jobs as a result of targeted assistance provided by the MEDC.
These three projects are among nine major expansions and relocations announced by Governor Granholm today. The projects are expected to create and retain total of 8,683 new jobs for Michigan workers, including 2,866 directly by the nine companies.
Jatco USA a subsidiary of Japan-based Jatco Ltd., the world's largest manufacturer of automotive continuously variable transmissions, will invest $11.9 million in a new 76,000-square-foot headquarters and engineering center. The company currently manufacturers transmissions for eight Japanese auto makers, including Nissan and Mitsubishi, plus 20 other overseas companies. The expansion will create 75 jobs in the first year, and a total of 212 jobs by 2012. All 43 current employees at Wixom will be transferred to the new facility. In addition to an SBT credit worth $971,000, the state of Michigan will provide a $53,000 Economic Development Job Training (EDJT) grant to train 106 new employees.
An economic analysis by the University of Michigan estimates that $92.7 million in new personal income will result from the project over the life of the agreement.
The city of Wixom has approved a 50 percent abatement of new real and personal property taxes for seven years at an estimated value of $601,300 to further support the project.
RLP Technologies (RLPT), a wholly-owned research and development subsidiary company of R.L. Polk & Co., was offered a $2.1 million SBT credit to open a new facility in Farmington Hills that will specialize in building industry-leading data warehouses and the tools and the applications to mine intelligence from data. RLPT's first venture will be the development of a leading edge data flow and compilation system for its parent company, R.L. Polk, a provider of automotive information services to corporations worldwide. The project will create 50 jobs in the first year and a total of 142 over five years. The company is expected to invest more than $4.8 million in the project.
An economic analysis by the University of Michigan estimates that more than $77 million in new personal income will result from the project over the life of the agreement.
Farmington Hills has approved a 50 percent abatement of new property tax for two years worth an estimated $27,900.
TG North America (TGNA), a tier one supplier of safety systems, body sealing, fuel systems and other components to the automotive industry, plans to relocate to another facility in Troy, doubling its present space. The expansion will permit TGNA to retain its 186 full-time employees and hire as many as 200 new employees over the next five years. As a result of the company's growth, an additional 193 jobs will be indirectly created in the surrounding community for a total of 393 new jobs.
The city of Troy has approved development of a new corporate park adjacent to the project site which will be leased from the current owner and developed at a cost of $57,000. Property tax foregone over 10 years is estimated at $70,000.
An economic analysis by the University of Michigan estimates that $207.6 million in new personal income will be generated from the project over the life of the agreement.
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.