Tuesday, July 15, 2008
Bridget Beckman, MEDC
Attwood, Graphic Packaging and Perrigo invest $39.3 million
Each chose Michigan over competing sites in other states.
“We are working hard to diversify Michigan’s economy and these expansions demonstrate that businesses across the spectrum are choosing Michigan for their growth,” Granholm said. “These are the types of projects that will transform our economy in the 21st century and create good-paying jobs for our workers.”
The three projects announced today:
Attwood Corporation–The marine parts and accessories supplier plans to consolidate its Lancaster, Texas manufacturing operations into an existing facility in Lowell (Kent County), where it has 114 employees. The $1.8 million project is expected to create 87 new jobs in the community, including 50 directly by the company. An economic analysis conducted by the MEDCestimates the project will generate an additional 37 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $452,000 over seven years to help convince the company to invest in Michigan over a competing site in Georgia. The city of Lowell has approved a 12-year property tax abatement worth more than $1 million to support the expansion.
Graphic Packaging International Inc. –The provider of paperboard packaging solutions for a wide variety of products to multinational food, beverage and other consumer products companies plans to invest $27 million to expand its existing folding carton plant in Kalamazoo. The company, a wholly-owned subsidiary of Graphic Packaging Corporation, a subsidiary of GraphicPackaging Holding Company (NYSE:GPK), currently employs 701 people in Michigan. The project is expected to create 377 new jobs, including up to 160 jobs directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax creditvalued at $2,961,000 over 12 years to help win the project over a competing site in Ohio.The city of Kalamazoo has indicated it will recommend 12-year real and personal property abatements worth an estimated $1.5 million in support of the expansion.
Perrigo Company– This global healthcare supplier develops, manufactures and distributes over-the-counter and prescription pharmaceuticals. The $3-billion Michigan-based company will invest $10.5 million in operating and training facilities at its global headquarters in Allegan. The project is expected to create 1,039 new jobs, including 400 directly by the company, over the next five years. Perrigo currently has 2,569 employees in Michigan. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $8.4 million over 12 years to help Michigan win the expansion over the New York City/New Jersey area. To support the project, the city of Allegan anticipates approval of real and personal property tax abatements over 12 years with an estimated value of $1.4 million.
“The state’s skilled workforce and business-friendly climate help make the business case for a Michigan expansion with these companies,” MEDC President and CEO James C. Epolito said. “Those factors, in combination with the state and local incentives offered today, help assure their growth well intothe future.”
The expansions are three of 18 economic development projects the governor announced today. In all, they are expected to create a total of 6,917 Michigan jobs.
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 248,000 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.michigan.org.
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