Thursday, October 13, 2005
Michael Shore, MEDC
State-of-the-Art Facility Will Bring 751 New Michigan Jobs
Governor Jennifer M. Granholm joined state, local, and company leaders in Superior Township near Ann Arbor today to celebrate the grand opening of the Hyundai-Kia Technical Center. The 200,000-square-foot, $117 million expandable facility is expected to create a total of 751 new jobs for Michigan workers, including 400 directly by the company.
"Michigan continues to build on its automotive strength," Granholm said. "The Hyundai-Kia Technical Center is another in a long line of automotive research and high tech headquarters that have chosen to open their doors in our state. This is a tremendous win for Michigan because it builds on our automotive heritage and it's a win for Hyundai-Kia because being in the world's automotive epicenter allows them to draw worker skill and know-how that is unmatched anywhere in the country. We welcome this new facility and all the promise it holds."
Governor Granholm has outlined a comprehensive plan to grow the economy and pave the way for good, high-paying jobs that cannot be outsourced. As part of the Governor's economic plan, she has a seven-point automotive strategy includes targeted initiatives to increase automotive manufacturing and R&D investments and jobs in the state.
In September of 2003, the Michigan Economic Development Corporation granted a Single Business Tax Credit valued at $22 million over 12 years to convince Hyundai to expand in Michigan over a competing site in Alabama. Superior Township also provided assistance through a local tax abatement worth an estimated $6.4 million over 12 years.
"The opening of our new R&D center represents another milestone in the history of Hyundai and Kia. It will allow us to expand our ability to support the improvement of current products and the development of new Hyundai and Kia vehicles for North America," said Robert Babcock, manager of corporate affairs for Hyundai-Kia America Technical Center, Inc. "It's vital that we identify the customers' needs and desires for this market. This is one of our most important goals."
According to an economic analysis conducted by the University of Michigan, it is estimated that the new tech center will create an additional 351 Michigan jobs as a result of increased economic activity.
"Hyundai has partnered with Michigan for nearly 20-years," MEDC President and CEO James Epolito said. "The company's new technical center further strengthens our industry cluster, and will lead to even more innovative, high-tech companies and highly skilled workers locating here."
Hyundai is the most recent of many international automakers to announce the opening of a research and development facility in Michigan. Just last week the Governor participated in the dedication ceremony for an automotive proving ground in Fowlerville for Aisin Seiki.
Michigan is now home to more than 215 of the world's vehicle-related R&D centers. More than 67 percent of all North American auto-related R&D activity is conducted in Michigan.
The Hyundai America Technical Center was established in 1986 and is a wholly owned subsidiary of Hyundai Motor Company of Korea. The company conducts emissions testing, engineering, research, development and design for Hyundai and Kia automobiles. The company's tech center was previously located in Pittsfield Township near the site of the new, expanded facility.
In her 2005 State of the State Address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 61,000 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.