Tuesday, April 13, 2004
Michigan Wins $4.8 Million in Investment
Governor Jennifer M. Granholm announced today that Infineon Technologies North America Corp. plans to relocate its Automotive and Industrial Group from Northville to Livonia, resulting in the creation of 45 new jobs and an additional 28 spin-off jobs over the next five years. Infineon plans to invest an estimated $4.8 million in the expansion.
"Michigan continues to be the world leader in automotive R & D," Granholm said. "Infineon's decision to grow in Michigan is a testament to our top-notch workforce. Our highly qualified workers are the reason why we remain number one in this increasingly competitive industry."
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 5,298 jobs as a result of targeted assistance provided by the MEDC.
The Infineon expansion is one of three projects approved today by the MEDC. Combined, the projects will create or retain a total of 464 jobs for Michigan workers. The other projects involve the redevelopment of a brownfield site in East Lansing and the expansion of a tool & die company in Bridgman.
Infineon Technologies North America Corp., headquartered in San Jose, California, is the principal U.S. subsidiary of Infineon Technologies AG. Founded in 1999, the German-based company is the world's second largest provider of semiconductors for automobile systems. Infineon Technologies AG has 32,000 employees worldwide.
The company recently opened a major location in Cary, North Carolina and had considered sites in a number of other states for the most recent project. However, a Single Business Tax credit offered by the MEDC worth more than $1.9 million over the next 10 years helped convince Infineon to relocate and grow its existing Automotive and Industrial Group currently located in Northville.
"We look forward to growing our presence in Michigan and we thank the state and the city of Livonia for their strong support," said Christopher Cook, vice president of the Automotive and Industrial Business Group. "This is very important for our expansion plans."
The city of Livonia is expected to approve a 10-year abatement of the company's new real and personal property taxes worth an estimated $136,900. Infineon is currently negotiating the terms of a lease.
An economic analysis conducted by the University of Michigan estimates that 45 jobs will be created directly by the company, with another 28 spun off as a result of the expansion. The new positions are highly compensated with an average weekly wage of $1,731 per week. The project is expected to result in the generation of more than $34 million in personal income for Michigan workers over the life of the tax credit.
"These high-tech, high-pay jobs will be an excellent addition to Michigan's world-class worker pool," said MEDC President and CEO Don Jakeway. "We appreciate that Infineon chose to expand in Michigan strengthening our global stronghold in automotive R & D."
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.
Infineon Technologies North America Corp.
(All estimates in 2004 dollars)
|TOTAL JOBS CREATED||73|
|NET POSITIVE STATE REVENUE IMPACT||$705,000|
|Personal Income Generated Over|
Life of the Tax Credit Agreement