1,938 new jobs for Michigan workers
Governor John Engler announced today that Johnson Controls Technology Company is one step closer to constructing a new technical center campus in Salem Township thanks to assistance from the Michigan Economic Development Corporation (MEDC).The company has named Salem Township as the preferred site over other Midwest locations.
The new Johnson Controls development is intended to house its existing design, engineering and development functions, as well as new technical jobs in Michigan.The company plans to invest about $168 million in the new facility.
“This project proves that Michigan’s automotive industry continues to grow in the current economy,” Engler said.“With recent announcements of cutbacks in the auto industry, Johnson Controls’ willingness to make such a huge investment in Michigan is positive foreshadowing of the viable future ahead for our state’s automotive industry.”
It is estimated that the expansion will create 1,938 new jobs, 1,189 directly by the company, for Michigan workers., according to an economic analysis completed by the University of Michigan.
A key component of the assistance provided by the MEDC is an incentive package that includes a Single Business Tax credit, worth an estimated $26.6 million over the next 11 years.The package also includes a MEDC grant of up to $594,500 to train new employees at Johnson Controls.The MEDC also offered an abatement of the six-mill State Education Tax valued at $4.1 million over the next 12 years.
Johnson Controls is currently working with Salem Township officials to resolve local issues that will ensure that this project becomes a reality.The Single Business Tax credit offered is tied to securing a 12-year real and personal property tax abatement from Salem Township.
This project will provide more than $115 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $88.9 million, after the Single Business Tax credit.The project is expected to generate more than $1.4 billion in personal income during that time.
“Johnson Controls is extremely pleased to have received the assistance from the State of Michigan, through the Michigan Economic Development Corporation,” said John Barth, president and COO of Johnson Controls, Inc.“Without this package, this development would not occur here in Michigan.Now, we are eager to move forward on addressing outstanding issues related to the site, so that construction can begin.”
Johnson Controls is a tier one automotive supplier that produces a wide array of vehicle interior products.The company currently has about 9,000 employees in Michigan.
Johnson Controls Technology Company, Inc.
(All estimates in 2001 dollars)
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