585 New Jobs for Michigan Workers
Krestec Engineering, L.L.C. has selected Dundee, Michigan, over Delta, Ohio, to expand operations thanks to assistance from the Michigan Economic Development Corporation (MEDC).
Krestec Engineering chose Michigan for its new aluminum stamping and assembly manufacturing plant.It is estimated that this expansion will create 585 new jobs, 280 directly by the company, for Michigan workers.
“Michigan is the nation’s top producer of automobiles and a leading producer of automotive supplies,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“Krestec’s decision to expand will help to further establish Michigan’s dominance as the global center of the automotive industry.”
The company plans to build a 256,000 square foot facility in Dundee, Michigan.The facility is designed for aluminum stamping and assembly for the automotive industry.Krestec Engineering is investing $36.7 million in the project, including costs to purchase land, buildings and new machinery and equipment.Construction is slated to begin in August 2001 with completion of the facility planned for July 2002.
“Once again, the State of Michigan has come through to solidify another manufacturing plant location in Dundee with a Single Business Tax credit to Krestec Engineering,” said Patrick Burtch, manager of Dundee Village. “The MEDC has been a great partner with us and we certainly hope it continues.”
, according to an economic analysis, completed by the University of Michigan.
The MEDC’s assistance includes an Economic Development Job Training grant of up to $280,000 to train new employees and an abatement of the six-mill State Education Tax valued at$849,600.In addition, the MEDC will provide the local community a Community Development Block Grant worth an estimated $2 million to provide infrastructure improvements to the company.
The Village of Dundee will provide a 50 percent abatement of the company’s real and personal property taxes worth an estimated $4 million over the next 12 years.
This project will provide more than $26 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $24 million after the tax credit. The project is expected to generate more than $334 million in personal income during that time.
Krestec Engineering, L.L.C. manufactures aluminum stampings and assemblies for the automotive industry. The company is operated by J&J, Inc., a company that also has ownership of L&W Engineering, Advanced Engineering Company, Axis Engineering and Jaytec, L.L.C.In total, these companies currently have 1,610 employees in Michigan.
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.
Krestec Engineering, L.L.C.
(All estimates in 2001 dollars)
TOTAL JOBS CREATED
NET POSITIVE STATE REVENUE IMPACT
Personal Income Generated Over
Life of the Tax Credit Agreement