Gyricon Media Presence Would Create 1,031 Jobs for Michigan Workers
Governor John Engler today announced that Gyricon Media, Inc., a high-tech company whose product was developed in California, is likely to commercialize its innovative SmartPaper™ in Washtenaw County.The company’s consideration of Michigan is a result of assistance from the Michigan Economic Development Corporation.
If the company chooses to locate its operations in Michigan, the project would result in an estimated 1,031 new jobs – 634 directly by the company – for Michigan workers by 2012.
“Gyricon Media’s interest demonstrates that Michigan is not only creating new technologies, but is attracting research and the commercialization efforts of companies around the world,” said Governor John Engler.“While Gyricon’s operations will put Michigan on the map for electronic paper technology, it will also mean hundreds of good-paying jobs for Michigan families.”
Gyricon plans to lease a large facility in Scio Township and then invest heavily in building upgrades, machinery and equipment.The plans call for a $29 million investment at the site over a three-year period.
“New, perception-changing technologies are few and far between, and Gyricon clearly represents one of those technologies,” said Susan Lackey, president of the Washtenaw Development Council.“We’re proud that they have recognized Washtenaw County’s track record in commercializing technologies that provide real value to business.”
, according to an economic analysis.
The MEDC’s assistance includes a Single Business Tax credit of $8.2 million and a 100 percent abatement of the six-mill State Education Tax worth an estimated $340,473.In addition, an Economic Development Job Training grant of $331,000 will help train new Gyricon Media employees in the specialized skills they will need to work at the manufacturing facility.
Scio Township is currently considering a tax abatement for the company that would be worth more than $1 million over 12 years.
“We appreciate this incentive and what it could potentially mean for Gyricon’s presence in Washtenaw County,” said Gyricon Media spokeswoman Iva Wilson.“This is one more step toward sealing our company’s decision to locate its manufacturing operations in Michigan.”
The project will provide more than $41.7 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $33.5 million after the tax credit.The project is expected to generate more than $522 million in personal income during that time.
Gyricon Media, Inc., a spin-off of the world-renowned Xerox Palo Alto Research Center, is at the commercialization stage of a new electronic paper technology.The company’s SmartPaper™ is a reusable display material that has many of the properties of regular paper, but is electronically “writeable” and erasable.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
Gyricon Media, Inc.
(All estimates in 2001 dollars)
TOTAL JOBS CREATED
NET POSITIVE STATE REVENUE IMPACT
|Revenue Foregone||$ 8,216,000|
|Revenue Gain||$ 41,785,000|
|Average Wage||$ 790/week|
Personal Income Generated Over
Life of the Tax Credit Agreement
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