©2016 Michigan Economic Development Corporation

MEDC Helps Parker Hannifin Corporation Expand in Richland Township

Tuesday, December 19, 2000

Kathy McMahon

160 New Jobs For Michigan Workers

Parker Hannifin Corporation will expand its facility in Richland Township thanks to a Michigan Economic Development Corporation (MEDC) incentive package.

The MEDC helped win the project by making a competitive business case, against North Carolina, for the company to expand in Michigan with a Single Business Tax credit and an abatement of the State Education Tax.

Parker Hannifin selected Richland Township over Wake Forest, North Carolina, for its Pneumatic Division headquarters building and expansion.It is estimated that this expansion will create 160 new jobs, 81 directly by the company, for Michigan workers.

“Parker Hannifin is a valued Michigan employer that could have easily decided to invest in another state,” said Doug Rothwell, chairman of the Michigan Economic Growth Authority (MEGA) board.“However, the MEGA tax credit paired with the local tax abatement convinced the company that Michigan was the ideal place to invest millions of dollars and create more than 80 quality jobs.”

The proposed project involves expanding Parker Hannifin’s current Richland Township Pneumatic Division plant by 50,000 square feet and building a 30,000 square-foot administration building on the same site.The Pneumatic Division manufactures pneumatic valves, air preparation units and accessories for industrial and transportation markets.

“We are very excited that the Kalamazoo area continues to be a preferred place for world class companies like Parker Hannifin to do business,” said Barry Broome, CEO of Southwest Michigan First.“We are grateful to Doug Rothwell, Governor Engler and the leadership of Richland Township for their efforts to attract this company to our region.Once again, MEGA proves to be one of the most comprehensive, competitive business attraction tools.”

A key feature of the MEDC incentive package is a MEGA tax credit, approved today by the MEGA board, worth an estimated $1.45 million over the next seven years.MEGA, which is administered by the MEDC, is used to promote high quality economic growth, job creation and retention in Michigan.

In addition, the incentive package includes an abatement of the six-mill State Education Tax valued at $477,900 over 12 years.

Richland Township offered Parker Hannifin a 50 percent real property tax abatement for 12 years and six-year personal property abatement, equaling a combined value of approximately $1.3 million for the expanded facility.

This project will provide more than $5.3 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $3.8 million, after the MEGA credit.The project is expected to generate more than $66 million in personal income during that time.

“We would like to thank the State of Michigan, Richland Township and Southwest Michigan First for their hard work in getting this incentive program approved,” said Larry Reinhart, general manager of Parker Hannifin’s Pneumatic Division.“This is great news for Parker Hannifin and we look forward to working together to make the plant expansion a success.”

Parker Hannifin Corporation is manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of commercial, mobile, industrial and aerospace markets.The company employs more than 40,000 people in 40 countries around the world.

Parker Hannifin Corporation
MEGA Analysis
Summary Estimated
(All estimates in 2000 dollars)








$ 3,861,000

Revenue Foregone

$ 1,458,000

Revenue Gain

$ 5,319,000

Average Wage

$ 726/week

Personal Income Generated Over Life of MEGA Agreement

$ 66,483,000