Energy Conversion Devices, Inc. plans to locate its joint venture development and commercialization facility in Rochester Hills rather than in Petersburg,Virginia. It is estimated that this expansion will create 108 new jobs, 82 directly by the company, for Michigan workers.
“Since MEGA’s creation in 1995, the program has helped create more than 62,000 jobs for Michigan workers and a net positive state impact of morethan $2.9 billion,” Engler said. “Offering the 100th MEGA tax credit to an outstanding high-tech company like Energy Conversion Devices further demonstrates the tremendous success of the program.”
This new facility will help further Energy Conversion Devices’ plans to develop and commercialize their proprietary fuel cell and hydrogen storage technologies.
“The mayor and the city council are excited about this joint venture,” said Ed Anzek, director of planning for the City of Rochester Hills. “This new facility represents the highest of high-tech. This is a clear statement as to the type of businesses Rochester Hills can attract.”
Of the new jobs, 26 spin?off jobs will be created from increased spending by people who receive income from the jobs at Energy Conversion Devices,according to an economic analysis completed through software provided by Regional Economic Models, Inc. (REMI).
“The location of the Texaco-Energy Conversion Devices joint venture in Rochester Hills represents another shining star for Oakland County,”said Oakland County Executive L. BrooksPatterson. “This just reinforces what we already know: Oakland County has all the qualities that high-tech companies look for.”
A key feature of the MEDC incentives package is a high-tech Michigan Economic Growth Authority (MEGA) tax credit, approved today by the MEGAboard, worth an estimated $1.8 million over the next six 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 incentives package includes an abatement of the six-mill State Education Tax for five years with a value estimated at $230,000 andjob training assistance valued at $82,000 to train up to 82 new employees at Energy Conversion Devices’ new facility.
This project will provide more than $4 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $2.1 million, after the MEGA credit. The projectis expected to generate more than $50.5 million in personal income during that time.
Stanford R. Ovshinsky, Energy Conversion Devices President and CEO and Robert C. Stempel, ECD Chairman said, “We are pleased that the MichiganEconomic Development Corporation was able to help us locate this advanced hydrogen technology facility in the heart of Oakland County’s AutomationAlley, in close proximity to potential suppliers and customers.”
Energy Conversion Devices, Inc. has entered into joint ventures with Texaco Energy Systems to develop and commercialize fuel and hydrogen storagetechnologies. Energy Conversion Devices currently has 305 employees in Michigan.
The Michigan Economic Development Corporation works in partnership with local communities and Michigan businesses to retain and expand job opportunities and improve Michigan’s overall business climate.