Thursday, September 12, 2002
419 New Jobs for Michigan Workers Anticipated
The Michigan Economic Development Corporation (MEDC) announced today that L&W Engineering will be relocating its Jaytec LLC subsidiary to Summerfield Township (Petersburg) to expand the company’s automotive metal tube fabrication operations.L&W Engineering plans to invest approximately $18.9 million in the expansion and create up to 200 new jobs.
“L&W Engineering is a company with a number of Midwest facilities, and it could have expanded in any of those locations,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“The company’s decision to grow in Michigan shows why we have been number one in the nation for new and expanded facilities for five years in a row.”
L&W Engineering had also considered relocating to a site in Indiana. An MEDC incentive package, including a Single Business Tax credit valued at more than $2 million over 11 years, convinced the company to expand in Michigan.
The company intends to purchase an existing 132,000 square foot facility on 47 acres in Petersburg.
“We are excited about the growth and new business opportunities that will be supported by the Petersburg plant,” said Jaytec LLC General Manager Jim Wines.“We anticipate a very positive impact to the local economy through investment and job creation, and appreciate the efforts of the MEDC and Summerfield Township in helping us bring this expansion to the community.”
According to an economic analysis conducted by the University of Michigan, it is estimated that L&W’s expansion will generate a total of 419 jobs in the state by 2014, including up to 219 jobs as a result of increased economic activity related to the expansion.
The expansion will provide an estimated $20.6 million in revenue to the state over the life of Single Business Tax credit, resulting in a net gain for the state of more than $18.5 million.The project is expected to generate more than $257 million in personal income during that time.
L&W Engineering is an automotive stamping and assembly company formed in 1973.The company has approximately 1,619 employees at seven locations in Michigan, with other facilities in Ohio and Tennessee.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
(All estimates in 2002 dollars)
|TOTAL JOBS CREATED||419|
|NET POSITIVE STATE REVENUE IMPACT||$ 18,529,000|
|Revenue Foregone||$ 2,095,000|
|Revenue Gain||$ 20,624,000|
|Average Weekly Wage||$ 608|
Personal Income Generated Over
|Life of the Tax Credit Agreement||$ 257,791,000|