The Michigan Economic Development Corporation (MEDC) announced today that Lear Corporation will be expanding its operations in Mendon to accommodate new business.Lear plans to renovate its production facility and invest $4.1 million in machinery and equipment.It is estimated that the expansion will create 438 new jobs, including 190 directly by the company.
“Lear Corporation has a long and successful history of doing business in Michigan,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“It is a pleasure to see the company making further investments in our state, which translate into good-paying jobs for Michigan workers.”
The MEDC incentive package included a Single Business Tax credit valued at approximately $2.4 million over the next 10 years.As a result, Lear decided to expand at its Mendon facility rather than at a competing location in another midwestern state.
“Our relationship with the MEDC is strong and we look forward to working with them in the future to help Lear become more competitive,” said Lear Vice Chairman James Vandenberghe.“We believe Michigan is a great state in which to live and work.”
According to an economic analysis conducted by the University of Michigan, it is estimated that Lear’s expansion will generate a total of 438 jobs in the state by the year 2012, including up to 190 directly by the company and 248 as a result of increased economic activity related to the expansion.The expansion will provide an estimated $14.5 million in revenue to the state over the life of Single Business Tax credits, resulting in a net gain for the state of more than $12 million.The project is expected to generate more than $181 million in personal income during that time.
“Lear’s presence is vitally important to the economy of Mendon,” said Mendon Township Supervisor Mike Kline.“The fact that Lear is expanding and creating new jobs is very positive news for the township and local families.”
Lear Mendon is a wholly owned subsidiary of Lear Corporation, a Southfield, Michigan-based Fortune 150 company focusing on automotive interior systems.Lear is the fifth-largest automotive supplier in the world, with 2001 sales of $13.6 billion and over 100,000 employees in more than 300 facilities worldwide.Approximately 10 percent of these facilities and employees are located in Michigan. Lear Mendon designs, engineers and manufactures automotive interior components and overhead systems and currently employs nearly 700 workers.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
Lear Corporation - Mendon
(All estimates in 2002 dollars*)
TOTAL JOBS CREATED
|NET POSITIVE STATE REVENUE IMPACT||$ 12,116,000|
|Revenue Foregone||$ 2,393,000|
|Revenue Gain||$ 14,509,000|
|Average Wage Range||$ 526/wk.|
|Personal Income Generated Over|
Life of the Tax Credit Agreement
* including Lear and non-Lear contributions
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