The Michigan Economic Development Corporation (MEDC) announced today that Lear Corporation will be expanding its global capabilities by creating a new engineering and development center in Plymouth.Lear plans to invest $6.5 million in the facility, machinery and equipment.It is estimated that the expansion will create up to 203 new jobs, including 150 directly by the company.
“Lear’s expansion further solidifies Michigan’s reputation as a research and development center for numerous companies in a full range of industry sectors,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“We welcome this new center and the jobs it will create for Michigan workers.”
Learfaced the option of expanding its capabilities by creating a new engineering and development center in Kentucky orPlymouth, Michigan.An incentive package from the MEDC, including a Single Business Tax Credit worth $5.8 million over a 10-year period, convinced the company to expand in Michigan.
As a result, Lear is planning to move into an existing facility in Plymouth in January 2003 and to hire up to 150 new workers over the next five years.
“After an extensive review of various options for our new facility, we saw a compelling business case for selecting Plymouth as the site location,” said Lear Vice Chairman James Vandenberghe.“Lear’s Michigan heritage dates backs 85 years to the 1917 founding of our company in Detroit and we are pleased to be extending our roots in southeastern Michigan.”
According to economic analysis conducted by the University of Michigan, it is estimated that the new center will generate a total of 203 jobs in the state over the life of the tax credits, including up to 53 as a result of increased economic activity related to the expansion.
The expansion is expected to generate more than $9 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 $3.2 million.The expansion is also expected to generate more than $113 million in personal income during that time.
Lear Corporation, a Fortune 150 company headquartered in Southfield, Michigan, USA, focuses on integrating complete automotive interiors, including seat systems, interior trim and electrical systems.With annual net sales of $13.6 billion in 2001, Lear ranks as the world's largest automotive interior supplier and the world’s fifth-largest automotive supplier.Lear’s world-class products are designed, engineered and manufactured by over 115,000 employees in more than 300 facilities located in 33 countries.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
(All estimates in 2002 dollars*)
|TOTAL JOBS CREATED||203|
|NET POSITIVE STATE REVENUE IMPACT||$ 3,226,000|
|Revenue Foregone||$ 5,832,000|
|Revenue Gain||$ 9,058,000|
|Average Weekly Wage||$ 1,530/wk|
|Personal Income Generated Over|
|Life of the Tax Credit Agreement||$ 113,189,000|
* including Lear and non-Lear contributions
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