The Michigan Economic Development Corporation (MEDC) announced today that Royal Plastics has chosen to expand its manufacturing operations in Jamestown Township instead of a competing site in Tennessee.The company plans to invest approximately $35 million in new equipment and new facilities over the next five years.The expansion will result in the creation of up to 1,256 new jobs for Michigan workers.
“The phenomenal growth of Royal Plastics is a testament to the company’s business practices, management and workers,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“Royal Plastics is representative of the efficient companies that will be powering Michigan’s economy and creating new jobs in the years to come.”
A MEDC incentive package, including a Single Business Tax credit valued at approximately $13.6 million over 20 years, helped convince Royal Plastics to expand its manufacturing operations in Michigan.
“We are excited that the state of Michigan and Jamestown Township have provided incentives that will allow our continued growth in West Michigan,” said Royal President Jim Vander Kolk.“The new facility and equipment will be key in supporting Royal Plastics’ growth over the next five years, helping our customers meet their objectives, benefiting the local community and providing new jobs for West Michigan.”
According to an economic analysis conducted by the University of Michigan, it is estimated that the Royal Plastics project will generate a total of 1,256 jobs in the state by 2022, including up to 828 directly by the company.
The project will provide an estimated $70.8 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 $57 million.The project is expected to generate more than $886 million in personal income during that time.
“I am delighted with Royal Plastics' continued commitment to the state of Michigan and to the Ottawa County area in particular,” said Kenneth Rizzio, executive director of the Ottawa County Economic Development Corporation.“With these new jobs, Royal Plastics will become the largest plastics manufacturer and the seventh largest manufacturer of any kind in Ottawa County.”
Royal Plastics Inc. manufactures plastic injection molded products for a variety of industries including automotive and furniture.The firm is a privately held Michigan corporation organized in 1987.Royal Plastics serves customers throughout the United States and Europe from three manufacturing plants located in Jamestown Township and Hudsonville, Michigan.During the last quarter of 2001, Royal Plastics opened its new headquarters facility located in Jamestown Township.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
(All estimates in 2002 dollars)
|TOTAL JOBS CREATED||1,256|
|NET POSITIVE STATE REVENUE IMPACT||$ 57,238,000|
|Revenue Foregone||$ 13,652,000|
|Revenue Gain||$ 70,890,000|
|Average Weekly Wage||$ 454 |
|Personal Income Generated Over|
Life of the Tax Credit Agreement
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