©2016 Michigan Economic Development Corporation

Michigan Economic Development Corporation Helps Whirlpool Expand in Benton Township and St. Joseph

Thursday, April 12, 2001

Jennifer Kopp
(517) 335-4590

More than 600 New Jobs for Michigan Workers

More than 600 New Jobs for Michigan Workers

Whirlpool Corporation will expand its operations in Benton Township and St. Joseph with the help of Michigan Economic Development Corporation (MEDC) incentive packages.The MEDC was able to secure the projects by making a competitive business case for the company to expand in Michigan with high-tech Single Business Tax credits.

“Whirlpool is committed to doing business in Michigan.The MEDC incentive package, combined with support at the local level, convinced the company that consolidating and relocating personnel to Michigan was the best plan of action,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“Whirlpool is one of Berrien County’s largest employers.The company’s expansion plans bode well for the economic outlook of Southwest Michigan.”

Whirlpool has decided on a two-phase expansion.The first phase includes an expansion of its core technology innovation workforce, which includes the relocation of its Dayton Cooking Product Development Center to St. Joseph.It is estimated that the expansion will create 354 new jobs, 164 directly by the company, for Michigan workers.

The second phase involves growth in a variety of functions at Whirlpool’s Benton Township Administrative Center campus in support of the company’s innovation initiatives.This will include technical upgrades to the Consumers Interactive Center, additional training and new jobs in support of a variety of growth initiatives in sales, marketing, technology and product development.It is estimated that the expansion will create 323 new jobs, 221 directly by the company, for Michigan workers.

“As the community’s economic development organization, we know this community must step forward and implement a program to help companies recruit and retain the talent they need in order to grow and prosper,” said Cornerstone Alliance Chairman William D. Marohn.“Willingness of all of our local units of government to cooperate, and be part of Michigan’s Great Southwest effort is critical in helping companies like Whirlpool make the decisions they have for our community. We truly are becoming a world-class community because of the partnerships we have seen formed in the area. The challenge will be to sustain that cooperation; the benefit will be improved opportunities for everyone.”

A key feature of the MEDC incentive package for the Benton Township project is a high-tech Single Business Tax credit, worth an estimated $7.5 million over the next 17 years.The MEDC incentive package for the St. Joseph project includes a high-tech Single Business Tax credit, worth an estimated $7.5 million over the next 17 years.

Based on estimates by the University of Michigan, the Benton Township project will provide more than $31.9 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $24.3 million, after the MEGA credit.The project is expected to generate more than $399 million in personal income during that time.

Whereas, the St. Joseph project will provide more than $34.5 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $26.9 million, after the MEGA credit.The project is expected to generate more than $431 million in personal income during that time.

“With this package, Whirlpool will be in a position to create as many as 385 jobs in its headquarters community, where the company was founded nearly 90 years ago,” said David R. Whitwam, Whirlpool’s chairman and chief executive officer. “Thanks to the MEDC and the local government in the Twin Cities area, these incentives allow us to reinforce our commitment to Southwest Michigan.”

Whirlpool Technologies is a single member LLC of Whirlpool Corporation, one of the world’s largest home appliance companies with over 60,000 employees worldwide and with sales over $10 billion.

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.For more information on the Michigan Economic Development Corporation’s initiatives and programs, visit the website at .

Whirlpool Technologies, LLC
(St. Joseph project)
MEGA Analysis
Summary Estimated
(All estimates in 2001 dollars)

TOTAL JOBS CREATED

354

Direct

164

Indirect

190

NET POSITIVE STATE REVENUE IMPACT

$ 26,970,000

Revenue Foregone

$ 7,549,000

Revenue Gain

$ 34,519,000

Average Wage

$ 1,132/week

Personal Income Generated Over Life of MEGA Agreement

$ 431,496,000

Whirlpool Technologies, LLC
(Benton Township project)
MEGA Analysis
Summary Estimated
(All estimates in 2001 dollars)

TOTAL JOBS CREATED

323

Direct

221

Indirect

102

NET POSITIVE STATE REVENUE IMPACT

$ 24,392,000

Revenue Foregone

$ 7,590,000

Revenue Gain

$ 31,982,000

Average Wage

$ 1,034/week

Personal Income Generated Over Life of MEGA Agreement

$ 399,778,000