©2016 Michigan Economic Development Corporation

Michigan Economic Development Corporation Lands Saint-Gobain Sekurit Manufacturing Operations in Michigan

Tuesday, August 14, 2001

Jennifer Kopp

648 New Jobs to be Created for Michigan Workers

648 New Jobs to be Created for Michigan Workers

Saint-Gobain Sekurit U.S.A. will be making its first manufacturing facility investment in the United States as a result of assistance from the Michigan Economic Development Corporation (MEDC).

The parent company, headquartered in Paris, France, is planning a two-phase, five-year project in Shelby Township that is expected to generate 648 new jobs in Michigan.

“In Europe, one of every two vehicles has Saint-Gobain Sekurit glazed windows,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“Establishing a manufacturing facility in Michigan will give the company a solid presence for the North American automotive market, and create hundreds of good jobs for Michigan workers.”

For the first phase of the project, Saint-Gobain Sekurit will build and lease a 50,000 square foot facility on Celeste Drive, near the corner of Schoenherr and East 23 Mile roads, and invest $7 million in machinery and equipment.In the second phase, planned for 2004, the company intends to double the facility space and invest in an additional $7 million of machinery. Facility leases over the first five-year period will total approximately $2 million.

Four hundred new jobs will be created directly by Saint-Gobain Sekurit to support the manufacturing operations.According to an economic analysis completed by the University of Michigan, an additional 248 jobs will be created indirectly as a result of increased spending by people who receive income from the company.

A key component of the assistance provided by the MEDC is a Single Business Tax credit worth $4,575,000 over the next 12 years.The incentive package also includes an Economic Development Job Training grant of up to $400,000 to train up to 400 new employees, and an abatement of the six-mill State Education Tax valued at$209,819.

To encourage the company’s investment, Shelby Township approved a 50 percent property tax abatement for the project, including a five-year abatement on any new real and personal property. The local abatement is valued at $692,911.

“Macomb County is proud to welcome the distinguished global manufacturing firm Saint-Gobain Sekurit to its business community,” said Bob Tess, Project Coordinator for the Macomb County Department of Planning and Economic Development. “After evaluating the availability of skilled and knowledgeable workers, proximity to key customers and the general business climate, the company has chosen to invest in Shelby Township."

“In doing so, Saint-Gobain Sekurit has selected a location perfectly suited to their present needs and a community eager to accommodate their future growth.”

The project will provide more than $24 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $19 million.The project is expected to generate more than $300 million in personal income during that time.

Saint-Gobain Sekurit is one of the world’s leading suppliers of automotive glazing systems, with sales of more than $1.5 billion annually and employing 12,500 people in 22 countries.Currently, Saint-Gobain Sekurit U.S.A. employs 15 people in its technical sales office in Rochester Hills, Michigan.

“Saint-Gobain Sekurit is very pleased with the support and partnership demonstrated by the Michigan Economic Development Corporation and Shelby Township that made this investment possible,” said Norm Chavka, Director of Sales and Operations at Saint-Gobain. “This will be Saint-Gobain Sekurit's first manufacturing facility in the United States and hopefully lead the way to additional growth by our company in the US and Michigan. This facility will produce modular window assemblies for the automotive industry and enable us to provide a higher level of service to our customers. I could not think of a better place to grow our automotive business than right here in the heart of the automotive capital."

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.

Saint-Gobain Sekurit U.S.A.
Economic Analysis
Summary Estimated
(All estimates in 2001 dollars)

TOTAL JOBS CREATED648
Direct400
Indirect248
NET POSITIVE STATE REVENUE IMPACT$19,483,000
Revenue Foregone$4,575,000
Revenue Gain$24,058,000
Average Wage$623/week
Personal Income Generated Over
Life of the Tax Credit Agreement
$300,733,000

###