Tuesday, May 18, 2004
State Assistance Wins $16 Million Project for Michigan
"Keeping the jobs we already have is half the battle," Granholm said. "The other half is staying competitive in the 21st-century economy by upgrading technology and retraining talent. This company is doing both. Recent changes in the Michigan Economic Growth Authority law have given us the flexibility to offer MPC the kind of incentives it needed to make a cost-effective decision to stay in Michigan."
In her 2004 State of the State address, Granholm announced a focused seven-point plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 14,321 jobs as a result of targeted assistance provided by the MEDC.
The Michigan Packaging expansion was one of nine major expansions and relocations announced by Governor Granholm today. The projects are expected to create and retain total of 8,683 jobs for Michigan workers, including 2,866 directly by the nine companies.
MPC, a manufacturer of corrugated paper sheets, began operations in 1967 in Eaton Rapids and doubled its capacity in 1995 with construction of a new facility in Mason.
In addition to the SBT credit, the company has also been offered an Economic Development Job Training (EDJT) grant valued at $70,000 to upgrade the skills of the 105 retained employees.
The city of Mason has also committed to provide a 50 percent abatement of new real and personal property tax valued at nearly $1.4 million for over 12 years.
A University of Michigan economic analysis estimates that an additional 122 indirect Michigan jobs will be retained as a result of increased economic activity associated with the expansion, in addition to the 105 jobs retained directly by the company. The expansion is also expected to generate more than $159 million in personal income for Michigan workers over the life of the tax credit.
"New technology and retraining are essential to sustaining Michigan's manufacturing leadership," said MEDC President and CEO Don Jakeway. "I am delighted that we now have the tools available to help ease the growing pains of established companies like MPC, now in its fourth decade as a Michigan company."
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.
Michigan Packaging Company
(All estimates in 2004 dollars)
|TOTAL JOBS RETAINED||227|
|NET POSITIVE STATE REVENUE IMPACT||$10,516,000|
|Personal Income Generated Over||$159,722,000|