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MPI Research Launching Major Expansion in Mattawan, Kalamazoo

Tuesday, April 22, 2008

Megan Brown, Governor's Office (517) 335-6397
Bridget Beckman, MEDC (517) 335-4590 beckmanb1@michigan.org

$330 million investment by MPI to create 6,600 Michigan jobs

KALAMAZOO– Governor Jennifer M. Granholm today announced a $330-million expansion in Mattawan and Kalamazoo by MPI Research Inc., a leading provider of comprehensive preclinical research and development services.  The project is expected to create 3,300 new jobs at the company and an additional 3,300 indirect Michigan jobs over the next 15 years.

Pfizer plans to donate buildings to the city of Kalamazoo to facilitate the expansion which is contingent upon final agreements between Pfizer, the city of Kalamazoo, and MPI Research.  Assistance provided by the Michigan Economic Development Corporation (MEDC) helped convince the company to choose Michigan for the expansion over competing sites in the U.S. and China.

The announcement was celebrated at an event in Kalamazoo today, with the governor joining MPI Research Chairman and CEOBill Parfet and state and local officials.

We worked hard to win MPI’s investment, and we will continue to go anywhere and do anything to get more companies like this to locate in Michigan,” Granholm said.  This expansion – one of the largest life sciences expansions in Michigan’s history – demonstrates that we have the kind of outstanding workforce and competitive business climate that can win a project like this.”

MPI Research will invest approximately $330 million to expand its operations, including $30 million to launch new operations in Kalamazoo at the two buildings donated by Pfizer on East Lovell and Portage streets.

Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $86 million over 15 years to secure the company’s investment.  The MEDC supports a Renaissance Zone designation, as well as a $2-million, 21st Century Jobs Fund grant to Western Michigan for redevelopment activities at the Kalamazoo site.  Through the transportation economic development fund, the Michigan Department of Transportation will provide funding for improvements at or near the I-94 interchange that are necessary to accommodate the traffic generated by MPI’s expansion.

Local match requirements will be provided by the village of Mattawan.  The city of Kalamazoo will contribute $150,000 toward environmental due diligence and infrastructure analysis.

Michigan’s array of innovative economic development incentives is securing new investment and jobs from the world’s most innovative companies and helping businesses, both large and small, grow and compete in the 21st century economy,” Michigan Economic Development Corporation President and CEO James C. Epolito said.  “This was an outstanding collaborative effort, and I applaud the efforts of everyone who helped secure this expansion and the new jobs it will create in Michigan.”

An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate an additional 3,300 indirect Michigan jobs, in addition to the 3,300 created directly by the company.  The project is expected to generate more than $4.3 billion in personal income for Michigan workers over the life of the tax credit.

“MPI Research is fortunate to be in a growing industry and to have employees who demonstrate integrity, trust, and teamwork,” Parfet said.  “These are hallmarks of the strong work ethic at MPI Research and part of what makes southwestern Michigan a great place to work and live. We are proud of our Michigan heritage and thankful for the support we are receiving from our community and from the state of Michigan as we all work together to increase jobs in the state.”

Headquartered in Mattawan, MPI Research focuses on the safety evaluation and toxicology needs of the biotechnology, pharmaceutical, medical device, chemical, agricultural and related industries.  The company has a facility in State College, Pennsylvania and a presence in China through a joint venture. Founded in 1995, MPI Research has grown from less than 200 employees to 1,600.

“To be part of a community that has the ability to announce the creation of 3,300 jobs is a privilege,” Southwest Michigan First CEO Ron Kitchens said. “Nowhere else in the country is an announcement being made like this.  Nowhere else in the country can a community work together like here in the Kalamazoo region.  To have the state of Michigan, two counties – Kalamazoo and Van Buren – two municipalities – the city of Kalamazoo and the village of Mattawan – and two companies – Pfizer and MPI Research – under the leadership of Governor Jennifer Granholm see the benefits of working together instead of in their own interest is amazing.”

The MPI Research expansion is one of five economic development projects the governor announced today.  In all, they are expected to create and retain a total of 9,013 Michigan jobs.

“The two research buildings that Pfizer intends to make available represent a rich local history of drug innovation,” Vice President and site leader for Pfizer’s Kalamazoo County operations Niall Condon said. “We’re thrilled that these buildings will continue to play a role in advancing the life sciences in Michigan, benefiting patients around the world.”

In her 2008 State of the State address, Granholm emphasized the importance of creating opportunity in the changing world of the 21st century.  Since January 2005, the governor and the MEDC have announced the creation or retention of more than 235,000 jobs as a result of targeted assistance provided by the MEDC.

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 MEDC initiatives and programs, visit the Web site at www.MichiganBusiness.org.

MPI Research Inc.   
(All estimates in 2008 dollars)     

TOTAL JOBS CREATED

6,600

Direct

3,300

Indirect

3,300

NET POSITIVE STATE REVENUE IMPACT

$250,998,000

Revenue Foregone

 $86,005,000

Revenue Gain

$337,003,000

Average Weekly Wage

$864

Personal Income Generated Over 15-Yr Tax Credit Agreement

$4,376,647,000

 

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