Tuesday, December 18, 2007
Bridget Beckman, MEDC
Michigan selected for new HQ and manufacturing facility
Governor Jennifer M. Granholm today announced MS Automotive LLC, a subsidiary of Germany-based Maschinenfabrik Spaichingen GmbH, plans to invest more than $21.8 million in a new, custom-built North American headquarters and manufacturing facility in Fowlerville. The project is expected to create 244 new Michigan jobs, including 106 directly by the company. Assistance offered through the Michigan Economic Development Corporation (MEDC) helped convince the company to expand in Michigan over a competing site in Tennessee.
"Our economic plan is designed to ensure that Michigan is a great state for companies to locate in and grow," Granholm said. "This new headquarters cements the company's presence in Fowlerville and shows the rest of the world that Michigan is the best place in North America for domestic and international firms to invest and create new jobs."
Granholm encouraged company officials to invest and grow in Michigan during her investment mission to Germany last August.
Based on the MEDC's recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $883,000 over seven years to win the company's investment. The City of Fowlerville is considering a 12-year abatement valued at $1.3 million to support the project.
"Our abundance of advanced manufacturing talent and expertise continue to make our state an attractive location for growing companies like MS Automotive," MEDC President and CEO James C. Epolito said. "We're proud to partner with Fowlerville to help this company stay and grow in the city."
An economic analysis conducted by the MEDC estimates that increased economic activity created by the new facility would generate an additional 138 indirect Michigan jobs, in addition to the 106 jobs that would be created directly by the company. The project is expected to generate more than $70 million in personal income for Michigan workers over the life of the tax credit. "We are very pleased that MS Automotive has chosen Fowlerville for this expansion," Livingston County Economic Council Executive Director Fred Dillingham said. "We have worked with the company over the past four years, and we are very excited with its growth and commitment to Michigan."
The MS Automotive expansion is one of 14 economic development projects the governor announced today. In all, they are expected to create a total of 2,851 Michigan jobs.
MS Automotive operates under MS Industries Inc., which is the U.S. arm of Maschinenfabrik Spaichingen GmbH. The machining operation focuses on diesel engine components and manufactures ultra sonic welding machines and related components to assist in the production of car bumper fascias, car door panels and instrument panels.
In her 2007 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 211,000 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 the Michigan Economic Development Corporation's initiatives and programs, visit the Web site at www.MichiganBusiness.org.
MS Automotive LLC
(All estimates in 2007 dollars)
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