Governor Jennifer M. Granholm today announced that four companies will expand their business operations here in Michigan instead of in other competitive locations.These expansions are expected to create more than 1,300 new jobs for Michigan workers.
“We’re fighting hard for every new job and every penny of revenue in Michigan,” said Granholm. These companies could have expanded in any other state, but we know that Michigan isn’t just any state.In every instance, the Michigan Economic Development Corporation sold these businesses on our quality of life, our competitive tax base and our beautiful environment.”
The four projects will provide a total of more than $55 million in revenue to the state over the life of the Single Business Tax credits, resulting in a net positive gain for the state of more than $50 million after the credits.The projects are expected to generate more than $722 million in personal income during that time.
Grupo Antolin Michigan will take over the former Lear facility in Marlette to fabricate interior trim components and systems for the automotive industry. According to an economic analysis conducted by the University of Michigan, it is estimated that the company’s operations will generate a total of 566 jobs in the state by the year 2013, including up to 214 directly by the company.
A MEDC incentive package, including a Single Business Tax credit valued at $2.1 million over 10 years, helped attract Grupo Antolin to Michigan rather than expanding an existing facility in Mexico.
With a need to expand their food service distribution capacity due to growth in the Midwest, Gordon Food Service, Inc., will construct a 200,000 square foot facility in Green Oak Township rather than a competing site in Toledo, Ohio.The company’s decision was tied to a Single Business Tax credit worth more than $1.1 million over 12 years offered by the MEDC.The new facility will result in the creation of 232 new jobs, including 150 directly by Gordon Food Service.
Ironwood Plastics, Inc. is building a new facility in the Houghton County Airpark Renaissance Zone in Franklin Township to expand their production capacity.The new facility’s operations will result in the creation of 146 new jobs, including up to 96 directly by the company.A Single Business Tax credit worth more than $600,000 over a 13-year period persuaded the company to expand in Ironwood rather than another company facility in Two Rivers, Wisconsin.
Because the site is within a designated Renaissance Zone, the new operations will also be exempt from most state and local taxes.
Up to 383 new jobs, including 161 directly by the company, are expected to be created when Inalfa Roof System expands into Grand Blanc Township.The automotive roof system company plans to lease an existing 15,000 square foot facility, which would then be expanded to 50,000 square feet.
Inalfa was offered an incentive package, including a Single Business Tax credit valued at more than $1.9 million over the next 10 years, to expand in Michigan rather than the company’s existing facility in Oklahoma City.
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.
Combined Project Estimates
Combined Economic Analysis
(All estimates in 2003 dollars)
|TOTAL JOBS CREATED||1,327|
|NET POSITIVE STATE REVENUE IMPACT||$50,023,000|
|Average Wage Range||$382-590/wk.|
|Personal Income Generated Over|
Life of the Tax Credit Agreement
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