©2016 Michigan Economic Development Corporation

Musashi to Expand in Battle Creek, Create 346 New Jobs

Tuesday, October 19, 2004

Paul Krepps, MEDC
(517) 335-4590

Michigan Wins $26 Million Project Over South Carolina

Governor Jennifer M. Granholm announced today that Musashi Auto Parts-Michigan Inc. will expand its operations in Battle Creek, creating 346 new jobs for Michigan workers, including 178 manufacturing jobs directly by the company. The expansion is a result of assistance offered through the Michigan Economic Development Corporation (MEDC).

The MEDC approved a Single Business Tax (SBT) credit valued at more than $1.4 million to help convince Musashi to choose Michigan over a competing site in South Carolina. The expansion is expected to generate more than $26 million in private investment.

"Musashi is committed to being a respected member of the business community as well as supporting the community that is around us, therefore we are very excited about expanding our facility here in Battle Creek," said Musashi President Haru Otsuka. "We thank Governor Granholm, the MEDC, Battle Creek Unlimited and the City of Battle Creek for their assistance in making this happen. With this expansion Musashi will continue to invest in state-of-the-art auto parts manufacturing in Michigan."

The city of Battle Creek is expected to support the expansion with an abatement of the company's real and personal property taxes valued at more than $2.5 million over 12 years.

A University of Michigan economic analysis estimates that 168 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 178 jobs created directly by the company. The project is expected to generate more than $155 million in personal income for Michigan workers over the life of the tax credit.

"This is great news for Battle Creek and the entire state," said MEDC President and CEO Don Jakeway. "The new manufacturing jobs created by this expansion are a good sign that the economic horizon is looking brighter for an industry that has faced daunting challenges in recent years."

In her 2004 State of the State address, Governor Granholm announced her plan to make Michigan a global economic powerhouse in the 21st century. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 30,794 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.

Musashi Auto Parts-Michigan
Economic Analysis
Summary Estimates
(All estimates in 2004 dollars)

Revenue Foregone$1,407,000
Revenue Gain$11,920,000
Average Wage$440/week
Personal Income Generated Over
Life of the Tax Credit Agreement