©2016 Michigan Economic Development Corporation

Newberry Beats Out Tennessee for Northern Diecast Corp. Facility

Tuesday, December 21, 1999

John Truscott
(517) 335-6397

157 New Jobs for State Northern Diecast Corporation has chosen Newberry, Michigan, over Tennessee, for their new facility, Governor John Engler announced today. The project will create 157 new jobs, 95 directly by the company, for Michigan workers. "Northern Diecast's decision to locate their new facility, Northern Casting Company, in Luce County shows the company's dedication to Northern Michigan," Engler said. "The company decided not to buy a turn key operation in Tennessee, but to build a new facility in Michigan. Congratulations to our highly productive workforce and great business climate!" Of the 157 new jobs, 62 will be spin?off jobs created from increased purchases from Michigan suppliers and from spending by people who receive income from the jobs at Northern Casting Company, according to an economic analysis done by the University of Michigan. Engler also announced the approval of a tax credit for Northern Casting Company, worth an estimated $1.7 million over twenty years. The tax credit was approved by the Michigan Economic Growth Authority (MEGA). This project will provide almost $8.1 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of almost $6.4 million after the MEGA credit. The project is expected to generate almost $101 million in personal income. This project will provide almost $8.1 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of almost $6.4 million after the MEGA credit. The project is expected to generate almost $101 million in personal income. Northern Casting Company will be established as a subsidiary of Northern Diecast Corp. Northern Diecast is a magnesium diecaster that has been in business since 1981 in Harbor Springs. Northern Casting Company will refine magnesium ingot and manufacture automotive and non?automotive diecasting components. This facility is needed to accommodate a growth in sales. The project includes investment from the company for land, building renovations, machinery and equipment. "Northern Diecast Corporation would like to thank the Michigan Economic Development Corporation and the Luce County Economic Development Corporation for all their efforts and help in obtaining the MEGA tax credit," said Daniel Hoggard, chief executive officer of Northern Diecast Corporation. "We feel that it is a win?win situation. We can provide good jobs, and remain globally competitive by taking advantage of the available labor in an underemployed rural area within Michigan." The Michigan Economic Growth Authority program, which is administered by the Michigan Economic Development Corporation, is used to promote high quality economic growth and job creation in Michigan that would not occur without this program. Northern Casting Company MEGA Analysis Summary Estimated (All estimates in 1999 dollars) TOTAL JOBS CREATED 157 Direct 95 Indirect 62 NET POSITIVE STATE REVENUE IMPACT $ 6,381,000 Revenue Forgone $ 1,680,000 Revenue Gain $ 8,061,000 Average Wage $ 359/week