Governor Jennifer M. Granholm today announced approval of a state tax credit and other incentives to encourage Canada-based NxtGen Emission Controls Inc. to grow in Michigan. The company is considering an investment of $1.2 million to locate a new administration and manufacturing operation in a leased facility in Wixom. The project, pending company approval, is expected to create 106 new jobs, including 47 directly by the company.
“NxtGen is on the cutting-edge of delivering clean, efficient diesel technology and bringing this project to Wixom would strengthen our position as the global leader in automotive research and development and the best place in North America for global companies to invest and grow new jobs,” Granholm said.
Based on the Michigan Economic Development Corporation’s (MEDC) recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $909,000 over 10 years to win the company’s investment. To support the project, the city of Wixom has approved a five-year tax abatement worth $15,000. Oakland County will contribute up to $20,000 in federal training dollars under the Workforce Investment Act and the MEDC will provide up to $20,000 in Economic Development Job Training funds.
“When competing for new jobs and investment, our competitive business climate and highly-specialized workforce certainly give us an upper hand,” MEDC President and CEO James C. Epolito said. “Together with the city of Wixom and Oakland County, we made a strong business case to convince this high-tech company to locate here.”
An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate more than $45 million in personal income for Michigan workers over the life of the tax credit.
“We are pleased to be progressing toward a facility in Michigan and state approval of this incentive package will be instrumental in our decision,”NxtGen President and CEO Jeremy Holt said. “The intended Wixom site will help bring us closer to our customer and supply base. We have been impressed with the enthusiasm of the Michigan Economic Development Corporation, Oakland County and the city of Wixom in bringing this package together and we hope to conclude our arrangements in the near future.NxtGen appreciates Governor Granholm and her leadership team for working to attract new advanced ‘cleantech’ business, such as NxtGen's clean diesel, and we look forward to working in a state that embraces clean technologies and CO2 reduction,” he said.
The NxtGen Emission Controls USA project is one of three economic development projects the governor announced today. In all, they are expected to create and retain a total of 261 Michigan jobs.
“We now have a dynamic team in place working tirelessly to attract and retain high-quality businesses like NxtGen which will aid in the state’s economic recovery and improve the quality of life here in southeast Michigan,” Wixom Mayor Kevin W. Hinkley said. “As a business owner myself I firmly believe that Wixom is the place to grow a business, live and raise a family.”
Headquartered in Burnaby, British Columbia, NxtGen was founded in 2004 by former employees of Ballard Power Systems and QuestAir Technologies. The company focuses on improving overall diesel engine after treatment system performance and vehicle fuel efficiency.
"Oakland County's highly educated and skilled work force makes it attractive to companies who are considering a business expansion," Deputy Oakland County Executive Dennis R. Toffolo said. "NxtGen brings the kind of advanced technology to Wixom that helps ensures Michigan's future growth and stability."
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 217,000 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 here.
NxtGen Emission Controls USA Inc.
(All estimates in 2008 dollars)
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