©2016 Michigan Economic Development Corporation

Southeast Michigan to Benefit from Expansions of Five Companies

Tuesday, December 17, 2002

Susan Shafer

New facilities and business activity will add thousands of jobs for Michigan workers

Governor John Engler announced todaythat five companies plan to expand their operations in southeast Michigan instead of other competitive locations in Canada and the Midwest as a result of assistance from the Michigan Economic Development Corporation (MEDC).Expansions planned by Robert Bosch Corporation, HTC Global Services, Faurecia, Akebono Corporation and Advanced Technology Services are expected to create a combined 2,815 jobs for Michigan workers.

“When companies compare Michigan with other potential locations, our business climate, trained workforce and other key factors look very attractive,” Governor Engler said.“The decision of these five particular companies to expand in Michigan continues a long-term trend of successful business attraction for the state and will create thousands of new jobs for Michigan families.”

The expansions will provide a total of more than $186 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 $146 million after the credits.The projects are expected to generate more than $2.3 billion in personal income during that time.

The worldwide automotive supplier Robert Bosch Corporation is expanding its automotive original equipment headquarters, including some engineering, sales and administrative operations and moving certain corporate positions from its Chicago headquarters to a new facility in Plymouth Township.

According to an analysis conducted by the University of Michigan, it is estimated that the expansion will create up to 1,125 new jobs in the state by the year 2022, including up to 700 directly by the company.

A Single Business Tax credit offered by the MEDC and valued at $20.8 million over a 17-year period helped convince Bosch to bring the new facility and jobs to Michigan.

Over the next 10 years up to 790 new jobs, including up to 500 directly by the company, will be created as a result of HTC Global Services’ decision to consolidate their software development center and expand their operations in Troy. The company plans to lease an existing facility, investing approximately $20 million in building improvements and new machinery and equipment.

HTC had weighed expanding in Troy or at a competing site in Illinois. The MEDC offered HTC a Single Business Tax credit valued at $7.2 million over 10 years to bring the investment and jobs to Michigan.

Faurecia, a leading Tier 1 automotive supplier, is creating a new, 97,500 square foot facility in Auburn Hills to accommodate production of automotive components.The expansion is expected to create up to 389 Michigan jobs, including 205 directly by the company.

A Single Business Tax credit offered by the MEDC and valued at $7.3 million over a 10-year period encouraged Faurecia to build the new facility in Auburn Hills rather than another competitive location in Ontario.

A high technology Single Business Tax Credit worth $3.6 million over 10 years encouraged the Akebono Corporation to hire new employees and relocate existing staff to a facility in Northville Township.The relocation will accommodate the company’s needs to expand their automotive brake engineering and testing facilities in the United States.

The $54 million investment is expected to create 293 new jobs, including 190 directly by the company.

Advanced Technology Services (ATS) will lease up to 40,000 square feet of new space for its expansion in Livonia.The company, headquartered in Peoria, Ill., is a leading provider of industrial parts and repair, factory maintenance and IT services for manufacturing operations.A Single Business Tax credit worth $997,000 over seven years helped the company decide to choose Michigan over another potential location in Illinois.

The expansion is expected to create 218 new, full-time jobs for Michigan workers, including 132 directly by the company.

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
Summary Estimated
(All estimates in 2002 dollars)

Revenue Foregone$ 40,080,000
Revenue Gain$ 186,607,000
Average Wage Range$518-1,403 /wk.
Personal Income Generated Over
Life of the Tax Credit Agreement
$ 2,332,573,000