Tuesday, March 15, 2005
Michael Shore, MEDC
Expansions and Investments to Create and Retain Over 6,200 Jobs
Governor Jennifer M. Granholm today announced that four companies plan major investments and expansions in southeast Michigan over competing sites in other states due to incentives offered by the Michigan Economic Development Corporation. The projects are expected to create and retain 6,200 jobs and generate more than $336.7 million in private investment.
"The fact that these companies have chosen to reinvest in Michigan not only highlights our favorable business climate but also the fact that we have one of the best pools of qualified workers in the world," Granholm said. "The companies represented in this group range from auto suppliers to life sciences to communications. It is this diversity that will ensure our position as a global leader in the 21st century economy."
Assay Designs Inc. plans to invest $18 million to expand its operations in Pittsfield Township, resulting in the creation of 238 new jobs including 86 directly by the company. A state Single Business Tax credit valued at more than $765,000 helped convince the Ann Arbor-based company to expand in Michigan instead of a competing location in Ohio. Assay Designs manufactures and markets specialized products including detection kits and recombinant proteins and antibodies for use by pharmaceutical companies and researchers to investigate the mechanisms of disease. Pittsfield Township has approved tax abatements valued at approximately $632,000 to support the project.
Detroit Diesel Corporation and the Freightliner LLC Group plan to invest more than $275 million to transform the 65-year-old Redford Township plant into a "manufacturing mall" to produce a range of commercial vehicle components for the North American market. The company was awarded more than $13 million in brownfield incentives today to remove obsolete buildings and utilities in preparation for the multi-phased redevelopment. In February 2005, an incentive package including an SBT credit valued at approximately $9.1 million as well as $143,000 in Economic Development Job Training funding was offered to convince the company to expand in Michigan over a competing site in South Carolina. The entire project is expected to create and retain a total of 2,928 Michigan jobs.
Faurecia, a leading Tier One global auto supplier will invest approximately $40 million to expand in Sterling Heights over a competing site in Ohio. The project is expected to create 942 jobs, including 448 directly by the France-based company. An SBT credit valued at more than $6.3 million helped convince the auto interior component manufacturer to stay and grow in Michigan. The city of Sterling Heights is considering a local tax abatement valued at approximately $4.2 million over 12 years to support the project.
SBC Michigan plans to consolidate operations at its existing facilities in Detroit and Southfield, retaining up to 2,140 jobs including 930 directly by the company. An SBT credit valued at more than $18 million convinced the company to invest $3.7 million to upgrade seven of its existing Michigan network centers as opposed to moving them to competing locations outside the state.
The southeast Michigan expansions are among 13 economic development projects the Governor announced today. In all, they are expected to create and retain a total of 7,120 Michigan jobs, including 3,196 directly by company expansions and redevelopments.
"The state is clearly riding a positive wave," MEDC President and CEO Don Jakeway said. "These projects are a great example of why Michigan was recently ranked the #2 state in the nation for new business locations and expansions."
In her 2005 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 31,464jobs 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.