Tuesday, April 19, 2005
Michael Shore, MEDC
Company to Invest $118 Million in Battle Creek, Holland
Governor Jennifer M. Granholm announced today that Johnson Controls Inc. will invest $118 million to retool its operations in Battle Creek and Holland instead of moving production to competing locations in Ohio and Mexico. The investment will save 1,754 Michigan jobs, including 747 directly by the company. Assistance offered through the Michigan Economic Development Corporation (MEDC) helped convince the company to stay in Michigan.
"We need to work just as hard to keep the manufacturing jobs we already have in Michigan as we do at creating new ones," said Granholm. "JCI's decision to invest in Battle Creek and Holland shows Michigan is a strong competitor in the global economy."
The MEDC approved Single Business Tax credits valued at more than $17.4 million to win the project. The city of Battle Creek and Holland Township have also proposed tax abatements valued at $5.4 million and $4.8 million respectively.
The JCI expansion is among five economic development projects the Governor announced today. In all, they are expected to create and retain a total of 4,111 Michigan jobs, including 2,517 directly by company expansions and redevelopments.
A University of Michigan economic analysis estimates that 1,007 indirect Michigan jobs will be created as a result of increased economic activity associated with Johnson Controls' reinvestment in the Battle Creek and Holland facilities, in addition to the 747 jobs retained directly by the company. The project is expected to generate more than $1.3 billion in personal income for Michigan workers over the life of the tax credit.
"We are pleased to bring the manufacturing operations for our new automotive seat component products to the Johnson Controls Holland and Battle Creek plants," said Brian Kesseler, group vice president and general manager, North America. "We appreciate the support we have received from not only the State of Michigan, but also from Holland Township, Lakeshore Advantage, the City of Battle Creek and Battle Creek Unlimited on these projects."
"As the largest employer in our community and one of the largest employers in all of West Michigan, the success of Johnson Controls is key to the economic success of our region," Randy Thelen, president of Lakeshore Advantage said. "We welcome the opportunity to work with JCI, along with Holland Township and the MEDC, to help make this project a reality."
Jim Hettinger, president of Battle Creek Unlimited added, "We would like to thank Governor Granholm and our partners at the MEDC for helping to make this happen. The city of Battle Creek and Battle Creek Unlimited stand ready to assist in bringing these jobs back into the community."
Johnson Controls is a global market leader in automotive systems and facility management and control. In the automotive market, the company is a major supplier of integrated seating and interior systems. In addition, the company provides control systems and services including comfort, energy and security management in non-residential facilities. The Johnson Controls facilities in Battle Creek and Holland will manufacture automotive seating components.
"This is great news for Battle Creek and Holland," MEDC President and CEO Don Jakeway said. "Without this incentive package, these jobs would have left the state, never to return. I commend the leaders of these communities for partnering with the MEDC to present a savvy business case which ultimately won the projects."
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 35,697 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.
Johnson Controls Inc.
(Battle Creek and Holland Combined)
(All estimates in 2005 dollars)
|TOTAL JOBS RETAINED||1,754|
|NET POSITIVE STATE REVENUE IMPACT||$86,869,000|
|Personal Income Generated Over|
|Life of the Tax Credit Agreement||$1,356,015,000|