Governor Jennifer M. Granholm todayannounced approval of a state tax credit to Dearborn-based International Automotive Components (IAC) Group North America Inc. to encourage the auto interiors supplier to create and retain jobs in Michigan. The Tier 1 automotive supplier, in an effort to optimize manufacturing capacity and retain and create jobs, is considering initial investments of $3.3 million at its Port Huron facility, $2.6 million at its St. Clair facility and approximately $800,000 at its Warren facility. Additional future business opportunities could result in the creation of up to 200 new jobs and retention of up to 7,722 jobs, including 5,113 indirect and 2,609 directly by IAC.
“Supporting IAC will keep good-paying jobs in Port Huron, St. Clair and Warren while helping to build economic momentum in those communities,” Granholm said. “Strengthening and upgrading our existing industrial enterprises is critical to the future growth of Michigan’s economy.”
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at more than $23.4 million over 10 years to encourage IAC’s investment. In support of the projects, the city of Port Huron is considering a six-year abatement worth $258,000, while the city of St. Clair has proposed a six-year abatement of $202,000. The city of Warren is considering a 10-year abatement worth $57,000.
“We stand ready to support our job-creating enterprises in the automotive supplier industry,” MEDC President and CEO James C. Epolito said. “It is important that we do everything we can to help them stay competitive in the global arena.”
An economic analysis conducted by the MEDC estimates that increased economic activity generated by IAC will create and retain up to 5,113 indirect Michigan jobs in addition to the 2,609 created and retained directly by the company. The project is expected to generate more than $4 billion in personal income for Michigan workers over the life of the tax credit.
“We are pleased the MEDC is doing their part to constantly improve Michigan’s competitive position -- an effort that is helping global companies like IAC plant and keep roots in Michigan,” IAC North America President and CEO Jim Kamickas said.
The IAC project is one of six economic development projects the governor announced today. In all, they are expected to create and retain a total of 8,339 Michigan jobs.
IAC was formed in April 2007 and is comprised of Lear Corporation’s former Interior Systems Division, Collins & Aikman’s Soft Trim Division, as well as Collins & Aikman’s Saltillo and Hermosillo, Mexico injection molding facilities. IAC currently has more than 2,400 employees at five manufacturing plants, located in Alma, Mendon, Port Huron, St. Clair and Warren, three administrative facilities in Plymouth and Rochester Hills and the Dearborn headquarters.
“We are pleased to work with IAC and the MEDC to bring new jobs and investment to these two facilities in St. Clair County,” Economic Development Alliance of St. Clair County Doug Alexander said. “Both facilities have been highly productive suppliers for many years and we hope they continue to thrive under the IAC banner.”
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 209,000 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 MEDC’s initiatives and programs, visit the Web site at www.MichiganBusiness.org.
International Automotive Components Group N.A. Inc.
(All estimates in 2007 dollars)
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