©2016 Michigan Economic Development Corporation

Whitehall Area Wins Major Expansion Project

Wednesday, October 28, 1998

John Truscott
(517) 335-6397

Over 1,500 New Jobs for Whitehall, StateGovernor John Engler announced today that Howmet International Corporation has accepted a proposal that will create 1,566 new jobs, 580 created directly by the company in Whitehall. Under the agreement, Howmet International, which produces precision cast parts for aircraftengines for both military and commercial use, expects to invest approximately $50 million to construct a new facility in Whitehall. The City of Whitehall was in competition with Wichita Falls, Texas, for the project."Howmet's decision to expand in Whitehall means that 580 new jobs will stay right here in Michigan rather than going to Texas," Engler said. "Keeping companies like Howmet in Michigan is the reason why we were the number one state in new plants and expansions in 1997, and the reason we will be on the top of that list again in 1998."Howmet International will create up to 580 new jobs in Whitehall as a result of the expansion. Its investment also will generate an estimated 986 additional jobs in the state, primarily from increased purchases from Michigan suppliers and spending by people who receive income from the jobs at Howmet, according to an economic analysis done by theUniversity of Michigan.Engler also announced the approval of a tax credit for Howmet International, worth an estimated $18,706,000, voted on by the Michigan Economic Growth Authority.The Howmet project will provide more than $96 million in revenue to the state over the life of the agreement, resulting in a net positive gain to the state of over $78 million after the MEGA credit. The project is expected to generate over $1.2 billion in personal income.Howmet officials accepted the credit today at the MEGA board meeting held in Lansing and announced plans for a groundbreaking in November. The company expects the new facility to be operational by July of 1999.

HOWMET INTERNATIONAL CORPORATIONMEGA ANALYSISSUMMARY ESTIMATES(All estimates in 1998 dollars)
  • TOTAL JOBS CREATED 1,566
    • Direct 580
    • Indirect 986
  • NET POSITIVE STATE REVENUE IMPACT $78,182,000
    • Revenue Forgone $18,706,000
    • Revenue Gain $96,888,000
    • Average Wage $475/week
  • Personal Income Generated Over Life of MEGA Agreement $1,211,097,000