NxtGen Emission Controls Looks to Create High-Tech Jobs in Wixom

Tuesday, January 22, 2008

Incentives approved to win Canadian company's investment, 106 new jobs

Governor Jennifer M. Granholm today announced approval of a state tax credit and other incentives to encourage Canada-based NxtGen Emission Controls Inc. to grow in Michigan. The company is considering an investment of $1.2 million to locate a new administration and manufacturing operation in a leased facility in Wixom. The project, pending company approval, is expected to create 106 new jobs, including 47 directly by the company.

“NxtGen is on the cutting-edge of delivering clean, efficient diesel technology and bringing this project to Wixom would strengthen our position as the global leader in automotive research and development and the best place in North America for global companies to invest and grow new jobs,” Granholm said.

Based on the Michigan Economic Development Corporation’s (MEDC) recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $909,000 over 10 years to win the company’s investment. To support the project, the city of Wixom has approved a five-year tax abatement worth $15,000. Oakland County will contribute up to $20,000 in federal training dollars under the Workforce Investment Act and the MEDC will provide up to $20,000 in Economic Development Job Training funds.   

“When competing for new jobs and investment, our competitive business climate and highly-specialized workforce certainly give us an upper hand,” MEDC President and CEO James C. Epolito said. “Together with the city of Wixom and Oakland County, we made a strong business case to convince this high-tech company to locate here.”

An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate more than $45 million in personal income for Michigan workers over the life of the tax credit.                     

“We are pleased to be progressing toward a facility in Michigan and state approval of this incentive package will be instrumental in our decision,”NxtGen President and CEO Jeremy Holt said. “The intended Wixom site will help bring us closer to our customer and supply base. We have been impressed with the enthusiasm of the Michigan Economic Development Corporation, Oakland County and the city of Wixom in bringing this package together and we hope to conclude our arrangements in the near future.NxtGen appreciates Governor Granholm and her leadership team for working to attract new advanced ‘cleantech’ business, such as NxtGen's clean diesel, and we look forward to working in a state that embraces clean technologies and CO2 reduction,” he said.

The NxtGen Emission Controls USA project is one of three economic development projects the governor announced today. In all, they are expected to create and retain a total of 261 Michigan jobs.

“We now have a dynamic team in place working tirelessly to attract and retain high-quality businesses like NxtGen which will aid in the state’s economic recovery and improve the quality of life here in southeast Michigan,” Wixom Mayor Kevin W. Hinkley said. “As a business owner myself I firmly believe that Wixom is the place to grow a business, live and raise a family.” 

Headquartered in Burnaby, British Columbia, NxtGen was founded in 2004 by former employees of Ballard Power Systems and QuestAir Technologies. The company focuses on improving overall diesel engine after treatment system performance and vehicle fuel efficiency.

"Oakland County's highly educated and skilled work force makes it attractive to companies who are considering a business expansion," Deputy Oakland County Executive Dennis R. Toffolo said. "NxtGen brings the kind of advanced technology to Wixom that helps ensures Michigan's future growth and stability."

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 217,000 jobs as a result of targeted assistance provided by the MEDC.


NxtGen Emission Controls USA Inc.    
(All estimates in 2008 dollars)     

TOTAL JOBS CREATED                                                                                106

Direct                                                                                                                              47

Indirect                                                                                                                           59

NET POSITIVE STATE REVENUE IMPACT                                        $2,816,000

Revenue Foregone                                                                                            $909,000

Revenue Gain                                                                                   $3,725,000

Average Weekly Wage                                                                                          $1,003

Personal Income Generated Over 10-Yr Tax Credit Agreement              $48,347,000


About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.