ArvinMeritor, Brose, Paragon Metals Expansions Create Over 2,400 Jobs

Tuesday, March 18, 2008

Auto suppliers investing $46 million

Governor Jennifer M. Granholm today announced that supplier expansions in Michigan will generate $45.9 million capital investment in new plants and equipment. ArvinMeritor, The Brose Group and Paragon Metals will locate or expand operations in Detroit, Warren, Auburn Hills and Quincy (east of Coldwater in Branch County). The Michigan Economic Development Corporation (MEDC) is backing the projects expected to create 2,473 Michigan jobs.

“Our highly skilled workforce and competitive business climate helped us win these high-quality automotive supplier expansions for Michigan,” Granholm said. “These expansions will provide good-paying jobs in the community and build on the state’s manufacturing strengths to attract a larger share of international investment to Michigan.”

The Brose Group, the leading manufacturer of mechatronic components and systems for vehicle bodies and interiors has recently announced that it is expanding its North American headquarters in Auburn Hills. In addition to this expansion, they have also announced the groundbreaking on a new facility, Brose Jefferson located in Warren. These decisions follow the governor’s investment mission to Germany last year which included meetings with company leaders at the Brose headquarters in Coburg. In total, Brose will invest some $23 million in order to renovate and equip a manufacturing facility in Warren as well as to expand its headquarters in Auburn Hills. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $7.4 million over seven years which helped persuade the company to choose Michigan over competing states for the new facility. The projects are expected to create a total of approximately 500 positions in both Michigan locations within the next five to seven years extending Brose’s technological footprint in Michigan. An economic analysis conducted by the MEDC estimates the projects will generate up to 1,317 additional spin-off jobs in the state. To support the projects, the city of Warren has approved a 10-year abatement worth $662,000 and the city of Auburn Hills is considering an eight-year abatement worth $457,000.  

ArvinMeritor Inc.,a global supplier of integrated systems, modules and components to the motor vehicle industry, will invest $15.9 million in new equipment at its facility in southwest Detroit to fulfill a multi-year contract with a major automotive manufacturer. The project is expected to create up to 404 new jobs including 119 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approveda state tax credit valued at $1.1 million over seven years to win the project over a competing site in Ohio. To support the project, the city of Detroit is considering a 10-year abatement worth $3.8 million when combined with savings under the new Michigan Business Tax. The Detroit Economic Growth Corporation partnered with the MEDC in coordinating a proposal and incentive package to help secure the company’s growth in the city.  

Paragon Metals Inc., the Charlotte, N.C.-based manufacturer and supply chain manager of engineered precision components for U.S. and European auto, truck and original equipment manufacturers plans to invest $15 million to locate a manufacturing operation in Quincy, creating 235 new jobs including 130 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $1.1 million over seven years to help convince the company to choose Michigan for the new facilityover a competing site in South Carolina. To support the project, the Township of Quincy has approved a 12-year abatement worth $470,000.   

“Michigan is home to the largest base of automotive innovation in the manufacturing world,” MEDC President and CEO James C. Epolito said. “These expansions enhance our ability to create a congenial environment for high-tech companies leading to the creation of new jobs for Michigan families.”      

The supplier expansions are among 12 economic development projects the governor announced today. In all, they are expected to create and retain a total of 6,066 Michigan jobs.

In her 2008 State of the State address, Granholm emphasized the importance of creating opportunity in the changing world of the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 226,000 jobs as a result of targeted assistance provided by the MEDC.

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 For Pure Michigan® tourism information, your trip begins at Join the conversation on: Facebook Instagram LinkedIn, and Twitter.