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Monday, May 19, 2008
Auto supplier investing $16 million to grow in Michigan
Governor Jennifer M. Granholm today announced Marimba Auto LLC,a global supplier and manufacturer of tubular products,will invest $16 million to relocate and expand its current operations from Belleville to Canton Twp. The company plans to build a new 130,000-square-foot facility. The project is expected to create 170 new Michigan jobs, including 72 directly by the company. Assistance offered through the Michigan Economic Development Corporation (MEDC) helped convince the company to expand in Michigan instead of a competing site in Tennessee.
“By choosing to invest and expand in Canton against some strong out-of-state competition, Marimba Auto reaffirms Michigan’s standing as the epicenter of the auto industry and a great place for companies to grow and create jobs,” Granholm said.
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $851,000 over seven years to win the company’s investment. Canton Twp. is considering a 12-year abatement worth $544,247 to support the project.
“We are proud to support our job-creating enterprises in the automotive supplier industry,” MEDC President and CEO James C. Epolito said. “We are working everyday to help them stay competitive in the global arena.”
Founded by Mr. Anurag Bajaj in 2003, Marimba Autois a recognized tier 2 supplier. Customers include GM, Ford, Chrysler, Toyota, Honda and Nissan. The company currently employs 40 employees at its operations in Belleville.
“We are very pleased to be a part of the Governor Granholm’s strategy to grow Michigan’s economy,” Marimba President and CEO Anurag Bajaj said. “We strongly believe in Michigan, its people, and the community we live in, and we believe strongly in our automotive industry. Together, we will build a strong economy for our state. We are truly honored and humbled to be recognized by the governor, and we pledge to work hard to bring more automotive jobs to Michigan. We look forward to a bright tomorrow for our state.”
An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion would generate an additional 98 indirect Michigan jobs, in addition to the 72 jobs that would be created directly by the company. The project is expected to generate more than $61 million in personal income for Michigan workers over the life of the tax credit.
“Canton is very pleased Marimba Auto has selected our community to locate their new facility,” Supervisor Tom Yack said. “In an effort to support them, Canton will be recommending a 12-year 50 percent tax abatement to the State Tax Commission. Strong communities are built on companies such as Marimba.”
The Marimba Auto expansion is one of 10 economic development projects the governor announced today. In all, they are expected to create a total of 2,051 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 237,000 jobs as a result of targeted assistance provided by the MEDC.
Marimba Auto LLC
(All estimates in 2008 dollars)
TOTAL JOBS CREATED 179
NET STATE REVENUE IMPACT $3,860,000
Revenue Foregone $851,000
Revenue Gain $4,711,000
Average Weekly Wage $759
Personal Income Generated Over 7-Yr Tax Credit Agreement $61,150,000
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.
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