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Tuesday, May 20, 2008
Company to build new manufacturing and R&D facility
Governor Jennifer M. Granholm today announced Northland-Marvel will invest $10.2 million in a new 175,000 square-foot manufacturing and innovation center in Greenville. The expansion is expected to create 337 new Michigan jobs, including 157 directly by the company. Assistance offered through the Michigan Economic Development Corporation and the city of Greenville helped convince the company to expand in Michigan over a competing site in Indiana.
“We are working the most aggressive strategy in the nation to help companies like Northland Corporation flourish in Michigan,” Granholm said. “This expansion will not only create good jobs, it will anchor the company in the Greenville community for years to come and position the company for future success.”
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $1.8 million over 12 years to win the company’s expansion. In addition, the MEDC will make available up to $42,500 in job training funds through the Economic Development Job Training program. To support the project, the city of Greenville is considering a 12-year abatement valued at $217,000 and the company will realize additional savings by locating the project in the Greenville Renaissance Zone.
“The MEDC and Greenville worked together to make a strong business case to win this expansion,” MEDC President and CEO James C. Epolito said. “The competition for new corporate investment and jobs has never been fiercer, and this project demonstrates the kind of strong collaboration necessary to compete and win in today’s global economy.”
An economic analysis conducted by the MEDC estimates that increased economic activity created by the new facility will generate an additional 180 indirect Michigan jobs, in addition to the 157 created directly by the company. The project is expected to generate more than $149 million in personal income for Michigan workers over the life of the tax credit.
“While other US companies are electing to move manufacturing overseas, our commitment to the US is stronger than ever,” Northland-Marvel Senior Vice President of Operations Brad Stauffer said. “This bringing together of our Northland-Marvel operations onto a new site in Greenville maintains our long association with the city and the wider community throughout the state, and is certain to further enhance our position in the premium appliance market – not just in the US but in Europe too – and underpin the company’s continued growth long into the future.”
The Northland-Marvel 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.
Founded in 1892 as RanneyRefrigeration, Northland-Marvel today is a leading manufacturer of refrigerator/freezer systems. The company currently employs 129 in Michigan. For more information about Northland products, visit www.northlandnka.com. Information about Marvel products can be found at www.lifeluxurymarvel.com.
“Northland-Marvel has given the Greenville community the good fortune of its historical contributions through employment and investment for a very long time,” Greenville City Manager George Bosanic said.“It is exciting to know we are able to be competitive and win the favor of a successful company like Northland-Marvel not only to remain in Greenville but to grow and prosper here as well. We appreciate the opportunity to partner with the State of Michigan and the company to retain and increase jobs in Greenville.”
In her 2008 State of the State address, Granholm emphasized the importance of in 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.
(All estimates in 2008 dollars)
TOTAL JOBS CREATED 337
NET STATE REVENUE IMPACT $9,626,000
Revenue Foregone $1,849,000
Revenue Gain $11,475,000
Average Weekly Wage $495
Personal Income Generated Over 12-Yr Tax Credit Agreement $149,044,000
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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