Thousands of Resources. Ready to help.
Tuesday, June 17, 2008
Venchurs and Production Engineering to invest $32 million in Michigan
Governor Jennifer M. Granholm today announced that auto suppliers Venchurs Inc. and Production Engineering Inc. are expanding their operations in Michigan. Combined, the companies will invest $32 million to grow in Adrian and Jackson and create and retain 588 jobs. Assistance provided by Michigan Economic Development Corporation helped win the projects over competing sites in Indiana.
“In the face of tough competition from other states, these companies are choosing Michigan,” Granholm said. “Their decision reaffirms Michigan’s standing as the epicenter of the auto industry and a great place for companies to grow and create jobs,” Granholm said.
The projects announced today:
Venchurs Inc., a broad-based supply chain management and third-party packaging and logistical services provider to the automotive and construction-agriculture industries, will invest $21 million to expand its operations in Adrian. Through the assistance of an $8 million incentive package, the project is expected to create up to 106 new jobs directly by the company including 50 by the end of 2010. The MEDC estimates an additional 46 spin-off jobs will be generated by the project. Based on the MEDC's recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $986,000 over seven years which allowed the company to choose Michigan over a competing site in Indiana. The city of Adrian is considering a 12-year abatement worth $3 million to support the project. In addition, South Central Michigan Works! will work with the company to identify available job training resources.
Production Engineering Inc., a manufacturer of precision machined components for wheel end, steering and drive train applications for specialty truck and construction equipment axles, will invest over $11 million to relocate to the 440,000-square-foot former Goodyear warehouse in Jackson. The company will revamp the building, including new electrical service enhancements, compressed air systems, lighting, water system, overhead cranes, offices and manufacturing support facilities. The project will create and retain 436 jobs, including 122 new jobs at the company and 112 retained. The MEDC estimates the project will generate an additional 202 indirect jobs. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $3.4 million over 10 years. To support the project, the city of Jackson has proposed a 20-year abatement and Renaissance Zone designation for a combined value of over $3.4 million.
“Our competitive business climate and world-class workforce are two key advantages we have to help manufacturers compete and thrive in the global arena,” MEDC President and CEO James C. Epolito said. “I commend the cities of Adrian and Jackson and the Enterprise Group of Jackson for helping us make a strong business case to secure this new growth in Michigan.”
The Venchurs and Production Engineering expansions are two of 11 economic development projects the governorannounced today. In all, they are expected to create and retain a total of 3,901 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 241,000 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 www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
Recent Press Releases