Granholm Announces Company Expansions in Oakland County, 684 Jobs Created, Retained

Tuesday, June 17, 2008

MAHLE and Rayconnect investing $47.2 million to grow in Michigan

Governor Jennifer M. Granholm today announced two companies-MAHLE Industries Inc. and Rayconnect Inc.-will expand in Farmington Hills and Rochester Hills, respectively. MAHLE plans to expand its North American Technical Center, and Rayconnect will construct a new plastics injection molding and assembly/corporate headquarters facility. Combined, the projects are expected to create and retain 684 Michigan jobs and generate more than $47.2 million in new capital investment. Assistance offered through the Michigan Economic Development Corporation helped convince the companies to choose Michigan over competing sites in other states. 

"Companies are investing and creating jobs here because we have an excellent business climate and outstanding workforce," Granholm said. "These expansions will provide good-paying jobs and build on our state's strengths in manufacturing and high-tech R&D to attract even more investment to Michigan." 

MAHLE Industries Incorporated - The subsidiary of MAHLE GmbH, a leading global manufacturer of components for the automotive and heavy duty engine industry, will invest $27.6 million in an initial 45,000-square-foot expansion in Farmington Hills. The investment will occur in two phases. Governor Granholm met with company officials in Stuttgart during her first investment mission to Germany in 2004 to encourage MAHLE to invest and grow in Michigan. The project is expected to create 324 new jobs, including 155 directly by the company. Based on the MEDC's recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $2.5 million over seven years to win the expansion over a competing site in Tennessee. The city of Farmington Hills has approved local tax abatements to support the project. 

Rayconnect Inc. - The wholly owned subsidiary of A. Raymond Inc. will invest $14.5 million in a new plastics injection molding and assembly/headquarters facility in Rochester Hills. The company designs, develops, manufactures and sells fluid handling products for the automotive, commercial and construction equipment markets. The project will retain 360 Michigan jobs, including 148 jobs at Rayconnect and A. Raymond (60 at Rayconnect and 88 at A. Raymond). The MEDC estimates that increased economic activity created by the project would save an additional 212 indirect Michigan jobs. Based on the MEDC's recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $2.5 million over seven years to win the company's expansion over a competing site in South Carolina. In addition, the MEDC will provide up to $120,000 in job training assistance through the Economic Development Job Training program. The city of Rochester Hills will consider a 12-year abatement worth $862,000 to support the project.  

"Innovative economic development tools and solid teamwork between the state, Farmington Hills, Rochester Hills and Oakland County were key in securing these expansions in Michigan," MEDC President and CEO James C. Epolito said. 

The Oakland County projects are two of 11 economic development projects the governor announced today. In all, they are expected to create and retain a total of 3,901 Michigan jobs.

"Oakland County has worked with MAHLE and Rayconnect for many years as they have increased their presence here," said Doug Smith, Oakland County director of economic development & community affairs. "Their growth shows we continue to be the world-wide leader in automotive technology."

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