Granholm Announces Assistance for $18 Million MAHLE Engine Components Expansion in St. Johns

Monday, July 7, 2008

Tier 1 auto supplier gearing up for increased piston ring production

Governor Jennifer M. Granholm today announced a $462,000 grant to the city of St. Johns to support an expansion by MAHLE Engine Components USA Inc. Last month, company and local officials joined Governor Granholm in St. Johns to announce the $18.2- million project expected to create 534 new Michigan jobs, including up to 150 directly by the company. The grant is being made available by the Michigan Economic Development Corporation (MEDC) with funds provided by the federal Community Development Block Grant program.

“Withour competitive business climate, outstanding workforce and expertise in advanced manufacturing and high-tech R&D, Michigan is a great place for companies to invest and create new jobs,” Granholm said. “We are delighted that one of the world’s most innovative companies has chosen to grow in Michigan.”

MAHLE Engine Components, part of the Germany-based MAHLE GmbH group of businesses engaged in the manufacture of components for the automotive and heavy duty engine industries, is adding 30,000 square feet of manufacturing space to its St. Johns facility. The expansion will require construction of a new 875-foot public street and improvements to a public drain. The city of St. Johns will contribute $51,400 to support the project.    

“Funding made available through the CDBG program makes it possible for communities to support hometown business development and job growth,” MEDC President and CEO James C. Epolito said. “This economic impact of the new business generated by this expansion will reverberate locally for years to come.”

The MEDC is able to award approximately $40 million in federal CDBG funds each year. There are 1,655 local governments within the state eligible to apply for these funds. Projects are approved contingent upon compliance with state and federal requirements.

“The city of St. Johns greatly appreciates the state of Michigan, especially the MEDC, for working with us to put together a business case that leveled the playing field with the other foreign countries that were also vying for this expansion,” Mayor Dana Beaman said. “I truly believe that the area's quality workforce put Michigan over the top and scored MAHLE’s expansion for St. Johns.”

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.