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Companies investing more than $130 million to grow in state
LANSING – Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping seven companies grow in Michigan and is backing four brownfield redevelopment projects. Combined, the 11 projects are expected to create 4,024 new jobs, retain 61 jobs and generate over $130 million in new investment in the state.
We are working everyday to bring new jobs to Michigan, going anywhere and doing anything to show companies that we have the tools and talent to help them grow,” Granholm said. “The companies making announcements today, from a global automotive supplier locating its first U.S. engineering center here to an iron castings company expanding in the wind energy sector, highlight the impact of our aggressive economic diversification plan.“
The 11 projects announced today are:
CareTech Solutions, Inc. – The provider of information technology services to the health care industry plans to invest approximately $28 million to expand its headquarters and build a new data center in Troy. The expansion is expected to create 838 new Michigan jobs, including 440 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $7.8 million over 10 years to help convince the company to expand in Michigan over a competing site in Ohio. Oakland County is considering job training funding to support the project.
CAU Acquisition Company, LLC d/b/a/ Cartridges Are Us–The Illinois-based remanufacturing company specializing in the production, sale and distribution of inkjet cartridges plans to expand its operations in Ithaca to accommodate additional work and machinery from a plant in Mexicali, Mexico. The company will invest approximately $1.6 million in the project, which is expected to create 557 new Michigan jobs, including 186 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over seven years. The City of Ithaca is planning to support the project with an Industrial Rehabilitation Credit for modifications to an existing building, and a 12-year tax abatement on new machinery and equipment.
EPC - Columbia, Inc.–The thermal plastic injection molding company plans to invest more than $8 million to launch its Michigan operations in St. Clair. The project is expected to create 822 new Michigan jobs, including 250 directly by the company over a 5 year period. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.3 million over seven years to help convince the company to expand in Michigan over competing sites in Illinois, Missouri and Iowa. The Macomb/St. Clair County Michigan Works office plans to provide employee training assistance valued at $49,995 and the City of St. Clair is transferring existing property tax abatements to EPC to support the project.
Pulte Homes, Inc.–The Michigan-based company, one of the nation’s largest homebuilding companies with operations in 50 markets and 27 states, plans to invest approximately $10 million to expand operations in Oakland County. The project, which involves creating a national financial services center to consolidate much of the company’s accounting back office functions into one location, is expected to create up to 682 new Michigan jobs, including as many as 350 directly by the company over the next several years. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at approximately $10.1 million over 12 years to help convince the company to bring the project to Michigan over competing sites in other states. Oakland County Michigan Works has proposed providing employee training to support the project. In addition, the MEDC is considering up to $100,000 through the Economic Development Job Training program.
ESI North America, Inc.–The leading engineering software and services provider for the simulation of prototype and manufacturing processes plans to invest approximately $4.4 million to expand operations at their site in Bloomfield Hills and eventually relocate to a larger facility within Oakland County. The company, ESI North America, uses realistic material physics to provide "as good as real" virtual solutions, in order to replace the lengthy trial and error processes on real prototypes. The company's growth plan is targeted on expanding outside of the automotive industry, and into the aerospace, solar energy, fuel cell and nuclear markets. The proposed expansion is expected to create 226 new Michigan jobs, including 110 directly associated with the company. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $2.8 million on Monday, November 24th. The tax credit was a major factor in convincing the company to expand in Michigan, rather than a competing site in Alabama. In addition, Oakland County is considering providing job training funding to support the project. The MEDC is also offering additional job training funds of up to $50,000 through the Economic Development Job Training program.
Carlton Creek Ironworks, LLC–The leading North American provider of gray and ductile iron commercial castings for construction, marine and machine tool industries plans to expand capacity at its operations in Rothbury to support the production of high-grade ductile windmill iron required by windmill castings. The company will invest approximately $10.3 million in the project, which is expected to create 187 new Michigan jobs, including 70 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.6 million over 10 years. The village of Rothbury has approved a 12-year tax credit valued at $180,159 to support the project.For further information, click here.
Howa USA Holdings, Inc.– The Japan-based company specializing in the development, production and sales of automotive interior products plans to invest approximately $712,000 in a new R&D center in Novi. The R&D center will be the Howa Group's first engineering facility in the U.S. and will also serve as Howa USA's headquarters. Granholm met with company executives in Japan during her investment mission to the country in September to encourage them to expand in Michigan. The project is expected to create 52 new Michigan jobs, including 25 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $457,000 over seven years. Oakland County has proposed job training assistance to support the project.For further information, click here.
City of Sturgis/Kirsch Industrial Park LLC- State and local tax capture valued at $15.8 million and a brownfield state tax credit worth $2 million will support the redevelopment of the former Kirsch Manufacturing Plant in the city of Sturgis. The vacant and functionally obsolete one million-square-foot facility will be rehabilitated and renovated for light industrial, manufacturing, warehousing and commercial use. The first phase of the four-phase project will enable Iceberg Enterprises to expand its operations by utilizing approximately one-quarter of the renovated building. Additional phases will be completed as additional tenants are identified. The project is expected to create 600 new jobs and generate $16 million in new capital investment.
City of Wyoming/Morrison Investment Group– State and local tax capture will support the redevelopment of a blighted building located at 4599 Herman SW in Wyoming to be used as a work area for Control Tech Manufacturing (CTM), a division of Cisco Inc. Morrison Investment Group will own the property and lease it to CTM. A new roof, office area, work area and clean room will be constructed as part of the redevelopment. The project is expected to create 20 new jobs and generate up to $250,000 in new capital investment.
“Successful collaboration and teamwork between the state and our economic development partners were keys in bringing these projects to Michigan against some very intense national and international competition,” MEDC President and CEO James C. Epolito said. “I applaud all of the communities who stepped up to the plate and helped us make the strongest business cases possible.”
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 290,000 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.