Hyundai receives state support to build new test facility near Ann Arbor

Thursday, April 26, 2012

The Michigan Economic Development Corporation announced that the Michigan Strategic Fund will provide a $2.5 million Michigan Business Development Program incentive to Hyundai America Technical Center, Inc. (HATCI) to expand its operations

LANSING – The Michigan Economic Development Corporation announced that the Michigan Strategic Fund will provide a $2.5 million Michigan Business Development Program incentive to Hyundai America Technical Center, Inc. (HATCI) to expand its operations in Michigan by building a world class Hot/Cold Weather Dynamometer Test facility at its Superior Township location south of Ann Arbor.  

“Hyundai is a world class company and its decision to expand here tells the world that Michigan is a great place to grow a business,” Governor Rick Snyder said. “Hyundai’s investment and growing presence here demonstrates Michigan’s singular leadership in industrial engineering, research, design and technological innovation.”  

The company will invest $15 million to construct the facility and add 50 full-time jobs over the next five years. The State of Michigan will fund construction of a new power substation at the Superior Twp. location that will improve the power output to the building. Superior Township has offered support to the project in the form of a tax abatement.  

Hyundai announced its expansion in January at the 2012 North American International Auto Show in Detroit. Snyder joined the announcement with Dr. Cho, President of HATCI.  

“This investment and promise of a Hot/Cold Weather Testing facility in Michigan reinforces Hyundai and Kia’s commitment to U.S. vehicle development and American jobs,” Dr. Cho said. “Investing in our locations, products and people is critical to Hyundai and Kia’s ability to compete with the best in the business. Hyundai and Kia are committed to doing everything it takes to work with its partners, including the State of Michigan, to be competitive in the marketplace.”  

Superior Township’s willingness to provide incentives for Hyundai’s expansion was critical to the success of the project, according to Paul Krutko, Ann Arbor SPARK president and CEO.   

“It’s this type of collaborative economic development between Ann Arbor SPARK, the state and regional communities that makes business choose to locate and grow here. Ann Arbor SPARK’s business development team proactively works with businesses in the region to meet their needs as they grow and evolve,” Krutko said. “Working with Hyundai, Ann Arbor SPARK was able to identify ways that the region and state could support the growth of the company’s North American technical center.”  

Snyder met with Hyundai executives in Korea during his trade mission to Asia last fall, when he led a delegation to promote business opportunities in Michigan to major company executives and to meet with Japanese, Chinese and Korean government officials.  

Signed into law by Governor Rick Snyder in December, the Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.   

The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.  

The Michigan Business Development Program replaces the state’s previous MEGA program that was a feature of the Michigan Business Tax that was eliminated under business tax restructuring legislation approved and signed into law by Snyder in May 2011. The Michigan Business Development Program and Michigan Community Revitalization Program are MEDC Business Attraction and Economic Gardening programs, supported by the MSF state general fund appropriation.  

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.