Tuesday, August 23, 2005
Michael Shore, MEDC
Military Contractor Chooses Michigan for $3.7 Million R&D Facility
Governor Jennifer M. Granholm announced today that American Systems Technology Inc. (ASTI) will invest $3.7 million to grow its research and development operations in Troy. The expansion will create 176 new jobs, including 164 high-tech jobs directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan over a competing site in Alabama.
"This is exactly the type of high-tech company we want to keep and grow in Michigan," Granholm said. "ASTI's cutting-edge research and products are creating the type of knowledge jobs that will sustain our global leadership in automotive R&D for years to come."
The MEDC approved a Single Business Tax credit valued at more than $2.5 million over seven years to win the project. The city of Troy, Oakland County, Automation Alley, Walsh College and the Troy Chamber of Commerce will also provide benefits to the company valued at more than $26,000 including training assistance, worker recruitment, additional office space and memberships to the city's aquatic center and chamber of commerce.
"ASTI appreciates this support by our local community, the state, and governor," ASTI CEO Joe Huang said. "We also appreciate the help we have received from the U.S. Army Tank-Automotive Research, Development, and Engineering Center (TARDEC) and the National Automotive Center (NAC), which have enabled us to transition our commercial expertise to the defense markets. We know that Michigan is the right place for us to be to grow our operations and serve our customers."
A University of Michigan economic analysis estimates that 12 indirect Michigan jobs will be created as a result of increased economic activity associated with ASTI'sexpansion, in addition to the 164 jobs created directly by the company. The project is expected to generate more than $57 million in personal income for Michigan workers over the life of the tax credit.
"I'm excited ASTI has decided to expand and grow its operations here," Oakland County Executive L. Brooks Patterson said. "ASTI fits perfectly into our Emerging Sectors business development strategy. Its commitment to Oakland County and to Michigan strengthens our economy and our position as a technology leader."
"We are delighted with ASTI's major investment to expand its research and development and job growth that this decision provides," Troy Mayor Louise Schilling said. "I was also delighted that the Troy community pulled together through the county, Walsh College and the Chamber to provide the needed benefits required by the state for this package of financial incentives."
The expansion is one of three economic development projects the Governor announced today. In all, they are expected to create a total of 494 Michigan jobs.
"This project incorporates both automotive R&D and homeland security elements," MEDC President and CEO Don Jakeway said. "ASTI's growing presence here will anchor the talent and investment we need to grow these high-tech industries into the 21st century."
ASTI provides advanced electronics and information technology solutions with strategic focus on military ground vehicles. The company has developed its proprietary Electronic Systems Integration (ESI) platform which enables the rapid and cost-effective insertion of advanced electronics capabilities into today's military fleets. Using its wireless communications capabilities, ESI enhances safety, promotes vehicle sustainability and improves vehicle communications. The platform can be used to set up a wireless network between vehicles in a convoy so that all in the convoy are aware of each other's operating status. It provides convoy personnel with a secure communication link to all of the other vehicles using wireless headsets. The system also provides emergency messaging, advanced mapping and routing, and collision avoidance capabilities.
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 60,000 jobs as a result of targeted assistance provided by the MEDC.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
American Systems Technology, Inc.
(All estimates in 2005 dollars)
|TOTAL JOBS CREATED||176|
|NET POSITIVE STATE REVENUE IMPACT||$1,894,000|
|Personal Income Generated Over|
Life of the Seven-Year Tax Credit Agreement