©2018 Michigan Economic Development Corporation

Business expansions, community revitalization projects create 193 jobs, invest in Michigan with state support

Wednesday, January 17, 2018

Kathleen Achtenberg

XG Sciences expanding in Vevay Township, creating 75 jobs; Zhongding U.S.A. Inc. establishing tech center in Northville, creating 80 jobs

LANSING, Mich. – A cutting-edge graphene manufacturer, XG Sciences, is expanding in the Lansing area with support from the Michigan Strategic Fund, the Michigan Economic Development Corporation announced today.

That project, along with a new tech center in Northville and three community revitalization projects around the state that have also received MSF approval, will generate a total private investment of more than $27.4 million and create 193 jobs in Michigan.

“We’re working to spark business growth, revitalize communities and create more and better jobs for our residents,” said Jeff Mason, CEO, Michigan Economic Development Corporation, the state’s chief marketing and business attraction arm that administers programs and performs due diligence on behalf of the MSF. “We applaud XG Sciences’ commitment to the Lansing area and look forward to partnering with them in the years to come as they grow and create jobs here. We also welcome Zhongding’s investment in Michigan and in becoming a contributor to the state’s automotive supply chain.”

XG Sciences, Inc., incorporated in 2006, was formed at Michigan State University for the purpose of commercializing technology to produce graphene nanoplatelets used for energy storage, aerospace, automotive, industrial and consumer markets. The company will open a new facility in Vevay Township (Ingham County). The 64,000 square-foot facility will house production in support of its ongoing product platforms and capacity requirements. XGS intends to invest up to $15.3 million in capital equipment and infrastructure needed to support existing and future customer demands and will create up to 75 Michigan-based jobs. As a result, the company has been awarded a $520,000 Michigan Business Development Program performance-based grant. Michigan was chosen over a competing site in Ohio.

“This investment represents a significant achievement in the expansion of our company and is a recognition by our customers and the market of the exciting opportunity represented through adoption of our graphene-based products,” said XG Sciences CEO Philip Rose.

Vevay Township has offered support to the project in the form of property tax abatement. For information on careers with XG Sciences, visit http://xgsciences.com/graphene-manufacturer/careers-in-graphene/.

“We have worked closely with XG Sciences for over 10 years, since they commercialized from MSU, finding the right locations for growth and introducing them to the right incentives,” said Bob Trezise, President and CEO of LEAP. “XG Sciences, and our long term partnership and commitment to their growth, is a true testament to how a community/university commercialization story should unfold.”

XG Sciences is the third Lansing-area company in recent weeks to announce they are growing with MSF support. Cintas Corporation, a provider of corporate identity uniform programs, announced it was expanding in Delta Township. The project is expected to generate total capital investment of $17 million and create 70 jobs, resulting in a $350,000 MBDP performance-based grant. In addition, Tecomet, a leading medical device and aerospace manufacturer, announced it was expanding in Lansing, investing $14.5 million and creating 160 jobs. The company was awarded a $640,000 MBDP performance-based grant. Both projects were announced in December 2017.

Zhongding U.S.A., Inc., is a subsidiary of China-based Zhongding, a global manufacturer of rubber and metal parts for all major OEMs and Tier 1 suppliers. The company plans to open a new 30,000-square-foot North American Technology Center in the Charter Township of Northville that will house various North American Zhongding divisions including sales/marketing, engineering, research/development and testing. The project is expected to generate a total capital investment of $6.9 million and create 80 jobs, resulting in a $650,000 MBDP performance-based grant. Michigan was chosen over a competing site in North Carolina. Northville Township has offered a property tax abatement in support of the project. For information on careers with Zhongding U.S.A., contact marianne@zd-usa.com.

“Landing a tech center of an international company says a lot about the level of innovation and expertise in the area. It sends a message that if you want to innovate in automotive and mobility, you must have a presence in our region,” said Wayne County Executive Warren C. Evans. “Zhongding will add to the vast international business community in Wayne County that continues to expand here and see that investment pay off.”

MSF also approved the following community redevelopment projects:

3424 Chicago Drive, LLC plans to rehabilitate an existing structure and construct a new building on two pieces of property in downtown Hudsonville. The project will result in a mixed-use development that will include new retail, restaurant, office and residential space. The project is expected to generate a total capital investment of more than $4.2 million and create 27 full-time equivalent jobs, resulting in a $686,645 Michigan Community Revitalization Program performance-based grant. The city of Hudsonville’s Downtown Development Authority will reimburse the developer for all eligible DDA expenses, estimated at $150,000 to be reimbursed over 10 years. The project will bring much-needed residential and commercial space to a formerly vacant parcel and add significant density and activity in downtown Hudsonville.

The city of Three Rivers was awarded $365,788 in Community Development Block Grant (CDBG) funds for blight elimination and historic preservation needed for the Landmark Taphouse and Grille project in downtown Three Rivers. The project is expected to generate total private investment of $944,000 and create 11 jobs, and will provide a much-needed restaurant, bring additional economic activity to Three Rivers, and serve as a catalyst for additional development in the area. The city of Three Rivers will contribute $20,000 and the Three Rivers Downtown Development Authority will contribute $25,000 in support of the project.

Alger County was awarded $100,000 in CDBG funds for a planning study needed for the Alger County-Upper Peninsula Forest Products Rail Study project. The Northwoods Rail Transit Commission, with membership composed of Northern Wisconsin and Michigan U.P. counties, has been leading an effort to seek solutions for effective rail transport in Michigan’s U.P. One of the industries that has been particularly hard hit is the forest products industry. Alger County seeks to have a planning study done to determine how to improve the availability of rail transportation for logs and other forest products. It is anticipated that the study, conducted collaboratively by Michigan Tech and region's forest products and railroad industries, will lead to companies adding jobs in Alger County. Alger County will contribute matching funds of $100,000 from three funding sources: Michigan Department of Transportation ($17,500), Michigan Department of Agriculture and Rural Development ($17,500), and Michigan Technological University/U.S. Department of Transportation ($65,000). These funds make up half the total cost of the project.

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.

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