Governor Jennifer M. Granholm today announced Ohio-based Consolidated Biscuit Company (CBC) will invest $12 million in a new manufacturing center in Tecumseh. The expansion is expected to create 1,058 new Michigan jobs, including 500 directly by the company. Assistance offered through the Michigan Economic Development Corporation (MEDC) and the city of Tecumseh helped convince the company to expand in Michigan over a competing site in Kentucky. The planned manufacturing facility will be CBC’s first operation in Michigan.
"We have the most aggressive economic strategy of any state in the nation to attract national and international companies to Michigan, we’re working hard to implement it every day,” Granholm said. “We welcome Consolidated Biscuit’s commitment to Tecumseh and we look forward to continuing to partner with them as they grow and create new jobs here.”
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $5.41 million over 10 years to win the company’s investment. In addition, the MEDC will make available up to $125,000 in job training funds through the Economic Development Job Training program. To support the project, the city of Tecumseh is considering a 12-year abatement valued at $867,000. The company is taking over a former TecumsehProducts facility.
“The MEDC and Tecumseh worked together to make a strong business case to win this expansion,” MEDC President and CEO James C. Epolito said. “As competition for new corporate investment and jobs grows more intense, this project demonstrates the kind of strong teamwork needed to compete and win in today’s global market.”
An economic analysis conducted by the MEDC estimates that increased economicactivity created by the new facility will generate an additional 558 indirect Michigan jobs, in addition to the 500 created directly by the company. The project is expected to generate more than $372 million in personal income for Michigan workers over the life of the tax credit.
“We were looking for a place to expand that had a large group of highly qualified workers but was also a great place to live, work and raise a family," said William Varney, Vice President of Consolidated Biscuit. "We found that in Tecumseh, and we look forward to this being the beginning of a long and fruitful partnership.”
The CBC expansion is one of 18 economic development projects the governor announced today. In all, they are expected to create and retain a total of 21,602 Michigan jobs.
Founded in1963, CBC operated a one-oven line with approximately 30 employees. Today, it is one of the largest independent full-line cookie and cracker manufacturers in the United States. Headquartered in McComb, Ohio, it employs 3,000 workers at nine facilities in Ohio, Kentucky, Indiana, Minnesota and Illinois. For more information about CBC products, visit http://www.consolidatedbiscuit.com/.
“This is a proud day for the City of Tecumseh and we owe a great deal of thanks to all of those who made this happen,” said Tecumseh mayorHarvey E. Schmidt. “From the beginning, the Michigan Economic Development Corporation has worked hand-in-hand with the representatives of the city, Consolidated Biscuit Company, and those from the Tecumseh Products Company to bring this venture to reality. The opportunity to bring Consolidated Biscuit Company’s 500 jobs to an idled manufacturing facility here in Tecumseh was made possible through the programs put in place by the Governor, the Legislature, and the City. In this highly competitive environment, where every job brings more opportunities to our citizens, we are lucky to have the MEDC standing with us.”
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 279,000 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 strategiesand providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation’s initiatives and programs, visit the Web site at www.MichiganBusiness.org.
Consolidated Biscuit Company
(All estimates in 2008 dollars)
TOTAL JOBS CREATED
NET STATE REVENUE IMPACT
Average Weekly Wage
Personal Income Generated Over 12-Yr Tax Credit Agreement
# # #