Wednesday, March 17, 2004
German-Based Auto Supplier to Expand in Brighton
Governor Jennifer M. Granholm announced Tuesday that Dr. Schneider Automotive Systems will expand in Brighton rather than at a competing site in Canada, resulting in the creation of 645 new jobs for Michigan workers. At least 350 will be manufacturing jobs that the Governor is fighting for in partnership with the Michigan Economic Development Corporation (MEDC).
The company plans to invest an estimated $26.5 million to construct a new facility for the design, engineering and production of plastic automotive components for the North American market.
The Dr. Schneider Automotive Systems project is one of two approved Tuesday by the MEDC, which combined would create or retain a total of 2,886 jobs for Michigan workers. The other project is a major upgrade of General Motors' Warren Transmission facility.
"This is great news for Michigan's advanced automotive manufacturing industry," Granholm said. "Dr. Schneider's decision to choose Michigan over Canada proves again that we are competitive in the global marketplace. Our efforts to advance the advanced automotive sector through Michigan's Technology Tri-Corridor are paying off."
In her 2004 State of the State address, Governor Granholm announced a focused "seven road" plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 4,871 jobs as a result of targeted assistance provided by the MEDC.
Dr. Schneider Automotive Systems, Inc. is a wholly owned subsidiary of Dr. Schneider Holding GmbH, Germany. A leading global manufacturer of automotive component parts including ventilation systems, cup holders and other plastic interior parts, the company employs more than 1,600 people worldwide. This project will be its first North American facility which will include sales, design engineering and manufacturing functions.
The company considered establishing the new facility in Ontario, Canada. However, a Single Business Tax credit offered by the MEDC worth more than $3.1 million over the next 15 years helped convince the company that Michigan is the place to grow.
"After thoroughly evaluating the alternatives, Dr. Schneider Automotive Systems concluded that the location in Brighton offers the best opportunities." said company President, Peter Jansen. "We are very happy to have found this location because it provides considerable growth potential for the company and we are confident this will contribute to our worldwide success."
The city of Brighton is expected to approve a 12-year abatement on the company's new real property tax and a six- to eight-year abatement on the new personal property. The proposed abatements are worth an estimated $805,800.
An economic analysis conducted by the University of Michigan estimates that another 295 jobs will be created indirectly as a result of the expansion, in addition to the 350 jobs being added directly by the company over the next five years. The project will result in a net state revenue gain of more than $22 million over the life of the tax credit.
"The state's ability to offer SBT credits to expanding companies continues to be our ace in the hole for winning projects like this from global competitors," said MEDC President and CEO Don Jakeway. "We appreciate Dr. Schneider's investment in Michigan and look forward to helping them grow in our state."
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.
Dr. Schneider Automotive Systems, Inc.
(All estimates in 2004 dollars)
|TOTAL JOBS CREATED||645|
|NET POSITIVE STATE REVENUE IMPACT||$22,170,000|
|Personal Income Generated Over|
Life of the Tax Credit Agreement