Tuesday, November 16, 2004
Michigan Wins $40 Million High-Tech Project Over Competing Global Sites
Governor Jennifer M. Granholm announced today that Hemlock Semiconductor Corporation (HSC) will expand its operations in Hemlock, near Saginaw in Thomas Township, creating more than 100 new jobs for Michigan workers. The expansion is a result of assistance offered through the Michigan Economic Development Corporation (MEDC).
The MEDC approved a Single Business Tax (SBT) credit valued at more than $1.1 million to help convince Hemlock to choose Michigan over competing domestic and foreign sites. The company plans an initial private investment of more than $40 million for the expansion.
"This expansion will help maintain Hemlock Semiconductor's position as a key manufacturer supporting the development of alternative energy sources," Granholm said. "The fact that this company continues to grow here illustrates that Michigan's business climate is producing important technologies that will create high-tech jobs for today and tomorrow."
"This business incentive helps offset the competitive disadvantage the global competition has on both energy and labor costs," said HSC President and CEO Don Pfuehler. "The primary driver for our investment is coming from the solar energy industry where our product is the basic raw material for making solar panels."
Thomas Township is expected to support the expansion with an abatement of the company's real and personal property taxes valued at more than $3.2 million over 12 years.
"We're pleased with the excellent assistance and support received from the state on this project," said Saginaw Future President JoAnn Crary. "The incentive package was vital to creating a competitive business case."
A University of Michigan economic analysis estimates that 62 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 60 jobs created directly by the company. The project is expected to generate more than $77 million in personal income for Michigan workers over the life of the tax credit.
"This is exactly the kind of high-tech growth we strive to encourage," said MEDC President and CEO Don Jakeway. "HSC has contributed significantly to Michigan's ongoing legacy of developing new technologies and creating high-tech jobs for Michigan workers."
Hemlock Semiconductor was formed as a wholly owned subsidiary of Dow Corning Corporation in 1979. In 1984, the company formed a joint venture with two of Japan's largest silicon wafer manufacturers, Shin-Etsu Handotai Company Limited and Mitsubishi Materials Corporation. HSC is the world's leading producer of polycrystalline silicon, a component of photovoltaic cells used to produce solar energy and various electronic devices used within the semiconductor industry.
In her 2004 State of the State address, Governor Granholm announced her plan to make Michigan a global economic powerhouse in the 21st century. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 32,034 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.
Hemlock Semiconductor Corporation
(All estimates in 2004 dollars)
|TOTAL JOBS CREATED||122|
|NET POSITIVE STATE REVENUE IMPACT||$4,758,000|
|Personal Income Generated Over|
Life of the Tax Credit Agreement