Governor Jennifer M. Granholm announced today that the Hyundai America Technical Center Inc. will relocate and expand its headquarters in Superior Township near Ann Arbor.
The Korean-based company plans to invest a total of $117 million in the two-phase project. The new 168,000 square foot expandable facility will be located near the intersection of Geddes and LeForge roads. The project will create 85 jobs within the first year and a total of 751 new jobs by 2024, including 400 directly by the company.
“Michigan continues to be number one in the nation for automotive research and development,” said Granholm. “Hyundai’s decision to expand here will further encourage the clustering of tech centers in the state, bringing highly skilled workers to Michigan.”
The Hyundai America Technical Center had considered locating its new expanded headquarters facility in Alabama where it is currently constructing a manufacturing facility. The offer of a high-tech Single Business Tax (SBT) credit worth more than $22 million over a 20-year period helped convince the company to expand and create new jobs in Michigan.
Superior Township also offered assistance with a local tax abatement for the project worth an estimated $6.4 million over 12 years.
“We truly appreciate the assistance provided by the Michigan Economic Development Corporation and Superior Township officials in our site selection process,” said Dr. Won Suk Cho, president, Hyundai America Technical Center. “We took great care in our search to find the appropriate community for this world-class automotive research and development center. We considered several locations including sites in other states but the support of Governor Granholm, MEDC officials and Superior Township Supervisor Bill McFarlane convinced us that Michigan was the best choice.”
According to an economic analysis conducted by the University of Michigan, it is estimated that the relocation and expansion will create an additional 351 Michigan jobs as a result of increased economic activity in addition to the 400 jobs created directly by the company. The company’s increased operations will result in a net state revenue gain of more than $80.8 million over the life of the SBT credits.
“We’re particularly pleased that Hyundai has chosen to join the growing number of automotive technology companies in the Ann Arbor/Ypsilanti area,” said Washtenaw Development Council President Susan Lackey. “The company’s decision to anchor the Geddes Center Technology Park demonstrates that this industry is, in fact, one that can be successful across the county.”
The Hyundai America Technical Center was established in 1986 and is a wholly owned subsidiary of Hyundai Motor Company of Korea. The company conducts emissions testing, engineering, research, development and design for Hyundai and Kia automobiles. The tech center is currently headquartered in Pittsfield Township near the site of the new facility and employs 41 people.
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.
Hyundai America Technical Center
(All estimates in 2003 dollars)
|TOTAL JOBS CREATED|
|NET POSITIVE STATE REVENUE IMPACT||$80,808,000|
|Personal Income Generated Over|
Life of the Tax Credit Agreement