Friday, April 25, 2008
The Michigan Economic Development Corp. today announced that Dietool Engineering Co. Inc. in Walker has been admitted to the Tool Makers Alliance Tool & Die Recovery Zone. Admission to the 10-company alliance permits Dietool to operate virtually free of all state and local taxes.
“A thriving tool and die sector is vital to the health of Michigan’s manufacturing economy,” MEDC President and CEO James C. Epolito said. “By lowering operating costs and encouraging collaboration, these tax-free zones increase the odds of success for our tooling firms in the global marketplace.”
To date, the MEDC has designated 24 tool and die recovery zones in 31 counties benefiting 218 companies. The zones allow companies to operate free of virtually all state and local taxes for up to 15 years, thus assisting their efforts to succeed in worldwide competition. Amendments to the Michigan Renaissance Zone Act in 2005 allow existing zones to request the inclusion of additional companies. Approval was granted for the zone expansion this week by the Michigan Strategic Fund board chaired by Epolito.
Dietool Engineering, founded in 1970, has 22 employees and builds sheet metal tooling for the automotive, furniture and appliance industries, specializing in small to medium-size progressive sheet metal stamping dies.
To receive consideration for Recovery Zone designation, tool and die companies must have a collaborative agreement that demonstrates synergistic opportunities among the companies.
According to the U.S. Bureau of Labor Statistics, Michigan in 2006 had 1,780 tool and die establishments with 35,708 employees representing 19.3 percent of the U.S. total.
The Michigan Economic Development Corp., 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. For more information on the MEDC’s initiatives and programs, visit the Web site at www.MichiganBusiness.org.
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