Potential New Investment Of Up to $163 Million in Two Facilities
The Michigan Economic Development Corporation (MEDC) assisted Delphi Automotive Systems today in brownfield redevelopment efforts at the company's existing Adrian and Wyoming manufacturing facilities.
As a result of two brownfield Single Business Tax credits awarded today, Delphi may invest up to $163 million, including building reconstruction and renovation, site infrastructure improvements and the purchase of new, more efficient manufacturing equipment at the two facilities.
“Delphi’s potential reinvestment in the Wyoming and Adrian plants stand as a testament to the company’s confidence in Michigan’s continuing economic strengths,” said Doug Rothwell, president & CEO of the Michigan Economic Development Corporation.“The tax credits will help upgrade aged facilities, improve competitiveness and assist in keeping good-paying jobs in our communities.”
The brownfield Single Business Tax Credit awarded to Delphi’s Wyoming facility is valued at up to $9.9 million.If the company’s level of new business is secured, Delphi plans to invest up to $99 million and retain approximately 650 jobs at the Wyoming site.
The Wyoming Brownfield Redevelopment Authority also authorized $15,000 in tax increment financing.The City of Wyoming has approved a 12-year, 50 percent abatement of a portion of Delphi’s investment, totaling approximately $1.5 million.
A Single Business Tax credit of up to $6.4 million was granted for renovation and an upgrade designed to improve competitiveness at Delphi’s Adrian facility.If the company’s level of new business is secured, Delphi would be able to invest up to $64 million and retain approximately 400 jobs at the Adrian facility.
The City of Adrian has expressed its intention to support the project through property tax abatement.
Kevin Quinlan and Ed DiEnno, managers of the Adrian and Wyoming plants, respectively, expressed their appreciation to the MEDC and the local units of government for their support of these projects.
Delphi Automotive Systems, with its world headquarters in Troy, Michigan, employs approximately 198,000 people at 196 manufacturing sites worldwide.It is the largest automotive supplier in the world and manufactures a wide range of products including computer chips, smart sensors, telecommunications equipment and mechanical components.
These Single Business Tax Credits were approved under an amendment to the Brownfield Redevelopment Financing Act.This amendment increases the maximum Single Business Tax credit and allows the credit to be given to functionally obsolete, blighted or contaminated property in 88 core communities.
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.