MEDC: 4,278 New Jobs, $103M Investment In Michigan

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jobs money people1 MEDC: 4,278 New Jobs, $103M Investment In MichiganState officials Tuesday announced 13 projects expected to create 4,278 new jobs and result in the investment of $103.1 million, with the assistance of tax breaks from the Michigan Economic Development Corp.

“We are working the most aggressive plan in the nation to diversify our economy and create new jobs in Michigan,” Michigan Gov. Jennifer Granholm said. “The scope of these projects, from major expansions in traditional manufacturing to growth in new sectors like medical devices and clean energy, demonstrates that our plan is working.”
 
The Michigan Economic Growth Authority board approved incentives to win the following projects for Michigan over competing states and countries:
 
* Navistar Inc. — The manufacturer of commercial and military trucks, school buses, diesel engines, recreational vehicles and chassis for motor homes and vans plans to invest $4 million to establish an engineering center in Madison Heights targeted to provide product development and engineering support for defense truck products.  The project is expected to create up to 181 total jobs, including 87 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 94 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $2.5 million over seven years to encourage the company to expand in Michigan instead of competing sites in Illinois and Indiana.  The city of Madison Heights is considering an abatement in support of the project.  At this time, Navistar continues to maintain its location in Sterling Heights. More at www.navistar.com.
 
* Oxus America Inc. — The new company formed to acquire the assets of Delphi Medical Systems’ oxygen concentrator business plans to invest $2.1 million to permanently locate the engineering and manufacturing of its medical and industrial oxygen concentrators in Rochester Hills. The project is expected to create up to 98 total jobs, including 38 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 60 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $359,070 over seven years to convince the company to expand in Michigan over a competing site in Korea. More at www.oxus.co.kr.

* Silk Route Global Inc. — The global supply-chain software development and software-as-a-service company plans to invest $1.9 million to expand in Troy. The project is expected to create up to 190 total jobs, including 103 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 87 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $608,037 over five years to convince the company to expand in Michigan over a competing site in Florida. The city of Troy is considering an abatement in support of the project. More at www.silkrouteglobal.com.

* Herman Miller Inc. — The global manufacturer of furniture and related interior elements for the office, learning, health care and residential markets plans to invest $11 million in a two-phased expansion project in Holland. Phase I will expand and renovate a space to demonstrate the company’s full product offering in the administrative and clinical aspects of a health care environment. Phase II includes the creation of a LEED-certified global center for innovation and design. The project is expected to create up to 1,225 total jobs, including 600 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 625 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $7.8 million over seven years to encourage the company to expand in Michigan over competing sites in Wisconsin and New York. The city of Holland and Holland Charter Township are considering tax abatements in support of the project. More at www.hermanmiller.com/global.

* JAC Products Inc. – The manufacturer of functional exterior trim for the automotive industry plans to invest $6.7 million to expand to launch new roof rack and trim systems in Saline and Shelby Township. The company is expected to create up to 204 total jobs, including 87 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 117 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $572,970 over five years to convince the company to expand in Michigan over a competing site in Georgia. The city of Saline is considering an abatement in support of the project. More at www.jacproducts.com.

* Jet Engineering — The manufacturer and supplier of medical devices and aerospace components plans to invest $14.8 million to expand and purchase the existing building the company currently leases in Lansing. The project is expected to create up to 391 total jobs, including 159 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 232 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at  $769,677 over five years to convince the company to expand in Michigan over competing sites in Indiana and Malaysia. The city of Lansing is considering an abatement valued at up to $1.1 million over 16 years in support of the project. More at www.symmetrymedical.com.
 
* Romeo RIM Inc. — The manufacturer of urethane-based plastic parts used in many industries, including transportation, agriculture and heavy-duty trucks, plans to invest $7.6 million to expand in Bruce Township to accommodate a new contract it was awarded. The project is expected to create up to 166 total jobs, including 67 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 99 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $699,521 over five years to convince the company to expand in Michigan over a competing site in Iowa. Bruce Township is considering local assistance in support of the project. More at www.romeorim.com.
 
* Search Optics Inc. — A provider of digital marketing services for the North American auto industry plans to invest $4.1 million to expand in Ferndale to better serve East Coast clients. The project is expected to create 545 total jobs, 288 directly at the company. The MEDC estimates the increased economic activity has the potential to create an additional 257 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $3 million over seven years to encourage the company to expand in Michigan over competing sites in Toronto and Florida. The city of Ferndale is considering an abatement valued at up to $30,000 in support of the project. More at www.searchoptics.com.
 
* Weber Automotive Corp. — The supplier for precision machining of complex power train components such as cylinder heads, engine blocks and transmission casings plans to invest $24.9 million in a production plant in southeast Michigan. The project is expected to create up to 280 new jobs directly at the company. The MEDC estimates increased economic activity created by the project has the potential to create an additional 705 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $2.1 million over five years to help convince the company to expand in Michigan. Local authorities are considering an abatement in support of the project. More at www.weber-automotive.com/en/.
 
* Century Inc. – The manufacturer of components for the copper and nuclear industries plans to invest $6.2 million to expand across the street from its current location in Traverse City to manufacture components for the aerospace industry.  The project is expected to create up to 75 total jobs, including 35 directly at the company.  The MEDC estimates the increased economic activity created by the project has the potential to create an additional 41 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $299,121 over seven years to encourage the company to expand in Michigan over a competing site in Texas. The city of Traverse City is considering an abatement valued at up to $968,802 to support the project. More at www.centinc.com.
 
* Saint-Gobain Performance Plastics Corp. — The manufacturer of extrusion and molded components for the medical devices and pharmaceutical industries plans to invest $9.1 million to expand to accommodate growth in Beaverton. The project is expected to create up to 143 total jobs, including a minimum of 25 and up to 61 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 82 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $324,297 over seven years to encourage the  company to expand in Michigan. The city of Beaverton is considering an abatement to support the project. More at www.plastics.saint-gobain.com.

* Dow Chemical Co. — The Midland-based diversified chemical company plans to embark on a series of investments to manufacture the Dow Powerhouse solar residential shingle. Two state brownfield tax credits valued at $10 million each will support the redevelopment of two former manufacturing sites that are currently functionally obsolete. In addition, the MEGA board approved a $15 million photovoltaic tax credit. Investment includes new construction, site improvements, renovation and the addition of machinery and equipment. The project is expected to generate up to a $343 million investment and create up to 1,250 jobs over the next five years.  (Both the investment and job totals were announced in February 2010 and are not reflected in this month’s total investment and jobs numbers.) More at www.dow.com.

* The city of Taylor — State and local tax capture valued at $221,220 will support a brownfield project to demolish two vacant commercial structures and construct a 40,000 square-foot industrial plant to expand the current operations of Watson Engineering. In addition, the project will include environmental remediation activities, a new parking lot, a storm water management system and new landscaping. The project is expected to generate $7.5 million in new capital investment and create up to 75 new jobs.
 
“Successful collaboration and teamwork between public and private partners were keys in bringing these projects to Michigan against some very intense national and international competition,” MEDC president and CEO Greg Main said. “I want to thank all of the communities who helped us make the strongest business cases possible.”
   
The Michigan Economic Growth Authority, the state’s response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax to companies expanding or relocating their operations in Michigan. Since January 2010, more than 71,200 new and retained jobs have been announced as a result of the MEGA program.
 
Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial or residential purposes and to keep that property in productive use or return it to productive use.  Brownfield incentives can be used for functionally obsolete, blighted or contaminated property.
 
For more information on the MEDC’s initiatives and programs, visit  www.MichiganAdvantage.org.

(c) 2010, WWJ Newsradio 950.

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