MEDC: 6,300 Jobs, $420.6 Million Investment In Michigan

State officials Wednesday announced that companies will invest $420.6 million in Michigan, creating and retaining 6,293 jobs in the state, 1,395 of which are new jobs. 

The Michigan Economic Development Corp. is helping seven companies grow in Michigan and backing six brownfield redevelopment projects. 

"We continue making significant progress toward diversifying Michigan's economy," Gov. Jennifer Granholm said. "The expansions announced today demonstrate that businesses across a wide spectrum are choosing Michigan over other states for new growth opportunities. These are the types of projects that will help transform our economy and create good-paying jobs for our workers."

The Michigan Economic Growth Authority board approved incentives to win the following projects for Michigan over competing states and countries:

* A.J.M. Packaging Corp. – The manufacturer of converted paper products, including paper plates and grocery sacks plans to invest $28.3 million to upgrade its plant in Southgate and expand into the food service market. The company is expected to create up to 292 total jobs, including 125 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 167 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $564,772 over five years to convince the company to expand in Michigan over a competing site in New Jersey. The city of Southgate is considering an abatement in support of the project. More at www.ajmpack.com.

* Bright Automotive Inc. ��� The new-to-Michigan developer of the IDEA, a brand new, 100 mile per gallon plug-in hybrid electric vehicle, plans to invest $11 million to open a technical center in Rochester Hills, which will serve as one of its locations for research, design and development of the energy-efficient vehicle and related vehicle technologies. The project is expected to create up to 530 total jobs, including more than 200 directly at Bright Automotive. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 326 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $4.3 million over five years. More at www.brightautomotive.com.

* Gerdau MacSteel Inc. – A manufacturer of steel bar products for the automotive, heavy truck and other industries with facilities in Blackman Township, Monroe and Napoleon Township plans to invest $67 million to help secure the company's long-term viability and reach new market segments. The project is expected to retain up to 778 jobs directly at the company. The MEDC estimates increased economic activity created by the project has the potential to retain an additional 1,227 indirect jobs for a total of 2,005 jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $9.2 million over five years to help convince the company to expand in Michigan over a competing site in Arkansas. More at www.gerdaumacsteel.com.

* IT Group LLC d/b/a Member Driven Technologies – The information technology service provider for credit unions plans to invest $6.4 million to expand and build a second data center in Southfield. The project is expected to create up to 233 total jobs, including the potential for as many as 101 directly at the company. The MEDC estimates the increased economic activity created by this project has the potential to create an additional 132 indirect jobs. Based on the MEDC's recommendation, the MEGA board  approved a state tax credit valued at $557,092 over five years to convince the company to expand in Michigan over a competing site in Colorado. The city of Southfield is considering an abatement in support of the project. More at www.mdtmi.com.

* Michigan Automotive Compressor Inc. – The joint venture between Toyota Industries Corp. and Denso, which manufactures automotive air conditioning compressors, plans to invest $72 million to upgrade its facility in Parma. The project is expected to retain up to 2,025 total jobs, including 562 directly at the company. The MEDC estimates increased economic activity created by the project has the potential to retain an additional 1,463 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $4.9 million over five years to convince the company to expand in Michigan over competing sites in Georgia, Ohio, Canada, China, Germany and Japan. The village of Parma anticipates granting an abatement in support of the project. More at www.michauto.com.

* Montaplast of North America Inc. – The plastic injection molded products maker for the auto industry plans to invest $2.3 million to grow its technical and R&D capabilities in Auburn Hills. The project is expected to create up to 50 total jobs, including 25 directly at the company. The MEDC estimates the increased economic activity created by this project has the potential to create an additional 25 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $324,801 over five years to encourage the company to expand in Michigan over a competing site in Kentucky.  The city of Auburn Hills is considering an abatement in support of the project. More at sww.montaplast.com/en/.

* Toyota Boshoku Corp. Inc. – The manufacturer of automotive interior systems, air and oil filters, and power train systems for a variety of customers, including Toyota Motor Corp. and General Motors, plans to invest $3.2 million to consolidate and expand its prototype operations in Novi. The project is expected to create up to 75 total jobs, including up to 40 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 35 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $209,736 over five years to encourage the company to expand in Michigan over a competing site in Kentucky. The city of Novi is considering contributing to administrative fees and infrastructure improvements to support the project. More at www.toyota-boshoku.co.jp/en/index.html

* Chrysler Group LLC – The autommaker has been approved by the MEGA board for a $45 million Plug-in Electric Vehicle Engineering credit to support the company's $137 million investment in development of a four-passenger City Electric Vehicle off the Fiat 500 platform for the 2013 model year.  Separately, the company plans to redevelop the Sterling Heights Assembly Plant. Although SHAP is currently operating, it was scheduled for closure in 2012 without new investment and renovation. A state brownfield Michigan Business Tax credit valued at $10 million will support the project, which includes exterior and interior site demolition, site improvements and construction of a new 425,000 square-foot paint shop. The project will retain approximately 1,809 jobs and generate $300 million in investment, part of an $850 million investment in the plant and surrounding stamping plant previously announced in October 2010. More at www.chryslergroupllc.com.

* Everest Campus LLC – A state brownfield credit valued at $5 million will support a project to redevelop the property formerly known as the LeValley Buick-Pontiac-Cadillac-GMC dealership in Benton Harbor. The project will include the demolition of unoccupied buildings and the construction of a new three-story office building that will be part of the new Whirlpool headquarters. Fisherman's Park along the St. Joseph River will also receive enhancements. The project will generate $27.5 million in new private investment.

* Whirlpool Corp. – A state brownfield credit valued at $7.7 million will support a two-phased project that will build a new headquarters campus on Main Street in Benton Harbor. The project will include demolition of existing unoccupied buildings, and the construction of a new three-story office building and a one-story retail building. The project will generate $41.3 million in new private investment and retain 868 jobs. More at www.whirlpool.com.

* City of East Lansing – State and local tax capture valued at $3 million will support a brownfield project to demolish two functionally obsolete, single-use two-story structures and construct an eight-story mixed-use building on the property located at 211 Albert Ave. The first floor will house restaurant and commercial space and the upper floors will contain 42 apartments. The project is expected to generate up to $9.7 million in new private investment and create up to 45 new jobs.

* City of Cheboygan – State and local tax capture valued at $486,609 will support a brownfield project to acquire Main Street properties adjacent to the Straits Area Federal Credit Union's current main branch for future expansion of operations in downtown Cheboygan. The project is expected to generate up to $2 million in new private investment and create up to 10 new jobs.

* City of Port Huron – State and local tax capture valued at $710,791 will support a brownfield project to redevelop the former Sperry Department Store Building which is a historical structure located at the center of Port Huron's central business district. Renovations include pursuing LEED certification, replacing all of the mechanicals, adding a new roof, rebuilding the windows, restoring the entire façade and replacing the elevators. The lower lever of the building will include up to 15 incubator office sites to help Michigan entrepreneurs and innovators. The project is expected to generate up to $12.9 million in new private investment and create up to 160 new jobs.

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, nearly 335,000 new and retained jobs have been announced as a result of the MEGA, brownfield and additional incentive programs.

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. 

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.

For more information on the MEDC's initiatives and programs, visit  www.MichiganAdvantage.org.

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