Michigan Economic Development Backs Ten Companies for Growth and Two Brownfield Redevelopment Projects

LANSING – Michigan Economic Development Corporation (MEDC) is helping 10 companies grow in Michigan and is backing two brownfield redevelopment projects. Combined, the 12 projects are expected to create 2,245 new jobs (883 direct and 1,368 indirect), retain 11,254 jobs, and generate over $791 million in new investment in the state.

The projects include the expansion of a high-tech electronics and aerospace company in Walker, a new facility in Battle Creek for a manufacturer that plans to produce materials for the advanced-battery sector – a project that is the direct result of Governor Jennifer M. Granholm’s recent investment mission to Japan – and brownfield redevelopments that will transform abandoned and contaminated sites into new centers of economic growth and activity. In addition, previously announced alternative-energy projects received key support to move the projects forward.

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

Global Engine Manufacturing Alliance LLC – A wholly-owned subsidiary of the Chrysler Group LLC, the company plans to invest $179 million to launch a new fully integrated robotized engine manufacturing plant in Dundee to manufacture engines for the Chrysler Group’s growing line of fuel-efficient vehicles. The project will create 573 new jobs, including 155 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 418 indirect jobs. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $4.6 million over 10 years to help convince the company to locate in Michigan over a competing site in Mexico. The village of Dundee is considering abatement in support of the project. http://www.gemaengine.com/

SEIU Member Action Service Center – The corporate subsidiary of Service Employees International Union (SEIU) plans to invest $3 million to create a shared organization in Redford Township to provide administrative services for the SEIU and other local labor organizations. The project will create 322 new jobs, including 224 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 108 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $2 million over five years to help convince the company to expand in Michigan over competing sites in Missouri and Florida. Redford Township is considering an abatement to support the project. http://seiuaction.org/miseiu/home.html

Consolidated Resource Imaging LLC – The high-tech electronics and aerospace company serving both the government and private-sector customers plans to invest $3 million to expand its facility in Walker to accommodate business and staffing growth. The project will create 96 total jobs, including 50 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 46 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $625,915 over seven years to encourage the company to expand in Michigan over a competing site in Alabama. The village of Walker is considering abatement valued at $248,000 to support the project.

Akebono Corporation – The brake manufacturer serving the automotive, motorcycle, wind turbine and rail transportation markets will invest $28 million to add laboratory space and additional testing equipment at its Engineering Center in Farmington Hills. The project will create 279 total jobs, including 118 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 161 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.8 million over five years to encourage the company to expand in Michigan over a competing site in Kentucky. The city of Farmington Hills is considering abatement valued at $476,000 to support the project. http://www.akebonobrakes.com/

Toda America Inc. – The world’s leading manufacturer of iron oxide and mixed metal oxide particles plans to invest $70.1 million to produce materials for lithium ion-batteries at a facility in Battle Creek. The project will create 148 total jobs, including 57 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 91 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.6 million over 12 years to encourage the company to locate its first U.S. company in Michigan. Granholm also met with the company during her September 2009 investment mission to Japan. The city of Battle Creek is considering incentives valued at $5.5 million to support the project. http://www.americatoda.com/

Lear Corporation – The fourth largest U.S.-based automotive supplier plans to invest $14 million in its seating systems division and electrical and electronics divisions in Roscommon, Southfield and Taylor. The project will create 768 total jobs, including 224 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 544 indirect jobs. The project will also retain 1,836 jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $7.1 million over five years to encourage the company to expand in Michigan over competing sites in Indiana, Tennessee, Mexico, Spain, China, India and the Philippines. The village of Roscommon is considering an abatement to support the project. http://www.lear.com/index.jsp

Steelcase Inc. – The manufacturer of office environments that support work wherever it happens around the globe plans to invest $18.2 million to expand its global headquarters in Grand Rapids. The project will retain 707 total jobs, including 350 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 357 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $4.7 million over eight years to encourage the company to expand in Michigan. The city of Grand Rapids is considering abatement in support of the project. http://www.steelcase.com/na/

Nexteer Automotive (Steering Solutions Services Corporation) – The former steering division of Delphi Corporation, which operates in Saginaw under the Nexteer brand name, is the only global Tier One automotive supplier focused on advanced steering and driveline systems technology. The company plans to invest $413 million to actively pursue diverse new business opportunities. The project will retain 8,711 total jobs, including 2,400 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 6,311 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $70.7 million over 10 years to encourage the company to expand in Michigan over competing sites in Europe and China. Buena Vista Charter Township is considering abatement in support of the project. http://www.nexteer.com/

City of Detroit – NSO Bell Housing LDHA – Neighborhood Service Organization (NSO), a nonprofit human service agency, through its affiliates NSO Bell Housing LDHA Limited Partnership and NSO Bell Commercial LLC, plans to invest approximately $50 million in an innovative mixed-use renovation of the historic Bell Building located on Oakman Blvd. in Detroit. For more than 50 years, NSO has served homeless adults in metro Detroit, low-income families, individuals with mental illnesses and developmental disabilities, as well as individuals with addiction or substance abuse disorders. Part of the Bell Building will be renovated to house NSO’s administrative and service headquarters, and part of the building will provide permanent supportive housing for individuals who have been homeless. Based on the MEDC’s recommendation, the MEGA board today approved a state brownfield tax credit valued at $7.1 million that will support the project and create six jobs.

City of Battle Creek – Covance Laboratories – The provider of a wide range of integrated product development services in the pharmaceutical, biotechnology and medical-device industries plans to invest $15 million to renovate the former SEMCO Gas building in Battle Creek. At this facility, the company will provide analytical, microbiological, stability and sensor testing for numerous food service customers throughout the United States. Based on the MEDC’s recommendation, the MEGA board today approved a state brownfield tax credit valued at $2.8 million to support the project, which will create 43 jobs.

A123 Systems Inc. – The Ann Arbor-based manufacturer of rechargeable lithium-ion batteries has been approved for an Anchor Jobs incentive. In April 2009, the MEGA board approved a tax credit on the company’s $600 million project to develop initial coating, cell manufacturing, and pack assembly. In total, the project will create 5,000 jobs. http://www.a123systems.com/

Dow Kokam MI LLC – The Midland-based manufacturer of battery cells for electric and hybrid vehicles has been approved for an Anchor Jobs incentive. In April 2009, the MEGA board approved a tax credit on a $665 million joint venture of The Dow Chemical Company, Kokam America Inc., and Townsend Ventures LLC, formed to construct and operate a large-scale battery and cell manufacturing facility. In total, the project will create 885 jobs. http://www.dow.com/michigan/kokam/index.htm

The jobs and investment numbers for Dow Kokam MI LLC and A123 Systems Inc. have previously been announced and are not included in today’s jobs and investment totals.

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 (MEDC), For more information on the MEDC’s initiatives and programs, visit the Web site at http://www.themedc.org/.

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