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Michigan Strategic Fund Incentives Spark Statewide Business Expansion

01/19/2018
Three companies are expanding in the Great Lake State with support from the Michigan Strategic Fund, the Michigan Economic Development Corporation said.

“We’re working to spark business growth, revitalize communities and create more and better jobs for our residents,” said Jeff Mason, CEO, Michigan Economic Development Corporation, the state’s chief marketing and business attraction arm that administers programs and performs due diligence on behalf of the MSF.

“We applaud XG Sciences’ commitment to the Lansing area and look forward to partnering with them in the years to come as they grow and create jobs here. We also welcome Zhongding’s investment in Michigan and in becoming a contributor to the state’s automotive supply chain,” he added.

XG Sciences, Inc., incorporated in 2006, was formed at Michigan State University for the purpose of commercializing technology to produce graphene nanoplatelets used for energy storage, aerospace, automotive, industrial and consumer markets.

The company will open a new facility in Vevay Township (Ingham County). The 64,000 square-foot facility will house production in support of its ongoing product platforms and capacity requirements.

XGS intends to invest up to $15.3 million in capital equipment and infrastructure needed to support existing and future customer demands and will create up to 75 Michigan-based jobs. As a result, the company has been awarded a $520,000 Michigan Business Development Program performance-based grant. Michigan was chosen over a competing site in Ohio.

“This investment represents a significant achievement in the expansion of our company and is a recognition by our customers and the market of the exciting opportunity represented through adoption of our graphene-based products,” said XG Sciences CEO Philip Rose.

Vevay Township has offered support to the project in the form of property tax abatement.

“We have worked closely with XG Sciences for over 10 years, since they commercialized from MSU, finding the right locations for growth and introducing them to the right incentives,” said Bob Trezise, President & CEO of LEAP. “XG Sciences, and our long term partnership and commitment to their growth, is a true testament to how a community/university commercialization story should unfold.”

XG Sciences is the third Lansing-area company in recent weeks to announce they are growing with MSF support. Cintas Corporation, a provider of corporate identity uniform programs, announced it was expanding in Delta Township. The project is expected to generate total capital investment of $17 million and create 70 jobs, resulting in a $350,000 MBDP performance-based grant.

In addition, Tecomet, a leading medical device and aerospace manufacturer, announced it was expanding in Lansing, investing $14.5 million and creating 160 jobs. The company was awarded a $640,000 MBDP performance-based grant. Both projects were announced in December 2017.

Zhongding U.S.A., Inc., is a subsidiary of China-based Zhongding, a global manufacturer of rubber and metal parts for all major OEMs and Tier 1 suppliers.

The company plans to open a new 30,000-square-foot North American Technology Center in the Charter Township of Northville that will house various North American Zhongding divisions including sales/marketing, engineering, research/development and testing.

The project is expected to generate a total capital investment of $6.9 million and create 80 jobs, resulting in a $650,000 MBDP performance-based grant. Michigan was chosen over a competing site in North Carolina. Northville Township has offered a property tax abatement in support of the project.

“Landing a tech center of an international company says a lot about the level of innovation and expertise in the area. It sends a message that if you want to innovate in automotive and mobility, you must have a presence in our region,” said Wayne County Executive Warren C. Evans. “Zhongding will add to the vast international business community in Wayne County that continues to expand here and see that investment pay off.”

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