Panasonic Automotive Systems and Teijin Advanced Composites are the latest foreign companies expanding their manufacturing plants in Michigan, after being approved for Michigan Strategic Fund Tax Incentives, part of the state's Business Development Program.
Gov. Rick Snyder said these investments demonstrate Michigan's singular leadership as a center of engineering, research, design and technical innovation with a business climate that enables their success."
Panasonic Automotive Systems Company of America received a $500,000 Business Development Program incentive to expand its operations center in southeast Michigan. Panasonic will invest up to $8.16 million to build a research and development facility for human machine interfaces, vehicle sound systems, and electronics for electric-hybrid vehicles in Farmington Hills. The company expects to create up to 60 new jobs. The city of Farmington Hills has also approved tax abatements for Panasonic's planned expansion.
Teijin Advanced Composites America, Inc., a Japanese developer of carbon fiber-reinforced thermoplastic composites for the automotive and other large-volume industries, will invest up to $7.9 million to build a new application development center in Auburn Hills. The company expects to initially create 25 new jobs, resulting in a state incentive of $375,000. The city of Auburn Hills also approved tax abatements for Teijin.
The Michigan Business Development Program provides grants, loans and other economic assistance to businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing. A number of factors are considered in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
Michigan Economic Development President Michael A. Finney said "these new flexible incentives, paired with Michigan's simplified and reduced business tax structure and initiatives to connect employers with talented workers, are creating one of the best business climates in the country."
The state's incentive program recently inspired Hyundai America Technical Center Inc. to build a $15 million Weather Dynamometer Test facility at its Superior Township location south of Ann Arbor. In addition, Nexteer Automotive, will invest $150 million in its Saginaw County operations, providing for more than 1,000 jobs.