Six Michigan Companies Design Expansion Plans With Strategic Fund Incentives
“Today’s actions mean well-paying jobs for Michigan families,” said Governor Rick Snyder. “In addition to permanent jobs, these investments will generate thousands of construction jobs, including 8,000 alone for Detroit’s new crown jewel. Coupled with other exciting projects in Greenville, Sturgis, Grand Rapids, Dearborn, Detroit, East Lansing, and Saginaw, it’s clear that Michigan’s comeback continues.”
Michigan Business Development Program incentives include:
Dicastal North America, Inc., a newly created entity of CiTiC Dicastal Co. Ltd., the first aluminum wheel manufacturer in China, plans to open a new aluminum alloy wheel manufacturing plant at an existing facility in Greenville, Michigan. The company will also be constructing additions to the facility, investing approximately $140 million and creating a total of 300 new jobs.
As a result, the company has been awarded a $3.5 million Michigan Business Development Program performance-based grant. In addition, MSF approved a $5 million Community Development Block Grant for the acquisition of the building. Consumers Energy also developed a competitive, innovative pricing plan to help secure the project. The City of Greenville will administer the CDBG funding.
Plasan Carbon Composites, Inc., an automotive Tier 1 manufacturer of carbon composite automotive components, plans to expand its Walker, Michigan, manufacturing center.
The Walker facility is reaching capacity and the company plans to invest in additional infrastructure and renovations to expand production capability. The project will generate a total capital investment of more than $29 million and create 620 jobs resulting in $6 million of Michigan Business Development Program performance based economic assistance with repayment terms. The City of Walker has offered support to the project in the form of property tax abatement.
In other manufacturing projects sparked by state incentives include;
Four Seasons Development, a real estate development company, received MSF approval of a $2.3 million Bond Authorization Resolution to expand its manufacturing facility in Charter Township of Buena Vista, Saginaw County. It will provide capacity for new equipment necessary for the production of patented mechanical diode clutches and next generation controllable mechanical diodes. The bonds will be privately purchased by PNC Bank. The new expansion will retain 18 production jobs and create up to five new engineering support positions.
American Axle & Manufacturing, Inc., a Tier 1 global automotive supplier of driveline and drivetrain systems for light trucks, SUVs, passenger cars, crossovers and commercial vehicles, plans to renovate a vacant manufacturing building adjacent to its current headquarters to establish a new technical center and showroom in Detroit. The project will generate a total capital investment of up to $15.4 million and create 75 jobs, resulting in a $1 million Michigan Business Development Program performance-based grant. The City of Detroit has offered a 12-year property tax abatement in support of the project.
In another project, Costco Wholesale Corporation plans to construct a new distribution warehouse facility in Van Buren, Township, investing up to $47.9 million and creating 126 new jobs. As a result of this expansion, the company has been awarded a $450,000 Michigan Business Development Program performance-based grant. Van Buren Township has offered support to the project in the form of an eight-year property tax abatement valued at $3.7 million.
International Business Machines Corporation plans to increase employment at its Services Center in East Lansing, investing $200,000 and creating 100 jobs. As a result, the project has been awarded a $500,000 Michigan Business Development Program performance-based grant. The City of East Lansing will consider supporting the project in the form of personal property tax abatement.
Along with incentives to spark manufacturing, Michigan Economic Development Corporation also funded additional projects to improve local neighborhoods and spark residential development in several communities.
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