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Gov. Granholm announces 3,000 new Michigan jobs

Published 8:49am Wednesday, August 19, 2009

LANSING – Gov. Jennifer M. Granholm Tuesday announced that the Michigan Economic Development Corp. (MEDC) is helping five companies grow in Michigan and is backing three brownfield redevelopment projects.

Combined, the eight projects are expected to create 3,070 new jobs (1,453 direct and 1,617 indirect) and generate more than $138 million in new investment in the state.
The projects span the upper and lower peninsulas and include a next-generation chemical company focused on manufacturing bio-based materials, a start-up health care manufacturing company and brownfield redevelopments that will transform abandoned and contaminated sites into new centers of economic growth and activity.

“Our strategy to diversify and grow Michigan’s economy continues to produce results for Michigan workers,” Granholm said. “The range of companies investing and creating jobs in Michigan demonstrates that we have the competitive business climate and high-skilled workforce that companies are looking for as they compete in today’s economy.”

The Michigan Economic Growth Authority (MEGA) board Aug. 18 approved state tax credits to win the following projects for Michigan over competing states and countries:
•  Haworth Inc. – The desiginer and manufacturer of office workspace solutions plans to invest $15.6 million to consolidate its wood and wall product manufacturing from its facility in Calgary to its existing facilities in Holland and Big Rapids. The project will create 1,391 new jobs, including 649 directly by the company.

The MEDC estimates increased economic activity created by the project will create an additional 742 indirect jobs.  Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $22.4 million over 13 years to help convince the company to locate in Michigan. The city of Big Rapids is considering an abatement valued at $193,000 in support of the project.

The city of Holland also is considering an abatement valued at $900,000 in support of the project.

•  Draths Corp. – The next-generation chemical company that combines microbiological and chemical processes to produce chemical intermediates such as nylon precursors from bio-based materials plans to make a multi-million dollar investment to construct a headquarters housing a research facility and multiple pilot in Delhi Township.
The project will create 642 new jobs, including 200 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 442 indirect jobs.

Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $5.2 million over 10 years to help convince the company to expand in Michigan over a competing site in Minnesota.

Delhi Township is considering an abatement to support the project.

• Mossberg Precision Diagnostics LLC – The start-up health care manufacturing company plans to invest $1.5 million to develop new products at a facility in Kalamazoo.
The project will create 110 total jobs, including 35 directly by the company.

The MEDC estimates the increased economic activity created by the project will create an additional 75 indirect jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $817,579 over 10 years to encourage the company to expand in Michigan over a competing site in Indiana.

The city of Kalamazoo is considering an abatement valued at $86,450 to support the project.

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