By JOHN EBY

Dowagiac Daily News

Gov. Jennifer Granholm announced Tuesday that Premier Tool and Die Cast Corp.’s Dowagiac plant is one of nine companies being helped to grow by the Michigan Economic Development Corp. (MEDC).

Premier, based in Berrien Springs, is a global supplier of metal castings companies in the automotive, electronics, appliances, furniture, transportation and defense sectors.

Premier plans to invest $3.2 million to establish a new zinc and aluminum die cast and assembly operation in Dowagiac.

The project is expected to create up to 179 total jobs, including 100 directly at the company.

City Manager Kevin Anderson, who attended the announcement in Lansing, said the abandoned Inverness Castings Group (ICG, or Du-Wel) factory will come into play as Premier’s plans develop.

MEDC estimates the increased economic activity created by the project has the potential to spin off an additional 79 indirect jobs.

Based on MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) board Aug. 17 approved a state tax credit valued at $862,227 over five years to convince the company to expand in Michigan over a competing site in New York.

The City of Dowagiac is considering an abatement valued at approximately $4 million over 12 years in support of the project. Besides helping nine companies grow in Michigan, MEDC is backing two brownfield redevelopment projects.

Combined, the 11 projects are expected to create and retain 2,739 jobs (1,085 direct new jobs) and generate $89.4 million in new investment in the state.

“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 the state demonstrates that we have the competitive business climate and highly-skilled workforce companies are looking for as they compete in the global economy.”

The MEGA board approved incentives to win the following projects for Michigan over competing states and countries:

• Covenant Eyes Inc. — The company, whose Internet accountability and filtering software helps people bridge the gap between technology and relationships, intends to continue expansion at its global headquarters office in Owosso.

Due to growth in sales and the increasing need to keep up with technology changes, Covenant Eyes plans to invest $3.7 million over the next five years to expand the size of its team and increase office space to house the new employees.

Based upon the anticipated hiring of up to 139 people, MEDC estimates that the project has the potential to create an additional 238 indirect jobs.

Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $635,203 over five years to encourage the company to expand in Michigan instead of competing sites in Colorado and Texas.

• General Electric Co. – The diversified technology, media and financial services company formed in 1892 plans to invest more than $20 million to establish a new proprietary development and manufacturing process center in Van Buren Township. The project is expected to create up to 301 total jobs, including 130 directly at the company. MEDC estimates the increased economic activity created by this program has the potential to create an additional 171 indirect jobs.

Based on MEDC’s recommendation, the MEGA board approved a state tax credit valued at $2.3 million over 10 years to convince the company to expand in Michigan over competing sites at many of the company’s other locations across the globe. The charter township of Van Buren is considering an abatement to support the project

• Gordon Food Service — State brownfield tax credits valued at approximately $6 million will support the consolidation of the food service distributor’s Canadian operations and restructure its Wyoming campus to increase efficiency and provide space for future growth.

The project will redevelop four parcels on 50th Street, including demolition of functionally obsolete structures, infrastructure improvements and construction of a new 150,000-square-foot office building.

The project will generate $24.2 million in private investment and is expected to create up to 173 new jobs (investment amount and new jobs previously announced in June 2010) and to retain 50 jobs. The city of Wyoming is considering an abatement with an estimated value of $75,000 in support of the project.

• Hallite Seals Americas Inc. — A high-performance sealing devices manufacturer to companies in the agriculture, marine, transportation, medical, alternative energy, construction, forestry and mining markets plans to invest $7.4 million to expand its operations in Wixom. The project is expected to retain up to 152 total jobs, including 60 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 92 indirect jobs. Based on MEDC’s recommendation, the MEGA board approved a state tax credit valued at $475,445 over five years to help convince the company to expand in Michigan over a competing site in Texas. The city of Wixom is considering an abatement in support of the project.

• KOSTAL Kontakt Systeme Inc. — The developer and manufacturer of electric components for a variety of industries, including components for renewable energy vehicles and hybrid vehicles, was founded as a separate legal U.S. entity in 2010 and belongs to KOSTAL Group – an independent German family-owned business.

The company plans to invest $27.1 million to relocate the existing production of its solar connector systems, used in the renewable energy sector, from Germany and Mexico to Rochester Hills.

The company is expected to create up to 642 total jobs, including 247 directly by the company. MEDC estimates the increased economic activity created by the project may create an additional 395 indirect jobs.

Based on MEDC’s recommendation, the MEGA board approved a state tax credit valued at $3.9 million over seven years to convince the company to expand in Michigan over a competing site in Mexico. Rochester Hills is considering an abatement of up to 12 years.