Michigan Good News - Michigan Economic Development Corporation

a monthly update brought to you by the Michigan Economic Development Corporation
May 2010
LETTER FROM THE PRESIDENT & CEO
Dear Friends,
Almost as soon as Governor Granholm and I returned on April 15 from our
overseas investment mission to Italy and Germany where we spent the better part of a
week encouraging companies to expand or establish their presence in Michigan, it was
announced that nine companies plan to create nearly 15,800 new jobs (8,133 direct)
over the next several years. Quite a welcome home from our mission abroad!
The latest group of companies planning investments in Michigan represent a cross
section of traditional and high-tech sectors from metal stamping to pharmaceuticals
to aerospace. Economic diversification continues to advance through the industrial
spectrum in Michigan.
The largest in terms of jobs is the conversion of the former Flint Fisher Body Plant
into the home of a family-owned specialty pharmacy based in nearby Swartz Creek,
the Diplomat Specialty Pharmacy. It started as a “mom and pop” drugstore in 1975 and
has grown to become the country’s sixth-largest specialty pharmacy company while
flying under the radar for the large majority of Michigan citizens not engaged in the
medical or life science fields. Now it’s undergoing a major expansion, and choosing to
stay in Flint. Better yet, it will occupy a piece of the Fisher Body Plant complex in the
most intriguing re-use of an abandoned auto plant since the ongoing conversion of the
former Ford Motor assembly plant in Wixom, announced not even a year ago. It has
the potential to create 4,000 direct jobs over the next 18 years and another 3,000-plus
spin-off jobs. It appears that Michigan can claim the title for the most creative re-use of
shuttered factories to its list of honors and awards.
Also noteworthy this month are the investments being made in Michigan by
two giant auto supply firms, Magna International and Tenneco Automotive. Both
are engaged in developing technology for the coming generation of hybrid and
electric-powered vehicles, and will continue to contribute to our state’s leadership in
clean technology innovation. Rounding out the list of nine companies announcing
investments this month is a producer of components for wireless communications,
business service providers, a software tech center, metal stamping, and the nation’s
largest credit union services organization. A Brownfield project in Grand Rapids will
support redevelopment of vacant buildings anchoring a new mixed-use development.
In total they are generating $128 million of new investment in the state.
On May 4, we launched the first issue of the new Michigan Advantage eNewsletter.
It contains links to all the same Good News articles on Michigan’s progress in
rebuilding and diversifying the state economy that we’ve been sending you in print or
via pdf document. Our new electronic format will deliver the news to you more rapidly
than the print version, with more relevant stories, and with richer information, such as
photos and links to related articles.
When you sign up for the new Michigan Advantage eNewsletter through a
link on our home page, www.MichiganAdvantage.org, you’ll be presented with the
opportunity to tell us exactly what kind of stories you’d like to hear about, whether it’s
access to capital, news about the advanced battery sector, or community development.
Beginning later this summer, your newsletter will be personalized based on the
preferences you indicate. Our June issue of Good News will be the last in print and
pdf format, and I encourage you to sign up for the eNewsletter today. Just visit
www.MichiganAdvantage.org and click to button “Sign up for the eNewsletter.”
Greg Main, President and ceo
Michigan Economic Development Corporationsm
On the last day of her overseas investment mission to
Italy and Germany, Governor Granholm highlighted
Michigan’s new energy economy and job creation in a
speech before 100 company leaders, government officials
and members of the German press. The event was cohosted by the Chamber of Industry and Commerce of the
Stuttgart Region and the Byrnes Institute in Stuttgart.
While in Germany, the governor also made the
case for Michigan in a plant tour and meetings with
executives from the Bosch Group and Daimler AG.
Granholm pitched officials from Kostal, a manufacturer
of electromechanical and mechatronic products, and the
Rexroth Bosch Drive and Control. Kostal is interested in
a manufacturing site for patented connector products for
solar, stationary battery and EV battery applications, and
will make a decision soon on a U.S. location.
The governor also connected with Dieter Zetsche
while in Germany, and underscored her support for the
Daimler Truck engine plant project in Redford Township.
She took note of Daimler’s new joint venture with Renault
Nissan and encouraged Zetsche to consider Michigan for
any new investment opportunities.
Granholm and medc president and ceo Greg Main
began their two-country investment mission on April 9,
encouraging companies to expand or establish their pres-
AWA R D S A N D A C H I E V E M E N T S
Granholm Caps Investment Mission
with Speech on Michigan’s New
Energy Economy in Germany
ence in Michigan. In all, the governor met with ceos and
senior leadership from 10 companies and reached dozens
more during speeches in Italy at the National Association
of the Automotive Industry (anfia) luncheon and in
Germany at the Stuttgart Chamber of Commerce event.
The mission to Italy and Germany was the
governor’s 10th overseas investment mission since
2004. Her previous missions to Austria, Belgium,
Germany, Israel, Japan, Jordan and Sweden have
resulted in 47 companies announcing over $1.6 million
in new investment in Michigan and 12,995 (7,344 direct)
jobs created and retained.
Toda America Breaks Ground for
High-Tech Battery Material Facility
The world’s leading manufacturer of iron oxide and
mixed metal oxide particles officially broke ground on
April 19 for a $70.1 million facility in Battle Creek to
produce materials for lithium ion-batteries, its first
U.S. manufacturing plant.
Governor Granholm met with the company during
her September 2009 investment mission to Japan, where
she made the case that Michigan is establishing itself as
the Clean Energy Capital of North America and urged
company officials to consider locating operations here.
As quoted in the Kalamazoo Gazette, April 20,
2010, Karl Dehn, president and ceo of the economic
development organization Battle Creek Unlimited, said,
May 2010
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AWA R D S A N D A C H I E V E M E N T S
“The medc and Governor Granholm had been strongly
promoting Michigan as the center of the U.S. when it
comes to electrification of vehicles and the investments
that were going to take place.” He said the city of Battle
Creek city leaders were also “phenomenal” in their
support for the project and in convincing Japanese firms
involved that they have long-term partners here.
The project will create 148 total jobs, including 57
directly by the company. The medc estimates the increased
economic activity created by the project will create an additional 91 indirect jobs. Based on the medc’s recommendation, the Michigan Economic Growth Authority (mega)
board approved a state tax credit valued at $1.6 million over
12 years to encourage the company to locate its first U.S.
company in Michigan. The city of Battle Creek is considering incentives valued at $5.5 million to support the project.
“This is an important manufacturing investment in our
quest to maintain our global leadership as the premier
supplier of battery materials around the world, and now
as a key local supply chain partner to the rapidly growing
U.S. battery industry,” Tadashi Kubota, managing director
of Toda Kogyo Group, said in a news release. Toda
America is now a joint venture between Toda
Kogyo Corporation and itochu Corporation through
a transaction completed in March 2010.
www.americatoda.com
DELEG Accepting Proposals
for Renewable Energy and Energy
Efficient Tech Demonstration
The Michigan Department of Energy, Labor, and
Economic Growth (deleg) has released a Request for
Proposals (rfp) for its Renewable Energy and Energy
Efficient Technology Demonstration grant program.
The program is searching for proposals from small
businesses for projects that will demonstrate innovative
renewable energy and energy efficient technologies not
yet widely adopted in Michigan. The program’s intent is to
drive the adoption of these innovative technologies in the
state through real-world demonstration and information
outreach. For more information on the program and how
to apply, visit the Renewable Energy and Energy Efficient
Technology Demonstration grant at www.michigan.gov/
dleg/0,1607,7-154-25676---,00.html.
COMPANY SUCCESSES
Vacant Flint Auto Plant Will Be
Home of Diplomat Specialty
Pharmacy, 4,000 New Jobs
Capital investment
$12 million
State tax incentive
$61.5 million
18 years
Flint
4
considering personal
property tax abatement
Worker retraining
$14 million
10 years
Michigan’s
competition for
this investment
Ohio, Texas
Jobs created
7,274
Direct jobs created
4,000
Indirect jobs created
3,274
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May 2010
In the most dramatic
auto plant re-do since
the transformation
of the Ford Wixom
assembly plant
to an alternative
energy park, now
underway, the site of
the abandoned Fisher
Body Plant on Flint’s
south side will soon be
the home of a familyowned specialty
pharmacy based in
nearby Swartz Creek.
Diplomat, founded in 1975, serves patients around
the country, filling prescriptions for very-high-cost drugs
that can average $1,500 to $3,000 each. The company also
has locations in Illinois, California, Florida and Ohio. It
was ranked by Inc. magazine in 2009 among the fastestgrowing companies in America.
With the help of a $61 million tax credit over 18 years
approved by the Michigan Economic Growth Authority
(mega) board, the county’s sixth-largest specialty
pharmacy company and the only such company based
in Michigan is launching a major expansion. Quoted by
columnist Tom Walsh in the Detroit Free Press, April
20, 2010, Phil Hagerman, Diplomat’s president and cofounder, said, “We’re flipping our model around, and
we’re going to put every job we can in Genesee County,
Michigan…” The project is expected to create 139 jobs in
the first year, 1,039 jobs over the next five years and up to
4,000 jobs over the next 18 years in addition to another
Growing IT Business Adding
Work Space, Creating New Jobs
The Minacs Group
USA, based in
$9.1 million
Farmington Hills,
State tax incentive
4 years
will invest $11 million
Southfield
3-year personal
in a new facility in
property tax abatement valued at
approx. $208,000 under consideration Southfield, backed by
$9.1 million in state
Michigan’s
tax assistance over
competition for
Ontario
this investment
four years.
Success in signing
Jobs created
2,756
up new clients in
Direct jobs created
1,928
electronics and
Indirect jobs created
828
communications
has Minacs Group
looking for room to grow. Minacs has more than 13,000
employees worldwide and 331 in Michigan. The wholly
owned subsidiary of Canada-based Aditya Birla Minacs
Worldwide Inc. provides business services in marketing,
finance and accounting for clients in manufacturing,
finance and insurance. www.minacs.com
Capital investment
$11 million
Aeroflex/Inmet Picks Michigan
over New Jersey for Expansion
The Ann Arbor-based
firm active in the
$466,004
design, manufacState tax incentive
7 years
ture and marketing
Scio Township
expected to of microelectronic
approve $42,000
personal property tax abatement components for
wireless communicaMichigan’s
New Jersey
tions applications in
competition for
New
defense and commerthis investment
Hampshire
cial markets is slated
Jobs created
288
to receive more than
Direct jobs created
47
$508,000 in state and
Indirect jobs created
241
local tax assistance.
Plainview, N.Y.based Aeroflex Inc. will consolidate the design and
manufacture of a resistor product line from a New Jersey
facility, adding new space, machinery and equipment in a
$3 million expansion of its Aeroflex/inmet Scio Township
operations west of Ann Arbor. The company considered
staying at its current New Jersey location or expanding
at an alternate site in New Hampshire before making a
Michigan decision. www.aeroflex.com
Capital investment
$3.1 million
New-to-Michigan IT Firm Opening
Software Tech Center in Detroit,
Creating 500 Jobs
GalaxE.Solutions, a New Jersey-based it provider in
the business of developing and modifying software plans
to invest $4.2 million in its first operation in Michigan
supported by state tax breaks worth $4.6 million over
five years.
GES is looking to expand its U.S. presence and plans
to locate an on-shore facility in Detroit to serve as an
extension of operations currently done in New Jersey.
“We sought a region with an it footprint, where we could
offer employment to ready and qualified individuals, who
might not otherwise get the opportunity,” said
May 2010
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C O M PA N Y S U C C E S S E S
3,274 spin-off jobs. Genesee/Shiawassee Michigan
Works! will provide up to $14 million over 10 years
for worker retraining.
General Motors sold the former Fisher Body plant
in 1988 to developers who renamed it the Great Lakes
Technology Center. The sprawling complex was sold at
auction in December 2009, when Diplomat acquired
360,000 square feet of the Class A space for $880,000,
“an unbelievable value,” Hagerman said. Diplomat will use
the site as a new national distribution center, incorporating
education and training and call center people, he added.
Diplomat will be hiring nurses, pharmacists, software
programmers and call-center workers. People interested
in jobs can apply at www.diplomatpharmacy.com (click
on “Career with Diplomat”) or by e-mailing a résumé to
[email protected].
C O M PA N Y S U C C E S S E S
Tim Bryan, chairman
and ceo. “Information
$4.6 million
State tax incentive
technology is at
5 years
the forefront of the
Detroit
considering personal
property tax abatement economic turnaround,
and the Detroit area
Michigan’s
is poised to be a new
competition for
New Jersey
this investment
hub for the merging
of technological
Jobs created
987
innovation and
Direct jobs created
500
healthcare.”
Indirect jobs created
487
The company
plans to lease space
in the 1001 Woodward building next to the Compuware
Corporation headquarters on Campus Martius.
Galax.E has offices in New York City, Somerset (N.J.),
Toronto, and Bangalore, India. www.galaxesolutions.com
Capital investment
$4.2 million
Tecumseh Supplier Investing
$2.5 Million in Machinery and
Equipment for New GM Business
Lenawee Stamping
Corporation (lsc)
$414,322
State tax incentive
has been offered
4 years
a state tax credit
Tecumseh
anticipates approval
valued at $414,322
of a 12-year personal
property tax abatement over four years to
with estimated value of $241,381 secure a planned
expansion for
Michigan’s
Ohio,
competition for
Michigan instead
Canada
this investment
of a site in Ohio.
Jobs created
987
The Lenawee
County
supplier of
Direct jobs created
500
metal stamping and
Indirect jobs created
487
welded fabrications
for auto bodies and substructures will expand to
accommodate new General Motors programs. The
company, which currently has 382 employees in Michigan,
expects the project to lead to creation of 78 new jobs
over five years. The work will be done at the lsc facility
in Tecumseh and requires a large investment in new
machinery and equipment.
The announcement follows another state tax credit
approved for Lenawee Stamping in April 2009 for a
$6.6 million expansion of local plant operations
anticipated to create more than 80 jobs at the Tecumseh
facility. www.lenaweestamping.com/default.htm
Capital investment
$2.5 million
Magna to Invest $50 Million in
Four Michigan Projects Related
to New E-Car Systems
Auto supplier Magna International Inc. plans to
invest nearly $50 million in four projects in Michigan
to expand the company’s electric vehicle engineering
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May 2010
and development,
seating systems and
$5.6 million
State tax incentive
powertrain divisions.
7 years
The expansion
Auburn Hills, Troy
plan to
approve personal project by Troy-based
property tax abatements Magna Holdings
of America Inc.
Michigan’s
Ohio,
competition for
Indiana,
in four Michigan
this investment
Canada
communities
Jobs created
1,828
involves several
Magna divisions in
Direct jobs created
508
Auburn Hills, Shelby
Indirect jobs created
1,320
Township, Troy and
Lansing. The largest of the four projects is a plant in
Auburn Hills, where Magna plans to invest $28 million
for an energy storage and delivery testing operation.
The building is part of the Magna E-Car of America Inc.,
a recently formed division. Magna Powertrain of America
plans to invest up to $13.9 million. Besides these two
investments, Magna also plans two other smaller projects
in the state. The divisions included in the project currently
have 774 employees in Michigan.
E-Car Systems is a new global operating unit designed
to integrate Magna’s many vehicle electrification product
capabilities. These include lithium-ion battery pack
assembly and design, electric drive modules, power
inverters, battery management systems and other
components for hybrid and electric cars.
Magna Holdings is a wholly owned subsidiary of
Magna International Inc., the most diversified global
auto supplier. The corporate giant has 238 manufacturing
operations and 79 product development, engineering and
sales centers in 25 countries. Magna and its subsidiaries
currently have 4,750 employees in Michigan. The Torontobased supplier generated $17.7 billion in revenue in 2009.
Capital investment
$49.2 million
www.magna.com
State Tax Break Supports $15.5 Million
Investment in Parker Hannifin Plant
Capital investment
$15.5 million
State tax incentive
$4.4 million
5 years
Kalamazoo
anticipates approval
of personal property
tax abatement of $305,868
Michigan’s
competition for
this investment
South
Carolina
Jobs created
1,493
Direct jobs created
608
Indirect jobs created
885
The global
corporation that
engineers and
produces products
and technology in
numerous industries
including aerospace
and electromechanics
plans to invest
$15.5 million in its
Kalamazoo plant.
The investment
is needed to
accommodate new
work in hydraulic
Nation’s Largest Credit Union
Services Organization Expanding
in Auburn Hills
St. Petersburg, Fla.based pscu Financial
$3.6 million
Services, a leading
State tax incentive
5 years
provider of traditional
Auburn Hills considering personal
and online financial
property tax abatement
in support of the project services to more than
600 credit unions, plans
Michigan’s
Arizona,
a $12 million expansion
competition for
Florida
this investment
in Auburn Hills.
The project will
Jobs created
1,792
consolidate software
Direct jobs created
837
development, sales
Indirect jobs created
955
and technology-based
call center and related
support services at existing pscu facilities in Auburn Hills
and Southgate at a single new facility in Auburn Hills.
Currently the company has 366 full-time and 54 parttime employees in Michigan. www.pscufs.com
Capital investment
$12 million
Tenneco Automotive Expanding to
Make Hybrid Vehicle Components
The manufacturer
of automotive
$1.8 million
emission and ride
State tax incentive
7 years
control products
Litchfield
considering personal plans to invest up to
property tax abatement $15.6 million in an
valued at up to $554,000
expansion to make
Michigan’s
several sites next-generation
competition for
in North
emissions products
this investment
America
for light-duty and
commercial vehicles
Jobs created
1,792
at its facilities in
Direct jobs created
837
Litchfield, Marshall,
Grass Lake and
Indirect jobs created
955
Monroe.
Tenneco’s customer base includes General Motors,
Ford, Chrysler, Daimler, Toyota and Tata Motors. In 2009
the company, headquartered in Lake Forest, Ill., had more
than $4.6 billion in annual revenue. Tenneco has over
21,000 employees worldwide, and 1,461 in Michigan.
Capital investment
$15.6 million
www.tenneco.com
May 2010
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C O M PA N Y S U C C E S S E S
systems in many new aircraft models. It won’t create any
new jobs, but will retain Park Hannifin’s 608 workers
in Kalamazoo.
The Cleveland-based firm’s Aerospace division has
been awarded several contracts to produce parts for the
Airbus aircraft. www.parker.com/portal/site/parker
COMMUNITY DEVELOPMENT
Michigan’s Brownfield redevelopment program is among the most competitive in the country. Over the course of the last
10 years, it has been instrumental in redeveloping over 500 sites throughout the state, generating actual investment of
$2.5 billion. Brownfield redevelopment represents an opportunity to redesign and enhance our communities and often
has a profound effect. The removal of a blighted building, increased tax revenue, job creation, downtown revitalization,
or elimination of a contaminated site are all benefits communities can see through the use of this incentive. Continued
investment in Brownfield redevelopment will help economic recovery and benefit our communities for years to come.
Brownfield Incentives Aid Grand Rapids in Recycling Three Problem Properties
Three vacant buildings on Cherry Street and Lake Drive Renovation will be combined with two new leed buildings
into new mixed-use residential, commercial, retail and brewery and restaurant.
State and local tax capture valued at $296,187 and a Brownfield business tax credit worth $556,000 will support
the redevelopment. The project will generate $3 million in new capital investment and create up to 50 new jobs.
upcoming events
www.MichiganAdvantage.org/events
BIO International Convention 2010
Chicago, IL
5/3/2010–5/6/2010
Michigan Growth Capital Symposium
Ypsilanti, MI
5/11/2010–5/12/2010
Presidents Bill Clinton and George W. Bush will be
featured speakers at the 2010 convention of life science
professionals from around the world. The agenda will
include a business forum addressing business challenges
and partnering meetings for investing in innovations
to produce the next generation of medical, agricultural,
industrial and environmental solutions.
For more information, please visit www.convention.
This annual gathering is the premier event where financiers meet the “Best of the Midwest” in new businesses
and emerging technologies. The medc, along with the
University of Michigan, is a founding partner of this event
which attracts venture capitalists and entrepreneurs from
coast to coast.
For more information, please visit www.michigangcs.
bio.org.
Pure Michigan Governors
Conference—Driving Tourism 2010
Mackinac Island, MI
5/6/2010–5/7/2010
Each year the Michigan Lodging and Tourism Association
and Michigan State University co-sponsor this state’s
largest all-tourism event. Tourism industry decisionmakers gather from across the state to learn, network
and explore new opportunities.
For more information, please visit www.milodging.org/
node/1135.
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May 2010
com.
WINDPOWER 2010 Conference
and Exhibition
Dallas, TX
5/23/2010–5/26/2011
Windpower 2010 is the largest annual wind conference
and expo in the world. Participants learn of new and
exciting opportunities for new players to enter the wind
market, helping expand wind’s growth and strengthen the
world economy.
For more information, please visit www.2010.
windpowerexpo.org.