Michigan Gov. Jennifer M. Granholm announced a $300,000 grant to the city of Lapeer that will help Gestamp Automotive expand its existing stamping operations in the community. The project is expected to create 40 new jobs and generate $784,430 in private investment.

The grant is being made available by the Michigan Economic Development Corp., with funds provided by the federal Community Development Block Grant program.

The city of Lapeer will use the funding to make road improvements on Fair Street and construct a new road from the facility to Oregon Road to accommodate increased truck traffic due to the expansion. The city will contribute $104,500 to the project.

Spanish-owned Gestamp manufactures metal-stamped automotive chassis structural components. The company has 30 plants worldwide and currently employs 47 at its facility in Lapeer.

The Michigan EDC administers the state's Community Development Block Grant funds received from the U.S. Department of Housing and Urban Development. These funds are used to provide grants and loans to eligible counties, cities, villages and townships-typically those with populations less than 50,000-for economic development, community development and housing projects. Larger communities receive block grant funds directly from the federal government.