The city of Corunna will receive a $600,000 grant to help Machine Tool & Gear expand its operations there. The project is expected to create 60 new jobs and $5.7 million in private investment.
The grant is being made available by the Michigan Economic Development Corporation with funds provided by the federal Community Development Block Grant program. The city will use the grant to upgrade the water main and other water transmission equipment to support the expansion. The city of Corunna will contribute $125,000 from the city's water fund for the project.
Machine Tool & Gear, a division of Newcor Inc., manufactures a variety of precision- machined rubber and plastic components for the automotive and agricultural industries. The company employs 227 people in Corunna. Its parent company, Newcor, is based in Royal Oak and employs about 1,000 skilled workers in Indiana, Michigan and Wisconsin.
The Michigan Economic Development Corporation 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.
The MEDC is able to award approximately $50 million in federal CDBG funds each year. There are 1,655 local governments within the state eligible to apply for these funds. Projects are approved contingent upon compliance with state and federal requirements.
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