NEAPCO Driveline LLC, a Pennsylvania-based manufacturer, has chosen Van Buren Township, Mich., over sites in competing states for a new operations facility. With assistance offered through the Michigan Economic Development Corp., the company will invest approximately $29.4 million in the project, which is expected to create up to 1,007 new jobs, including up to 285 directly by the company.
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board approved a state tax credit valued at more than $4.5 million over seven years. The township has proposed an 11-year personal property tax abatement to support the project. This abatement, which includes state, county and local taxes, is worth an estimated $244,000.
An economic analysis conducted by the MEDC estimates that increased economic activity created by the new facility will generate up to 722 indirect Michigan jobs in addition to up to 285 created directly by the company. The project is expected to generate more than $359 million in personal income for Michigan workers over the life of the tax credit.
“Not only will the incentives approved today by the Michigan Economic Growth Authority help to level the playing field with the other locations NEAPCO considered, it is a sign of the beginning of a new partnership with the State of Michigan and Van Buren Township,” said J. Robert Mangini, executive vice president of NEAPCO.
NEAPCO Driveline, a wholly owned subsidiary of Pennsylvania-based NEAPCO LLC, was formed to purchase a portion of Automotive Component Holdings LLC drivetrain operations. NEAPCO currently employs 525 workers in facilities in Pennsylvania, Nebraska, Ontario, California and Mexico.
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