MEDC Announces Haworth's Expansion in Holland, Resulting in 609 New Jobs for StateContact:
John Truscott (517) 335-6397
Governor John Engler announced today that the Michigan Economic
Development Corporation's (MEDC) incentives package has helped bring
Haworth's new expansion to Holland. The MEDC helped win the project by
making a competitive business case, against Tennessee, for the company to
expand in Michigan with a Single Business Tax credit, an abatement of the
State Education Tax and job training assistance.
Haworth, Inc. plans to expand its administrative offices in Holland
the city where the company was founded and headquartered rather than
at its Nashville facility. It is estimated that this expansion will create
609 new jobs, 455 directly by the company, for Michigan workers.
"Since 1948, Haworth has had a strong and positive presence in
Michigan. As the company has grown and prospered during the years, so has
the state of Michigan," Engler said. "This new expansion is
another example of our mutually-beneficial and positive partnership."
This new Haworth facility is designed to support continued business
growth. Haworth plans to invest more than $17 million investment in the
building and equipment.
"We viewed this project as critical to the economic outlook of
Holland," said Chris Byrnes, president of the Holland Economic
Development Corporation. "Keeping Haworth's headquarters (more)
firmly entrenched in Holland is a tremendous success for the region."
Of the new jobs, 154 spin-off jobs will be created from increased
spending by people who receive income from the jobs at Haworth, according
to an economic analysis completed by the University of Michigan.
A key feature of the MEDC incentives package is a Michigan Economic
Growth Authority (MEGA) tax credit, approved today by the MEGA board,
worth an estimated $9 million during the next 20 years. MEGA, which is
administered by the MEDC, is used to promote high quality economic growth,
job creation and retention in Michigan.
In addition, the incentives package includes an abatement of the
six-mill State Education Tax for 12 years with a value estimated at
$628,000 and job training a ssistance valued at $227,500 to train the new
employees at Haworth's expanded facility.
This project will provide more than $58.3 million in revenue to the
state over the life of the agreement, resulting in a net positive gain for
the state of more than $49.2 million, after the MEGA credit. The project
is expected to generate more than $729 million in personal income during
"Haworth is a global company with aggressive growth plans,"
said Jerry Johanneson, Haworth president and chief executive. "We are
pleased that our home state continues to support our growth."
Haworth is the world's second largest designer, manufacturer and
marketer of office furniture and seating, with 1999 sales of $1.58
billion. Based in Holland, Haworth operates in more than 120 countries
worldwide and employs approximately 14,000 members.
The Michigan Economic Development Corporation works in partnership with
local communities and Michigan businesses to retain and expand job
opportunities and improve Michigan's overall business climate. For more
information, on the Michigan Economic Development Corporation's
initiatives and programs, visit the website at www.michigan.org.
(All estimates in 2000 dollars)
TOTAL JOBS CREATED
NET POSITIVE STATE REVENUE IMPACT
Personal Income Generated Over Life of MEGA Agreement