Tower Automotive, Inc. to Expand in Delta Township Resulting in 929 New Jobs for State
John Truscott (517) 335-6397
Governor John Engler announced today that the Michigan Economic
Development Corporation's (MEDC) incentives package has helped bring
Tower Automotive's new facility to Delta Township. The MEDC helped win
the project by making a competitive business case, against Ohio, for the
company to expand in Michigan with a Single Business Tax credit, an
abatement of the six-mill State Education Tax and job training assistance.
Tower Automotive, Inc. selected Delta Township over Bellevue, Ohio, for
the company's new state-of-the-art manufacturing facility. It is
estimated that this expansion will create 929 new jobs, 404 directly by
the company, for Michigan workers.
"Tower Automotive's decision to expand in Michigan, rather than
in Ohio, proves our state' s business-friendly climate is very
competitive," Engler said. "This atmosphere, combined with the
Lansing area's highly-capable workforce, makes Delta Township a logical
choice for Tower's new expansion."
The company plans to invest about $29 million in its new Delta Township
facility, including building, machinery and equipment costs. Construction
of the new facility could begin in late fall of this year, with production
expected to start in January 2002.
"Delta Township is fortunate that the local government leaders had
the foresight, 40-plus
years ago, to establish an industrial area for future manufacturing
growth," said Joe Drolett, supervisor of the Charter Township of
Delta. "Today, we are happy to welcome Tower Automotive to the area.
We support their plans to locate in Delta Township."
Of the new jobs, 525 spin-off jobs will be created from increased
spending by people who receive income from the jobs at Tower Automotive,
Inc., according to an economic analysis completed by the University of
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 $6 million over nine 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
$728,000 and job training assistance valued at $303,000 for up to 404 new
colleagues at Tower Automotive's new facility.
This project will provide over $30.4 million in revenue to the state
over the life of the agreement, resulting in a net positive gain for the
state of over $24.3 million, after the MEGA credit. The project is
expected to generate over $381 million in personal income during that
"The facility in Lansing is the result of a creative approach led
by the Michigan Economic Development Corporation, partnering with Tower
Automotive, the State of Michigan and Delta
Township officials," said Dugald Campbell, president and CEO of
Tower Automotive. "We believe the outcome will be a winning solution
for the State of Michigan, the local community, Tower Automotive and
future colleagues of our Lansing facility."
Campbell also emphasized the role the state-of-the-art-facility will
play in strengthening the
company's technology focus in automotive and light truck structural
systems. "This operation is a example of our move toward less capital
intensive, more flexible assembly capabilities using new technology and
Tower Automotive, Inc. produces a broad range of assemblies and modules
for vehicle structures and suspension systems for original equipment
manufacturers of automobiles and light trucks including Ford,
DaimlerChrysler, GM, Toyota, Nissan, Auto Alliance, Fiat, BMW and
Volkwagen. Products include exterior panels, body structural assemblies,
suspension components, engine cradles, full frame assemblies and modules.
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
Generated Over Life of MEGA Agreement