Tower Automotive, Inc. to Expand in Delta Township Resulting in 929 New Jobs for State

Contact: 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 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 $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 time.

"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 processes."

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

Tower Automotive, Inc.
MEGA Analysis
Summary Estimated
(All estimates in 2000 dollars)

Direct 404
Indirect 525
Revenue Foregone $6,118,000
Revenue Gain $30,490,000
Average Wage $ 690/week
Personal Income Generated Over Life of MEGA Agreement $381,128,000