Jackson Precision Die Casting Rebuilds and Expands in Jackson, Resulting in 220 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 Jackson Precision Die Casting expand their manufacturing facility in Jackson. The MEDC helped win the project by making a competitive business case, against Illinois, 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.

Jackson Precision Die Casting, Inc. has decided to remain in Jackson as opposed to relocating to Chicago, Ill. It is estimated that this expansion will create 220 new jobs, 90 directly by the company, for Michigan workers.

In June, a fire destroyed one-third of Jackson Precision's current manufacturing plant. The company will invest about $13 million including building and equipment costs to refurbish and expand the facility.

"Even a devastating fire couldn't convince Jackson Precision to pull up stakes and leave Michigan," Engler said. "The MEDC incentives package, combined with support of the local economic developers, convinced the company that rebuilding and growing in Jackson was the best strategy. Jackson Precision is clearly committed to our state and the local workforce."

"We are delighted to have had the opportunity to work with the city of Jackson and state economic development officials to keep Jackson Precision Die Casting in our community and to encourage the company's expansion here in Jackson," said Steve Czarnecki, president and CEO, of the Jackson Enterprise Group. "Over 200 area families rely on Jackson Precision Die Casting for their livelihood. The company also helps anchor an important industrial community located near our downtown."

Of the new jobs, 130 spin-off jobs will be created from increased spending by people who receive income from the jobs at Jackson Precision, 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 $1.2 million over 10 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 State Education Tax for 12 years with a value estimated at $354,000 and job training assistance valued at $45,000 for up to 90 new employees at Jackson Precision's expanded facility.

This project will provide over $11.5 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of over $10.2 million, after the MEGA credit. The project is expected to generate over $144 million in personal income during that time.

Jackson Precision is a manufacturer of aluminum die castings, primarily for the automotive industry. The company currently has 203 employees in Michigan.

Jackson Precision Die Casting President and CEO Joseph Ponteri stated, "The company has a long history in the Jackson area. We are pleased to be doing everything possible to keep the company's manufacturing facility in Jackson."

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.

Jackson Precision Die Casting, Inc.
MEGA Analysis
Summary Estimated
(All estimates in 2000 dollars)
Direct 90
Indirect 130
Revenue Foregone $1,255,000
Revenue Gain $11,518,000
Average Wage $624/week
Personal Income Generated Over Life of MEGA Agreement $144,004,000