Jackson Precision Die Casting Rebuilds and Expands in Jackson, Resulting in 220 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 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
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
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
Jackson Precision is a manufacturer of aluminum die castings, primarily
for the automotive industry. The company currently has 203 employees in
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.
Precision Die Casting, Inc.
(All estimates in 2000 dollars)
|TOTAL JOBS CREATED
|NET POSITIVE STATE
Generated Over Life of MEGA Agreement