580 New Jobs for Workers in Oakland County

Contact: Susan Shafer (517) 335-6397

September 17, 2001

Governor John Engler announced today that Recticel North America and Grunewald New Technologies will each be expanding into new Oakland County facilities as a result of assistance from the Michigan Economic Development Corporation (MEDC).

"In spite of attractive incentive offers from other states – and in one case Canada – these companies have chosen Michigan to grow their businesses," Engler said. "Their investments here will mean hundreds of new jobs for Michigan workers, and will be a huge financial benefit to our economy in the coming years."

The two projects will provide a total of more than $21 million in revenue to the state over the life of the Single Business Tax credits, resulting in a net positive gain for the state of more than $18 million after the tax credit. The projects are expected to generate more than $269.5 million in personal income during that time.

Recticel North America, Inc. will lease a 260,000 square foot facility to be constructed on 18 acres in Independence Township for laboratories, manufacturing and an expansion of its North American headquarters. The company will use the new site to manufacture molded parts for automotive interiors, which will be used by Tier 1 automotive suppliers. The project will create 454 jobs, 286 directly by the company.

A MEDC incentive package, including a Single Business Tax credit valued at $2.5 million over the next 10 years, convinced Recticel to choose Michigan over a site in Canada.

Up to 126 new jobs, 42 directly by Grunewald New Technologies will be created in Oakland County as a result of the company's decision to build a new 10,800 square foot production facility in Waterford Township. The company produces high technology machining of complex automotive components and soft interior automotive components.

Grunewald was offered an incentive package, including a high-tech Single Business Tax credit valued at $625,000 over the next five years, to build the new facility in Michigan rather than South Carolina.

"These projects represent the best of what Automation Alley and Oakland County are about – state of the art technology and high end manufacturing, said Oakland County Executive L. Brooks Patterson. "Businesses locate and expand in Automation Alley because of our strategic location, wonderful quality of life, as well as our well qualified, available high tech workforce."

Oakland County Projects
Combined Economic Analysis
Summary Estimated
(All estimates in 2001 dollars)


Direct 328

Indirect 252


Revenue Foregone $3,201,000

Revenue Gain $21,565,000

Average Wage Range $681-$1,106/wk.

Personal Income Generated Over Life of the Tax Credit Agreement $ 269,573,000