Three Companies Announce Expansions in Southeast Michigan

Contact: Susan Shafer (517) 335-6397

November 19, 2002

Governor John Engler announced today that three companies plan to expand their operations in southeast Michigan instead of other competitive locations as a result of assistance from the Michigan Economic Development Corporation (MEDC). Expansions planned by General Motors, TRW Automotive and Champion Foods are expected to create or retain a combined 4,193 jobs for Michigan workers.

"Michigan was recently named one of the best states in America to do business and create jobs," Engler said. "These three companies agree that Michigan is a great place to grow their businesses, and the result will be great opportunities for them and for Michigan workers in the years to come."

The expansions will provide a total of more than $359 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 $332 million after the credits. The projects are expected to generate more than $4.4 billion in personal income during that time.

If General Motors approves going forward with the project, the corporation would invest up to $300 million to equip the GM Powertrain Willow Run plant in Ypsilanti for production of a new line of six-speed rear wheel drive transmissions.

According to an economic analysis conducted by the University of Michigan, it is estimated that the expansion would create or retain a total of 3,510 jobs in the state by the year 2024, including up to 850 directly by the company, depending on the success of the new product.

A Single Business Tax credit offered by the MEDC and valued at $17.1 million over a 20-year period is part of the business case under review by GM. The state support is intended to help GM view Michigan as a compelling location over other potential sites. The company will make its final decision within the next several months.

Over the next ten years, up to 272 new jobs, including up to 165 directly by the company, will be created as a result of TRW Automotive’s decision to relocate their corporate functions to Livonia from Cleveland, Ohio. The company plans to construct a new, 120,000 square foot building on a seven-acre site at a cost of approximately $14 million.

TRW Automotive is presently owned by TRW, Inc., but is expected to become an independent company by early 2003.

The MEDC offered TRW Automotive a Single Business Tax credit valued at $4.5 million over 10 years to bring the new headquarter functions and jobs to Michigan.

Champion Foods, LLC, is creating a new food manufacturing facility in Huron Township that is expected to create up to 411 Michigan jobs, including 199 directly by the company.

A Single Business Tax credit offered by the MEDC and valued at $4.7 million over a 20-year period encouraged Champion Foods to choose Huron Township over another possible site in Columbus, Ohio.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation’s initiatives and programs, visit the Web site at

Combined Project Estimates
Combined Economic Analysis
Summary Estimated

(All estimates in 2002 dollars)

Direct 1,214
Indirect 2,979
Revenue Foregone $ 26,487,000
Revenue Gain $ 359,288,000
Average Wage Range $ 463-1,565/wk.
Personal Income Generated Over
Life of the Tax Credit Agreement
$ 4,491,102,000