Governor Granholm Says Investment Missions Bring Jobs, Diversify Economy

Contact: Tiffany Brown 517-335-6397

August 20, 2010

 
In radio address, governor says Kostal is latest international company to locate in Michigan
 
LANSING - In her weekly radio address, Governor Jennifer M. Granholm today said her overseas investment missions are bringing new businesses and jobs to Michigan.
 
"Since 2004, I've taken 10 investment missions to countries such as Germany, Italy, Austria, Belgium and Japan," Granholm said.  "These missions have been part of my efforts to go anywhere and do anything to bring new investment and jobs to Michigan and to further diversify the state's economy."
 
"These missions have resulted in 48 international companies announcing almost $1.7 billion in new investment in Michigan and the creation or retention of more than 13,000 jobs," Granholm said.
 
The governor said Kostal Kontakt Systeme, part of the Kostal Group that is an independent German family-owned business, is the latest company to come to Michigan.  On Tuesday, Kostal was approved for a state tax credit by the Michigan Economic Growth Authority to build a new manufacturing facility in Rochester Hills for its solar connector systems.
 
"My investment mission this past April was to Germany and Italy," Granholm said.  "And when I was in Germany, I met with representatives of Kostal to make the case why Michigan was the best location for its new facility.  I touted our manufacturing infrastructure, our skilled workforce, our great natural resources and our quality of life.  So now Kostal is coming to Michigan and with it an estimated 642 jobs."
 
"Now through the end of the year, I'll continue working on diversifying our economy and creating jobs," Granholm said.  "And if I have to travel to Germany or any other spot on the globe to bring new investment and jobs to Michigan, I'll do it.  I'll do it, because every day, creating new jobs and a new Michigan economy remains our top priority."
 
The governor's weekly radio address is released each Friday and may be heard on broadcast stations across the state.  The address is available for download on the governor's Web site at www.michigan.gov/gov together with a clip of the quote above.  The radio address also is available as a podcast on the Web site as well as on iTunes and via RSS feed for general distribution to personal MP3 players and home computers.  Links to the audio files and text of today's address follow.
 
Governor Jennifer M. Granholm
Radio Address - Investment Missions
 
 
Hello, this is Governor Jennifer Granholm.
 
The distance from Michigan to Germany is more than 4,000 miles, but the two became a little closer this week.
 
That's because on Tuesday, a company that's part of the Kostal Group - which is an independent German family-owned business - was approved for a state tax credit by the Michigan Economic Growth Authority to build a new manufacturing facility in our state.
 
The company, named Kostal Kontakt Systeme, develops and manufactures electric components for various industries.  And it fits well into two of the sectors we've targeted to help diversify Michigan's economy - advanced manufacturing and clean energy.
 
Kostal intends to invest more than $27 million to relocate the existing production of its solar connector systems that are used in the clean energy sector from Germany and from Mexico to Rochester Hills in southeast Michigan.  The company plans to create 247 jobs at its Rochester Hills facility, and the Michigan Economic Development Corporation estimates the creation of an additional 395 spin-off jobs.
 
Kostal could have chosen to locate its production facility anywhere.  In fact, it was seriously considering Mexico as a site as well as other U.S. locations.
 
But Kostal chose Michigan, and the groundwork for convincing the company to come to our state was laid back in April during one of my overseas investment missions.
 
Since 2004, I've taken 10 investment missions to countries such as Germany, Italy, Austria, Belgium and Japan.  These missions have been part of my efforts to go anywhere and do anything to bring new investment and jobs to Michigan and to further diversify the state's economy.
 
These missions have resulted in 48 international companies announcing almost $1.7 billion in new investment in Michigan and the creation or retention, most importantly, of more than 13,000 jobs.
 
My investment mission this past April was to Germany and Italy.  And when I was in Germany, I met with representatives of Kostal to make the case why Michigan was the best location for its new facility.  I touted our manufacturing infrastructure, our skilled workforce, our great natural resources and our quality of life.
 
So now Kostal is coming to Michigan and with it, an estimated 642 jobs.
 
Now through the end of the year, I'll continue working on diversifying our economy and creating jobs.  And if I have to travel to Germany or any other spot on the globe to bring new investment and jobs to Michigan, I'll do it.  I'll do it, because every day, creating new jobs and a new Michigan economy remains our top priority.    
 
Thank you for listening.
 
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