MEDC, Ann Arbor SPARK Support Hyundai Expansion
LANSING – The Michigan Economic Development Corporation today announced that the Michigan Strategic Fund has approved a $2.5 million Michigan Business Development Program incentive for Hyundai America Technical Center, Inc. (HATCI) to expand its operations in Michigan by building a world class Hot/Cold Weather Dynamometer Test facility at its Superior Township location south of Ann Arbor.
“Hyundai is a world class company and its decision to expand here tells the world that Michigan is a great place to grow a business,” Governor Rick Snyder said. “Hyundai’s investment and growing presence here demonstrates Michigan’s singular leadership in industrial engineering, research, design and technological innovation.”
The company will invest $15 million to construct the facility and add 50 full-time jobs over the next five years. The State of Michigan will fund construction of a new power substation at the Superior Twp. location that will improve the power output to the building. Superior Township has offered support to the project in the form of a tax abatement.
Hyundai announced its expansion in January at the 2012 North American International Auto Show in Detroit. Snyder joined the announcement with Dr. Cho, President of HATCI.
“This investment and promise of a Hot/Cold Weather Testing facility in Michigan reinforces Hyundai and Kia’s commitment to U.S. vehicle development and American jobs,” Dr. Cho said. “Investing in our locations, products and people is critical to Hyundai and Kia’s ability to compete with the best in the business. Hyundai and Kia are committed to doing everything it takes to work with its partners, including the State of Michigan, to be competitive in the marketplace.”
Ann Arbor SPARK, a public-private partnership whose mission is to advance innovation-based economic development in the greater Ann Arbor region, worked with Hyundai to help the company secure more than $2.5 million in new business development incentives from the State of Michigan and Superior Township.
“Proactively helping businesses in the region grow is at the core of SPARK’s work,” said Paul Krutko, Ann Arbor SPARK President and CEO. “We were able to connect Hyundai to all of the resources critical to its expansion, and bring together state and regional support. The expansion of Hyundai’s North American Technical Center here shines a light on the talent, business development and other unique assets that this region offers advanced engineering and research operations.”
Snyder met with Hyundai executives in Korea during his trade mission to Asia last fall, when he led a delegation to promote business opportunities in Michigan to major company executives and to meet with Japanese, Chinese and Korean government officials.
Signed into law by Governor Rick Snyder in December, the Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.
The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
The Michigan Business Development Program replaces the state’s previous MEGA program that was a feature of the Michigan Business Tax that was eliminated under business tax restructuring legislation approved and signed into law by Snyder in May 2011.
The Michigan Economic Development Corporation, a public-private partnership serving as the state’s marketing arm and lead agency for business, talent and jobs, focuses on helping grow Michigan’s economy. For more on the MEDC and its initiatives, visit: MichiganAdvantage.org