LANSING – The Michigan Strategic Fund board Wednesday approved a $6.9 million grant to Thomas Township to make public infrastructure improvements needed for the expansion of the Hemlock Semiconductor Group’s solar cell manufacturing facility, which could create up to 300 jobs over the next two years.
Hemlock Semiconductor is a joint venture of Dow Corning Corporation and two Japan-based firms, Shin-Etsu Handotai Co., Ltd. and Mitsubishi Materials Corporation. The infrastructure work will support the $1 billion expansion.
“Our efforts to diversify Michigan’s economy and create new jobs are enhanced by Hemlock Semiconductor’s continued commitment to Michigan, which is helping to position our state as the alternative energy center of North America,” Gov. Jennifer Granholm said in a statement. “Expanding solar manufacturing in Michigan is part of our aggressive strategy to grow high-tech companies and jobs and help end our nation/s dependence on foreign oil.”
The grant is available with funds from the federal Community Development Block Grant program.
In December, the company announced it would invest up to $1 billion in the project. An incentive package supported by the Michigan Economic Development Corporation and Thomas Township helped Michigan win the company’s fourth multi-million-dollar expansion in four years.
“We have received tremendous support from Thomas Township as we have experienced significant business growth,” Hemlock Semiconductor Group President and CEO Rick Doornbos said. “This grant is crucial for the township and Hemlock Semiconductor to continue investing in the Great Lakes Bay Region.”
Thomas Township will use the CDBG grant to construct a 1-to-2-million-gallon water storage tank and a new water transmission line. The township will contribute $300,000 to support the project and the company will invest $2.2 million.
The Michigan Economic Development Corporation administers the state’s Community Development Block Grant funds received from the U.S. Department of Housing and Urban Development. These funds are used to provide grants and loans to eligible counties, cities, villages and townships – typically those with populations less than 50,000 – for economic development, community development and housing projects. Larger communities receive block grant funds directly from the federal government.
“Thomas Township has been a strong partner in realizing this expansion,” MEDC President and CEO James Epolito said. “We couldn’t have done it without the township’s support. Together, we are working to ensure that Hemlock Semiconductor continues to grow and prosper in Michigan.”
The MEDC is able to award approximately $40 million in federal CDBG funds each year. There are 1,655 local governments within the state eligible to apply for these funds. Projects are approved contingent upon compliance with state and federal requirements.
In solar applications, polycrystalline silicon is the cornerstone material used to produce solar cells that harvest renewable energy from light rays. In addition to serving the solar energy market, polysilicon is also used in the production of semiconductor devices used in computers, cell phones and other electronic applications.
Hemlock Semiconductor is the world’s leading provider of polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices and passive solar cells and modules. Headquartered in Hemlock, Michigan, Hemlock Semiconductor is owned in majority and managed by Dow Corning Corporation.
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