$6.4 Million In Tax Incentives To Generate $54 Million In Capital Investment

$6.4 Million In Tax Incentives To Generate $54 Million In Capital Investment

LANSING – What does $6,637,960 in tax incentives buy you? Investments by six businesses that collectively will generate $54 million in capital investment and an estimated 179 jobs around the state, thanks to the Michigan Strategic Fund, the Michigan Economic Development Corp. announced.

Minghua USA Inc., a subsidiary of China-based Jiangnan MPT Co. Ltd., received a $500,000 Michigan Business Development Program performance-based grant to support a new North American headquarters in Troy. The project represents an investment of $8.4 million and will create 50 jobs. Mingua manufactures bumpers, plastic products and high-tech molds for the auto industry. The parent company supplies BMW, Mercedes-Benz and General Motors in China. Michigan was chosen over competing sites in Ohio and South Carolina. The city of Troy is offering assistance with a job fair site and marketing.

Cintas Corp. received a $350,000 Michigan Business Development Program performance-based grant to support a $17 million expansion in Delta Township, near Lansing. The project will create 70 jobs. Cintas, founded in 1968, provides corporate identity uniform programs, entrance and safety mats, restroom supplies, promotional products, first aid and fire production products, and industrial carpet and tile cleaning. The company has more than 40,000 employees at more than 500 locations worldwide. Michigan was chosen over competing sites in California, Florida, New Jersey, New York, Tennessee and Wisconsin. Delta Township has offered expedited permitting in support of the project. The Lansing Economic Area Partnership (LEAP) worked closely with company executives to convince them Lansing was the ideal location for the expansion. For information on careers with Cintas, visit www.cintas.com/careers/.

L & P Properties LLC received a $92,960 Michigan Community Revitalization Program performance-based grant to support a $601,595 plan to renovate a vacant building on South Washington Avenue in the REO Town area of Lansing. Built in 1904, the building is the former home of Lansing Uniform. Renovation plans include structural, cosmetic and infrastructure improvements. The completed project will consist of commercial/retail space and loft apartments on the second floor. The project is expected to generate nine full-time equivalent jobs.

* Kalkaska-based Kalkaska Screw Products received $2.8 million in gap financing to support a $14.1 million in investment to expand its operations, adding seven new employees in the next six months and another 17 in the next two years. The company manufactures machined components and is experiencing an increase in demand.

* Galesburg-based Logiquip LLC received $2.5 million in gap financing to support the CEO’s $11.6 million in private funds to purchase the company, keeping its 32 jobs in Michigan. Logiquip provides inventory storage and distribution systems to hospitals across the country. Logiquip’s current owner sought to sell the company and had an offer from a buyer based in Florida.

* Jackson-based Pentar Stamping Inc. received $160,000 in gap financing to support an investment of $400,000 in new stamping equipment due to an increase in demand. The company plans to hire three full-time employees within the next six months, and an additional five within the next two years.

Right Brain Beverages L.L.C. received $235,000 in support for the company’s bank loan, part of a plan to invest $1.9 million to purchase the space it is currently renting, as well as hire five full-time employees in the next six months. Right Brain, established 10 years ago in Traverse City, is a microbrewery specializing in craft beers that it sells onsite at its pub and production site and to retail customers throughout Michigan.

For more information on the MEDC and its initiatives, visit www.MichiganBusiness.org.

By |2018-01-05T12:26:35+00:00January 5th, 2018|ESD|

About the Author:

Matt Roush, a former business and technology journalist for such publications as the Traverse City Record Eagle, Crain's Detroit Business and WWJ News Radio's GLTR, is now the director of communications at Lawrence Technological University. He also is editor of the Engineering Society of Detroit's Technology Century website, plus a co-host of M2 TechCast on the PodcastDetroit Network.

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