The Michigan Messenger

During a visit to the Lansing-area plant of a German engine company, Gov. Jennifer Granholm said that her administration’s effort to create new jobs is paying off.

She visited MAHLE Engine Components USA Inc. in St. Johns to help celebrate the company’s expansion. MAHLE is a leading global manufacturer of components for the automotive and heavy-duty engine industry. The expansion comes with the help of a state tax credit valued at $2.2 million over 12 years. During a tour of the facility, the governor thanked the company for its continued commitment and investment in Michigan and cited it as an example of the kind of company that people want to help grow in Michigan

“With our competitive business climate, outstanding workforce and expertise in advanced manufacturing and high-tech R&D, Michigan is the best place for companies – both international and domestic – to invest and grow,” Granholm said. “MAHLE’s decision to choose Michigan shows we can compete and win in the fight for new investment and new jobs. Our efforts to go anywhere and do anything to bring jobs here continue to see results.”

MAHLE Engine Components USA Inc., is a member of the Germany-based MAHLE GmbH group of businesses. Granholm met with company officials during her 2004 jobs investment mission to Germany. Company leaders plan to invest $18.2 million in a 30,000-square-foot expansion of its piston ring manufacturing plant in St. Johns. The expansion is expected to create up to 534 new Michigan jobs, including up to 150 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to expand its existing plant in the small city just north of Lansing. St. Johns won out over competing sites in Mexico, Brazil, Spain and Kentucky. The city of St. Johns has also approved three tax abatements worth $26.1 million to support the project.

Continued – “MAHLE sincerely appreciates the efforts of the Michigan Economic Development Corporation and St. Johns city officials to make this expansion possible,” MAHLE Vice President Milton Laugenio said. “We look forward to continued success in the St. Johns community.”

The governor used Wednesday’s visit to announce that eight other company expansions and two redevelopment projects are also in the pipeline in Michigan. Combined, the projects are expected to create and retain 3,901 jobs and generate $179.1 million in new investment in the state.

Since January 2005, the governor and the Michigan Economic Development Corporation have announced the creation or retention of more than 241,000 jobs as a result of targeted assistance provided by the MEDC.

“The MEDC and the community of St. Johns worked together to make a strong business case to win this expansion,” MEDC President and CEO James C. Epolito said. “The competition for new corporate investment and jobs has never been more intense, and this project demonstrates the kind of strong collaboration necessary to do economic development in today’s global economy.”

MAHLE GmbH is a leading manufacturer of components for the automotive and heavy-duty engine industries. It is one of the world’s top 30 Tier 1 suppliers. The expansion announced today in St. Johns will accommodate the manufacture of high-value-added, high-technology, heavy-duty piston rings. The company currently has 935 employees in Michigan, including 311 at St. Johns.

“The city of St. Johns appreciates the collaborative effort between the state of Michigan, Clinton County Economic Alliance and city staff to support this project,” Mayor Dana Beaman said. “We especially want to thank MAHLE Engine Components USA for choosing St. Johns for their expansion and for making this major investment in our community.”