Governor Jennifer M. Granholm and Brembo
today announced that the company will consolidate its corporate and
technical groups from Northville, Farmington Hills and Costa Mesa,
Calif. at a new headquarters to be built in Novi. The subsidiary of
Bergamo, Italy-based Brembo S.p.A. will also expand capacity at its
manufacturing facility in Homer (Calhoun County). The combined project
is expected to retain and create 325 jobs directly by the company for a
total of 1,049 Michigan jobs retained and created.
“One of the world’s most innovative
suppliers has chosen to invest and expand in Michigan because this is a
great place to do business,” Granholm said. “Brembo North America has
been a long-time member of our state’s corporate community, and we will
work to assure their continued success as they provide good-paying jobs
in our state.”
Brembo is a world leader in the design,
development and production of high performance braking systems and
components. Teams equipped with Brembo brakes have won auto and
motorcycle racing championships including Formula 1, IndyCar and NASCAR.
“With the acquisition of Hayes-Lemmerz
brake discs division last November, 2007 was a banner year for Brembo
North America,” Brembo North America General Manager Adrian Smith said.
“The consolidation and expansion of our operations in Michigan, building
on the skills of our workforce and competitiveness of our manufacturing
facilities, create great opportunities for sustained growth in North
America.”
Based on the MEDC’s recommendation, the
Michigan Economic Growth Authority today approved state tax credits
valued at $3.5 million over 10 years to convince the company to expand
in Michigan rather than competing sites in North Carolina and Mexico. In
addition, The MEDC will provide job-training assistance of up to
$500,000 through the Economic Development Job Training program. To
support the project, the city of Novi is considering a
reduction/reimburse-ment of permitting fees and an expedited approval
process. Albion Township has approved a 12-year abatement estimated at
$1.8 million.
“As a Michigan company, Brembo enjoys
access to suppliers, customers and a techsavvy workforce,” MEDC
President and CEO James C. Epolito said. “We have a strong business case
for the company’s continued prosperity in Michigan.”
Brembo North America serves a customer
base in the United States, Canada and Mexico. The new 45,000-square-foot
combined headquarters and Technical Center is scheduled for completion
by the end of this year. The project is expected to create a total of 42
jobs at the headquarters, and through the expansion in Homer (Albion
Township) 176 new jobs and 107 retained positions. This is another
important step for Brembo that will enable the company to support all of
its customers’ North American operations.
“We are pleased to welcome another
outstanding international technical supplier with strong roots in
Michigan to Novi,” Mayor David B. Landry said. “Our supportive and
diverse community with high quality businesses, neighborhoods and
schools will provide a great location for Brembo’s headquarters for many
years to come.”
An economic analysis conducted by the
MEDC estimates that increased economic activity generated by the Brembo
expansion will spin off an additional 724 indirect Michigan jobs in
addition to the 325 created directly by the company. The project is
expected to generate more than $424 million in personal income for
Michigan workers over the life of the tax credit.
“We are excited about this expansion of
Brembo’s operations in Albion Township,” Albion Economic Development
Corporation President and CEO Peggy Sindt said. “Brembo is a great
employer, offering good jobs and the opportunity for advancement. We
appreciate Brembo’s investment and their vote of confidence in our
workforce.”
The Brembo North America expansion is one
of 11 economic development projects the governor announced today. In
all, they are expected to create and retain a total of 3,901 Michigan
jobs.
In her 2008 State of the State address,
Granholm emphasized the importance of creating opportunity in the
changing world of the 21st century. Since January 2005, the Governor and
the MEDC have announced the creation or retention of more than 241,000
jobs as a result of targeted assistance provided by the MEDC.
The Michigan Economic Development
Corporation, a partnership between the state and local communities,
promotes smart economic growth by developing strategies and providing
services to create and retain good jobs and a high quality of life. For
more information on the Michigan Economic Development Corporation’s
initiatives and programs, visit the Web site at
www.themedc.org
Brembo North
American Inc.
Economic Analysis
Summary Estimates
(All estimates in 2008 dollars)
TOTAL JOBS CREATED:
1,049
Direct: 325
Indirect: 724
NET POSITIVE STATE REVENUE IMPACT:
$29,098,000
Revenue Foregone: $3,597,000
Revenue Gained: $32,695,000
Average Weekly Wage: $874
Personal Income Generated Over
Life of MEGA Agreement: $424,608,000