An Ohio-based food manufacturer, Consolidated Biscuit Company (CBC) is moving forward with plans to open a plant in the former facilities of the Tecumseh Products, amounting to a local investment of $12 million and the creation of 500 jobs over the next five years.
The announcement was made Monday following nearly five months of a coordinated effort between city staff, CBC and officials at Tecumseh Products. In addition, efforts to secure a $5.4 million tax credit from the State of Michigan succeeded with Tuesday’s approval by the Michigan Economic Growth Authority (MEGA) board. The credit will cover a 10-year period along with an expected 12-year tax abatement from Tecumseh City Council valued at $867,000.
Appearing before the MEGA board in Lansing on Tuesday were City Manager Kevin Welch, CBC financial officer Bill Varney and Penny Launstein with the Michigan Economic Development Corporation.
Varney presented information to the MEGA board regarding CBC, noting that the 45 year old company was operating from nine plants in five states, employing 3,500, and were looking to expand in Tecumseh because of its location, availability of manufacturing space and Tecumseh’s available work force.
Varney said that over the next five years, the company will invest into the plant for baking, cooling and packaging equipment.
In a statement from MEGA board member Josh Hundt, the average weekly wage projected by CBC will be $484, with funding of $125,000 from the MEDC for job training.
“The MEDC and Tecumseh worked together to make a strong business case to win this expansion,” MEDC President and CEO James C. Epolito said. “As competition for new corporate investment and jobs grows more intense, this project demonstrates the kind of strong teamwork needed to compete and win in today’s global market.”