Council approves $9.5 million Lenawee Stamping Corporation industrial facilities tax exemption

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Lenawee Stamping has received a large 9.5 million tax break for the next 12 years. The plant currently employs 425 workers. Photo by Mickey Alvarado.

Tecumseh City Council approved Lenawee Stamping Corporation’s (LSC) application for a P.A. 198 Industrial Facilities Exemption (IFT) on Monday, May 21, following a public hearing on the issue. The approval covered LSC’s IFT request for new personal property in the amount of $9,505,248 for a period of 12 years beginning December 30, 2012.

Tecumseh City Manager Kevin Welch pointed out that the move would generate an additional $34,200 of tax revenue each year for the city beginning December 30.

LSC’s application notes that the request would help retain 425 existing jobs and create an estimated 46 new jobs within two years of completion.

The investment for equipment is forward action on changes the company announced in December. As production in certain auto lines cease, Lenawee Stamping works to incorporate new lines in order to continue operations at the Tecumseh site. At that time, Kurt LeMerise, Manager of U.S. Operations and Human Resources said that the company would be getting some new equipment in 2012 in order to continue to produce “solid products for solid customers with good volume.”

Lenawee Stamping is the leading industrial employer in Lenawee County and stamps and assembles underbody automotive parts for Ford, GM, Chrysler, Navistar, Mazda and Toyota. Its parent company is Van-Rob Automotive based in Aurora, Canada, north of Toronto and continues to survive during what have been some difficult years for many automotive companies.

“We have been a hidden little gem here over the past few years,” LeMerise said in December during the announcement. “We have been very well positioned in the supply industry while there has been some consolidation in the supplier business. We have a really good mix of products here for [our customers] and we’re positioned well for customers in several states. This has positioned us pretty well, so we’ve been able to survive the downturn — even thrive and add on people.”
Earlier this year, MDOT (Michigan Department of Transportation) announced the award of a state transportation economic development grant project totaling approximately $900,000 to widen turn lanes on M-50 at the factory and to resurface and widen turn lanes at Rogers Highway, largely due to work at Lenawee Stamping. The road project will help accommodate changes at the plant, including relocation of a shipping and receiving area, as well as investment that will assist the company’s choice to improve and remain at its Tecumseh location.

After accompanying LSC officials on a visit to the Michigan Economic Growth Authority in December, Tecumseh Economic Development Director Paula Holtz said, “They have always under-promised and over-delivered on these projects. That makes us feel excited.”




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