State grant opens door for Lenawee Stamping Corporation/Van Rob to create more jobs in Michigan
Lenawee Stamping Corporation/Van Rob was recently awarded a $5.3 million business incentive grant through the Michigan Business Development Program which will help the company expand its Tecumseh operations and also aid in the company’s effort to add an additional facility in Michigan. The program is part of a business attraction and economic gardening initiative, supported by the Michigan Strategic Fund.
State Rep. Nancy Jenkins issued a press release stating that the business incentive grant will help accommodate the addition of new programs at the company and approximately 530 jobs for Michigan workers. The number of jobs was provided through a press release from the Michigan Economic Development Corporation.
“I’m pleased that Lenawee Stamping is investing in our local communities and our state’s economy,” said Jenkins, R-Clayton. “Our state has become a much better place to do business in the past two years and companies like Lenawee Stamping investing here are proof of that. I congratulate everyone who has been working on this project and look forward to the business expansion and job creation that will come from it.”
The release also stated that the $5.3 million performance-based grant will supplement a total $30.7 million project investment for the company which produces metal stamping and welding fabrications and assemblies for auto bodies and other substructures with the local Lenawee Stamping facility being part of the parent company, Van-Rob, based in Ontario, Canada.
Tecumseh City Manager Kevin Welch said it’s been his understanding that the company could create between 200-270 jobs in the city.
“Job creation is really a function of what the company decides to do,” he said. The state incentives offer a greater possibility that the jobs will be created in Michigan, however, and Tecumseh recently offered up some incentives of its own to help smooth that path.
On Monday, Jan. 7, Tecumseh City Council approved a PA 328 application from the company for a 100 percent tax abatement for a period of seven years. Welch said the city has typically approved PA 198 agreements for 50 percent abatements in the past, but that the new agreement would be for all new equipment in that seven-year period and would help keep the city attractive to the company.
Welch said Tecumseh’s incentive package, through the tax abatement agreement, went into effect once the state incentives were approved.
“The agreement has been signed now,” he said. During discussions with the council members, Welch said the number of jobs created could go higher. “Lenawee Stamping has always under-promised and over-delivered,” he said. “That’s been our experience.”