Saginaw County's Nexteer Automotive gets state tax credit extension for new jobs

BUENA VISTA TOWNSHIP, MI ? The Michigan Economic Development Corp. has announced the extension of a tax credit for automotive-steering maker Nexteer Automotive, a Chinese-owned supplier headquartered in Saginaw County.

Nexteer received a state tax credit for 2,400 jobs at its Buena Vista Township facility in 2009. The credit was valued at $70 million over 10 years.

It subsequently received a tax credit estimated at $2.3 million to create 325 additional jobs, but that credit was due to expire. The state announced Wednesday, May 22, that it would extend the credit to encompass the new jobs.

?Currently, the company has the opportunity to locate new electric power steering and steering column manufacturing programs to the Buena Vista Township facility, requiring an estimated $36 million in new investment and 325 new jobs by December 2015. As a result of this growth, (the Michigan Strategic Fund) approved an increase in the maximum allowance for retained jobs on Nexteer?s Job Retention MBT Tax Credit from 2,400 to 2,725 for the years 2014 through 2017,? the release states.

The 325 new jobs will be a mix of hourly and salaried employees, the company said in announcing the expansion in December 2012. Nexteer employed about 4,200 people at its facility in Saginaw County as of that date.

The investment will expand Nexteer's development, manufacturing and test capabilities. Throughout 2014, work will be done to modernize plant infrastructure and invest in high-tech manufacturing machinery and equipment, the company said.

?Nexteer appreciates the continued support from the state of Michigan and local government organizations. We continue to work with our partners at all levels to remain competitive and secure new business. As a result of our close partnerships, Nexteer has committed more than $220M in investment over the past two years to the Saginaw Operations,? Luis Canales, director, global external affairs, Nexteer Automotive, said in a prepared statement.

During the past 2 1/2 years, Nexteer has booked $12 billion in new business.

Nexteer, the former Delphi Saginaw Steering Systems, became a wholly owned, standalone subsidiary of General Motors Co. when Delphi Corp. emerged from Chapter 11 bankruptcy in 2009.

GM sought to spin off Nexteer due to its contracts with other Detroit Three automakers and global auto manufacturers.

GM sold Nexteer to Chinese auto-parts maker Pacific Century Motors in 2010. Chinese state-owned parts manufacturer AVIC Automobile Industry Holding Co. in March 2011 acquired a 51 percent stake in Pacific Century Motors.

Source: http://feedproxy.google.com/~r/michigan-business/~3/cz0h3LJTiIg/saginaw_countys_nexteer_automo_1.html

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