Michigan's tax-free Tool and Die Recovery Zone program for tool and die shops is continuing to expand, and eventually may include space for 10 more zones than the state originally planned.
In a Dec. 22 news release, the Michigan Economic Development Corp. announced three new zones covering 25 companies.
The state originally launched the program in 2005 as a way to help struggling toolmakers to operate free from all state and local taxes for up to 15 years. The zones help participating companies lower their operating costs, which helps them compete, state officials said.
Originally the plan called for a maximum of 25 zones, but with the newest announcement the state now has 28, and it plans to designate another round of zones through the Michigan Strategic Fund in 2010. The fund eventually may set aside up to 35 zones.
Most of the zones cover more than one company, with individual firms joining cooperative coalitions to create them. The 28 regions now approved cover 272 individual facilities.
The newest zones include one Michigan Adaptive Coalition with a single company, Goodrich, Mich.-based aluminum-hardening specialist Burton Industries Inc., and two covering multiple companies.
The Strategic Tooling Solutions zone has 10 firms, including injection tooling and mold makers TK Mold & Engineering Inc. of Romeo, Delta Technologies of Auburn Hills and A&O Mold and Engineering Inc. of Vicksburg. Third Coast Tooling Alliance takes in 14 firms, including Dynamic Plastics Inc. of Chesterfield, Exacto Tool Co. LLC of Shelby Township, near Detroit, and Kraftwood Engineering Co. of Walled Lake.
Copyright 2010 Crain Communications Inc. All Rights Reserved.