The state of Michigan is providing tax incentives to two different molding companies that plan to invest a combined $70 million in improvements.
Automotive supplier Faurecia Interior Systems Inc. will put $19.3 million into improvements at its Fraser, Mich., facility for future projects manufacturing door panels, center consoles and cockpits.
Gemini Group Inc., whose holdings include four plastics plants in Michigan, will invest $53 million to renovate, upgrade and expand in Huron County, with that money going into machinery, physical expansion and capital investments across its range of current operations.
The Michigan Economic Growth Authority approved tax incentives for both Faurecia and Gemini, along with 13 other companies, according to a Feb. 15 news release.
Bad Axe, Mich.-based Gemini has three metal-processing plants and four plastics plants in Huron County. Company executives were not immediately available to discuss exactly how they plan to use the $53 million investment to improve those plants, but they noted the money will create up to 290 new jobs.
Gemini's plastics holdings comprise three companies in Ubly, Mich. — extruder Gemini Plastics Inc., blow molder Regency Plastics-Ubly Inc. and Valley Enterprises Ubly Inc., which has vacuum forming, compression molding and thermoforming — and injection molder Thumb Plastics Inc. in Bad Axe.
The state is providing $6.56 million in tax credits, while local governments are also considering incentive packages.
Gemini had considered moving operations out of Michigan, but the financial support will help ensure continued growth, Chief Financial Officer T.L. Bushey said in a news release. In addition to the new jobs, the tax credits will retain 762 jobs across the state, he said.
Gemini makes parts for a variety of customers in the automotive, lawn and garden, consumer products, defense, aerospace and transportation industries.
Faurecia, part of Paris-based Faurecia SA, will use its investment to make parts for upcoming model launches and to increase its technical and customer support staff in Auburn Hills, Mich. It expects to add up to 250 jobs.
Faurecia will receive $4.3 million in tax credits. Local governments in Fraser and Auburn Hills are considering additional tax breaks.