Technology firm XG Sciences Inc. is spending almost $7 million to relocate to a larger site in Michigan, where it plans to add at least 50 jobs in the next five years.
Lansing, Mich.-based XG makes XGNP-brand graphite nanoplatelets, which are used as plastics additives in products for automotive, aerospace, appliance, sporting goods and other industries. The firm plans to spend $6.6 million to move to a 25,000-square-foot site in nearby Delhi Township.
XG currently has a few tons of annual production capacity at a pilot plant in Lansing, President and CEO Mike Knox said Feb. 25 by phone. The company has been selling its products commercially for about a year to a global roster of customers that includes plastics and chemicals giant DuPont Co., aerospace leader Boeing Co. and consumer products titan 3M.
Knox said XG's multifunctional additives can improve the performance of a range of thermoplastic and thermoset resins by imparting conductivity, stabilizing thermal expansion or improving permeability or flame retardance.
XG plans to expand the new site formerly occupied by PepsiCo Inc. by 10,000-15,000 square feet. The company is receiving more than $1.1 million in state and local tax incentives, including a five-year state tax credit worth more than $400,000.
Also, the township is giving XG a five-year personal property tax abatement worth almost $400,000 and a 12-year real property tax abatement of almost $300,000.
XG expects to add seven new jobs in its first year at the site, as it begins to increase commercial production.
The company was founded in 2006 by Knox, Lawrence Drzal a professor at Michigan State University in nearby East Lansing and two other MSU researchers. XG's four founders own a minority stake in the firm, with a majority stake controlled by a group of more than 20 investors, including MSU and plastics and chemicals maker Hanwha Chemical Corp. of Seoul, South Korea.
Knox declined to provide annual sales data.
XG currently employs 14 people. Future hiring will include scientists, engineers, factory technicians and other staff, according to Knox.