A new development from
Cliffs Natural Resources to make iron ore nuggets in a Marquette County facility got the go-ahead in the form of major tax incentives from the Michigan Economic Growth Authority recently.
It was one of 10 tax incentives announced by the authority in its latest round of funding for projects at companies expanding or locating in Michigan.
"From next-generation software development to a $280 million investment in the Upper Peninsula by a partnership of U.S. and Japanese companies, today's MEGA board action highlights Michigan's high value across a broad number of industries," says Michael A. Finney, president and CEO of the Michigan Economic Development Corporation.
The Cliffs venture is a joint project with Kobe Steel Ltd. of Japan. The two companies have formed a subsidiary called Michigan Iron Nugget LLC, and the name says exactly what it plans to do. It will be producing nuggets with high iron content through a Cliffs-patented process, for use in steel production.
The total investment from Cliffs and Kobe Steel is planned to be $280 million, which includes building a new facility to produce the nuggets in Tilden Township in Marquette County., near Cliffs' iron ore mines. The company expects it to create 114 direct new jobs at the facility.
The MEGA board approved a state tax credit of $1.9 million over the next six years to encourage the facility's growth. Tilden Township is considering its own local tax abatement to support the project as well.
Other projects approved for tax incentives by MEGA were in Grand Rapids, Novi, Troy, Dearborn, Howell, Farmington Hills, Bloomfield Hills, Ann Arbor, Holland, Allegan, Charlotte and Traverse City.
Writer: Sam EgglestonSource: Michael Finney, Michigan Economic Development Corporation
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