Aerospace company plans $108 million expansion, 300 new jobs in Muskegon County
Posted By: mlive on December 10, 2024. For more information, please click here to read the source article.
Howmet Aerospace, a global company that makes parts for jet engines and industrial gas turbines, is planning a $107.5 million expansion in Whitehall, an investment expected to create up to 300 new jobs.
The company, which employs about 2,440 people in Whitehall, was approved Tuesday for a $5.1 million grant by the Michigan Strategic Fund to help cover the cost of the expansion. The new jobs are expected to pay an average wage of $29.41per hour, or roughly $61,172 annually.
“This was a highly competitive project, with the company considering several out of state alternatives such as Tennessee and Texas, where it has existing facilities,” said Darryl Todd, business development manager at the Michigan Economic Development Corporation (MEDC).
The Michigan Strategic Fund is the public funding arm of the MEDC.
Howmet, which launched operations in Whitehall in 1952 and has nine plants in the city, plans to construct a building with 107,000-square-feet of manufacturing space and 4,500-square-feet of office space, according to the MEDC. The building is expected to be complete in February, said Whitehall City Manager Scott Huebler.
Once open, the company plans to manufacture ceramic cores inside the building. The cores provide cooling passages inside airfoil products used in jet engines and industrial gas turbines. Howmet once manufactured ceramic cores in Whitehall, but production of the product there ended decades ago.
“The new facility would boast the most current technology and new advancements that help to press, fire, and finish high precision cores,” according to an MEDC memo. “Ceramic cores are a necessary component for aircraft engines, and adding this production line in Whitehall helps to create redundancy in the domestic supply chain to reduce the risk to our country’s national security.”
The $5.1 million Michigan Business Development Program grant was requested to “help address the cost disadvantage of locating the project in Michigan when compared to the competing sites outside of Michigan,” the MEDC said.
In addition to the grant, the Michigan Strategic Fund also approved a request by Howmet for a 15-year, 100% exemption on Michigan’s State Essential Services Assessment. The exemption is valued at $1.6 million.
The assessment is required for “manufacturers that do not pay personal property tax on eligible manufacturing personal property,” according to the MEDC. The Michigan Strategic Fund has the authority to exempt or reduce the assessment for projects that create jobs or private investment in the state.
During the Michigan Strategic Fund meeting, MEDC officials said Howmet is “engaged” with Muskegon Community College to “build out the talent pipeline” for the new jobs. Michigan Works is also expected to be used for recruiting workers.
Howmet Aerospace is based in Pittsburgh, Pennsylvania, and has over 23,000 employees worldwide. Some of its leading customers include Pratt & Whitney, Airbus, Lockheed Martin and Boeing.
“Our leadership had to consider multiple factors when making an investment decision of such a substantial scale,” said Ben Squires, director of government affairs at Howmet. He noted the support of the MEDC, the city of Whitehall and others helped seal the deal for the company’s expansion in West Michigan. The city of Whitehall is expected to approve a property tax cut for the project.
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