Two Mason manufacturing plants to make major expansions

Council approves 50 percent tax breaks

By WILL KANGAS
wkangas@lsj.com

September 25, 2011

From Ingham County Community News

MASON -- Two local manufacturers are planning to spend millions to expand, and were supported by the Mason City Council through the approval of tax breaks

Gestamp, Mason, one of the recipients of a 12-year, 50 percent property tax break, is expecting an increase in sales from $50 million in 2010 to $115 million in 2013 based on projected sales orders.

The company manufactures hardened steel beams for car doors and impact beams for bumpers.

To do the work, company officials say they need more floor space and will spend $38 million on two building expansions.

In the end, the expansion is expected to create 110 new jobs within two years of completion, adding to the existing 330 employees at its facility at 200 E. Kipp Rd.

Companies can apply for 50 percent tax exemption with local municipalities for up to 12 years through an Industrial Facilities Tax Exception Certificate.

They usually apply when they make a large investment or expansion.

Win-win situation

"It's a win-win for everyone," Mason City Clerk Deborah Cwiertniewicz said. "It's good for the city, good for the company and good for people looking for jobs. Gestamp is hiring as we speak."

Gestamp applied for a 12-year tax exemption and it was approved by the city council unanimously, Sept. 19. Gestamp has been in Mason for 13 years.

Another requested 12-year tax break was awarded unanimously to the Michigan Packaging Company, or MPC, which will purchase and install new technology for its adhesive applications.

The building at 700 Eden Rd., will undergo $125,000 worth of structural changes but the bulk of a $4.7 million improvement will be spent on new equipment, which company officials say will not only bring "cutting-edge" tech, but reduce energy consumption by 35 percent.

MPC currently employs 122 people and the changes are expected to add five more jobs.