Auto parts maker invests $11M in equipment, jobs
An auto parts maker plans to complete its expansion in 2014 — investing $11 million and hiring about 50 new employees in the process.
Magna Mirrors of America, a subsidiary of Magna International Inc., headquartered in Aurora, Ontario, is investing in new equipment at three of its plants in the Holland area. The facilities employ about 950 people.
One of the plants is on 40th Street in Holland, and the others are on 128th Avenue in Holland Charter Township.
Some of the investment and new equipment “is to increase manufacture of the Infinity mirror, an inside rearview mirror with a unique frameless design. It won a 2012 Automotive News PACE award for supplier innovation and has been growing in the market, since launching a couple years ago,” said Scott Worden, a Magna spokesperson.
Magna is investing $6 million in machinery and equipment at the 40th Street plant, which will be used in the design and manufacture of parts for automotive mirrors, mirror glass, rear-vision components and related assemblies.
Magna said the investment will result in the “retention of approximately 90 production employees,” plus the creation of 24 hourly production jobs to be filled before the end of 2014.
At the twin facilities in Holland Charter Township, Magna is investing $5 million in machinery for the same types of products and components.
By remaining in Holland Charter Township, about 270 jobs will be retained, and the corporation plans to create 25 hourly positions.
Both the Holland City Council and Holland Charter Township Board awarded 50 percent personal property tax abatements for 12 years, as incentives to Magna to make the investments at the lakeshore.
Repeal of the industrial personal property tax is scheduled to go before Michigan voters in the August 2014 primary. If it is repealed, the actual cash value of the incentives for Magna will be minimal.
If the industrial personal property tax continues — “which we don’t think is going to happen” — then the tax abatement in Holland would be worth $123,000 to the company over the next 12 years, said Greg Robinson, assistant city manager in Holland.
Magna could save $61,000 in personal property taxes in the first year of the 12-year abatement in Holland Charter Township, but the tax may be going away, anyway, said Don Komejan, township manager in Holland Charter Township.
Magna International (NYSE: MGA) is a global automotive supplier with 312 manufacturing operations and 87 product development, engineering and sales centers in 29 countries. It has more than 125,000 employees.