Tax breaks granted, firms commit to Michigan

Detroit News staff and wire reports

Two companies -- an information technology services firm from California's Silicon Valley and General Motors Co.'s soon-to-be-sold Hummer division -- received millions in state tax breaks Tuesday and made commitments to bring more than 1,000 jobs to Michigan in the next few years.

And a third company, Auto-Owners Insurance Co. of Lansing, announced Tuesday it will seek $26 million in tax incentives to build a $105.6 million expansion of its Michigan headquarters and create an estimated 800 jobs over the next 10 years.

"Clearly, we're continuing our work to grow the state's economy and add jobs in Michigan," said Liz Boyd, spokeswoman for Gov. Jennifer Granholm.

The California-based information technology company, Systems in Motion, plans to add about 1,085 workers over the next five years at a new facility in Pittsfield Township near Ann Arbor, company officials said Tuesday.

All told, Systems in Motion expects to invest about $15 million to add the center, helped by tax breaks granted Tuesday by the Michigan Economic Development Corp.

The company helps other businesses manage outsourced IT work and plans to offer a low-cost domestic alternative to outsourcing to nations like China and India. It also looked at sites in Ohio and Texas for its new center. Leaders ultimately decided to partner with Michigan on the deal, because the state has committed to helping train new workers in the IT field.

Separately, a spokesman for Hummer, the truck and sport utility nameplate being sold by GM to China's Sichuan Tengzhong Heavy Industrial Machinery Corp., said the company likely will locate its headquarters -- and about 100 employees -- in or near Detroit.

Spokesman Nick Richards said Sichuan, which is still in sale negotiations with GM, will initially employ those workers at the headquarters, with plans to increase that to 300. They would work on global design, engineering, product planning, purchasing, sales, service, marketing and financing, Richards said.

Altogether, the company plans to invest $9.4 million over the next five years. The MEDC approved a $20.6 million state tax credit for Hummer that will be spread over 10 years.

Hummer also considered sites in South Carolina and Tennessee.