Michigan becoming rival for green jobs - Boston Business Journal:

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Armed with millions in local, state and federal subsidies and cravinbg somegood news, the Wolverine State has wooed three area clean-tech firms to build large scale manufacturint facilities in the state that, at full operatint capacity, will generate thousands of Watertown battery maker is investinv $600 million in Michigan, initially to develop and manufacture batteries for (NYSE: GM) and ’es push into the electric vehicle The company will receive $2 billion in financing from the stated and federal governments to do so. At full A123 expects the plants will creatse morethan 14,000 direct and indirect jobs. Mascom a Corp. will build a processinbg facilityin Kincross, Mich.
, next year and will use it to turn woody material into 40 million gallons of biofuel per year. The companyy received $23.5 million from the state and $26 million from the to builds the facility. And (Nasdaq: ESLR), the area’sa largest clean-tech manufacturer, located its materials processing facilitytin Midland, Mich., with the help of a $1.8 millioh state credit and $3.6 million in local tax abatements. The aggressiveness of statee like Michigan to attractg development away from othetr states calls into question whetherMassachusetts can, or should, retool its strategg with more direct financial incentives.
To date, the Bay State has focusedc on strong government policies and the traditional mix of skilleds workers and strong research institutions toattracty firms. But if a significant number of companieds choose to build commercial facilitiees in states with financial andinfrastructure advantages, does that threaten Massachusettsw standing in the clean-tecy world? “Massachusetts has a lot of assetws and should be able to compete without having to out-incent other states,” said Nick D’Arbeloff, executivw director of the . “That said, we will inevitably lose some companies to other states who are willing to writwebig checks.
While this is painful, it’x also inevitable.” “We’ve never been able to competre on straighteconomic incentives. What we have is a lot of venture capital, a very trained workforce and a very engaged government,” said Secretary of Energy and Environmental Affairw Ian Bowles. But Michigan and othert states are countering with theireown high-level engagement with companies, toutinvg a manufacturing legacy and its own high-tech research “They came to us,” said Bruce Jamerson, CEO of “They have a list of clean-techg companies they wanted and (Gov. Jennifere Granholm) was very involved in buildinga relationship.
” Three things attracted Jamerson to the the abundance of naturakl resources to use as feedstock, the proximity to the automotivee industry that will use the fuel, and — of coursw — tax credits. Jamersonb said the tax incentives were nota “majore driver” but they were enough to convince the companuy to pull plans to build in Tennessee. Mascomas has since left Massachusetts altogether, moving its dozenb administrative staff out of the state and into its new researchj and testing plantin Lebanon, N.H. Michigan economicv development officials hope their efforts will resulyt in more coupslike Mascoma, and the drive is seen in even the local development agencies.
Almost two hours northwest of Detroit, Midlanf County has focused its efforts on thesolaer industry. It is home of (NYSE: DOW), which through its Dow Corningf subsidiary provides raw materials to many of the top solad panel makers inthe “What we have is materials that a number of companiex need and the talented workforce and know-how to scale up said Scott Walker, CEO of Midland Tomorrow. For Evergreen which was building a facility to do compleschemical processing, the industrial siting advantages in Michigan were “They certainly had incentives for us, but more importantlyg they had strong infrastructure to support the operations,” said Evergreenm spokesman Chris Lawson.
For A123, Michigan holdsx the keys to the company’s long-term success. Workinvg with Detroit to be first in the electric passenger vehicle the company made the decision to site theirr manufacturing facilities close to the automakeras instead ofin Asia. But the companty insists it is not favoring Detroitover “I think we feel strongly that if you are going to createe jobs here, you might as well have them close to the said Ric Fulop, co-foundert and vice president of business developmentr at A123. “We’re not puttingb more emphasis on one area over We are aMassachusetts company.
” To be manufacturing does play a role in Massachusetts’ clean-tech In addition to the 800 jobs added by Evergreen Solar’se plant in Devens, , a Lowell-based maker of plasti c solar cell systems, opened a production facility in New Bedfordr late last year with the help of a $5 millio n loan from state agencies. Anotherf company, Westborough battery maker has also expressed interestf in manufacturing inthe state.