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GRINCH DEBATE: Who Says State Incentives Don't Help Create Employment?

Kremin Inc. Expansion, Hiring in Frankenmuth Sparked by MEDC

July 7, 2013       Leave a Comment
By: Dave Rogers

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Kremin plans to add machinery and create up to 25 jobs during the next two years.
 

Are we going to let the grinches steal Christmas?

Or are we going to make government work for all of us?

It seems like Gov. Rick Snyder is getting in the sleigh with Santa, and knocking the grinches aside as Michigan rises to the sky.

The headlines are filled with glowing words about Michigan's revival, and strewn behind them are the telltale signs of a philosophical struggle.

On the website of Kremin, Inc., is a link to an article entitled: "Young people finding high paying jobs in CNC Machining."

Another link is to "Swiss Machining," explaining how this high tech equipment is vital to manufacturing processes in industries worldwide.

The same site posts news releases telling how Kremin, Inc., located in Saginaw Township, is expanding in Frankenmuth and part of the funding deal includes hiring low-to-moderate workers, according to the Michigan Economic Development Corp.

The city of Frankenmuth has been awarded $249,975 in Community Development Block Grant funds to help make infrastructure improvements for an expansion of the Saginaw Township manufacturing firm Kremin Inc.

The Kremin project is one of six projects receiving state incentives totaling more than $82.2 million in private investment and projected to create 213 new jobs, the Michigan Economic Development Corp. announced last week.

The city of Frankenmuth also is contributing $583,345 for the infrastructure project for Kremin's new facility.

Some grinches we know would complain that government doesn't create jobs, the private sector does. Well, that's probably true to a substantial extent, but government in this case is greasing the skids for a major expansion in a critical manufacturing field.

And boosting the ravaged middle class that has seen well-paying jobs decimated over the last few decades, especially in the automotive and manufacturing sectors.

The grinches intent on stealing Christmas are getting their comeuppance from Santa in a few cases, this one close to home.

Kremin plans to add machinery and create up to 25 jobs during the next two years. The company agreed that at least 13 positions will be held by low-to-moderate income people, according to news releases.

That aspect -- carving out jobs for low-to-moderate income folks, continues a policy started under the Jennifer Granholm administration, exemplified by jobs provision in an expansion of a solar firm in Battle Creek in 2008.

The grinches won that round when United Solar Ovionics crashed and burned and the plant never opened. United Solar Ovonic parent Energy Conversion Devices received about $120 million worth of incentives from the federal, state and county governments for the almost 268,000-square-foot plant in 2008.

The bad news is that solar energy projects nationwide have not lived up to expectations, and even Dow Chemical in Midland is struggling to make that sector work with its revolutionary solar shingles.

Christopher Helman of Forbes wrote recently that Dow may be aided by a 31 percent tariff recently slapped on Chinese shingles by the U.S. Commerce Department.

However, the good news is that the never-occupied plant built by a now-bankrupt solar panel manufacturer in Battle Creek has a new owner and promise of even more jobs for the Southwest Michigan community, according to a Crain's Michigan Business report.

At the time, the company promised about 350 renewable-energy jobs and the possibility of a second plant. But Energy Conversion Devices ultimately had to file for bankruptcy a year ago after suffering a severe blow from the U.S. economic downturn and a loss of key solar economic incentives in Europe.

Enter the now leaner and meaner auto supplier industry.

Cosma Castings Michigan, a subsidiary of auto supplier Magna International Inc., purchased the vacant plant and plans to bring an estimated 800 jobs to area with an investment of $162 million.

"With the building sitting vacant for nearly the past five years, the community finally has reason to celebrate. Not only is a vacant property getting filled, but the new project is also bringing in even more jobs than once promised by Auburn Hills-based Energy Conversion Devices Inc.," wrote Crain's.

"About 18 months ago, we were able to market the building as available when we realized the company was unlikely to use the facility," said Karl Dehn, president and CEO of Battle Creek Unlimited, the economic development group for the Battle Creek area. "Eventually, we were able to list it and attract a fair amount of interest. We're very fortunate to be putting the building back into productive use with a company like Magna-Cosma, which is bringing even greater economic commitments."

Cosma Casting Michigan will produce automotive casting components and systems. The Michigan Business Development Program issued a $1.6-million performance-based grant for the project, and the city of Battle Creek is providing property tax abatements.

The plant built for a solar-panel manufacturer, but never occupied, reportedly will be ready to open by the end of 2013.

An Italian firm, the Idra Group, announced recently it will supply Magna International with three large die casting machines for new operations it is developing, one in Michigan and another in China.

The Italian machine builder, which develops CNC machining technology as well as hot-chamber and cold-chamber die casting installations, reported it has an order for two 4,400-metric ton cold-chamber die casting machines for the Michigan project, and a 2.400-mt machine for the project in China.

Kremin Inc., a leading Michigan contract manufacturer in the Great Lakes Bay Region, has announced that it will be building a new 19,000 square foot facility in Frankenmuth.

The new facility will serve as the primary manufacturing operations and corporate offices of Kremin Inc.

Kremin Inc. currently has 22 employees and anticipates creating an additional 25 full-time jobs over the next 2 years as part of their expansion.

Kremin has posted the following job opening announcement: "Kremin, Inc is looking for first and second shift Mill operators. We have positions on both manual milling equipment as well as CNC mills. Experience on Haas CNC milling machines a plus. Mastercam experience is also preferred. Operators should be able to read blue prints, inspect product, set-up machines, and make off-sets as required. Kremin, Inc. offers competitive benefits and pay is determined based on experience."

Kremin, established in 1983, is a contract manufacturer of precision machined components based in Saginaw Township and serves domestic and international customers in many different industries including medical, dimensional stone, energy, defense, automotive, and aerospace. Kremin also manufactures and distributes a line of industry leading tools for the glass and stone fabricating industries--Kremin Onyx Tools.

In addition to the new facility, Kremin Inc. will be expanding its diverse equipment and technology capacity.

"We are excited about this opportunity and for the future of Kremin Inc. We look forward to working with the city of Frankenmuth and becoming a part of the community", stated Mike Grossi, co-owner of Kremin Inc.

"Kremin Inc. worked closely with Saginaw Future Inc., the Michigan Economic Development Corporation (MEDC), and the City of Frankenmuth and would like to specifically acknowledge these entities and their staffs for their hard work and support of this project."

Kremin expects to move into the Frankenmuth, MI facility in the first quarter of 2014.

Kremin Inc., located in Saginaw, was acquired by Bryce Moe and Mike Grossi in November of 2010.

Historically an automotive tool & die shop, Moe and Grossi refocused the company's core capabilities and strategic plan around advanced manufacturing. As part of this strategic focus, Kremin earned dual ISO 9001:2008 and 13485:2003 certification, invested in IT and machine capacity, and added 6 full-time positions in 2011.

NBC's Today show Correspondent Craig Melvin in a recent program showcases young people in Massachusetts who have opted against four-year college study in favor of pursuing skilled work in CNC machining. "This story does a great job of illustrating the technology, knowledge and sophistication of modern manufacturing and machining, and the teens in this story are excellent representatives and role models," says Mr. Grossi. ###

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Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

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