MEDC Announces 11 New Tool & Die Recovery Zones

Total of 92 Companies to Benefit from Tax-Free Status

The Michigan Economic Development Corporation today announced that 11 tool and die coalitions have been approved for tax-free Tool and Die Recovery Zone designations under the state's Renaissance Zone program. The zones allow companies to operate free of virtually all state and local taxes for up to 15 years, thus boosting their efforts to compete in the face of global competition.

The following applicants, representing a total of 92 companies, received Tool & Die Recovery Zone designations today: Automotive & Tooling Alliance of North America, Berrien Tooling Coalition, Central Michigan Collaborative, Custom Design Inc, Eastern Michigan Tool & Die Collaborative, Michigan Tooling Group, Precision Tooling Coalition, Southwest Michigan Tooling Collaborative, Tooling Advantage Group LLC, West Coast Tooling Coalition, and Whitehall Township Tooling Coalition. [A complete list of the companies and their locations follows].

"The Tool and Die Recovery Zone program exemplifies the types of innovative steps we are taking to create an environment where tool and die companies can thrive," MEDC President and CEO James Epolito said. "Although this has been one of the nation's hardest-hit industries in recent years, the collaborations created through this initiative are helping many Michigan tool and die companies compete and grow in the global economy."



In addition, the business must enter into a qualified collaborative agreement which designates synergistic opportunities with other qualified tool and die shops, including collaborative marketing and the development of standardized processes and management methods.

This second round of designations comes exactly one year after the first Tool and Die Recovery Zone designees were awarded. The next round of designations is expected to open for applications in the fall of 2006.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on Tool and Die Recovery Zones and how to apply, visit the MEDC Web site at www.michigan.org.

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