New Markets Tax Credit Investment Keeps Manufacturing Jobs in Michigan and Ohio
DETROIT, Aug. 17, 2017 (GLOBE NEWSWIRE) — Stonehenge Capital today announced an investment in Detroit Manufacturing Systems (DMS) that will allow the Detroit-based automobile component parts manufacturer to expand its Michigan operations and to develop a new plant in Toledo, Ohio.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/3c30cfda-1b71-4f71-b201-e10c5f5e1f88
The investment, made through the federal New Markets Tax Credit Program and supported by an investment from JPMorgan Chase, will enable DMS to retain 130 jobs in Detroit and to create more than 135 new full-time jobs with full benefits in Toledo.
DMS uses state-of-the-art technology to manufacture and assemble injection-molded interior trim component parts for automobiles. The investment announced today will allow the company to fulfill new contracts, and to grow its business to include additional component products, while providing well-paying jobs in the U.S. manufacturing industry.
“We are grateful to Stonehenge and our other financial partners for supporting our expansion in Detroit and Toledo,” said DMS CEO Andra Rush. “The New Markets Tax Credit is a vital part of our success, enhancing our ability to achieve our mission to create sustainable job opportunities in underrepresented communities for many years to come. It has helped facilitate our company’s drive to create high-quality products for our customers at competitive pricing and profitability, which creates a winning environment for all.”
DMS will hire residents from surrounding low-income areas. The Detroit facility is located in a community with a 44 percent poverty rate, 34 percent median family income and 21 percent unemployment rate. The Toledo location is in a community with a 45 percent poverty rate, 41 percent median family income and 23 percent unemployment rate. The job opportunities at both DMS facilities offer full medical benefits, an average wage of $41,000, 401(k) retirement benefits and annual tuition reimbursements.
Stonehenge Capital provided $8 million in federal New Markets Tax Credit (NMTC) allocation that will allow DMS to purchase and install the new equipment necessary to expand its manufacturing services.
“Stonehenge is honored to provide DMS the opportunity to maintain its operations and employees in Detroit, while also expanding to Toledo, Ohio,” said Stonehenge Community Development Director L’Quentus Thomas. “This investment is the quintessential New Markets Tax Credit investment that allows an American manufacturer to remain competitive, maintain its operations in the United States and employ more hard-working Americans with higher-than-average wages.”
JPMorgan Chase served as the NMTC investor, providing an up-front investment of equity capital to support the broader NMTC transaction.
“This critical capital will support DMS’s continued business expansion and it builds on our firm’s $150 million investment in Detroit’s economic recovery,” said Chase Community Development Banking Vice President James Simmons. “The New Markets Tax Credit investment is a victory for Detroit and Toledo – it keeps jobs and grows DMS’s business in Detroit and provides new employment opportunities in Toledo.”
Enacted in 2000, the federal NMTC program provides critical financing to rural and urban communities that have historically lacked access to the capital needed to support and grow businesses, create jobs and sustain healthy local economies. The program has leveraged some $80 billion in investments for hard-hit, blighted communities around the country, resulting in over 750,000 jobs, and has generated $8 of private investment for every $1 of federal funding, according to the Community Development Financial Institutions Fund at the U.S. Treasury, which administers the program.
During a recent tour of a manufacturing facility in Cincinnati, U.S. Sen. Rob Portman of Ohio expressed his support for making the New Markets Tax Credit program permanent.
About Stonehenge Capital:
Since 1999, Stonehenge (www.stonehengecapital.com) has operated at the nexus of finance and community development. Stonehenge invests in underserved communities through community development programs in order to improve the economic wellness of the communities and residents. Today, the firm’s values remain unchanged and Stonehenge’s role as a catalyst in the success of individuals, businesses and communities is evident through the firm’s three core business lines: growth capital, tax credit services and community development. Stonehenge utilizes a variety of debt and equity financings to spur economic growth across the country, and has offices in Baton Rouge, New York, Dallas and other locations.
About JPMorgan Chase:
JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
Contact: Kara Hansen, firstname.lastname@example.org, 503-274-8886
Source: Stonehenge Capital