Michigan Strategic Fund (MSF) approved St. Marys Cement’s inducement resolution, awarding approximately $150 million in private activity bonds for the expansion of the company’s Charlevoix plant, reported The Peninsula.
“This is great news for St. Marys, its employees and customers,” Michigan State Sen. Wayne Schmidt (R-Traverse City) said. “Not only will this project help the company to grow its Charlevoix plant and expand its capabilities to better serve customers, but it will also create new jobs in the community.”
MSF predicts that the brownfield plant upgrade will qualify for bond financing, acting as a solid waste disposal and recycling facility. St. Marys Cement currently employs 232 people, and the expansion project is estimated to create approximately 200 additional jobs during construction. Approximately 10 permanent jobs will be created upon completion.
Private activity bonds provide financial assistance for economic development projects within the state, offering profitable firms the ability to reduce capital costs. The savings stem from the difference between taxable and tax-exempt interest rates. The first step in a bond transaction is a bond inducement.
St. Marys Cement is a major source of cement related materials in the Great Lakes region. It runs six plants with a production capacity of approximately 5 million metric tons.