LANSING, Mich. — State Sen. Wayne Schmidt on Wednesday congratulated St. Marys Cement company on receiving inducement resolution approval from the Michigan Strategic Fund (MSF) for up to $150 million in private activity bonds to expand its Charlevoix plant.
“This is great news for St. Marys, its employees and customers,” said Schmidt, R-Traverse City. “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.”
According to MSF, the brownfield plant upgrade would expand the plant’s infrastructure to maximum productivity. The project is expected to qualify for bond financing as a solid waste disposal and recycling facility. The company currently employs 232 people, and the expansion project is expected to add up to 200 jobs during construction and up to 10 permanent jobs upon completion.
MSF indicates that private activity bonds are a source of financial assistance to economic development projects in the state. They provide profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates. A bond inducement is the first step in a bond transaction.
According to St. Marys Cement, the company has been a major producer of cementitious materials in the Great Lakes region since 1912. It operates six plants that are strategically located to serve Canadian and U.S. customers and has a production capacity of more than five million metric tons.