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Tax abatement to help Fuyao hire 100 locals within 3 years



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July 23, 2014 - By Meg Peters

Review Staff Writer

The $15.3 million Fuyao Automotive North America plans to invest into the Orion Township company could be a little more affordable with the recent approval of an industrial tax abatement.   

Township trustees approved Fuayao's Industrial Facilities Exemption Certificate unanimously at the July 21 board meeting for real and personal property improvements at their local facility, located at 315 W. Silverbell Rd., for a period of six years. After the local approval, Fuyao's application will be sent to the state for final authorization.

Fuyao Automotive North America is a subsidiary of the international glass manufacturer Fuyao Glass Industry Group located in the People's Republic of China , and already employs more than 200 residents from Orion Township and surrounding communities.

Fuyao requested an abatement of 50 percent of all their property improvements, or about $13.7 million in projects, to expand the local facility in order to utilize 100 percent of the warehouse facing north Silverbell Rd.

After the sixth year, Fuyao will be free to approach the board again to extend the abatement.

Fuyao was recently recognized by Govenor Rick Snyder for the additional 102 new jobs President Chris Feng plans to fill with local and surrounding community residents.

"Michigan, Oakland County and Orion Township together have to be competitive," President Feng said. "We could develop another site option in a state like Ohio where they don't even have this personal property tax. It provides a competitive edge—that's how the business grows and eventually through the other tax revenue the spending will be local."

The first shift supervisor can literally walk to work, Feng said.

Established in 2008, Fuyao supplies automotive glass to top automotive equipment manufacturers, such as Chrysler, General Motors, Kia, Hundai, Honda and Ford.

Positions would be filled in warehousing assembly, repackaging, assembly, inspection, program management, engineering design and sales support services.

Ultimately the tax abatement, which significantly reduces property taxes on new investments, will provide funding for about $660,000 in building renovations, and about $13 million in equipment.

Currently 30 Orion residents work full time at Fuyao, and 70 work temporarily. The company expects to bring in an additional 13 full time employees and 53 temporary employees starting now and over the next year.

In the first year about 53 new jobs will be created, 31 jobs the second year and 16 jobs the third year, according to the Fuyao application.

"It's a great thing and I think that we will see the abatement benefit invested back into the community," Township Supervisor Chris Barnett said. "Our policy allows for a renewal after six years which is beneficial to us because it will allow us to see if they are creating the jobs and investments they have predicted."

Interested future employees should send their resumes to office@fuyaousa.com.

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