General Electric Co plans to open a research center in the economically ailing U.S. state of Michigan, where it will develop new manufacturing technologies.
The $100 million site will eventually employ more than 1,100 people and will be part of GE's network of Global Research Centers, the largest U.S. conglomerate said in a statement on Friday. It will be located in Van Buren Township, in Michigan.
Michigan, home to the nation's auto industry, faces high unemployment as a result of the car makers' struggles.
GE Chief Executive Jeff Immelt told reporters in a press conference that hiring for the facility would start by the end of this year.
GE can tap into some of the great labor resources that already exist in the state, Immelt said, adding that, We view this as a long term commitment.
The announcement by GE comes on the same day that General Motors Corp is expected to announce that it will build a small car at an existing plant in Orion, Michigan.
GE, the world's biggest maker of jet engines and electricity-producing turbines, also has research centers in Niskayuna, New York; Bangalore, Shanghai and Munich.
The research facility, slated to open later this year, will develop next-generation manufacturing technologies for GE's renewable energy, aircraft engine, gas turbine and other businesses.
It will also develop software to support GE's business operations for advanced technologies such as the smart electricity grid, and serve as a training hub for GE engineering professionals. The facility will be located about 25 miles from Detroit.
Michigan Governor Jennifer Granholm said the facility would receive state tax incentives totaling $74 million over 12 years, but was expected to generate income taxes and other revenue totaling about $146 million over that period.
These are jobs that will pay around $100,000 a year, these are high paying jobs, Granholm said.
GE must meet certain incentives to qualify for the full amount and Michigan also expects to benefit from additional supplier investments because of the facility, Granholm said.
Companies like GE never travel alone, Granholm said.
(Reporting by David Bailey and Soyoung Kim, writing by Scott Malone, editing by Gerald E. McCormick and Tim Dobbyn)