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Jabil Circuit Receives $14.5M Tax Credit For Expansion of Facilities

10 November 1999

Jabil Circuit Receives $14.5 Million Tax Credit For Expansion of High-Tech Manufacturing Facilities in Oakland County

    AUBURN HILLS, Mich., Nov. 9-- Jabil Circuit has
been awarded a state tax credit valued at more than $14.5 million over the
next 20 years by the Michigan Economic Growth Authority (MEGA) for the
expansion of the company's high-tech manufacturing facilities in Oakland
County.
    Randy Haight, Jabil's vice president for business development, said the
tax credit will allow Jabil to expand its production capacity in Oakland
County for automotive and other high-tech markets.
    Doug Rothwell, president and chief executive officer of the Michigan
Economic Development Corporation, announced earlier today at a press
conference in Lansing that the MEGA Board had approved the $14.5 million tax
credit for Jabil.
    "Jabil's decision to expand its Auburn Hills campus demonstrates the
growing strength of Michigan's high-tech business community," Rothwell said.
"We're proud of the fact that the Michigan Economic Growth Authority has
proven to be such an effective tool for fostering economic growth, especially
in high-tech related industries."
    Rothwell said the project is expected to create nearly 1,100 new jobs for
Michigan workers over the life of the agreement with Jabil.  About 640 of the
new jobs will be spin-off jobs from increased purchases from Michigan
suppliers and spending by people who receive income from Jabil Circuit,
according to an economic analysis done by the University of Michigan.
    One of North America's 10 fastest growing companies according to Fortune
Magazine, Jabil employs more than 1,100 people in its high-tech circuit-board
assembly facilities at two locations in Auburn Hills, MI.  Founded in
Michigan, the firm today is one of the world's largest providers of
electronics manufacturing services (EMS) with fiscal 1999 revenues of more
than $2 billion and facilities on three continents.
    Haight credited the "business-friendly" environment in Michigan and
Oakland County for the company's decision to expand its local manufacturing
operations.  He said a team assembled more than nine months ago by Oakland
County Executive L. Brooks Patterson was especially instrumental in helping
Jabil put together a package of tax credits and incentives that will permit
the company to further expand its Michigan operations.
    Patterson congratulated Jabil on its decision to expand in Oakland County.
"Oakland County is an ideal location for high-tech companies such as Jabil
Circuit," he said.  "Our Automation Alley concept has attracted the attention
of high-tech businesses from around the world."
    "Oakland County has a higher per capita income and lower cost of living,
housing costs and unemployment than either Silicon Valley or Route 128 in
Boston," Patterson noted.  "We also compare favorably in terms of job growth,
number of colleges and universities, and average commuting times."
    Another factor contributing to Jabil's decision to expand in Michigan,
Haight said, was the strategic importance of Jabil's automotive business and
the industry's growing need for global suppliers with high-tech engineering
and manufacturing expertise in the region.  He also noted that Jabil was the
world's first major electronics contract manufacturer to achieve QS-9000
certification.
    The Jabil executive said final plans for the new manufacturing complex,
including its design and location, are still under review.  He said the
company was working closely on the project with the City of Auburn Hills and
Auburn Hills City Manager Bill Ross.
    Jabil Circuit, Inc. is an electronic manufacturer of circuit board
assemblies for international original equipment manufacturers in the
communications, personal computer, computer peripheral, automotive and
consumer markets.  The company offers circuit design, board design from
schematic, mechanical design, prototype assembly, volume board assembly,
system assembly, and distribution and repair services from automated
manufacturing facilities in North America, Europe and Asia.
    Additional information about the company can be found on the Internet at
http://www.jabil.com