US: St. Marys Cement’s has received inducement resolution approval from the Michigan Strategic Fund (MSF) for up to US$150m in private activity bonds to expand its Charlevoix plant in Michigan. The cement producer will now submit a more detailed plan to the MSF.

“This is great news for St Marys, its employees and customers,” said Senator Wayne Schmidt. “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 plant upgrade will expand the plant’s infrastructure to increase 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.

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.