Stonehenge Capital Finances DMS Expansion in Detroit and New Plant in Toledo, Ohio
August 17 2017 - 5:00AM
Stonehenge Capital today announced an investment in Detroit
Manufacturing Systems (DMS) that will allow the Detroit-based
automobile component parts manufacturer to expand its Michigan
operations and to develop a new plant in Toledo, Ohio.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/3c30cfda-1b71-4f71-b201-e10c5f5e1f88
The investment, made through the federal New Markets Tax Credit
Program and supported by an investment from JPMorgan Chase, will
enable DMS to retain 130 jobs in Detroit and to create more than
135 new full-time jobs with full benefits in Toledo.
DMS uses state-of-the-art technology to manufacture and assemble
injection-molded interior trim component parts for automobiles. The
investment announced today will allow the company to fulfill new
contracts, and to grow its business to include additional component
products, while providing well-paying jobs in the U.S.
manufacturing industry.
“We are grateful to Stonehenge and our other financial partners
for supporting our expansion in Detroit and Toledo,” said DMS CEO
Andra Rush. “The New Markets Tax Credit is a vital part of our
success, enhancing our ability to achieve our mission to create
sustainable job opportunities in underrepresented communities for
many years to come. It has helped facilitate our company’s drive to
create high-quality products for our customers at competitive
pricing and profitability, which creates a winning environment for
all.”
DMS will hire residents from surrounding low-income areas. The
Detroit facility is located in a community with a 44 percent
poverty rate, 34 percent median family income and 21 percent
unemployment rate. The Toledo location is in a community with a 45
percent poverty rate, 41 percent median family income and 23
percent unemployment rate. The job opportunities at both DMS
facilities offer full medical benefits, an average wage of $41,000,
401(k) retirement benefits and annual tuition reimbursements.
Stonehenge Capital provided $8 million in federal New Markets
Tax Credit (NMTC) allocation that will allow DMS to purchase and
install the new equipment necessary to expand its manufacturing
services.
“Stonehenge is honored to provide DMS the opportunity to
maintain its operations and employees in Detroit, while also
expanding to Toledo, Ohio,” said Stonehenge Community Development
Director L’Quentus Thomas. “This investment is the quintessential
New Markets Tax Credit investment that allows an American
manufacturer to remain competitive, maintain its operations in the
United States and employ more hard-working Americans with
higher-than-average wages.”
JPMorgan Chase served as the NMTC investor, providing an
up-front investment of equity capital to support the broader NMTC
transaction.
“This critical capital will support DMS’s continued business
expansion and it builds on our firm’s $150 million investment in
Detroit’s economic recovery,” said Chase Community Development
Banking Vice President James Simmons. “The New Markets Tax Credit
investment is a victory for Detroit and Toledo – it keeps jobs and
grows DMS’s business in Detroit and provides new employment
opportunities in Toledo.”
Enacted in 2000, the federal NMTC program provides critical
financing to rural and urban communities that have historically
lacked access to the capital needed to support and grow businesses,
create jobs and sustain healthy local economies. The program has
leveraged some $80 billion in investments for hard-hit, blighted
communities around the country, resulting in over 750,000 jobs, and
has generated $8 of private investment for every $1 of federal
funding, according to the Community Development Financial
Institutions Fund at the U.S. Treasury, which administers the
program.
During a recent tour of a manufacturing facility in Cincinnati,
U.S. Sen. Rob Portman of Ohio expressed his support for making the
New Markets Tax Credit program permanent.
About Stonehenge Capital:
Since 1999, Stonehenge (www.stonehengecapital.com) has operated
at the nexus of finance and community development. Stonehenge
invests in underserved communities through community development
programs in order to improve the economic wellness of the
communities and residents. Today, the firm’s values remain
unchanged and Stonehenge’s role as a catalyst in the success of
individuals, businesses and communities is evident through the
firm’s three core business lines: growth capital, tax credit
services and community development. Stonehenge utilizes a variety
of debt and equity financings to spur economic growth across the
country, and has offices in Baton Rouge, New York, Dallas and other
locations.
About JPMorgan Chase:
JPMorgan Chase & Co. (NYSE:JPM) is a leading global
financial services firm with assets of $2.6 trillion and operations
worldwide. The Firm is a leader in investment banking, financial
services for consumers and small businesses, commercial banking,
financial transaction processing, and asset management. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co.
serves millions of customers in the United States and many of the
world's most prominent corporate, institutional and government
clients under its JPMorgan and Chase brands. Information about
JPMorgan Chase & Co. is available at www.jpmorganchase.com.
Contact: Kara Hansen, kara@thinkhubbell.com, 503-274-8886
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