(Chicago, IL) — October 28, 2010. Governor Pat Quinn today announced that Chrysler is planning to invest $600 million over the next three years to expand its Belvidere assembly plant in order to produce “future vehicles”.
The state is providing a $62.1 million business investment package to save 1,950 permanent jobs and generate 700,000 construction hours. Quinn signed legislation into law in December to expand the EDGE tax credit to benefit the auto industry, which enabled Chrysler to expand its Belvidere operation.
“This significant investment will save nearly 2,000 Illinois jobs and is a clear indication that Illinois is continuing our economic recovery,” said Quinn
The state’s investment will help Chrysler build a 638,000 square-foot body shop and install new machinery and material handling equipment. Work began this summer and will finish next year.
The improvements will facilitate the production of the next generation of Chrysler vehicles in 2012, incorporating advanced components and systems technologies.
The Illinois Department of Commerce and Economic Opportunity is administering the investment package. The package consists of EDGE tax credits, Employer Training Investment Program job training funds that will help retrain the company’s workforce, and Large Business Development Program funds for capital improvements.
The enhanced EDGE tax credit enables auto manufacturers, which are among Illinois’ largest group of employers, to retain employee income tax withholdings as an alternative to the current EDGE corporate tax credit and reinvest those funds into operations that create more jobs.
DCEO Director Warren Ribley said, “Today, we are seeing the benefits of our investments as we help usher in a new era of manufacturing excellence in Illinois.
Illinois leads the Midwest in job creation with more than 50,000 jobs being added this year, including more than 10,000 manufacturing jobs, according to Quinn.