A German company that produces orthopedic implants plans to set up production in Holland with the aid of a $1.8 million state grant. 

HG Medical USA LLC, the American arm of hg medical GmBH, will invest $41 million and create up to 180 jobs in 100,000 square feet of leased space at a former Yanfeng Automotive Interiors facility on South Waverly Avenue in Holland, now known as the Holland Tech Center. The jobs would pay an average of $21.59 an hour, plus benefits. 

“The company is in a growth stage since its positioning in North America with plans to double the organization through value creation, innovation, and product differentiation. To do this, a facility with growth capacity along with skilled workforce are required,” Michigan Economic Development Corp. staff wrote in a memo to Michigan Strategic Fund Board members. “This expansion project signifies a major investment in a new manufacturing center employing administrative employees, technicians, and highly skilled engineering professionals for the company.” 

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The MSF Board today approved the $1.8 million Michigan Business Development Program grant for HG Medical USA, which operates a facility in Huntington, W. Va., that opened in 2015 and employs 26 full-time workers. The grant will support project costs, including construction, infrastructure, machinery, equipment, tooling, computers, furniture, fixtures, and recruitment and job training. 

The city of Holland may also support the project with a local tax abatement. 

The quality of the local workforce contributed to the company’s decision to locate in Holland, said Amanda Murray, vice president of business solutions at economic development organization Lakeshore Advantage Corp., which worked with HG Medical USA on expansion plans. 

Lakeshore Advantage will partner with Grand Rapids Community College for customized worker training at HG Medical USA, Murray said. 

“The competition is really global for these types of projects, so it is a big deal for us to win it here in West Michigan. It is a testament to the strong quality of workforce that we have here,” she said. “With these types of jobs, they need highly trained individuals to do the manufacturing and engineering.” 

A contract manufacturer, HG Medical USA produces orthopedic titanium, high-grade stainless steel, and medical plastics implants for lower and upper extremities and spines for North American markets. 

Michigan competed for HG Medical USA’s expansion with Tennessee, Minnesota, and Indiana, each of which “offered viable packages to win the project,” according to the MEDC. The company weighed factors such as costs, real estate, incentives, the local economy, permitting, and quality of the local workforce in deciding on a site to expand, MEDC staff wrote. 

“Michigan’s key advantage, specifically West Michigan’s key advantage, is its similarity in work ethic to Germany, where the parent is based. The company notes a level of comfort with the work ethic of the workforce in West Michigan,” MEDC staff wrote in the briefing memo.