Cobalt Holdings LLC, an Illinois-based company, will invest nearly $6.1 million to expand and consolidate its operations in Sturgis, Mich.
Cobalt, which currently conducts business as Advanced Ground Care, plans to consolidate its Advanced Ground Care and Elk Distributing operations to a single location in Sturgis.
The company plans to invest $6.1 million and create 100 jobs with an average weekly wage of $580 during the next five years, according to a press release issued by Sen. Cameron Brown’s office.
Cobalt Holdings started in 2005 in South Holland, Ill. A scrap tire recycling and manufacturing business, the company processes about 30,000 tons of scrap tires per year for use as rubber feedstock supply for manufacturing its own products and other end use markets. The company’s products are sold through big box retail stores, commercial contractors and independent garden and landscape centers, according to the press release.
Bought in 2000 by the same group that owns Cobalt Holdings, Elk Distributing is a primary supplier of recycled tires and currently operates out of Elkhart, Ind.
The Michigan Economic Development Corp. (MEDC), Lansing, Mich., provided assistance for the project. The agency estimates the increased economic activity created by Cobalt’s relocation from Elkhart to Sturgis will create an additional 87 indirect jobs. Based on MEDC's recommendation, the Michigan Economic Growth Authority (MEGA) board approved a state tax credit valued at $353,685 over five years to encourage the company to expand in Michigan over a competing site in Indiana.
The city of Sturgis is considering an abatement valued at $169,000 over 12 years in support of the project.