LIPPSTADT — A Lippstadt, Germany-based orchid propagation company called Hark Orchids is planning to locate a laboratory in Kalamazoo, Mich. The announcement came last month from Gov. Rick Snyder’s office as the governor toured Germany.

“Hark’s choice of Michigan for its first U.S. facility tells others across the globe that Michigan holds great opportunities for their business expansion,” Snyder said. “This announcement comes as we wrap up a very busy, productive week with companies in Italy and Germany.

“Our message that Michigan is more business-friendly than ever is showing real results that will mean new jobs for people across our state.”

According to the announcement, up to 80 jobs will be created in the next 3-5 years. Hark Orchids plans to invest $5 million in the new facility, a 30,000 square-foot laboratory and climatic chambers.

The Michigan Economic Development Corp. (MEDC) and Southwest Michigan First supported the project with grants totaling $750,000. The MEDC is funded with taxpayer dollars, while Southwest Michigan First is funded entirely with private funds, according to Ron Kitchens, its CEO. Each organization paid about half of the total incentive package to get Hark Orchids to come to Michigan.

“We annually work with between 150 to 200 companies that need to grow and expand in the region,” Kitchens said. “Hark was one of those companies.”

He said Hark Orchids produces 90 percent of all the orchids sold in western Europe, but only 10 percent of those sold in the United States. “They see the U.S. as a tremendous growth market,” he added.

The money committed to help bring Hark to Kalamazoo included a tax incentive for locating in a so-called Renaissance Zone. The company will locate in the Mid-Link Business Park, a large site that was formerly a General Motors stamping plant.

The company will pay fewer taxes because it’s helping to rehabilitate the site by starting the new laboratory. It’s expected to be up and running sometime in December.

“We as a community developed that site. It’s a tremendous success story, as well,” Kitchens said. “It’s one of the most successful rehabilitations of a former plant site in the United States. It’s certainly the most successful one in the state of Michigan. We’re blessed to have this kind of development.

“As a former farm kid, you think of seeds coming in and then you plant them, but these seedlings take two years to grow. It’ll take them a little time, too but it’s a great company. As a farm kid, I like the idea of agriculture and science coming together.”

Kitchens explained Kalamazoo is No. 2 in the nation in producing bedding plants. “Anything you buy in a bedding plant, there’s a pretty good chance it came from Kalamazoo. Our hope is that after two years, that seedling will be shipped down the street rather than out of state.”

He added that Hark Orchids’ move to Michigan reinforces Michigan’s reputation as “a state for value-added agriculture. It’s something we continue to build on.”