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Politics & Government

Records show LG Chem owes more than $250,000 to subcontractors

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Lindsey Smith
/
Michigan Radio

Officials from Allegan County confirm three companies have put tax liens on LG Chem’s Holland plant. Andy J. Egan Company’s lien is worth $142,199.73,Circuit Electric’s is worth $107,712.15 and Johnson Controls’ $14,600. They say two other liens from 2011 were paid off.

The plant cost roughly $300 million dollars to build. Federal stimulus money paid for half that cost. Last week the Department of Energy’s Inspector General released a report that concluded the company wasted some of that money. The company paid back more than eight-hundred-thousand dollars.

Officials from LG Chem declined an interview but did issue this written response in an email.

“These kinds of disputes are not unusual on a construction project the size of LG Chem Michigan, with contractors paying down through several layers of subcontractors. LG Chem Michigan is working with its general contractor to get these issues resolved, and they are confident the matters will be settled amicably.”

The company has been under pressure because it hasn’t made any batteries yet. A report released last week by the department of energy said LG Chem wasted some of the grant money it was given. The company has paid back some of that money.

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