Detroit Diesel Corporation announced it will invest approximately $194 million to expand operations at its 3-million square-foot manufacturing facility in Redford Township, Mich. The facility employs 1,900 people and manufactures heavy-duty diesel engines for the commercial truck market.
The announcement was made earlier today at the plant during an all-employee meeting with federal, state and local officials. Company officials also confirmed today that its Redford Township investment will be supported by a variety of state and local incentives, as announced by Michigan Governor Jennifer Granholm and Redford Township Supervisor Tracey Schultz Kobylarz earlier this week. These incentives include a Michigan Economic Growth Authority (MEGA) award of $56.8 million as well as other state and local tax credits and abatements.
According to the announcement, the investment will provide expanded and benchmark manufacturing capacity for heavy-duty diesel engines featuring Daimler’s BlueTec selective catalytic reduction technology, designed to meet EPA 2010 emission standards. This new family of engines represents the state-of-the-art in technology for fuel efficiency and emissions reduction, the company said.
A major portion of the capital spending will support the machining line for the cylinder heads of these new engines. The investment will also cover facility renovations, infrastructure improvements and procurement of machinery and equipment, as well as ongoing routine and incidental capital investment associated with the production of engines.
“Detroit Diesel’s decision to invest in its Redford Township facility demonstrates that we are globally competitive,” said Governor Granholm. “Our world-class skilled workforce, strong public-private partnership and manufacturing support systems make this a wise choice. This investment further solidifies Michigan’s reputation as the ‘place to be’ for domestic and international car and truck companies such as Daimler.”
“An investment on this scale only works with the commitment of strong and dedicated partners,” said Henning Oeltjenbruns, vice president and plant manager, Detroit Diesel Corporation. “We welcome the recent UAW commitment to a new master agreement. We applaud the State of Michigan, Redford Township and Wayne County for their shared commitment to a generous incentive package. We are pleased to announce that Daimler will make its own commitment by investing $194 million. There is no better way to show our appreciation for this support, and our trust in the people of Detroit Diesel.””
Expansion-related construction at the site is expected to begin next month with completion projected for September 2011. The Redford manufacturing facility is located in Redford Township, Michigan.
