General Motors Co. could receive $4 million in tax breaks from the city of Lansing for a $38.6 million logistical center the automaker is considering building to support its Lansing Grand River Assembly Plant.
The automaker is seeking a 12-year tax abatement from the city of Lansing, according to GM's application for tax breaks.
The facility would be used for warehousing and sequencing operations to support Lansing Grand River and would create 150 jobs, according to the application. GM has some in-house sequencing in its assembly plants, where workers organize parts in order for assembly line workers.
Sequencing can cut or eliminate bins, saving space and reduce time assembly line workers spend getting parts. The automaker, which also outsources some sequencing, may be looking to trim transportation costs by opening a logistics center.
GM spokesman Bill Grotz Friday declined comment on what workers would do at the facility and said GM is still considering its business case for the investment.
The center would be several hundred square feet and next to Lansing Grand River, said Karl Dorshimer, director of economic development for the Lansing Economic Area Partnership. "By building it adjacent to the LGR plant, they will be able to increase the efficiency and production capacity at the plant," Dorshimer said in an email.
Lansing City Council will receive GM's tax break request at its Monday meeting, but final approval is weeks away.
GM's 2011 contract with the UAW includes potentially bringing 760 jobs back to GM at various locations, including in-sourcing interior parts sequencing work at GM's Lansing Delta Township Assembly Plant.
Grotz said that has not happened at Lansing Delta Township, but GM continues to work with the UAW.
Construction on the logistics center could start as early as July and would be completed by 2015.
Lansing Grand River builds the Cadillac CTS and ATS. GM is moving production of the next-generation Chevrolet Camaro from Oshawa, Ont., to Lansing Grand River.