99¢ per month for 3 months
99¢ per month for 3 months

Auto supplier to invest $27M, add 160 jobs in Detroit

Michael Wayland
The Detroit News

Chinese-owned automotive supplier YFS Automotive Systems announced plans Tuesday to invest nearly $27 million to build a Detroit testing and manufacturing facility.

The facility is expected to create 50 new jobs when it opens in 2017, and could result in as many as 160 new hires when operating at full capacity.

The Detroit Economic Growth Corp. worked with the city of Detroit and the Michigan Economic Development Corp. to get the company a $1.3 million grant to persuade it to come to Detroit instead of Ohio.

In addition to the Michigan Strategic Fund Business Development Program grant, YFS is expected to apply for a tax abatement from the Detroit City Council.

The investment will include the acquisition of the about 30 acres of vacant industrial property in Detroit to construct a 150,000-square-foot manufacturing facility. It is expected to be near the Interstate 75 and I-94 corridor, but an exact location was not disclosed.

“YFS locating in Detroit is a reaffirmation of Michigan’s competitive business climate,” said Gov. Rick Snyder, who met with YFS during his 2014 investment mission to China. “Our strong economy combined with our top talent makes investing in Michigan ideal for local and international businesses to locate and thrive.”

YFS is a tier one supplier of fuel tanks and urea systems for carmakers. The company was established in 1997 as ABC Group Fuel Systems Inc. and was purchased in 2014 by Rongshi International, a Chinese-owned automotive supplier. Its U.S. headquarters in located in Gallatin, Tennessee.

The company says it will work with the Detroit Employment Solutions Corp. to hire workers.

The grant program is the same one that brought a $31.9 million investment from India-based Sakthi Automotive Group to Southwest Detroit this spring.

The $1.2-billion industrial conglomerate Sakthi Group expanded operations at its facility on West Fort near Livernois, resulting in 350 new jobs.

“When you look at all the recent investments in advanced manufacturing in Detroit, the pace is accelerating,” Kenneth Chapa, executive vice president for business development at the Detroit Economic Growth Corp., said in the statement.

“That is really good news because those investments have ripple effects that build neighborhoods and generate jobs for Detroiters beyond those created by the manufacturers themselves.”