Auto suppliers plan $26M investment in Metro Detroit
Two automotive suppliers are planning investments of $25.8 million that would create more than 200 jobs in Metro Detroit.
The Michigan Strategic Fund approved this week grants totaling nearly $1 million to Erae AMS USA Manufacturing LLC and Concord Tool and Manufacturing Inc., the Michigan Economic Development Corp. said.
Farmington Hills-based Erae USA plans to spend $17 million to outfit and lease a manufacturing facility in Pontiac to be closer to customers. The Michigan Economic Development Corp. is providing a $685,000 grant for the expected creation of 137 jobs.
Erae is a subsidiary of AMS Co. Ltd., a Korean supplier of driveline systems, chassis and electronic systems. The company selected Pontiac over competing sites in Indiana and Ohio.
Pontiac Mayor Deirdre Waterman said the company has expressed interest in a 40-percent property tax abatement but has not yet applied. The company is joining a number of other high-tech manufacturers along the city's "diamond corridor."
"We're really happy to welcome Erae, which has chosen Pontiac to bring 137 new jobs," Waterman said. "This is another company that will join the economic development portfolio of Pontiac."
Mount Clemens-based Concord has outgrown its existing facilities at 118 N. Groesbeck and plans to establish new operations near there. The investment is expected to amount to $8.8 million and create 75 jobs. The state has granted a $300,000 award for the project.
Concord ships parts to every Toyota Motor Corp. facility in North America and has won new programs for the Japanese automaker, leading it to make the expansion. It chose Michigan over Indiana, Kentucky and Tennessee.
The companies were not immediately available for comment.