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Area Development - Site Selection, Facility Planning and Workforce Development

State Economic Development Fund Incentives Woo Firms To Detroit, Michigan

11/28/2016
Adient, the world’s largest automotive seating supplier, will locate its operational headquarters in Detroit, Michigan. In addition, ArcelorMittal Tailored Blanks Americas Corporation, one of the leading steel producers in the world, will establish a new manufacturing center in the city’s downtown historic Metropolitan Building, which has been vacant for 39 years.

Collectively, the projects inject $215.3 million in private investment and create 265 jobs in the city of Detroit, according to the Michigan Economic Development Corporation.

“These projects reflect each private companies’ long-term commitment to the economic viability of Detroit,” said Steve Arwood, CEO at the Michigan Economic Development Corporation, the state’s business attraction arm that administers programs and conducts due diligence on incentive agreements with private companies.

“Having Adient and ArcelorMittal locate in Detroit deepens and broadens Michigan’s rightful claim as the global auto capital,” said Arwood. “Furthermore, these companies are strategically positioned in a manufacturing and R&D center here in Michigan that is transforming the auto industry and the future of transportation. In addition, the redevelopment of the Metropolitan building is another attraction to Detroit’s expanding cultural scene.”

In wooing, the MEDC negotiated a $2 million Michigan Business Development Program performance-based grant. In return, Adient committed to a $97.8 private investment and the creation of 115 jobs.

“We appreciate today’s decision and support from the MEDC and the State of Michigan to help Adient decide that southeastern Michigan was the right place for our new global headquarters,” R. Bruce McDonald, Chairman & CEO of Adient. “We will take these incentives into consideration as we make a final location decision in the next several days. We look forward to a continued partnership as we expand our presence and bring new jobs to the area.”

Adient executives and city of Detroit officials will hold a press conference in the upcoming weeks to announce the location of their new operational headquarters. With their move to Detroit, ArcelorMittal Tailored Blanks – a subsidiary of one of the world’s leading steel and mining companies, ArcelorMittal – will produce high-strength steel laser welded blanks for the OEM automotive industry. The new manufacturing operation in a 317,000-square-foot building north of GM’s Hamtramck Assembly plant is the first plant in the state for the company.

ArcelorMittal Tailored Blanks is located in the recently established industrial park near I-94 that includes Flex-N-Gate, a key site to the state’s automotive industry resurgence. With the support in May of a state grant, Flex-N-Gate will invest $95 million to manufacture exterior trim components along with aluminum and steel modular stamped body chassis assemblies, among other products.

ArcelorMittal receives a $2 million Michigan Business Development Program performance grant for a project that will create a minimum of 120 jobs over five years, and a capital investment of $83.5 million.

“The state’s consideration of a performance-based grant to support this endeavor is critical in advancing our business strategy as we further expand our footprint in Michigan, bringing new jobs and investment to the region,” said Ben Orler, Vice President of Operations, ArcelorMittal Tailored Blanks.

state officials noted the companies will benefit from proximity to Lightweight Innovations for Tomorrow (LIFT), a nonprofit supported by a $10-million grant from MEDC and founded by the University of Michigan, Ohio State University and DWI, an Ohio-based engineering and technology organization.

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