In a recent press release, one of Canada’s largest companies, Magna, announced it is investing more than $500 million to expand its operations in three different locations in Southeast Michigan. Magna plans to expand its facility in St. Clair where it manufactures battery enclosures and plans to open new facilities to build powertrains in Shelby Township and seating components in Detroit.
This move by a major contract manufacturer like Magna shows that more and more automakers are looking to move their vehicle and battery component assemblies onto US soil to qualify for federal tax credits under revised terms in the recently signed Inflation Reduction Act, and that also has some knock-on effects.
The Michigan Strategic Fund board approved a total of $10.2 million in state program grants for Magna International Inc. Companies under Magna International, Inc. applied for two new Michigan Business Development Program grants for projects in Highland Park and Shelby Township as well as additional grant funding for its facility in St. Clair, according to the Michigan Economic Development Corporation. The MSF board also approved a $2.9 million grant for Magna Seating of America, Inc. and a $1.3 million grant for Magna Powertrain of America, Inc.
“The board’s support of these investments will build on our efforts to position Michigan as a home for Magna and a continued leader in the future of mobility and vehicle electrification,” Quentin Messer Jr., CEO of the MEDC, said Tuesday.
Magna operates 35 facilities in Michigan, making it the state with its largest footprint. The company employs more than 10,000 Michigan residents, officials said. The new facilities and expansion are expected to bring more than 1,500 new good-paying jobs to the state of Michigan.
“With our unmatched capabilities across our product areas, we continue to work with our customers to help them meet their mobility needs. We are excited to be able to bring new business, more investment, and additional jobs to Michigan and we thank the state for its support,” said Eric Wilds, Chief Marketing and Sales Officer.
Details for the three facilities include:
- Magna Electric Vehicle Structures will add a 740,000-square-foot expansion of its existing facility in St. Clair, with 920 new jobs expected. The facility first opened in 2021 and currently supplies steel battery enclosures to a global automaker. Operations in the expansion are expected to start in Q4 2023.
- A new 200,000 square-foot greenfield powertrain facility in Shelby Township to supply battery tray components for a global automaker’s electric vehicles. More than 155 new jobs are expected, with production estimated to start in March 2023.
- A new 110,000 square-foot brownfield seating facility in Detroit to supply seat frames and trim and foam assembly to a US-based automaker. Approximately 490 jobs are planned at full production.
The company is currently hiring for various positions, including managers, engineers, operators, and more. Those interested in applying, please visit http://www.magna.com/careers.
Magna is one of the world’s largest suppliers in the automotive industry. Its global network includes 341 manufacturing operations and 89 product development, engineering, and sales centers spanning 28 countries.
Since Magna International is the top contract manufacturer on the continent, we’d expect many more foreign automakers to work with the company to establish US manufacturing and assembly. With today’s latest news from Michigan, Magna appears to already be making moves to prepare for such production expansions on US soil.
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Source: Clean Technica