DETROIT — Daimler is investing about $194 million to expand its Detroit Diesel plant in Michigan.

The facility is actually on the edge of Motor City, in Redford Township, where Detroit Diesel Corporation (DDC) employs about 1,999 people and builds heavy-duty truck engines.

The announcement, of course, comes as good news to Detroit. Hence DDC officials made the announcement in an all-employee town hall meeting at the 3-million-sq-ft Redford Township site with key federal, state and local officials in attendance.

Company brass also confirmed that this expenditure will be supported by a variety of state and local incentives, as announced by Michigan Governor Jennifer Granholm and Redford Township Supervisor Tracey Schultz Kobylarz earlier this week.

These include a Michigan Economic Growth Authority (MEGA) award of $56.8 million as well as other state and local tax credits and abatements.

DDC is expanding and benchmarking manufacturing capacity for heavy-duty diesel engines featuring Daimler’s BlueTec SCR technology, designed to meet EPA 2010 emission standards.

"An investment on this scale only works with the commitment of strong and dedicated partners," said Henning Oeltjenbruns, vice-president and plant manager, DDC.

"We welcome the recent UAW commitment to a new master agreement. We applaud the State of Michigan, Redford Township and Wayne County for their shared commitment to a generous incentive package.

“There is no better way to show our appreciation for this support, and our trust in the people of Detroit Diesel."

Expansion-related construction is expected to begin in July 2010 and is expected to be completed in September 2011.