Detroit Diesel to pour $194 million into plant expansion

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REDFORD TOWNSHIP, Mich. — Detroit Diesel will be investing about $194 million to expand existing operations at its manufacturing facility in Redford Township, Mich. The announcement was made earlier today in an all-employee town hall meeting at the 3-million-sq. ft. Redford Township site with Federal, State and local officials in attendance. The Detroit Diesel facility employs 1,900 people and manufactures heavy-duty diesel engines for the commercial truck market.

Company officials also confirmed today that its Redford Township investment 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 incentives include a Michigan Economic Growth Authority award of $56.8 million as well as other state and local tax credits and abatements.

A major portion of the capital spending will support the machining line for the cylinder heads of its heavy-duty diesel engines, according to the company. The investment will also cover facility renovations, infrastructure improvements, and procurement of machinery and equipment, as well as ongoing routine and incidental capital investment associated with the production of engines at Detroit Diesel.

“An investment on this scale only works with the commitment of strong and dedicated partners,” said Henning Oeltjenbruns, vice-president and plant manager for Detroit Diesel Corporation. “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.”

Expansion-related construction at the site is expected to begin in July with completion projected for September 2011.

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