Spanish supplier Gestamp to invest $158.7 million in U.S.
Gestamp North America plans to invest $158.7 million into its Michigan operations.
The subsidiary of Spain-based Gestamp Automocion plans to expand its plants in Chelsea, Michigan, and Mason, Michigan, and invest $700,000 at its North American headquarters north of Detroit in Troy, Michigan.
Its plans include a new chassis assembly line, paint line and press-hardening line in Chelsea and a 150,000-square-foot facility to house a new laser-cutting cell in Mason. The plants will gain 235 new jobs, while the project in Troy will create 60 new jobs.
The Michigan Strategic Fund approved $1.575 million in performance-based grants toward the project, including $400,000 for the Troy expansion.
The cities of Mason and Chelsea approved property tax abatements for the expansions. Troy will provide marketing and promotion to the Troy project, the Michigan Economic Development Corp. said in a news release.
Gestamp supplies parts for automotive doors and bumpers to Ford Motor Co., General Motors and Fiat Chrysler Automobiles. The company ranks No. 27 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $8.5 billion in 2015.
Flex-N-Gate Detroit gets qualified business status
MSF also approved Flex-N-Gate Detroit LLC as a qualified business in the City of Detroit Next Michigan Development Corp. The designation classifies Flex-N-Gate's proposed plant as a Renaissance Zone, effective Jan. 1. Renaissance Zone designations allow for full relief from personal, real and municipal corporate income taxes for 10 years, with the exemptions being phased out in the seventh through 10th years.
Urbana, Ill.-based Flex-N-Gate Corp. plans to invest $95 million and buy 30 acres of city land for $1.3 million to build a plant that will create up to 750 jobs in Detroit. The plant is slated to build spare parts for Ford Motor Co.
MSF supported that project with the approval of a $3.5 million performance-based state grant.
The plans are to build a 500,000-square-foot manufacturing plant on the site at the I-94 Industrial Park in the city.
Flex-N-Gate ranks No. 38 on the Automotive News list with worldwide sales to automakers of $6.1 billion in 2015.