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Tuesday, June 23, 2020
● Mobility tech company will add 480 jobs, invest $35.4 million in Highland Park with support from the Michigan Strategic Fund ● Expansion provides significant momentum for Michigan’s economic recovery following COVID-19 ● Project solidifies company’s presence in state, underscores Michigan's leadership in advanced auto manufacturing and mobility
LANSING, Mich. – Gov. Gretchen Whitmer today announced Magna International will expand its seat manufacturing facility in Highland Park, a project that will generate $35.4 million in private investment and create 480 jobs for Michigan workers.
“This is great news for Michigan workers, their families, and our economy as a whole as we lay a path for economic recovery and growth here in our state,” said Governor Whitmer. “Today’s announcement by Magna further underscores that Michigan, the state that put the world on wheels, is the undisputed location for auto manufacturers to expand and grow. It’s time to get Michiganders back to work and I’m glad to see one of state’s longtime employers investing once again in our state.”
Magna International is a mobility technology company with more than 60 years in the automotive supply industry. Magna has been awarded new full-seat assembly contracts, requiring an expansion of its Highland Park site by approximately 5,000 square feet. The project includes remodeling the current space, adding new automated storage and retrieval shipping systems, and redesigning all assembly lines throughout the facility.
The project is expected to generate a total private investment of $35.4 million and create 480 jobs in a range of positions including management, IT, and manufacturing, resulting in a $2.1 million Michigan Business Development Program performance-based grant approved today by the Michigan Strategic Fund. The company also received approval of a five-year, 100-percent State Essential Services Assessment exemption valued at $326,678. This support was critical in Michigan being chosen for the expansion over a competing site in another state.
“We’ve put a lot of dedication into managing through the COVID pandemic, and it’s a good feeling to have news about growth for Magna and jobs for people in Highland Park, Detroit and other nearby communities,” said Magna Seating President John Wyskiel. “We take great pride in being part of the auto industry, in making great seats for our customers, and in helping do our part for a safe and productive economic recovery.”
The project builds on economic prosperity efforts led by the Michigan Economic Development Corporation by supporting growth in the target industry of mobility and advanced auto manufacturing and adding jobs in a geographically disadvantaged area. Nearly 300 of the new jobs will be entry level positions, bringing new opportunities to area residents and offering a path to higher-wage jobs.
“As cities look for ways to rebuild and recover, I applaud Magna's timely commitment to jobs and development during this unprecedented time,” said Wayne County Executive Warren C. Evans. “This is a step in the right direction for Highland Park as auto suppliers will hopefully see the value of locating and expanding in Wayne County.”
The city of Highland Park has offered to provide staff time and resources in support of the project. Individuals can apply for jobs with Magna in several ways:
“Rooted in, hiring, and affording our residents a better quality of life. Magna and our business family allow our youth to gain higher education and gain that much-needed literacy. The City of Highland Park’s foundation has always been the support of our automotive partners. Creating jobs and a tax base equals a healthy economy, and for that we are grateful,” said Highland Park Mayor Hubert Yopp. “We are building on our commitment to return The City of Highland Park to Excellence.”
“Working with Magna in Highland Park over the years has been very good for the community and our union members,” said UAW Servicing Rep Waymon Halty. “We believe the hard work and commitment from our union members on behalf of Magna is what makes this plant a success and is a big part of the reason they are able to bring new business to Highland Park. We look forward to increasing the union workforce here with the 500 new jobs promised and continuing to support the community.”
In addition to complete seat systems Magna makes everything from mirrors and powertrains to electronics and body & chassis systems, and is the only auto supplier to engineer and assemble complete vehicles. Magna has more than 159,000 employees worldwide, of which 625 are located at the manufacturing plant in Highland Park. Magna has a total of 30 facilities in Michigan, employing more than 10,000 Michiganders.
Today’s announcement builds on past investments by Magna in the state. Highlights include a previous expansion at the Highland Park seating plant in 2012 that created 244 new jobs and was supported by the Michigan Strategic Fund, and an expansion in 2018 at its mirrors facility in Newaygo with an investment of $45 million and creation 48 jobs, resulting in a $448,000 Michigan Business Development Program performance-based grant.
“Magna’s continued investment in Michigan sends a strong sign that we are open for business as we enable long-term prosperity over the following weeks, months and years. This expansion means good jobs for our residents and further solidifies our state’s continued leadership in advanced automotive manufacturing and mobility,” said Michigan Economic Development Corporation CEO Mark A. Burton. “We’re pleased to work with our local partners and support this investment as we continue to work toward economic recovery for all Michiganders.”
Michigan started 2020 with great momentum in economic development, building off record-breaking investments in next-generation automotive, advanced manufacturing and high tech in particular in 2019. Even in the midst of a global pandemic, Michigan has been rising in recent national business climate rankings as a result of a deep pool of highly skilled talent, connected location and affordable cost of living.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
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