A major global auto supplier plans to invest more than $500 million into its Michigan operations, company and state officials announced.
Magna executives said the three Southeast Michigan projects, which would amount to $526 million in capital expenditures, would support new production agreements inked by the Canada-based contract manufacturer. They are expected to create more than 1,500 new jobs overall.
The bulk of the funding, nearly $427 million, would go toward a 740,000-square-foot expansion at its St. Clair, Michigan, plant, where its Electric Vehicle Structures division will make battery trays for EVs produced in the Midwest beginning in late 2023. That facility would also account for a majority of the new hires: an estimated 920 added jobs.
Magna will also spend just over $96 million on a newly leased facility in Shelby Township, Michigan, which will produce internal components for EV battery trays. Nearly 160 jobs are expected to be added at that factory.
The company’s Highland Park, Michigan, automotive seating facility, meanwhile, will see $3.7 million in spending but create 490 jobs. The suburban Detroit factory will house new assembly equipment for frame lines, as well as equipment relocated to its operations from a supplier.
Michigan officials raised an existing state economic development grant for the St. Clair site from $1.5 million to $7.5 million, and Magna could receive an additional exemption worth more than $6.3 million over 15 years. The Shelby and Highland Park projects would receive state grants worth $1.3 million and $2.9 million, respectively.
Magna operates a total of 32 facilities throughout Michigan, which employ more than 10,000 workers combined.
“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,” Magna Chief Marketing and Sales Officer Eric Wilds said in a statement.