Detroit Diesel Corp. (DDC) announced that it will invest approximately $194 million to expand existing operations at its manufacturing facility in Redford Township, Mich.
The DDC facility employs 1,900 people and manufactures heavy-duty diesel engines for the commercial truck market. Company officials also confirmed its Redford Township investment will be supported by a variety of state and local incentives, including a Michigan Economic Growth Authority award of $56.8 million, as well as other state and local tax credits and abatements.
The company’s investment will provide expanded and benchmark manufacturing capacity for heavy-duty diesel engines featuring Daimler’s proprietary BlueTec selective catalytic reduction technology, designed to meet EPA 2010 emission standards. This new family of engines represents the state-of-the-art in technology for fuel efficiency and emissions reduction, according to the company.
A major portion of the capital spending will support the machining line for the cylinder heads of these new engines. 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 DDC.
“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. We are pleased to announce that Daimler will make its own commitment by investing $194 million. There is no better way to show our appreciation for this support, and our trust in the people of Detroit Diesel.”
Expansion-related construction at the site is expected to begin in July 2010 with completion projected for September 2011.
