Detroit Diesel invests $194M in Michigan engine plant

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Detroit Diesel Corp. on Friday, June 18, announced that it will invest about $194 million to expand existing operations at its heavy-duty diesel engine manufacturing facility in Redford Township, Mich. The investment in the facility – which employs 1,900 people – will be supported by a variety of state and local incentives announced by Michigan Gov. Jennifer Granholm, including a Michigan Economic Growth Authority award of $56.8 million along with other state and local tax credits and abatements.

The company says the investment will provide expanded and benchmark manufacturing capacity for its engines featuring Daimler’s BlueTec selective catalytic reduction technology designed to meet U.S. Environmental Protection Agency 2010 emissions standards. A major portion of the capital spending will support the machining line for the cylinder heads of these new engines. The investment also will cover facility renovations, infrastructure improvements and procurement of machinery and equipment, as well as ongoing routine and incidental capital investment associated with engine production.

“An investment on this scale only works with the commitment of strong and dedicated partners,” says Henning Oeltjenbruns, vice president and plant manager for Detroit Diesel Corp. “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 next month, with completion projected for September 2011.