Detroit Diesel willinvest in engine plant

Detroit Diesel Corporation (DDC) will invest approximately $194 million to expand operations at its manufacturing facility in Redford Township, Michigan. The announcement was made in an all-employee town hall meeting at the 3-million-square-foot Redford Township site with key federal, state, and local officials in attendance.

The DDC facility employs 1,900 people and manufactures heavy-duty diesel engines for the commercial truck market. Company officials also confirmed that its Redford Township investment will be supported by a variety of state and local incentives, as announced by Michigan Gov Jennifer Granholm and Redford Township Supervisor Tracey Schultz Kobylarz earlier. These incentives include a Michigan Economic Growth Authority (MEGA) 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.

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 production of engines at DDC.

Expansion-related construction at the site is expected to begin in July 2010 with completion projected for September 2011.

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