Detroit Diesel Investing $194 Million In Engine Plant

Detroit Diesel Corp. (DDC) will invest approximately $194 million to expand existing operations at its manufacturing plant in Redford Township, MI.

The announcement was made in an all-employee meeting at the 3-million sq ft site with key Federal, State and local officials in attendance. Company officials said the 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 this week. 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.

DDC said its investment will provide expanded and benchmark manufacturing capacity for heavy-duty diesel engines featuring parent firm Daimler's proprietary BlueTec SCR reduction technology 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 the production of engines at DDC.

"Detroit Diesel’s decision to invest in its Redford Township facility demonstrates that we are globally competitive,” said Gov. Granholm (D-MI). “Our world-class skilled workforce, strong public-private partnership and manufacturing support systems make this a wise choice. This investment further solidifies Michigan’s reputation as the ‘place to be’ for domestic and international car and truck companies such as Daimler.”

"An investment on this scale only works with the commitment of strong and dedicated partners," said Henning Oeltjenbruns, DDC vp & plant manager. "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."

The DDC facility employs 1,900 and manufactures heavy-duty diesel engines for the commercial truck market. Expansion-related construction at the site is expected to begin next month with completion projected for September 2011.

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