By Dustin Walsh, Crain News Service
DETROIT (March 26, 2015) — Detroit Diesel Corp. plans to upgrade its nearly 75-year-old manufacturing plant in suburban Detroit.
The manufacturer of diesel engines is expected to invest $208 million to add new machinery and equipment for a new medium-duty diesel engine line, creating an anticipated 245 jobs.
The Michigan Strategic Fund (MSF) approved on March 24 a $1.3 million performance-based grant in support of the project. The new grant is in addition to a 2013 grant from MSF for $250,000 for new jobs related to the expansion of a turbocharger line at the Redford Township, Mich., factory.
Detroit Diesel chose to establish the new diesel engine line in Michigan over competing locations in Mexico and Germany, the Michigan Economic Development Corp. (MEDC) said in a briefing memo.
The supplier, owned by German auto manufacturer Daimler A.G., already produces a medium-duty diesel engine in Manheim, Germany, and could have easily placed the new line there, the MEDC said.
“With the commitment of state and local support, the company made the decision to place production in Michigan so it will be made under the “Detroit” brand name,” the briefing memo said.
The project was expected to begin before the second quarter of this year.
This report appeared in Crain's Detroit Business, a sister publication of Tire Business.