JACKSON COUNTY, MI – Because the automotive market continues to maneuver away from inner combustion engines, Michigan Automotive Compressor Inc. will start manufacturing of recent components for electrical automobiles.

MACI plans to spend $82 million and retain 241 jobs by putting in the brand new manufacturing processes within the Parma-area manufacturing unit, west of Jackson, to make sure the corporate’s long-term viability and future development, officers mentioned.

“As prospects shift from present inner combustion engines over to electrical, if we didn’t put together to supply the brand new sort of product, it could be job loss for us,” Vice President Joe Shaughnessy mentioned. “So, in our case, it’s a direct one for one alternative as individuals buy electrical versus fuel.”

Whereas precise manufacturing of the brand new components received’t start till December 2024, work has began internally to kick off the undertaking. Workers concerned with manufacturing have begun coaching for the brand new merchandise, and up to now, studying has been going effectively, Shaughnessy mentioned.

Some minimal work will should be achieved to the constructing, Shaughnessy mentioned, as older expertise manufacturing traces have to be eliminated to arrange areas within the plant for the brand new manufacturing traces.

“It’s not a bodily brick and mortar growth, it’s a repurposing of underutilized areas within the plant,” Shaughnessy mentioned.

It’s important for MACI to make this transition to electrical automobile manufacturing, Shaughnessy mentioned.

“It’s obligatory for us to outlive within the automotive market,” he mentioned. “If we don’t change with the market, we principally will decline to the purpose that we wouldn’t survive.”

MACI is a producer of compressors for automotive air conditioners for main automobile producers. These similar components can be made for the electrical automobiles, in addition to remaining manufacturing meeting, Shaughnessy mentioned.

Presently MACI officers can’t straight specify the purchasers who’re contracted with the corporate for electrical automobiles, Shaughnessy mentioned.

The MACI undertaking contributes to the Michigan Financial Growth Company’s ongoing efforts to strengthen Michigan’s management in automotive manufacturing, officers mentioned, including it additionally builds on the state’s work to place itself because the epicenter of autonomous and electrical automobile manufacturing within the U.S.

The Michigan Strategic Fund accredited a five-year, 100% State Important Companies Evaluation negotiated evaluation price for the corporate, which is valued at $984,000 for the corporate’s $82 million funding. The corporate additionally anticipates receiving a property tax abatement in help of the undertaking, officers mentioned.

The Enterprise Group of Jackson considers this undertaking a transformational and important alternative for MACI and the Jackson group, Vice President of Financial Growth Alex Masten mentioned.

“We’re enthusiastic about MACI’s tools funding to deliver localized manufacturing of electrical compressors to Michigan, particularly Jackson County,” Masten mentioned. “This undertaking has a huge effect on our native financial system when it comes to retained jobs and capital funding, so we’re happy to listen to of the MEDC’s and MSF boards’ help of this essential transition.”

MACI is a three way partnership between Toyota Industries Company and DENSO and has greater than 1,000 staff at its Jackson County facility at 2400 N. Dearing Street. MACI began manufacturing in Jackson County in 1990.

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