Diesel Engine Manufacturer to Expand Operations

Detroit Diesel Corp. will invest $194 million to add capacity to its manufacturing plant in Redford Township, Mich.

Detroit Diesel Corp., a Daimler company, recently announced plans to expand its manufacturing facility in Redford Township, Mich.

The company said it will spend approximately $194 million to expand the 3 million-square-foot plant, which manufactures heavy-duty diesel engines for the commercial truck market. The facility employs 1,900 workers.

The investment will provide expanded and benchmark manufacturing capacity for heavy-duty diesel engines featuring Daimlers proprietary BlueTec selective catalytic reduction technology, designed to meet EPA 2010 emission standards, according to Detroit Diesel. A major portion of the capital spending will support the machining line for the cylinder heads of the new engines.

The investment also will cover facility renovations, infrastructure improvements, and procurement of machinery and equipment, according to the company.

Company officials made the announcement June 18 at an all-employee town hall meeting at the facility in Redford Township. The meeting included key federal, state and local officials.

Company officials said that the expansion will be supported by a Michigan Economic Growth Authority award of $56.8 million as well as other state and local tax credits and abatements.

An investment on this scale only works with the commitment of strong and dedicated partners, said Henning Oeltjenbruns, vice president and plant manager, 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 is expected to begin in July, and the expansion is projected to be complete in September 2011.

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