Industryweek 1758 21259 Mtu New Facility

Maker of Diesel Engine Systems to Open New Facility in South Carolina

March 5, 2010
MTU Detroit Diesel Inc. said it will open a new manufacturing facility in Graniteville, S.C., where it will begin building Series 2000 and Series 4000 engines by the end of the year.

The 270,000-square-foot facility will replace MTU's existing assembly plant near Detroit and will allow for future expansion as market demand increases over the coming years, according to the company.

"The new facility in Aiken County is part of Tognum's global strategy to increase manufacturing in the markets where our products are sold," said Matthias Vogel, president and CEO, MTU Detroit Diesel. "With it we will have greater flexibility to respond to market conditions and to compete for government contracts where local content is key."

MTU will take over the former SKF USA plant in the Sage Mill Industrial Park in Graniteville. The Tognum Group, MTU's parent company, has committed to a $45 million investment in the new facility that is expected to bring 250 jobs to the Aiken area over the next four years.

Company and government officials celebrate the announcement of MTU's new facility in South Carolina. From left to right: Ronnie Young, chairman, Aiken County Council; Dr. Ulrich Dohle, Tognum chief technology officer; Mark Sanford, governor, South Carolina; and Matthias Vogel, president, Tognum's MTU Detroit Diesel.

In addition to Series 2000 and Series 4000 assembly, MTU will machine engine parts such as cylinder heads and other large engine components that are costly to ship overseas from Germany. Local machining in the United States will make MTU less susceptible to currency fluctuations between the dollar and euro and avoid the high cost of importing parts from Europe, according to the company.

MTU expects to begin hiring for the new plant in May with production beginning in October.

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