The investment, which is supported by the Michigan Economic Growth Authority Award of $56.8 million provided by the Michigan Economic Development Corporation is meant to expand the engine production capacity in Redford and further develop the truckmaker’s BlueTec technology. The investment, DTNA says, was required as a result of the increase in demand.
“We’re very happy with the framework agreement we recently negotiated with the UAW,” Martin Daum, DTNA CEO said in a statement.
“We would also like to thank the State of Michigan, Redford Township, and Wayne County for jointly reaching the decision to provide us with the funding package. Our total investment of approximately $200 million underscores the importance of the Redford plant and our confidence in the workforce of Detroit Diesel. Strong partners are needed if a commitment on this scale is to be successful.”
According to DTNA, a big amount of the money to be invested will be used to manufacture cylinder heads. The remainder will be spent on redesigning the manufacturing facilities, improving plant infrastructure and the purchase of machines and equipment.
The work on the factory upgrade, which will increase the output of the facility, will begin this July, with the target set to complete work by September 2011.
Google News