Magna plans to invest US$530 million in three new and existing U.S. plants

Automotive supplier Magna International Inc. is planning to expand its Michigan operations in Highland Park, Shelby Township and St. Clair while creating 1,569 jobs to support new business from automakers.

The Canadian company, whose U.S. base is in metro Detroit, plans to invest around $530 million (all figures in USD) into new and existing plants to build seat frames as well as EV battery frames, enclosures and components.

The projects are being backed by state incentives totaling around $17 million in value, according to the Michigan Economic Development Corp., which approved the projects Tuesday.

Magna intends to quadruple the footprint of its EV parts plant announced early last year. The company will increase its investment from $70.1 million to $497 million and boost job creation from 304 to 1,224.

The expansion, which would double the plant square footage to 740,000, is the result of landing a new program over the next eight years from a "major OEM" that was not identified in the memo.

"This new program will grow new business to support electrification strategy which is a key growing priority for the Company to increase its leadership position in the battery frame market," the memo said.

Wages for the newly created positions range from $17 per hour to $48 per hour, with an average of $27 per hour.

To support the latest expansion, the MEDC increased the value of its Michigan Business Development Program from $1.5 million to $7.5 million, approved a 100 per cent SESA tax exemption worth $6.3 million and authorized a State Education Tax abatement.

Other support includes $3.6 million from the Economic Development Alliance of St. Clair County for infrastructure improvement. The project would require construction of a new water tower for $7.4 million, plus $8.2 million in water plant upgrades.

Magna Powertrain of America Inc. said it will invest $96.2 million into a leased 200,000-square-foot plant, according to the memo, which did not disclose the project address.

The company would manufacture internal components for EV battery trays at the plant with a production capacity of 13 million units by 2023 and nearly 74 million by 2030.

Magna expects to employ 159 workers at an average wage of $2,500 per week plus benefits.

The MEDC approved a $1.3 million grant for the project and a 50 per cent SESA tax exemption for up to five years totaling $370,000 in value. Additionally, Shelby Township anticipates approving a local tax abatement for the plant.

Magna Seating of America Inc. plans to invest $3.8 million to build out a leased 114,000-square-foot plant at 12240 Oakland Parkway near Detroit, according to an MEDC briefing memo.

The seating, foam and trim assembly plant would employ 490 jobs paying an average of $700 per week plus benefits.

The project is being supported by a $2.9 million performance-based grant by the MEDC, which said the incentives were necessary to keep the company from expanding outside the state.

"While Magna remains committed to Michigan, incentive assistance is necessary to make the expansion in Michigan a competitive decision," the MEDC said.