AUBURN HILLS, Mich. – Fueled by significant growth with domestic OEMs, Brose North America, a manufacturer of mechatronic components and systems for vehicle bodies and interiors, has signed a purchase agreement for an existing 380,000-square-foot manufacturing facility in New Boston, Mich. The facility will be Brose’s third in Michigan and ninth in North America.
Recent new contracts with Chrysler and Ford necessitate expanding its manufacturing footprint in North America, the company said. For Chrysler, Brose will supply door modules to Jeep’s Toledo North Assembly Plant. Brose also was recently awarded additional seat structure business on upcoming Ford passenger car and SUV models.
Brose says hiring will begin and equipment will be delivered with the expectation of production ramping up in early 2013. Including its regional headquarters in Auburn Hills, Mich., and a production facility in Warren, Mich., Brose North America currently operates eight locations in the United States, Canada and Mexico.
Jan Kowal, president for Brose North America, said the company’s impressive growth in the region has accelerated the need for additional workers and manufacturing capacity.
"We are pleased with our controlled growth," Kowal said. "In 2011, Brose achieved annual sales of $1 billion in North America and worldwide sales of over $5 billion. This project will mean 450 new Michigan jobs and a combined investment from Brose and its customers of over $60 million by 2017."
"The support of the Michigan government was instrumental in our decision to open the new location here," added Scott Trujillo, vice president of finance of Brose North America. "Talks began in earnest during Gov. Rick Snyder’s visit to our sales, engineering and production location in Wurzburg, Germany, this March. After reviewing many locations in the United States and Canada, we chose New Boston due to the proximity to strategic customers, the positive economic climate for job creation developed by Gov. Snyder and favorable new fiscal policies in the State of Michigan."
"Brose, with 650 employees currently in Michigan, is a global leader and vital to our automotive supply chain," said Snyder. "The company’s decision to invest so heavily in Michigan is a strong statement of the great opportunities that, thanks to our business climate improvements, means Michigan offers growing companies one of the best business climates in the country."
The expansion, subject to approvals of state and local incentives, is expected to begin in the coming weeks.
