Economic Development, Human Resources, and Manufacturing

Auto supplier invests $50M in plant, 450 jobs

June 3, 2014
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A local auto supplier is investing $50 million to build a plant in the Detroit area that will create 450 jobs.

Walker-based Challenge Manufacturing Company, a tier-one maker of engineered modular assemblies and metal-formed products for the auto industry, plans to construct a 400,000-square-foot facility in Pontiac to support new assembly operations, the Michigan Economic Development Corp. said last week.

The company operates four facilities in West Michigan with more than 2,000 employees.

Incentives

Challenge Manufacturing will receive a $2.5 million Michigan Business Development Program performance-based grant for the project.

The city of Pontiac has also offered support to the project in the form of a brownfield tax increment financing reimbursement, to be administered through the Oakland County Brownfield Authority and property tax abatement.

The state said Michigan was chosen over a competing site in Ontario, Canada for the expansion project.

Previous expansion project

Last spring, Challenge Manufacturing was awarded a $1 million Michigan Business Development Program performance-based grant to expand in West Michigan and create 180 jobs.

The state said the company has exceeded the hiring commitment two years ahead of schedule and successfully collected its entire grant.

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