Economic Development, Human Resources, and Manufacturing

Auto supplier invests $65.5M in plant, 420 jobs

July 23, 2014
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A local auto supplier is investing $65.5 million to build a plant in the Lansing area that will create 420 jobs.

Challenge Mfg. Company in Walker — a maker of modular assemblies and metal products for the auto industry — plans to build a new plant in Watertown Charter Township, northwest of Lansing, the Michigan Economic Development Corp., or MEDC, said on Tuesday.

The expansion is a result of an increase in contracts.

MEDC, the state’s marketing arm, said Michigan was chosen over competing sites in Tennessee and Missouri.

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

Incentives

MEDC has awarded the company a $2.3-million grant for the project.

Watertown Charter Township also plans to support the project with a property tax abatement.

Recent expansions

Earlier this year, Challenge Mfg. announced plans to invest up to $50 million to construct a 400,000-square-foot plant in Pontiac to support assembly operations, generating 450 jobs.

The project was awarded a $2.5 million Michigan Business Development Program performance-based grant.

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

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