BorgWarner and Pilkington Plan Multi-Million Dollar Projects

AUBURN HILLS, MI-Two automotive suppliers have been granted state tax credits and will be making property investments in Michigan. Both companies had been considering locations in other states, but tax incentives helped land them in the Great Lakes State.

BorgWarner Inc. will relocate its corporate headquarters from Chicago to Auburn Hills, MI, as part of an $8.9 million investment. Pilkington North America will spend $3.2 million to expand its existing operations in Clinton, MI. Pilkington had been considering making the investment at another plant it operates in Indiana.

BorgWarner already employs about 1,000 people at five different locations in Michigan. The company develops and manufactures a variety of powertrain equipment for the automotive industry.

The MEDC offered a single business tax credit worth more than $2.6 million over the next 10 years to help convince BorgWarner to relocate its headquarters to Auburn Hills. The city of Auburn Hills is expected to approve a tax abatement valued at approximately $686,000 for eight years to further facilitate the project.

Construction on the new facility is expected to begin in early 2004.

“We expect there will be significant benefits to a Detroit area location including closer connections with our global customers, opportunities for increased collaboration with the 450 employees at the BorgWarner Powertrain Technical Center in Auburn Hills and enhanced industry visibility,” said Tim Manganello, BorgWarner chairman and CEO.

The company will employ about 90 people at the headquarters.

Pilkington North America will expand its glass manufacturing plant in Clinton, which is southwest of Ann Arbor, MI.

“Pilkington is a major employer in the county and has a long history in Clinton,” said David Munson, Lenawee County Chamber of Commerce president and CEO.

The village of Clinton granted a tax abatement valued at about $90,000 to help attract the project. The state also granted a single business tax credit offered today worth $474,000 over a five-year period.

Pilkington North America Clinton plant manager Larry Pollack said the incentive package offered by the state and village is a “true testimony of economic partnership.”

The expansion is to add 120 jobs to the plant, Pilkington said.

Pilkington develops and manufactures glass products for the building, automotive and technical glass markets with operations in 24 countries in Europe, the Americas and Asia-Pacific.

A firm timeline on the Pilkington work was not available.