2nd Engine plant comes to Dundee

2^nd Engine plant comes to Dundee

Just over a year after it was announced that a new engine plant was coming to Dundee, the community has received news that it will be the site of a second plant.

Global Engine Manufacturing Alliance (GEMA) President Bruce Coventry and Michigan Governor Jennifer Granholm announced on Tuesday, Feb. 17 that a second engine plant will be connected to the existing GEMA plant in Dundee. The plants will be operated under a joint venture between DaimlerChrysler, Hyundai Motor Company and Mitsubishi Motors Corporation.

The plants will manufacture fuel- and emissions-efficient lightweight aluminum four-cylinder engines for the three automakers. The engines will be used in a number of subcompact and larger vehicles.

The second plant, to be connected to the existing facility (which is still under construction) on a 270-acre site, represents an additional investment of $323 million.

The first plant represented an investment of $400 million, for a total of $723 million invested in Dundee by GEMA. The first plant’s size is estimated at 500,000-600,000 sq.ft. with the addition being 450,000 sq.ft.

The addition is expected to add 250 new GEMA jobs (with up to another 50 first-tier supplier positions) to the overall operation. Gov. Granholm said the two plants will generate 842 new jobs

The state provided a package of incentives worth $20 million in grants and tax credits.

Together, the two plants will manufacture 840,000 engines each year, said Mr. Coventry.

“Our volume requirements have grown significantly since we began planning the first plant in Dundee,” said Mr. Coventry. “We will be supplying more than 25 future vehicle programs for our Alliance partners. Plus, we will look at possible other commitments in the future.”

The initial search process for a second NAFTA plant location eventually narrowed to seven “finalist” sites among several states. Dundee was chosen because of a solid business case developed with assistance from the state, as well as regional offices and the Village of Dundee.

“All the locations had attractive elements,” said Mr. Coventry. “But when all was said and done, we had everything we needed right here— including a number of great partnerships with the state, and with the village.”

“Global Engine Alliance has chosen Dundee, and Michigan, not once, but twice,” said Gov. Granholm. “This project is proof that Michigan remains competitive in the challenging global fight to keep manufacturing investment and jobs.”

Mr. Coventry said the site will allow GEMA to leverage its resources more effectively, under one roof.

“The objective is to compete with anybody, anywhere, and we can take advantage of incredible advantages from the standpoint of economies of scale, sourcing and investment. So, we’ve designed this facility on an entirely different model— we’ll have state-of-the-art production equipment and technology, innovative new processes, and the right people to make it all work,” he said.

A process is now underway to screen and hire GEMA employees.

Bruce Baumbach, GEMA Dundee plant manager, said, “Education and training is a top priority for our work force. Our training is being coordinated through partnerships with Monroe County Community College, Michigan Economic Development Corporation and Southeastern Michigan Community Alliance— and we’re very pleased to work with them in developing what I know will be a world-class group of employees.”

GEMA was created to produce a new family of four-cylinder engines for Alliance partners, the first of which is scheduled to begin production in 2005, with the second plant to begin operations in 2006.

The two engine plants are assembly plants, with the parts being made elsewhere. This will make the Dundee plants non-polluting, and quiet.

Production at the first plant is planned for later this year. Officials have said the first plant will employ 170 people in its first year, and more than 300 people within the next four years.

The engine plant will be landscaped using environmentally friendly design concepts, with native grasses and other plants that will not require much water or maintenance. This is in opposition to the usual commercial and industrial landscaping with manicured lawns requiring plenty of chemicals and water for upkeep.

A team of students and professors from Michigan State University won a design competition for the landscaping, and a $10,000 prize. The runner-up school was Miami University in Ohio.

Because the state cannot buy land and give it away, land for the first plant was optioned by the Monroe County Industrial Development Corporation. A $5 million grant was given to the MCIDC, which then turned the land over to the village. The village then sold the land to DaimlerChrysler for $1.

This was just one of the state’s incentives to bring the first plant to Michigan.

The Village of Dundee used captured tax dollars from the property to pay for infrastructure improvements, such as the extension of Ty Circle Drive to Ann Arbor Road, running water and sewer lines, and street lighting.

The Village of Dundee will build a new $8 million wastewater treatment plant with captured tax money from the first plant, at no increased cost to village residents.

“The state kicked in an additional $2 million for the wastewater treatment plant,” said Village Manager Patrick Burtch.

In addition, Ann Arbor Road was repaved, and bridges on that road were reconstructed.


2^nd Engine plant comes to Dundee Just over a year after it was announced that a new engine plant was coming to Dundee, the community has received news that it will be the site of a second plant. Global Engine Manufacturing Alliance (GEMA) President Bruce Coventry and Michigan Governor Jennifer Granholm announced on Tuesday, Feb. 17 that a second engine plant will be connected to the existing GEMA plant in Dundee. The plants will be operated under a joint venture between DaimlerChrysler, Hyundai Motor Company and Mitsubishi Motors Corporation. The plants will manufacture fuel- and emissions-efficient lightweight aluminum four-cylinder engines for the three automakers. The engines will be used in a number of subcompact and larger vehicles. The second plant, to be connected to the existing facility (which is still under construction) on a 270-acre site, represents an additional investment of $323 million. The first plant represented an investment of $400 million, for a total of $723 million invested in Dundee by GEMA. The first plant’s size is estimated at 500,000-600,000 sq.ft. with the addition being 450,000 sq.ft. The addition is expected to add 250 new GEMA jobs (with up to another 50 first-tier supplier positions) to the overall operation. Gov. Granholm said the two plants will generate 842 new jobs The state provided a package of incentives worth $20 million in grants and tax credits. Together, the two plants will manufacture 840,000 engines each year, said Mr. Coventry. “Our volume requirements have grown significantly since we began planning the first plant in Dundee,” said Mr. Coventry. “We will be supplying more than 25 future vehicle programs for our Alliance partners. Plus, we will look at possible other commitments in the future.” The initial search process for a second NAFTA plant location eventually narrowed to seven “finalist” sites among several states. Dundee was chosen because of a solid business case developed with assistance from the state, as well as regional offices and the Village of Dundee. “All the locations had attractive elements,” said Mr. Coventry. “But when all was said and done, we had everything we needed right here— including a number of great partnerships with the state, and with the village.” “Global Engine Alliance has chosen Dundee, and Michigan, not once, but twice,” said Gov. Granholm. “This project is proof that Michigan remains competitive in the challenging global fight to keep manufacturing investment and jobs.” Mr. Coventry said the site will allow GEMA to leverage its resources more effectively, under one roof. “The objective is to compete with anybody, anywhere, and we can take advantage of incredible advantages from the standpoint of economies of scale, sourcing and investment. So, we’ve designed this facility on an entirely different model— we’ll have state-of-the-art production equipment and technology, innovative new processes, and the right people to make it all work,” he said. A process is now underway to screen and hire GEMA employees. Bruce Baumbach, GEMA Dundee plant manager, said, “Education and training is a top priority for our work force. Our training is being coordinated through partnerships with Monroe County Community College, Michigan Economic Development Corporation and Southeastern Michigan Community Alliance— and we’re very pleased to work with them in developing what I know will be a world-class group of employees.” GEMA was created to produce a new family of four-cylinder engines for Alliance partners, the first of which is scheduled to begin production in 2005, with the second plant to begin operations in 2006. The two engine plants are assembly plants, with the parts being made elsewhere. This will make the Dundee plants non-polluting, and quiet. Production at the first plant is planned for later this year. Officials have said the first plant will employ 170 people in its first year, and more than 300 people within the next four years. The engine plant will be landscaped using environmentally friendly design concepts, with native grasses and other plants that will not require much water or maintenance. This is in opposition to the usual commercial and industrial landscaping with manicured lawns requiring plenty of chemicals and water for upkeep. A team of students and professors from Michigan State University won a design competition for the landscaping, and a $10,000 prize. The runner-up school was Miami University in Ohio. Because the state cannot buy land and give it away, land for the first plant was optioned by the Monroe County Industrial Development Corporation. A $5 million grant was given to the MCIDC, which then turned the land over to the village. The village then sold the land to DaimlerChrysler for $1. This was just one of the state’s incentives to bring the first plant to Michigan. The Village of Dundee used captured tax dollars from the property to pay for infrastructure improvements, such as the extension of Ty Circle Drive to Ann Arbor Road, running water and sewer lines, and street lighting. The Village of Dundee will build a new $8 million wastewater treatment plant with captured tax money from the first plant, at no increased cost to village residents. “The state kicked in an additional $2 million for the wastewater treatment plant,” said Village Manager Patrick Burtch. In addition, Ann Arbor Road was repaved, and bridges on that road were reconstructed.