A central Michigan automotive supplier plans to create more than 600 jobs at a new facility making parts for a forthcoming Fiat Chrysler plant.
Dakkota Integrated Systems, a joint venture between Rush Group and Magna International based near Lansing, Michigan, said the $55 million, 600,000-square foot plant would be built at the site of former schools on Detroit’s east side. Dakkota will purchase some 32 acres from the city’s school district for $2.6 million.
City officials said the anticipated 625 new jobs would be initially filled through the Detroit at Work program, which allows Detroit residents who sign up and meet program requirements to receive priority consideration before Dakkota considers applicants from the general public.
"We’re so proud to support FCA, provide employment opportunities in Detroit, and showcase world-class quality auto parts built by hardworking Detroiters,” Dakkota President and CEO Andra Rush said in the announcement.
Fiat Chrysler earlier this year announced plans to convert a shuttered engine plant into the first new auto assembly facility in Detroit in nearly 30 years.
"We are building a vertical supply chain in Detroit that can satisfy any automotive demand and extending Detroit’s global leadership in the auto and mobility sectors,” Kevin Johnson, the chief executive of the city’s economic development organization, added in the statement.
The proposal requires approval from zoning and planning officials, and incentives for the project will need to be approved by the city council. Mayor Mike Duggan’s administration is also expected to seek property, income, and utility tax abatements from the city and state.
Once the sale closes, officials expect to start construction within 60 days. Dakkota hopes to begin operations at the site late next year.
