THREE RIVERS, MI — The city of Three Rivers has received a $2 million grant to aid in the expansion of a local manufacturing plant expected to create 100 new jobs in the area.
At least 51% of the 100 positions at American Axle & Manufacturing will be filled by low- to moderate-income workers, a joint news release from the Michigan Economic Development Corporation and Gov. Gretchen Whitmer’s office said Tuesday. Michigan was chosen for the expansion over the company’s facility in Mexico, the release said.
American Axle & Manufacturing, which manufactures drivetrain and driveline components for the automotive industry, was also approved for a five-year State Essential Services Assessment exemption valued at up to $468,888.
The company, which has 16 facilities across the state and 80 spread throughout 17 countries worldwide, was founded in 1994 and is headquartered in Detroit. Its largest Michigan facility is in Three Rivers, just north of Hoffman Street, and employs about 1,000. The company employs more than 3,200 people in Michigan.
With the $2 million block grant and the state assessment exemption awarded Tuesday, the company is now moving forward with plans for a $40.6 million expansion project at its Three Rivers facility.
The investment, of which $38.6 million is being paid by private funds, will fund new machinery and equipment to accommodate the production of the new product lines that will accommodate annual production volumes of 130,000 front drive axles and 174,000 rear drive axles per year, to be produced in Three Rivers.
Three Rivers City Manager Joseph Bippus said the city was pleased to be able to support the expansion with the grant funds.
“AAM has been an important part of our community for many years, and this project will help the company continue to grow and provide good jobs in or area,” he said.
Without assistance from the state, the company said it would have instead moved forward with the project at its Guanajuato, Mexico, facility, where it had sufficient space already available and would have saved on labor costs, according to a memorandum issued by the MEDC.
“Though there are no financial disadvantages of locating this project in Mexico, the company wishes to sustain and grow employment/competencies and believes commencing the project in Michigan would help the company remain at the forefront of the future automotive and advanced mobility industry,” the memorandum read. “Locating this project into Three Rivers will help the company sustain the employment levels and competencies that are necessary for the company and the state of Michigan to remain at the center and forefront of the future automotive and advanced mobility industry.”
Josh Hundt, executive vice president and chief business development officer for the MEDC, said the $40.6 million capital investment and creation of 100 new jobs in Three Rivers would allow American Axle to “be a steward for the community and surrounding area for years to come.”
“American Axle has been a long-time partner to the state of Michigan, and today’s announcement further cements Michigan as the ideal place for businesses to grow and attract new talent,” Hundt said.
The project — along with other projects approved Tuesday and located in Brownstown Charter Township, Benton Harbor, St. Joseph and Houghton — will together help create a total of 350 new jobs and retain 400 high-wage positions, according to state officials.
“Through today’s significant investments and initiatives, we are reminding the world that the ingenuity and innovation of Michigan’s people and businesses remains unmatched,” Gov. Gretchen Whitmer said in the release.
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