Kostal North America, the subsidiary of automotive supplier Kostal Group of Germany, will relocate its Novi, Mich., operations to Troy, Mich., investing approximately $13.6 million and creating 203 new high-technology positions.
The expansion also means that its Michigan facility will become one of three new Kostal Group international research and development (R&D) centers of excellence.
"Though Michigan's automotive businesses have seen setbacks over the last few years, including reductions in workforce and closings, Kostal North America has a strong commitment to the North American automotive market and our customers here with this expansion announcement," said Dr. Walter Maisel, president and chief executive officer of Kostal North America. "Our vision is to become a leading automotive partner with innovative, high-quality and cost-effective interior components and system solutions. Our new North American Center of Excellence in Michigan is one of the keys to fulfilling that vision."
Kostal already had started and will now accelerate the building of a North American Center of Excellence – one of three R&D centers worldwide. The Kostal expansion in Michigan will be sponsored by the Michigan Economic Development Corporation (MEDC).
Michigan granted Kostal a state tax credit valued at more than $5 million over 10 years. MEDC is providing job-training assistance through the Economic Development Job Training Program. The city of Troy also has proposed a 12-year tax abatement valued at $255,180 to support the project.
In North America, Kostal is mainly known as a switch supplier and for developing and manufacturing mechatronics and electronics products and systems for interior, body, comfort and convenience to the automotive industry. Just recently, Kostal entered the Driver Assistance Systems market to develop and manufacture products for communications and active safety.
Kostal plans to leverage its unique and market-leading European technology expertise to engineer and develop innovative products in Michigan that are specifically designed to meet North American market requirements.
"We at Kostal strongly believe that there are great opportunities in this challenging, but still largest automotive region in the world," Maisel added. "Thanks to the strong support and commitment from Governor Jennifer Granholm and her team at the MEDC we were convinced that Michigan will be the best place to grow our future business."
About the Author
