MICHIGAN-Economic Development and Business News

[DetroitMan]

A nice economic win for Michigan...
Norwegian hydrogen company plans $400M, 500-job factory in Michigan

Norwegian hydrogen company Nel will establish a $400 million manufacturing plant in Michigan, creating an estimated 500-plus jobs at what officials said will be the first U.S. facility to make alkaline electrolyzer equipment used to produce renewable hydrogen.

Nel Hydrogen, a subsidiary of Oslo-based Nel ASA and a collaborator with General Motors Co., is still evaluating where in the state to put the factory.

The project was announced Wednesday by Nel CEO Håkon Volldal, Gov. Gretchen Whitmer, U.S. Commerce Secretary Gina Raimondo, and state and local economic development officials attending the SelectUSA Investment Summit in Maryland.

"The choice of Michigan is based on an overall assessment of what the state can offer in terms of financial incentives, access to a highly skilled workforce, and cooperation with universities, research institutions and strategic partners," Volidal said in a statement in which he also highlighted "personal engagement from the governor and her team."

Another factor was the proximity to GM, which is headquartered in Detroit.

The announcement came months after Whitmer met with Nel executives during a trade mission to Norway and Switzerland. She said she was "thrilled" to land the plant over other states, boosting efforts to grow Michigan's car, microchip and clean energy industries.

https://www.crainsdetroit.com/econom...plant-michigan

[deja vu]

It was recently announced that Michigan will received nearly $1.6 billion in federal funding to expand access to high-speed internet across the state. This builds upon two other smaller (but still significant) grants announced in the past two weeks, one of which involves running fiber-optic cable across Lake Michigan -

A $1.5 billion federal grant could bring high-speed internet "to every corner of the state"
Leona Larson | WMUK
June 26, 2023

Federal and state grants announced in June aim to extend broadband to rural areas in Southwest Michigan and across the state.

A $1.5 billion federal grant for Michigan announced on Monday could vastly expand internet access in rural areas and among people who cannot afford a high-quality connection.

The grant will use money from 2021’s bipartisan infrastructure bill to bring high-quality internet connections to communities around the state. It's part of the Broadband Equity, Access, and Deployment (BEAD) Program, which altogether will provide $42 billion to bring affordable high-speed internet to people throughout the U.S...

Source: WMUK / Courtesy Image | 123Net

[DetroitMan]

Cybersecurity firm to move headquarters from Florida to Grand Rapids

Prescott, a cybersecurity compliance firm that’s based in Florida and was co-founded by an Ada resident, plans to open an office in Grand Rapids at 2301 E. Paris Avenue SE.

Prescott, founded in 2021 and currently based in Sarasota, Florida, may move into the office before the end of the year, said Jen Wangler, vice president of technology at The Right Place, a regional economic development group based in Grand Rapids that’s assisting the company with the move. “Prescott’s decision to relocate their HQ to the Greater Grand Rapids region is a strong testament to our area’s incredible tech ecosystem,” she said in a statement. “We look forward to seeing the future partnerships and projects that come from their move.”

Prescott was founded by Ryan Bonner and Chad Paalman, of Ada. The firm provides data privacy compliance support services to organizations that work with the U.S. Department of Defense.

Paalman was not available for an interview Friday, Aug. 11.

Wangler said the most recent figures she has indicate the company has about 12 employees, though that number may have since changed, she noted. Wangler said she didn’t know where the employees were based and whether any, other Paalman, reside in the Grand Rapids area.

https://www.mlive.com/news/grand-rap...nd-rapids.html

[DetroitMan]

Japanese auto supplier to invest $63M in Battle Creek’s largest employer

A global auto parts supplier headquartered in Japan will invest $63 million in a Battle Creek thermal manufacturing facility.

DENSO plans to retool production lines at the Michigan plant to make products for electric vehicles as the company shifts toward an electric future. With more than 2,100 employees at the thermal plant, DENSO is Battle Creek’s largest employer.

Gov. Gretchen Whitmer announced the news at DENSO headquarters while on a seven-day trip to Japan. The governor, alongside Michigan Economic Development Corporation CEO Quentin Messer, went abroad to try to secure investments, supply chains and well-paying jobs in industries like automotives, mobility and advanced manufacturing.

https://www.mlive.com/public-interes...-employer.html

[sentinel]

Originally Posted by DetroitMan

Cybersecurity firm to move headquarters from Florida to Grand Rapids


https://www.mlive.com/news/grand-rap...nd-rapids.html

GOOD. I love seeing companies, especially tech companies, move to the Great Lakes area.

[DetroitMan]

Michigan being considered for major EV auto supply plant

Vitesco Technologies is considering Michigan for an electric vehicle parts factory that would bring thousands of new jobs to the state, according to company executives.

The automotive supplier, which is making a strong electrification push after being spun off from Continental AG, is evaluating greenfield and brownfield sites across the U.S. for the new plant, said Sandy Stojkovski, the supplier's North American CEO.

The German supplier, whose base is in Auburn Hills, produces inverters, e-axles, high voltage boxes and battery management systems for Ford Motor Co., General Motors Co., Stellantis NV and other OEMs. A decision on the plant's location is expected in the coming months, with a production launch goal of 2026.

Stojkovski declined to say what exactly will be made at the new plant, how much will be invested in it or what new business wins prompted the expansion. She said the factory would employ "thousands of people over time."

"Because of all the new business we've been awarded, as we look at the outlook for the North American region, it implies that we would be doubling our sales in the region," Stojkovski said at a media roundtable Thursday at the Detroit auto show. "That creates a bit of a problem for us, which is that we don't have enough production capacity in the region to handle this new business."

Stojkovski said Vitesco aims to open a plant similar in size to its factory in Seguin, Texas, which has about 1,700 employees and is responsible for about $1 billion in annual sales. The plant would help Vitesco to keep up with surging demand in the region for electrification-related products, she said. In 2022, the company generated $1.17 billion from global electrification sales, and expects that figure to reach $5.3 billion by 2026.

https://www.crainsdetroit.com/manufa...gan-ev-factory

[Velvet_Highground]

Michigan is making good moves to leverage its established high tech ecosystem to cement its place as a national and global leader. This article is a few months old but it’s an important one as the race for domestic production ramps up a shortage of skilled laborers has been felt acutely at mega projects nationally.

State of Michigan Signs MOU to Establish Global Semiconductor Center of Excellence in Michigan

Decision to establish The Semiconductor Talent and Automotive Research (STAR) initiative in Michigan underscores strength of state’s semiconductor ecosystem, leadership in tech innovation


KLA facility in Ann Arbor

LANSING, Mich. – Today, Governor Gretchen Whitmer announced a new public-private partnership with semiconductor company KLA, Belgium-based technology innovation hub imec, the University of Michigan, Washtenaw Community College and General Motors that will establish a global semiconductor center of excellence in Michigan. The partnership was announced by KLA CEO Rick Wallace during his keynote at imec’s ITF World event focused on semiconductor advances and tech solutions, taking place this week in Antwerp, Belgium.

“KLA and imec’s decision to establish a new STAR center of excellence in Michigan demonstrates our global leadership as a hub for advanced manufacturing and innovation, especially in the semiconductor industry,” said Governor Whitmer. “I am proud that Michigan was chosen as the location for the STAR research center over several other sites, proving that we have the skilled workforce, growing economy, and strong, business-friendly environment to win projects from one of the world’s most innovative companies. Let’s keep working together to bring advanced manufacturing and critical supply chains home as we create economic opportunity in every region and build a brighter future for Michigan.”

The Semiconductor Talent and Automotive Research (STAR) initiative will focus on developing the talent base and infrastructure necessary to accelerate advanced semiconductor applications for electrification and autonomous mobility and move the automotive industry forward. The plan establishes a center of excellence in Michigan to formalize support for the development of the semiconductor industry workforce as well as the advancement of autonomous automotive solutions and electric vehicle research.

Specifically, the Michigan STAR center intends to focus on:

-Accelerating fundamental and advanced research for vehicle electrification and autonomous automotive solutions;

-Developing and translating of innovations in vehicle electrification and autonomous automotive technologies;

-Collaborating with learning institutions, including K-12 and vocational schools, community colleges, four-year colleges and research universities, to enable a Midwest-based skilled talent pipeline;

-Training and re-training programs to prepare the current workforce for modern chip manufacturing and assembly roles; and
Creating a physical collaboration space, laboratory and training spaces, and incubator funding for related startups.

“KLA is focused on investment in research and development to help address key challenges for automotive semiconductors,” said Rick Wallace, President & CEO of KLA. “In 2019, KLA opened a second headquarters in Ann Arbor, putting us closer to automotive customers and the larger Michigan technology ecosystem. The STAR Michigan initiative accelerates our support for talent development, collaboration, and innovation in the region.”



Lurie Nanofabrication Facility


U-M is also home to the world-class Lurie Nanofabrication Facility, which supports advanced semiconductor research, education, and regional economic development. Over the past five years, 95 companies and 150 U-M faculty members have utilized it, as well as researchers from 40 other US universities. MAVERIC, the Michigan Advanced Vision for Education and Research in ICs, is a semiconductor collaborative that is pulling together efforts from across the university to support a secure, resilient and innovative domestic semiconductor sector. And the University of Michigan Electric Vehicle Center, a $130 million state-funded effort, is working to accelerate collaborative EV R&D, develop a highly skilled workforce, and establish advanced campus infrastructure and facilities to support both research and education.

As part of the collaboration, Washtenaw Community College in Ann Arbor will launch a short-term program over the next year to train semiconductor technicians.

This was already posted on the West Michigan page and isn’t a sure thing but the announcement has a good feel to it as it seems LG has a positive opinion of the area after making a major investment in Holland. If this goes forward it certainly be a major coup for the state and Grand Rapids area.

LG Energy Solution ‘seriously considering’ Holland for North American HQ

HOLLAND — LG Energy Solution is positioning its growing operation in Holland to become the company’s North American headquarters as it scales up battery manufacturing across the country.

The designation could bring an influx of white-collar and senior-level positions, building on the hundreds of advanced manufacturing jobs LG Energy Solution Michigan is creating on the lakeshore with its $1.7 billion lithium ion battery expansion in Holland. LG Energy Solution Michigan is a wholly owned subsidiary of Seoul, South Korea-based LG Energy Solution.

“We are seriously considering making this site the headquarters for North America,” Roger Traboulay, project manager at LG Energy Solution Michigan, said during a presentation to local developers on Thursday at the expansion site in Holland. “If that happens, it would bring in a whole band of directors and senior persons with (a need for) executive-level housing.”

Holland is among the eight plants across the U.S. and Canada that LG is aggressively investing in to build capacity and supply chains for automakers that are launching electric vehicle lines, Automotive News reported this week. Once up and running, which is expected by mid-decade, the eight plants would have a combined 300 gigawatt-hours of electric vehicle battery production capacity.

Of those eight sites, Holland and an Arizona facility are the only two solely owned by the company, while the rest are joint ventures with major automakers. The projects represent nearly $27 billion in combined investment between LG Energy Solution and its automaker partners, which includes General Motors, Stellantis, Honda and Hyundai.

“As LG Energy Solution continues to expand in North America, the Holland facility is on track to fulfill the role of a control center (i.e. a ‘Mother Factory’), providing operational support and employee education/training to other facilities in the region,” LG Energy Solution Communications Manager Val Gent told Crain’s Grand Rapids via email.

[DetroitMan]

Scout Motors plans EV R&D center, 200 new jobs in Novi

Electric truck manufacturer Scout Motors Inc. is looking to invest $11 million and create 200 jobs with a new research and development center in Novi.

The Volkswagen-backed company aims to set up the innovation center in tandem with its South Carolina factory launch expected by the end of 2026. The project in Oakland County would create a hub for Scout’s product design and engineering, according to a briefing memo from the Michigan Economic Development Corp. The new jobs are expected to pay an average of $3,714 per week plus benefits. The plan is being supported with a $10 million performance-based grant, approved Tuesday by the Michigan Strategic Fund board.

The grant helps to “address the up-front cost disadvantage of locating the project in Michigan when compared to the competing sites outside of Michigan,” the memo said.

The brand said the facility, which it named the Scout Innovation Center, will be home to its product, design and engineering teams, as well as members of cross-functional support teams.

“As we design and engineer our vehicles, Michigan is the perfect place to establish our Innovation Center due to its deep automotive roots," Scout CEO Scott Keogh said in a Tuesday statement.

https://www.crainsdetroit.com/automo...0-rd-jobs-novi

[DetroitMan]

Kellogg reverses course to keep cereal production lines in Battle Creek

The state has pounced on a move by leadership at cereal maker WK Kellogg Co. to reconsider relocating several production lines to Ontario and instead found a way to work with the company to preserve those jobs in Michigan.

The company’s predecessor, Kellogg Co., had announced plans in September 2021 to move production lines to a facility in Bellevue, Ontario, effective by the end of 2023, to generate a projected $20 million in cost savings. The plan would have idled three production lines at the Battle Creek facility and eliminated 170 jobs. fter Kellogg Company split into two separate entities earlier this year, WK Kellogg employees asked executives to reconsider the investment in Ontario, Stacy Flathau, chief corporate affairs officer at W.K. Kellogg Co., said at the Michigan Strategic Fund meeting this morning.

“That spurred a really productive conversation about how we might work differently there to drive some long-term efficiency and make them more competitive in their own network,” Flathau said. “We are seeing some green shoots of some real engagement at our Battle Creek plans in recent months and we are very optimistic that will continue.”


According to a briefing memo from the Michigan Economic Development Corp. to the Michigan Strategic Fund board, the legacy Battle Creek facility is one of WK Kellogg Co.’s “highest costing and least efficient manufacturing locations.”

The decision to reinvest in Battle Creek as opposed to an Ontario facility came on the heels of WK Kellogg Co. execs announcing plans to invest $450 million to $500 million in its six North American manufacturing facilities. The MEDC then worked with the company to “capture some of that investment” in Battle Creek, according to the memo.

https://www.crainsdetroit.com/food-d...s-battle-creek

[deja vu]

I thought about posting this in the West Michigan thread, but it seems significant enough to share here. If Palisades Nuclear Power Plant does reopen, it reportedly could become the first in the entire United States to do so -

A $1.5 billion conditional loan brings Holtec closer to reopening Palisades
Michael Symonds | WMUK
March 27, 2024

The loan marks a major step forward in the effort to restart the nuclear plant.

U.S. Secretary of Energy Jennifer Granholm and Governor Gretchen Whitmer toured the Palisades Nuclear Plant Wednesday. During the visit, they announced that the Department of Energy has conditionally approved a $1.5 billion loan to Holtec International, which owns the shuttered plant in Covert.

Holtec wants to restart Palisades and it says the loan is vital to that effort.

The plant closed in May 2022. It’s up to the Nuclear Regulatory Commission to decide whether Palisades can reopen...