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        IMA

China’s YFS picks Detroit to further expansion

YFS image

Chinese auto parts maker YFS Automotive Systems is expanding its US manufacturing footprint in Detroit, investing US$26.9 million in a new manufacturing facility and creating 160 new jobs.

The company will receive a Michigan Business Development Program performance-based grant through the Michigan Strategic Fund.

“YFS locating in Detroit is a significant step in further developing the state’s economy as well as a symbol that shows Michigan is an attractive place for foreign direct investment,” said Gov. Rick Snyder, who travelled to China last year and met with a range of Chinese businesses interested in investing in Michigan.

“In the intense competition among states, Michigan is strategically positioned to attract foreign investment because of a business-friendly environment and world-class workforce,” he said. The Michigan Strategic Fund approved the US$1.3-million MBDP incentive to bring the project to Michigan rather than Ohio.

YFS Automotive Systems is a Tier 1 supplier of fuel tanks and urea systems for automotive OEMs. The company was established in 1997 as ABC Group Fuel Systems and was purchased in 2014 by the Rongshi International, a Chinese-owned automotive supplier. The company plans to acquire approximately 30 acres of vacant industrial property in Detroit to construct a 150,000 sq-ft manufacturing facility.

The project will generate a total capital investment of nearly US$26.9 million and create 160 jobs. The city of Detroit has offered support to the project in the form of property tax abatement.

“We are very excited to expand our operations to Detroit and play a role in the revival of Detroit by providing jobs for the people of the area. Being in Detroit will allow us to pass on savings to our customers, optimise our product foot print and provide capacity for growth,” said Marius Sipos, President, YFS.

In addition to the support from Michigan Strategic Fund and city of Detroit, YFS is also requesting assistance from Detroit Employment Solutions Corporation (DESC) to help it develop its workforce.

(IMA)


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