FLINT, Mich. (Michigan News Source) – Michigan’s race to increase the state’s number of Electric Vehicle and other non-gasoline fuel vehicles may have caught its second wind after a new company is seeking to invest in hydrogen storage systems.
A subsidiary of French automotive supplier, Compagnie Plastic Omnium, is planning to invest up to $171 million at two sites in the state.
According to the Michigan Economic Development Corp. (MEDC), the company is looking at establishing a 200,000 square foot plant to produce hydrogen storage systems at a site in Grand Blanc Township.
Ahead of construction and use of the full size facility, the company is expected to begin leasing a 50,0000 square foot existing building for testing and validating hydrogen storage systems for road use, however the location is still to be determined.
The MEDC also said in a memo that the operation is expected to support 40,000 vehicles annually by 2027, will create 175 jobs, paying an average wage of $1,710 per week plus benefits.
“This project aligns with the MEDC’s strategic focus area of supporting a business in the target industry of mobility and automotive manufacturing and builds on the state’s work to position itself as the global leader in the future of mobility,” the briefing memo said.
After a Michigan Strategic Fund (MSF) board vote on Tuesday, the project will be supported by a $5 million performance-based grant from the MEDC and a 15-year 100% State Essential Services Assessment (SESA) Exemption valued at $2.4 million. According to the MSF, the incentives will help offset “the cost disadvantage of locating the project in Michigan” compared to other competing sites including Ohio, Indiana, and Canada.
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In July, uncovered documents revealed that Michigan lost out on a $100 billion semiconductor investment to New York, after Micron – an Idaho-based semiconductor company – which planned to invest $20 billion at the end of the first decade chose another state. The investment was expected to create 9,000 direct jobs and another 40,000 indirect jobs in the state.
Without discussing particular states, Micron told the Detroit News, “”We undertook a rigorous site selection process and chose New York because it was the most competitive state.”
Compagnie Plastic Omnium recorded a nearly 35% increase in revenue within the first half of 2023, as well as several other targets.
“The first half was also marked by a significant improvement in the operating margin of our lighting business, confirming our ability to achieve our medium-term profitability targets,” Laurent Favre, Chief Executive Officer of Compagnie Plastic Omnium SE said, “Moreover, the high level of new orders illustrates Plastic Omnium’s acceleration in lighting, hydrogen and electrification, as well as in its historical businesses. These new orders make a significant contribution to the geographic diversification of our businesses, particularly in the United States.”
The company ranks 30th on the Automotive New list of the top 100 g
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