The Toyota Technical Center is moving forward with plans to expand its facility in order to accommodate for 250 employees being brought on as a result of a direct procurement relocation from a Kentucky facility.
As part of the expansion, Toyota said it would invest up to $32.5 million to construct a new facility in the township. The investment and expansion also comes along with a $4 million Michigan Business Development Program performance-based grant.
York Charter Township is also considering support of the project in the form of 12-year property tax abatement valued at $4.6 million. York Charter Township provided tax incentives to Toyota for its previous expansion.
“We greatly appreciate the support and encouragement of the Michigan Economic Development Corporation, Ann Arbor SPARK, York Township and elected officials across the state as we continue to expand our presence in Michigan,” Osamu Nagata, President and CEO of Toyota Motor Engineering and Manufacturing North America, said in a statement.
“The Toyota Technical Center has been the driving force behind our engineering and R&D activities in North America for more than 35 years, so I am pleased and proud that we will continue to grow these operations. We look forward to strengthening our ties with Michigan even further and making continued investments that will help drive the success of both Toyota, our supplier partners and the state for many years to come.”
The expansion of the TTC campus, Toyota officials said, is a key element of the company’s ongoing consolidation of its North American operations.
Toyota announced in April that it was consolidating its U.S. headquarters to Plano, Texas, and of all of its U.S. locations, that it would only sparing the York Township facility from consolidation.
Michigan Gov. Rick Snyder said that the global automaker’s choice to grow in Michigan reflects positively on the state’s business climate.
“Toyota’s expansion sends a message around the world that Michigan’s singular leadership in auto manufacturing and research and development means real opportunities for global companies,” Michigan Gov. Rick Snyder said in a statement.
“Toyota’s decision demonstrates how Michigan’s highly competitive business climate and premier manufacturing workforce can help automakers and other industries grow.”
MEDC President and CEO Michael Finney said Toyota is making a significant investment to grow its tech center workforce here, and efforts like this are continuously helping to turn the state around.
The Toyota Technical Center has about 1,100 employees now. It opened its 155,000-square-foot York Township facility in 2008 after acquiring 690 acres from the state of Michigan in 2005.
The construction of Toyota’s new headquarters is completed in late 2016 or early 2017.
“Growing our footprint in the design and engineering center of the U.S. automotive industry will enhance our ability to engage, support and partner with our key suppliers, the majority of which are located in southeast Michigan,” Nagata added.
“With this move, we are bringing our direct procurement activities closer to the strongest automotive supply base in the world. As we go from concept to mass production of our vehicles, having our direct procurement and engineering functions in close proximity will help us continue creating products that exceed our customers’ expectations, both now and in the future.”
Toyota credited Ann Arbor SPARK as being a critical partner in facilitating communications and meetings between the company and York Township. Ann Arbor SPARK also assisted with the application process, including helping Toyota secure letters of support and review tax information.