Chinese automotive supplier YFS Automotive Systems, Inc. is expanding its U.S. footprint with a new facility for designing, testing, and manufacturing automotive fuel system components in Detroit, MI.
Supported by Detroit economic development tax incentives and a state grant approved by the Michigan Strategic Fund, the company plans to invest $26.9 million to acquire a 30-acre vacant industrial site in Detroit and build a 150,000 square-foot manufacturing facility.
The project is expected to create 160 new jobs in Detroit. YFS will receive assistance from the Detroit Employment Solutions Corporation as it builds up its workforce.
Governor Rick Snyder, who met with YFS executives during an economic development trip to China last year, said in a release announcing the project that YFS locating in Detroit is a reaffirmation of Michigan’s competitive business climate.
The Michigan Economic Development Corporation announced Michigan Strategic Fund approval of a $1.3 million performance-based grant through the Michigan Business Development Program for the YFS project.
MEDC Chief Executive Officer Steve Arwood said in the release that a strong collaboration between the MEDC, the Detroit Regional Chamber, the Detroit Economic Growth Corporation and City of Detroit proved to be vital in attracting a global manufacturer like YFS.
Arwood added that this company could have chosen any number of places in the U.S. to invest and grow and the fact that they chose Michigan is a testament to the state’s growing economy and outstanding workforce.
Gallatin, TN-based YFS Automotive Systems, a Tier 1 supplier of fuel tanks and urea systems for automotive OEMs, was acquired in 2014 by Chinese company Rongshi International Holding Co., Ltd. Rongshi is itself a wholly-owned subsidiary of SDIC, and serves as the Chinese state-owned SDIC’s overseas investment and financing platform.
YFS President Marius Sipos said in the release that they are very excited to expand their operations to Detroit and play a role in the revival of Detroit by providing jobs for the people of the area.
The company will be seeking Detroit economic development incentives in the form of a tax abatement for the project. Detroit Mayor Mike Duggan said in the release that this is an important step for YFS and Detroit.
Mayor Duggan added that manufacturing investments can provide good opportunities for Detroiters, and Detroit has great potential for attracting more investments and creating even more jobs in the future.
Detroit Economic Growth Corporation CEO Rodrick T. Miller likewise noted that this significant investment by a Chinese manufacturer underscores Detroit’s global advantage as a hub of automotive research, design, and assembly.