Auto supplier to invest $57.8 million, build on vacant acres in Rochester Hills
German auto supplier Kostal Kontakt Systeme Inc. plans to build a new facility in Rochester Hills, investing $57.8 million into the community and creating 32 jobs.
Dr. Markus Bergholz, CEO of the KKS division, said the new state-of-the-art facility — which will be built on 18 acres of vacant land near Adams Road, with M-59 frontage — will house all engineering, sales, production and distribution operations servicing the North American market. Construction is expected to begin in 2020.
“The first phase will be to construct 130,000 square feet, but this land provides us the opportunity to grow to 300,000 square feet,” he said in a statement.
The company — which designs and manufactures electrical connectors, primarily for the automotive industry — will employ a total of 206 people at its new Rochester Hills facility to start, but Bergholz said plans include growing to up to 600 jobs.
As a result of the investment, the company has been awarded a $320,000 Michigan Business Development Program performance-based grant from the Michigan Economic Development Corp.
Rochester Hills Mayor Bryan Barnett said the city was successful, early on, in bringing the MEDC to the table to discuss a plan to ensure that KKS’ investment and job growth stayed in Michigan.
“KKS was looking at other states, and we were thankful that the Michigan Strategic Fund approved a business development grant for the expansion,” he said.
The city, which also offered a 50 percent property tax abatement in support of the project, was chosen over a competing site in Alabama.
Barnett said Rochester Hills is thrilled that the company decided to invest, expand and create jobs in the city.
“We’ve been fortunate to build a working relationship with leadership, both here and abroad, and congratulate Kostal Kontakt Systeme on its growth and success and look forward to our future together,” he said in a statement.
President and CEO of KKS Inc. Holger Lettmann said the investment demonstrates the company’s strong commitment to the American auto industry.
“We look forward to our increased footprint in Michigan to serve our customers fast and flexible,” he said in a statement.
The new plant will replace the 80,000-square-foot facility at 1350 W. Hamlin Road in Rochester Hills that the company has rented for the past seven years.
Posted By: Rochester Post on October 30, 2018. For more information, please click here to read the source article.
To receive the In The Know from Signature Associates, please click here to be added to our mailing list.
« Back to News
Did you know?
- In 2018, Signature completed more than 1,129 transactions totaling 29.8 million square feet and 1,494 acres with a total value of $969 million.
- Signature Associates has 6 veterans or active duty military officers.
- Almost 60% of Signature’s professionals have been with the firm at least 10 years.
- Signature completed more than 1,129 transactions in 2018.
- Signature loves animals! Over 60 professionals have dogs and 20 professionals have cats and collectively we’ve raised thousands of dollars in the last year alone for area animal shelters.
- Signature is featured as: Best & Brightest Companies to Work For 2018 & 2017, Cool Places to Work 2018, 2017 & 2016, and Top Workplaces 2018, 2017, 2016, 2015 & 2014
- Signature Associates and its team donate time and money to over 40 organizations throughout Michigan, Ohio and the United States.
- Signature Advisory and Management Services team performed comprehensive construction management services for projects totaling over $60 million and managed more than 8 million square feet of commercial space for our third-party clients, making us the largest locally owned third-party property management firm in the market.
- Signature Associates has completed more industrial leases than any other brokerage firm.
- Signature Team Cares was formed in January 2017 to help further our efforts and long history of partnering with local organizations to improve lives and to benefit our communities.