A123 Systems LLC, a developer and manufacturer of advanced lithium-ion batteries and systems, today announced plans to build a new headquarters complex in Novi, Michigan, representing a $40 million investment in the company’s future.
Located just off Interstate 96 near the Fountain Walk complex, the 32-acre company-owned site will house all corporate functions, an engineering center, new laboratory space and a manufacturing plant, all planned to best support A123 Systems’ long-term goals and global growth. The new 150,000 square foot campus will replace A123’s leased space in Livonia and Romulus, Michigan and serve as the workplace for more than 400 employees when it is complete. The campus also allows for future expansion to support the further anticipated growth of the global business.
“We are making a commitment to a continued significant presence in Michigan, in proximity to the skilled and experienced talent here,” said Jason Forcier, Chief Executive Officer of A123 Systems. “This new complex meets future needs by becoming our epicenter of engineering. It will allow us to grow our engineering workforce and bring testing inside, that has previously been done outside the company. In addition to our corporate staff and our engineering group, we will maintain manufacturing capability for systems assembly to meet the demands of the U.S. marketplace as they continue to evolve.”
As part of adapting facilities to match the transformation of A123 Systems’ business in the United States, the company also announced it will consolidate its U.S. manufacturing operations into a smaller site on the new campus. This will impact approximately 200 manufacturing jobs at the company’s current locations in Livonia and Romulus, Michigan.
Importantly, with these changes, the company expects that its net impact on the Michigan and U.S. economy through its payroll will surpass its current level by $10 million annually, by the end of 2019. The primary driver of this net payroll growth will be the company’s expanding engineering staff and testing capabilities with the new Michigan site.
The expanded engineering center announced today will continue to lead the development of new low voltage products for the growing global markets. Production for these products will be located in close proximity to customers, including the new Novi manufacturing facility, the recently announced facility in Ostrava, Czech Republic and the ongoing expansion at the company’s Hangzhou, China campus.
The company expects to begin construction in the third quarter of 2017 and begin to move into the new Michigan complex by the end of 2018.