DENSO receives tax break to support expansion into EV sector
BATTLE CREEK — Global mobility supplier DENSO is receiving a tax break courtesy of the Michigan Strategic Fund as it works to retool production lines at its Battle Creek facility to accommodate vehicle electrification.
On Tuesday, the Michigan Strategic Fund board unanimously approved a 15-year, 100% State Essential Services Assessment Exemption with an estimated value of up to $1,433,250 to DENSO.
The tax break comes on the heels of the company's announcement that it plans to invest $63 million to retool production lines at its Battle Creek thermal manufacturing facility, accommodating product offerings that will support the electrification of vehicles in the years ahead.
"(We're) excited to bring this $63 million investment to the Battle Creek area as part of our necessary transition to electrification in the automotive space," Matt Briden, vice president of business planning for DENSO's North America Thermal Business Group, said Tuesday. "As part of this investment, our associates are going to have the opportunity to gain new skills and transition their technical and manufacturing expertise with the changing needs of our industry."
The project will ensure DENSO’s continued green mobility transformation in Michigan, where the company has more than 3,500 employees at several locations across the state, including its North American headquarters and technical center in Southfield.
More than 2,100 employees are based at the thermal facility in Battle Creek, which encompasses roughly 1.4 billion square feet of manufacturing and office space across six buildings in the Fort Custer Industrial Park.
"The incentive request will help make the Battle Creek facility more competitive for this and future projects," said Matt Chasnis, senior business development project manager for the Michigan Economic Development Corporation. "This project aligns with the MEDC strategic focus area of supporting a business in the target industry of mobility and builds on the state’s work to position itself as a global leader in vehicle electrification."
Battle Creek Unlimited Vice President of Attraction Robert Corder expressed support for the SESA exemption, touting DENSO's commitment to Battle Creek for the better part of four decades.
"This project is all about keeping jobs here in Battle Creek and future-proofing our community." Corder said. "We are grateful for DENSO’s continued commitment to Battle Creek and to the MEDC for its continued support. The SESA incentive will help preserve jobs in the Battle Creek region and support DENSO's continued growth in our community. We’re excited to play a role in their expansion into the EV sector."
Contact reporter Greyson Steele at gsteele@battlecreekenquirer.com.
This article originally appeared on Battle Creek Enquirer: DENSO receives tax break to support expansion into EV sector
