JACKSON, Mich. — MACI is investing $82 million to make electric vehicle parts. According to their vice presidents, the decision was a no-brainer.
As the market migrates away from the internal combustion engine, it is adapt to survive for companies like MACI.
“It is kind of the trend of our history,” Vice President Joe Shaughnessy said. “We follow the automotive market. We started with a basic technology being the fixed compressor, and then through CAFE standard intensification, we had to invest in variable displacement technology, and now, the direction of the market is electrification.”
Located in Parma since 1990, the company plans to install new production processed retaining around 240 jobs and securing them into the future.
“Basically, we will be repurposing existing space so some of the original technology production will be removed and we will install the new ones,” Shaughnessy said.
To help their efforts, the Michigan Strategic Fund approved a five-year, 100% State Essential Services Assessment negotiated assessment rate for the company, which is valued at $984,000 for the company’s $82 million investment. The company also anticipates receiving a property tax abatement in support of the project.
Company leaders say they are uniquely positioned to take on the project.
“We do the die casting of our aluminum products, we machine the parts that we die cast, and then, we assemble the parts that we machine,” Vice President Steve Sauter said. “The quality control, the functional controls are all within this building.”
Plans call for production of the new parts to start in late 2024.
“As we go into the electrification, the compressor serves a different role,” Sauter said. “Besides just giving the cabin air conditioning, it also will be used to help cool the battery during fast charging, so that it helps take out some of the range anxiety. It maximizes the range that people can drive. So, the new compressor has multiple functions in the electric vehicle.”
Michigan was chosen for the project over other potential out-of-state sites. According to the Michigan Economic Development Corporation, this project continues its ongoing efforts to strengthen Michigan’s leadership in automotive manufacturing and builds on the state’s work to position itself as the epicenter of autonomous and electric vehicle manufacturing in the U.S.
“The project will also ensure the company’s long-term viability and future growth while it remains one of the strong employers in the region,” MEDC officials said.
According to Enterprise Group of Jackson Vice President of Economic Development Alex Masten, they are excited how this will impact locally.
“We consider this project a transformational and significant opportunity for MACI and our Jackson community,” Masten said. “We’re excited about MACI’s equipment investment to bring localized production of electric compressors specifically to Jackson County. This project has a huge impact on our local economy in terms of retained jobs and capital investment.”
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