UPDATED: 5/24/16 5:50 pm ET – adds details
Cosworth, an English supplier of electronics and powertrain products for high-performance vehicles, will open a $ 30 million plant in suburban Detroit to supply an unnamed manufacturer.
Cosworth CEO Hal Reisiger declined to identify the manufacturer in an interview, though he said the company produces “high-performance road cars.”
The supplier will produce V-8 cylinder heads at the factory in Shelby Township, Mich., according to a Michigan Economic Development Corp. memo.
Reisiger said Cosworth plans to eventually produce parts for other high-performance engines beyond V-8s and hopes to add other customers. He said the plant, which will begin production in 2018, will be flexible enough to produce parts for different customers.
Cosworth said it may expand the plant or open an additional manufacturing site in the future.
“It’s part of our plan, expanding our footprint,” Reisiger said.
The MEDC granted Cosworth a $ 2.1 million loan, saying it can be converted into a grant if it meets certain requirements related to job creation. The MEDC said the plant will create at least 50 jobs, while Cosworth said in a statement that it would generate up to 110 jobs.
Cosworth picked the Michigan location over a site in Indiana, according to the MEDC memo. Cosworth’s U.S. business is based in Indianapolis.
Reisiger said the Michigan location was chosen in large part to its “proximity to the customer base.”