Here’s something where the state of Michigan beat Ohio… in the business attraction department.

30 acres of vacant industrial property is planned to be acquired by YFS in Detroit, along with building a 150,000 square foot facility to design, test, and manufacture automotive fuel system components. The Detroit site won out over a competing site in Ohio.

The facility is expected to employ 50 people when it opens, and up to 160 at full capacity. The YFS building will also have room for a proposed 100,000 square foot future expansion. The company hopes to start production by July 2017.

The Detroit Economic Growth Corporation (DEGC) has facilitated a $1.3 million grant to YFS Automotive Systems, Inc., a Tier one supplier of fuel tanks and urea systems for automotive OEMS. The grant is part of the Michigan Strategic Fund Business Development Program. YFS is also planning to invest a total of $26.9 million in Detroit at a site that will be announced later.

If you’re familiar with the automotive industry, you may have heard of YFS Automotive Systems under a different name. It was founded in 1997 as ABC Group Fuel Systems, Inc. In 2014, the company was purchased by Rongshi International, a Chinese-owned automotive supplier.

Rodrick T. Miller, CEO of the DEGC said that “This significant investment by a Chinese manufacturer underscores Detroit’s global advantage as a hub of automotive research, design, and assembly.”

Along with the support from Michigan Strategic Fund, YFS also expects to apply for a tax abatement from the Detroit City Council. The company is also asking for help from the Detroit Employment Solutions Corporation, which works to provide employers with access to the talent in Detroit, to develop its workforce.

“This is an important step for YFS and Detroit. Manufacturing investments can provide good opportunities for Detroiters, and Detroit has great potential for attracting more investments and creating even more jobs in the future,” said Detroit Mayor Mike Duggan.

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