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December 1, 2016

Adient commits to Detroit with new global HQ

Adient is to plough around  US$50m into establishing its global headquarters in Detroit, generating 500 jobs following its separation from Johnson Controls.

Adient is to plough around  US$50m into establishing its global headquarters in Detroit, generating 500 jobs following its separation from Johnson Controls.

"Adient's decision to choose Detroit from among a large field of competitors to base its global headquarters is another major vote of confidence in where we are headed as a city," said Mayor, Mike Duggan.

Adient is the first Fortune 500 Company to establish headquarters in Michigan since Borg Warner moved from Chicago to Auburn Hills in 2003.

"We are excited to be a part of the growth occurring in the City of Detroit," said Adient chairman and CEO, Bruce McDonald. "It's only fitting we locate Adient's global headquarters in the Motor City and we have to thank the City of Detroit and the State of Michigan for the opportunity.

"Not only will we be bringing 500 jobs to downtown, we will also bring our history and commitment to supporting and partnering with communities where we operate.  We are committed to being a good neighbour, a good corporate citizen and a vital part of the community."  

Adient's Detroit presence is expected to generate around US$17.2m in income and property tax revenue for the city during the next 12 years. 

For selecting Michigan as the site of its global headquarters, Adient will receive approximately US$2m from the Michigan Business Development Programme for new job creation.

The company looked at 40 potential sites within and outside Michigan for its headquarters and ultimately selected the Marquette Building opposite the Cobo Centre. In the coming weeks, a proposal will be sent to the City Council on a package of incentives expected to include property tax abatements and brownfield tax credits.  

"Adient's decision to locate its global headquarters in Detroit is both strategic and symbolic," said Michigan Economic Development Corporation (MEDC) CEO, Steve Arwood.

"We welcome Adient and appreciate their long-term commitment to the economic viability of Detroit and to being a key player in the automotive industry in Michigan, where they become part of a manufacturing and R&D community that is transforming the future of the auto industry and transportation around the world."

For his part, Adient chief human resources officer, Neil Marchuk, noted: "We are going to undertake a complete renovation of the Marquette Building while preserving its place in the history of Detroit."

Adient will be consolidating corporate functions from various Michigan locations to the downtown Detroit building once renovations are completed in around two years.

In addition to the Detroit investment, the supplier intends to refurbish its technology and engineering centre in Plymouth, Michigan.

"We are launching a three to four-year project to completely restructure our Plymouth Technology Centre," said Marchuk. "Plans include creating agile team spaces that promote collaboration among internal teams, customers and suppliers."

The company is still determining the required level of investment for the Plymouth facility.

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