The Global Engine Manufacturing Alliance has announced a second engine plant to be connected to the existing GEMA plant in Dundee, Michigan, operated under a joint venture between DaimlerChrysler, Hyundai Motor Company and Mitsubishi Motors Corporation.

The new facility on the 270-acre site will double the capacity of the overall operation, which will produce a new family of aluminium four-cylinder engines. GEMA is spending $US323 million on the 450,000-square-foot addition, which is expected to add 250 new GEMA jobs (with up to another 50 first-tier supplier positions) to the overall operation.

"Our volume requirements have grown significantly since we began planning the first plant in Dundee," a GEMA spokesman said.

The initial search process for a second NAFTA plant location eventually narrowed to seven "finalist" sites among several states.  Dundee was chosen because of a solid business case developed with assistance from the state, as well as regional offices and the Village of Dundee.

The spokesman said the site will allow GEMA to use its resources more effectively, under one roof. "The objective is to compete with anybody, anywhere, and we can take advantage of incredible advantages from the standpoint of economies of scale, sourcing and investment. So, we've designed this facility on an entirely different model - we'll have state-of-the-art production equipment and technology, innovative new processes, and the right people to make it all work."

GEMA was created as a joint venture between DaimlerChrysler, Hyundai Motor Company and Mitsubishi Motors Corporation to produce a new family of four-cylinder engines, known as "World Engine," in North America. North American production is scheduled to begin in 2005, with the second plant to begin operations in 2006.